Providing financial literacy programs for college students can help them excel in college and beyond. The vast majority of coursework that college students receive leading up to college helps them pick up the skills to earn more money. However, little if any time is spent showing them how to keep and grow the money they earn. Providing financial literacy for students can help balance out their education.
Most agree that having a college degree gives people an advantage. Studies show college graduates will earn almost a half-million more over their lifetime then someone that has not received their college degree. Even with a $500k advantage, there are many college graduates in foreclosure, debt and struggling financially simply because they simply were not provided a personal finance education.
The NFEC takes a holistic approach when designing financial literacy programs for college students. Focus is placed on helping the university accomplish their objectives as students are provided a practical financial education. Besides wanting college graduates to excel after school, many of the colleges the NFEC works with state three main objectives when developing a college money management program.
1) Reduce student loan defaults. With today’s employment market, providing financial literacy for college students is becoming increasingly important. Study after study shows our youth and adults fail basic financial literacy tests. They don’t know how to budget, save nor do they understand the importance of credit. It’s no secret why the student loan default rates are so high.
The NFEC offers unique programs to help universities reduce student loan default rates. From multi-media learning centers to structured coursework, events and financial literacy workshops. The NFEC’s latest events leverages technology to create an experiential learning experience that is fun and memorable. Making financial literacy for college students enjoyable and unique can improve the retention rates of the lessons.
Protect Title IV Funding. This issue is becoming increasingly important especially for the ‘for-profit college’ community. Adding programs that increase the financial capability of college students can help to protect Title IV Funding by reducing student default and dropout rates. Plus it can save all colleges the hassle of recalculating eligibility funds for that semester.
Improve graduation rates. Financial difficulties are one of the leading causes of students dropping out of college or ‘taking a semester off’. Ensuring your students have completed a college financial literacy program can help the students be prepared for the financial realities they face in school.
One of our favorite programs, especially for entering freshmen, is the Real Money Experience money management workshop – Video below. Besides preparing them for their college finances it also motivates them to earn their degree and to start planning for their future after college. Getting the students to focus on the financial benefits a college degree offers and showing them how starting to save early can help them achieve their dreams can help to get them focused on the big picture. The results can be having highly motivated students.
Below is video that Penn State Erie filmed to highlight their financial literacy initiatives and partnership with the NFEC.