Financial Literacy 101 for College

Financial Literacy 101 is an entirely new way for students to learn about managing money as they transition to college. Far more than static textual information, Financial Literacy 101 is an engaging multimedia experience that combines a robust curriculum tailored to the needs of students with a learning model designed to actually prevent financial problems before they start.

Why educate students about personal finance? Student indebtedness is one of the most pressing problems facing today’s college students. Starting salaries have not kept up with increasing debt loads and the average debt load of recent graduates has increased more than 300% in inflation-adjusted dollars since 1991. In fact, the media often refers to recent graduates as "Generation Debt".

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Consider the following:

	The average student's loan debt is now approaching $20,000 for an undergraduate degree
	According to some studies, the average credit card debt for new graduates is approaching $4,000, with 1 in 3 students graduating with credit card debt in excess of $10,000
	In 2001, 83% of undergraduates had more than one credit card, up from 67% in 1998, and 47% of students with credit cards have four or more, up from 27% in 1998
	Of first-year students with credit cards, up to 3 of 5 "max them out" during their first year of school
	Employers are increasingly using credit scores and credit reports in making hiring decisions

Further, excess debt is not just a problem for graduates. The cycle of unintended debt – particularly from credit cards – often starts as early as the first year on campus and has an immediate negative effect on student success and retention.

Helping students manage loans and avoid credit card debt is the best way to lower overall education debt and build good financial habits for the future.

At Decision Partners, we see financial literacy as an issue that affects the entire campus community; an issue that should be addressed with the same kind of institutional priority as alcohol and other drug prevention. Financial literacy education needs to be rooted in a learning model that is customized to the student and is sensitive to the myriad of factors that contribute to attitudes about money. Further, we believe programs must include assessment tools for the objective evaluation of program results.

There is a financial literacy gap on America’s college campuses that needs to be closed with comprehensive education for each and every student. That’s why we created Financial Literacy 101.

To learn more, please take our Financial Literacy 101 tour.