Limited knowledge of personal finance and weak financial literacy skills are some of the concerns expressed by college students in a survey conducted by WalletHub. Findings in this study included:
- Nearly all (93 percent) of the students surveyed expressed concern about the economy.
- After graduation, the two major worries of students are not finding a job (36 percent) and educational loan debt (30 percent).
- One-fifth of students expressed a belief that a college education is less important since the COVID-19 pandemic.
- About half (52 percent) of the students responding voiced a concern that they were not learning enough about personal finance in school.
- As a result of the pandemic, the three major financial lessons learned were: (1) having emergency savings (44 percent); (2) not going into debt (23 percent); and (3) having a steady job (22 percent).
Some suggestions to address these concerns include:
- Financial anxiety can be reduced with simple personal finance actions: track your spending, cut back on unnecessary items, shop wisely, maintain a workable budget, pay off debts, and increase the amount in your emergency fund. Most importantly, emphasize the enjoyment of your connections and relationships with family and friends rather than on material items.
- Various career paths may not require a college degree; consider online courses, certification programs, trade schools, and other educational/training options.
- Be creative in your savings efforts with: (1) saving $5 a day instead of $150 a month; (2) using “no buy” days to save money; (3) paying for your drinks (or snacks) at home by setting aside the “price” in savings; (4) visualizing a savings goal and budget categories with a photo or post-It notes as a reminder; (5) create, or locate online, a poster that displays savings and debt categories to track your progress; (6) placing your credit card in a bag or container of water and place it in the freezer to avoid impulse purchases, then defrost it under warm water when you need to pay for an emergency.
- When applying and interviewing, clearly communicate the connection between your skills and experiences with the current and future needs of the job position and company. This requires strong research of the company and industry trends but will allow a person to better connect with their prospective employer. Also, be ready to talk about research projects, team experiences, and creative problem-solving.
- Although an increased number of personal finance classes are becoming available in schools, also seek out financial literacy education through community-based workshops, church outreach programs, and neighborhood organizations.
This research was the result of a nationally representative online survey of over 250 respondents. Responses were normalized so the sample would reflect U.S. demographics.
For additional information on the student money survey, click here.
- Have students talk to others to determine if their opinions are similar to those presented in this article.
- Have students create a role-playing drama that communicates actions to avoid various personal financial difficulties and career planning mistakes.
- Which of the survey results are similar to your current attitudes and experiences?
- What additional money and career topics not covered in this survey do you believe are of current concern for students and others?