The Dow Jones Industrial Average is down almost 3,000 points from this time last year, and many major banks are flirting with bankruptcy.
In light of the changing economy, University experts encourage students to consider their finances now and plan for the future.
"Anytime there is a disruption in the economy and the unemployment rate goes up, it's that much harder to get decent jobs for students," said Allen Parkman, a retired economist who is now a professor at the University.
Unemployment is going to be the biggest concern for students after they graduate, he said.
"The unemployment rate has crept up from about 4.7 percent a year ago and is now up to about 6.1 and is probably going to go higher," Parkman said.
However, a jump in unemployment can be positive: As the rate increases, it will become harder to get credit cards and loans, which will be good for the economy, he said.
Get content from The Daily Lobo delivered to your inbox
Despite the economic downturn, Parkman said students can expect to have less pain at the pump in the near future.
"We're not going to see any dramatic drops, but I would expect the price of
gasoline over the next six months to drift lower than it is now," he said.
Junior Jessica Caudill said she doesn't listen to every bad forecast but is concerned about the economy.
"I see the economy affecting my income when I graduate from college due to the fact of the stock market being down, gas prices being high and unemployment rates going up," she said.
A bigger problem than gas prices, Parkman said, is retirement investments through 401k plans. A 401k plan is a contribution plan that puts workers' retirement money in the stock market.
"At this time last year, the stock market was up 20 percent," he said.
Since the market has dropped, he said many 401k plans are in trouble.
"If you're relying on those retirement funds, you've got to feel anxious because of what's been going on," Parkman said.
The best advice for students, he said, is to start saving once they get a job.
"Some people are going to find, as they approach retirement, that they are going to be financially constrained," Parkman said.
Caudill is pursuing a master's degree in business management from the Anderson School of Management, and she hopes to open her own gymnastics academy.
"If the economy keeps going down, it's going to affect my business in the long run," she said. "If I don't have enough money coming into my business, it's probably going to take me longer to retire."
To remedy the situation, the government will need to either borrow more money or raise taxes, Parkman said. This means current students will have to pay more to support current retirees, he said.
Dawn Lafleur, the senior employee retirement specialist at UNM's Human Resources Department of Benefits, said the best advice she can give students is to start thinking about retirement early.
"You don't have to start big if you start saving early," she said. "Retirement is going to look very different when current students reach the age of retirement."
She said it is important for students to think about retirement as soon as they start working.
"What students need to be aware of is that you can't operate in a vacuum," Lafleur said.
