Financial Literacy In College Essay

Today’s college students are bombarded with ads, commercials and mailings telling us that we need to spend money to be happy. At the same time, many of us come to college very ill-equipped to handle our finances. Financial literacy, defined as "the ability to use knowledge and skills to manage one's financial resources effectively for lifetime financial security," is important in our money matters as well as academic performance.

Based on your understanding of financial literacy and experience (or lack thereof) of personal finance,

1) pick two personal finance topics (including but not limited to: credit cards, student loans, budgeting, saving, banking, and investment, etc.);

2) explain the role they play in your financial and general well-being;

3) explain why they are important for you to have a successful college experience and beyond.

Although, now that I am in my senior year, I had to take out a loan in order to pay for my expenses. At first I was lost and confused with all of the terms that they used, but thanks to a few of my mentors I was able to get all of my questions answered. As college student it is crucial that before someone commits to taking out a loan, they are fully aware and financially responsible to hold that debt under their name and have the ability to repay it back. In the future, taking out a loan not only helps people achieve their goal of starting a career, but for many this can be a great way to raise their credit score if they stay on top of their payments. Some may argue that student loans only cause future financial problems and while this may be true to some extent, if handled correctly, it can be a great help to fund your