In a recent poll conducted by Higher One Holdings, it was revealed that U.S. college students lack the financial knowledge needed to manage their money and over half are currently in credit card debt. The survey also shows that students are looking to higher education institutions over their parents as the source for providing financial literacy.
Supported by the fact that 80% of respondents got at least three answers wrong on a 10-question financial literacy test, college students are in dire need of better financial literacy education.
And when asked about who should provide this education, more than three times as many students responded with their schools being the ones responsible. Students say colleges and universities need to increase financial literacy initiatives and expand programs that teach students the skills they need to successfully manage their money.
Additional findings from the survey showed:
- More than half of the college students who responded admit that they were late paying bills this year
- More than half of the college students who responded don’t know how much money they should set aside for an emergency savings fund
- More than 70% of the college students who responded don’t know how to access their FICO score to check their credit standing and see how their past financial behavior will impact their future finances
- More than three-quarters say that they save less than 5% percent of their income and over half of students saving less than 1%
Students are increasingly aware of the need to be financially literate and are eager to learn. Based on the survey, areas of financial management they were most interested in learning more about include savings, budgeting and maintaining good credit.