Financial Literacy Facts
Students across the country are increasingly stating that financial debt is their number on cause of stress
84% of students surveyed want more education on financial management topics (Sallie Mae, 2009)
Between 1997 and 2007, average undergraduate student loan debt more than doubled from $9,250 to $20,098 with a 6% increase between 2006 and 2007 alone. (Reed, 2008)
Credit Card Companies know that college graduates earn 80% more than high school graduates
College graduates have high loyalty to company that extends first credit
25% of entering freshman have a credit card
43% obtain first credit card during freshman year
By senior year 91% of student s will have at least 1 credit card and 56% will have 4 or more
Average credit card debt for college students is up from $1,475 in 2002 to $4,100 in 2008 and late payments increased by 33%
In addition to education loans, the average college student currently graduates with more than $4,100 in credit card debt. (Sallie Mae, 2009)
92% of students use credit cards to pay for books and supplies, 30% use them to pay all or part of tuition an alarming fact given that credit card interest rates are quadruple those of student loans and payments are not deferrable.
Only 47% of participating WCSU students passed a 2009 financial literacy quiz.
Between 1997 and 2009 student loan debt doubled
A study conducted at Arizona State University to assess how parental teaching, work experience, and high-school financial literacy courses affected student’ behavior the study indicated that “parental teaching had a greater impact on students’ financial relationships with their parents, their own satisfaction with their financial behaviors, and their financial behaviors themselves
A survey in 2007 at ASU asked students about how they budget, borrow, save money, and pay bills. Based upon the students responses their behaviors were grouped into “positive” or risky” categories. Risky financial behaviors included not paying bills on time, maxing out credit cards, not making full payments on credit cards, borrowing from credit cards and taking out payday loans. More than 70% of respondents reported engaging in at least one risky behavior during the previous six months and students who engage in one risky behavior was more likely to engage in others
According to a Charles Schwab surveys conducted in 2007 and 2008
- Teenagers believe they will earn “plenty of money”
- Boys expect to earn an average of $173,000
- Girls expect to earn $114,000
- Only 51% know how to write a check
- Only 34% can balance a checkbook
- Just 26% know how credit card fees work
- Only 34% of parents had taught their teens how to balance a checkbook
- Only 29% of parents had taught their teens how credit card fees and interest work.
- 93% of American parents with teens worry their teens might make financial missteps such as overspending or living beyond their means.
- While 71% of parents agree that the best way for teens to learn about money is from guided, hands-on experience or their own example, only 20% involves their teen to a great extent in the family’s budgeting and spending decisions
- 69% of parents admit to feeling less prepared to give their teens advice and guidance about investing than they do about the “birds and the bees”
A 2008 survey conducted by Capital One found that
- Only 14% of teens had taken a personal finance class in school and 69% of teens say that what they know about money they learned from their parents.
- 54% do not know the difference between financial “needs and wants”
- 50% of teens expressed an interest I learning more about managing money and 76% say they want to learn about the basics of finance now because it will help them make better financial decisions later in life.
Only 59% of young adults (ages 18-29) pay their bills on time every month ( National Foundation for Credit Counseling , 2008)
55% of parents with children ages 16-24 voiced concern over their children’s ability to become financially independent without monetary assistance from them. (Hartford Financial Services Group, 2008)
According to a 2008 study of college students sponsored by the National Association of Retail Collection Attorneys:
- 31% of students polled do not worry about debt, believing they can pay it back once they are out of school
- Only 46% always keep records of their spending and retain receipts
Three out of every 4 American adults say they aren’t saving enough (Pew Research Center, 2008)