By Business Wire, February 27, 2013, 11:15:00 AM EDT
Money Matters on Campus Sounds the Alarm for Augmented, Increased
Financial Literacy Education Programing
A new report detailing the findings from a survey of 40,000 first-year
college students from across the U.S. demonstrates to colleges and
universities how student financial problems not only impact individual
student outcomes but also the institutional mission.
Matters on Campus: How Early Attitudes and Behaviors Affect the
Financial Decisions of First-Year College Students identified
first-year college students' attitudes towards debt as well as related
financial behaviors to determine what role each plays in student
The study—conducted by EverFi
and sponsored by Higher
One—surveyed students on banking, savings, credit cards and school
loans. The majority of participants (91.2 percent) were first-year
college students (mean age = 18.2 years). One of the many survey
findings revealed a strong correlation between incurring early debt and
not being affiliated with a banking institution. Further, an increased
risk of negative financially related outcomes, as students and later in
life, was correlated with current risky financial attitudes/behaviors.
"Money Matters on Campus is unique because it offers specific
student attitudes and behaviors on which educators and policy makers
must focus and address. This report sounds the alarm that institutions
must augment current financial literacy education," said Mary Johnson,
Director of Financial Literacy and Student Aid Policy at Higher One. "We
need to ensure students entering into college are given the right
financial literacy education, tools and support to make sound financial
decisions while in college and beyond."
Traditional financial literacy education focuses primarily on providing
simple financial knowledge and reactionary tools, without accounting for
a student's individual attitudes, motivation and behaviors. Money
Matters on Campus details the need for a new, proactive approach to
financial literacy education based on identified existing attitudes and
"Colleges and universities—especially those enrolling greater numbers of
first-generation students than ever before—have an obligation to improve
financial literacy and increase positive financial outcomes for our
students," said Steven Bahls, President of Augustana College in
Illinois. "As leaders concerned with transparency, accountability and
access, our primary and time-honored concerns are to educate the whole
person, which must include students' financial health."
Although there are many areas of concern around the student behaviors
and attitudes outlined in the report, there are also signs for
encouragement—specifically in terms of banking behavior, with 86 percent
of survey participants having a checking account and over 65 percent
interacting with their bank's website at least a couple of times a month.
"Even though many of the findings are alarming, such as the number of
first-year students with credit cards [28.2 percent], flippant attitudes
toward certain negative financial behaviors and the large majority who
worry about debt [79.2 percent], there were also some areas that present
room for some optimism," said Daniel Zapp, Associate Director of
Research at EverFi. "For instance, students with a checking account were
found to be more likely to exhibit several other positive financial
A full copy of Money Matters on Campus as well as an infographic
summarizing the report's key findings can be downloaded at www.moneymattersoncampus.org.
About Higher One
Higher One is a leading company focused on creating cost-saving
efficiencies for higher education institutions and providing high-value
services to students. Higher One offers a wide array of technological
services on campus, ranging from streamlining the institution's
performance analytics and financial aid refund processes to offering
students innovative banking services, tuition payment plans, and the
basics of financial management. Higher One works closely with colleges
and universities to allocate resources more efficiently in order to
provide a higher quality of service and education to students.
Founded in 2000 on a college campus by students, Higher One now serves
more than half of the higher education market, providing its services to
over 1,300 campuses almost 11 million students at distinguished public
and private institutions nationwide.
More information about Higher One can be found at www.higherone.com.
About EverFi, Inc.
EverFi, Inc. is the leading education technology company focused on
teaching, assessing, and certifying K-12 and college students in the
critical skills they need for life. The company is powering a national
movement in 50 states that enables students to learn using the latest
technology, including rich media, 3D gaming, simulations, social
networking, and virtual worlds. EverFi's AlcoholEdu® for College is one
of the few education technology programs proven to reduce student
alcohol use and negative consequences, as demonstrated through
independently conducted, empirical research funded by the National
Institutes of Health. EverFi has reached more than 4.5 million students
with its online learning platforms.
Learn more at www.everfi.com.
Source: Higher One