From using check-cashing-services to carrying wads of cash to avoiding the banking system, college students are failing out.
A survey of 65,000 first-year college students sponsored by Higher One called Money Matters on Campus revealed some shocking news – college kids know very little about money. Students on average got only 2.3 out of six questions correct when quizzed on their financial knowledge during the survey.
However the fact is it’s not the college kids’ fault. They were simply never educated on these issues. Mary Johnson, Director of Financial Literacy and Student Aid Policy at Higher One said…
“These results show the need to start financial literacy education in the K-12 setting and for institutions to provide educational programs early on in a student’s college experience that take into account attitudinal, behavioral and demographic differences.”
The study also revealed that:
- Approximately 3 million American college students don’t have checking or savings accounts of their own
- Twenty percent of college students avoid the banking system and cash checks, carrying that cash around with them
- Approximately 646,000 college students cashed financial aid checks through a check cashing service
- The average financial aid check is more than $1,400
- Check cashing services charge exorbitant fees for cashing checks, as much as six percent
Gary Herman, President of Consolidated Credit, believes all kids should learn about money at a young age…
“When college kids start wasting money by cashing large checks through a check cashing service, it becomes clear that the amount of education on finances they’ve received throughout their young lives is seriously lacking. Educating kids on money should start at home and continue through the school systems.”
If you need assistance refreshing your money management skills, creating a budget or help managing your debt don’t hesitate to contact one of Consolidated Credit’s certified credit counselors or get started online with a request for a Free Debt Analysis.