Financial Literacy

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The average college student is graduating with student loan debt or facing financial struggles during and after college. Some blame the skyrocketing increase in college costs, but part of the problem is more fundamental. Most students in the U.S are severely deficient in even the most basic financial literacy. This deficiency hinders them from understanding what they are getting themselves into when they take out loans and what their options are when they have to pay them back, further compounding their financial burden even after they leave school. According to Greenfield, financial literacy is the “ability to access, read, write, communicate about and critically appraise the financial texts that mediate college attendance” college finance …show more content…

Referring to a three-year study of students receiving IDA’s, Kezar (2010) finds a strong link between financial education and positive student financial and educational outcomes. Some of her suggestions on how colleges might offer financial education include: forming a group on campus to promote financial literacy, offering courses that teach financial skills, leveraging career centers, and setting up programs through financial aid offices. In this vein, Syracuse University has created the Money Awareness Program (MAP), an effort to assist its most deeply indebted students by offering grant money in exchange for them meeting a financial literacy requirement (Supiano 2009). Group sessions, individual counselling, and online resources are available for this purpose. The effectiveness of the MAP has yet to be evaluated, but the university is interested in continuing the program if the results are positive. Echoing the calls for multi-channel financial literacy approaches mentioned above, Goetz et al. (2011) surveyed 509 undergraduates, evaluating how students viewed three financial education methods (on-campus financial counseling, online resources, and in-person workshops). Based on this survey, Goetz et al. recommend using a combination of all three channels to engage students of varying …show more content…

Poon and Olen (2015) promote alternate, populist forms of financial literacy that are not endorsed by financial institutions and the many purveyors of financial advice. The authors warn against advice that “blur(s) the line between financial literacy, which is rarely effective, and advertising, which can be quite persuasive.” (Poon and Olen 2015:

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