College students feel unprepared to manage their finances according to a recent survey by EVERFI1.
The U.S. Department of Education (ED) reports2 that if students receive financial literacy education in line with their goals, it’s more likely they will retain the information and use it to make informed financial decisions.
Champlain College3 also suggests that personal finance education should be a cumulative process, with relevant topics taught each school year.
Successfully introducing the concepts of financial literacy may require that adults first understand their own financial situations and goals, which is why implementing a customized, personalized, and reportable financial literacy program designed by experts is the best course of action.
The Case for Financial Literacy in Schools
Learning about financial literacy is important, as personal finance education provides students with the knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.
It’s equally as important, however, that this education be offered as early as possible.
Research has shown that too few students – especially those from low-income families – receive any personal finance education during high school, but they are expected to make financial decisions with long-lasting impacts on things like student loans and budgeting right after graduation.
In fact, 69% of parents have some hesitancy about discussing financial matters with their kids4, so offering financial literacy education at school is a terrific solution for young people.
Because of this, an alarming number of college students have questions about even some of the most basic financial topics.
Unfortunately, technology and instant access to information don't necessarily translate to financial literacy skills for students. During their college years, having access to that information in the form of classes and learning materials can set a firm foundation for their future financial stability.
Your students' level of financial literacy, financial wellness, and financial stress has a significant impact on things like:
How to Choose the Right Program
The research is clear – financial education is a powerful tool.5 Some financial wellness programs have been shown to help boost student credit scores, reduce delinquency rates, save more money, incur less debt, and make students less likely to make compulsive purchases.
However, not every financial wellness program helps students become financially sound.
When looking for a student financial wellness program, higher ed institutions should find one that has:
- Many avenues for learning such as games, quizzes, videos, and more
- Unbiased information
- Expert advice that's proven to help students with their financial wellness
- Provides an analysis of the results of the program and will help modify the program to obtain university goals.
In order to set your college students (and your school) up for success, search for a financial wellness program that addresses the needs of your students.
1 - https://everfi.com/
2 - https://blog.ed.gov/2021/04/financial-literacy-education-and-paying-for-college/
3 - https://www.champlain.edu/centers-of-experience/center-for-financial-literacy/report-national-high-school-financial-literacy/the-case-for-high-school-financial-literacy
4 - https://www.moneyconfidentkids.com/us/en/news-and-research/research/2017-parents--kids---money-survey-results.html
5 - https://www.finra.org/sites/default/files/investoreducationfoundation.pdf