The conflict between Ukraine and Russia has affected everyone in one way or another, but college students are being affected at a level that is not in plain sight. College students already have a tight budget as it is, but how exactly is the conflict affecting college students financially?
Albert Williams, the chair of the finance and economic department at the Huizenga College of Business and Entrepreneurship at Nova Southeastern University, is well-versed on the topic. Williams researched the Consumer Price Index to find the true effects of the conflict in Ukraine on the American economy.
According to Williams, from February of last year to February of this year, or Consumer Price Index, has gone up 7.9%. That means that almost everything has gone up about 8% in price in just 12 months.
“The Consumer Price Index is a change in prices of a basket of basic goods that a typical human being will consume daily,” said Williams. “It’s a common way in business to talk about how prices have been affected from year-to-year.”
The first and most notable effect from the conflict comes with fuel prices. Many college students have vehicles, and most vehicles require gasoline. A good portion of NSU students live off-campus, and drive to school. In terms of gas prices, they have shot up from $2.58 to $4.32 in just a year. Students who drive to campus are most affected by this.
“When the conflict started, it put uncertainty in the supply line for fuel and it automatically showed up in an increase of the price of fuel,” said Williams. “Many students drive to school, and, therefore, they have to fill up their trucks or cars, spending about one third more on fuel just to drive to campus.”
Quite possibly the most expensive change of all, the price of rent has also increased. For students who live off-campus or in dorms and aren’t locked into a contract, the month-to-month price of rent for housing is also increasing according to Williams.
“Since housing is the highest part of a person’s budget, an increase in housing costs takes up a flurry of their money,” said Williams. “If you live on campus and are coming back in the fall, you might expect to see an increase in housing prices.”
In addition to fuel and rent, food has also gone up in price as well. Unlike the last two effects, every student needs to eat. Unless the student is locked into a meal plan, they can expect to be paying more for food no matter where they shop.
“Food has also gone up in the last year at about 7.9%, and students can expect to see an increase in the price of food at home with vegetables, meats and bread,” said Williams. “When students eat out at a restaurant, they can also expect to pay more.”
When the conflict ends, the possibilities of what could happen are still unknown, but according to Williams, things could possibly return to normal.
“Once the conflict is resolved, the uncertainty in the global economy and global politics in the world will be reduced,” said Williams. “It doesn’t mean that everything will be back to normal, but we will at least reduce that geopolitical challenge… and return to some reasonable economy.”
