College students today face growing challenges in terms of their financial future due in part to current economic conditions and a stifled job market. Arguably more oppressive is the rapidly rising balance of total student loans, currently sitting at $1.326 trillion according to FinAid.org. Steadily increasing costs for attending college lead to a need to borrow in order to complete a degree program. While institutions are required to provide entrance and exit counseling for students utilizing financial aid to fund their education, the average college or university is doing little to help students prepare for managing their big picture finances post-graduation.
With little recourse for reducing the total student loan debt balance for current students, the need for strong comprehensive financial literacy programs in colleges and universities across the country is becoming more essential to student success. Not only do thoughtful financial literacy programs provide a fighting chance for students once they have graduated, these initiatives also decrease student loan default rates and increase student retention across colleges and universities. Fortunately, there are a number of higher education institutions leading the way as it relates to preparing students for their financial future by way of well-rounded financial literacy programs.
California State University Northridge
In a direct effort to promote sound financial decisions among students during and after their experience at the university, California State University Northridge (CSUN) has been offering a financial literacy program campus-wide since 2011. Each semester, CSUN allows students to participate in numerous workshops and webinars developed and made available through the Financial Aid and Scholarship Department at the university. Programming includes topic discussions and in-depth education on the importance of saving money, budgeting, managing student financial aid awards, and the intelligent use of credit cards and loans.
In conjunction with other groups on campus including the University Student Union, the Career Center, University Counseling Services and Klotz Student Health Center, CSUN reaches hundreds of students each semester to educate them on the topic of financial literacy. Promotion of events such as the financial resource fair and board game night is done effectively through social media and on-campus word of mouth. Sponsors outside the University help offset the cost of presentations and workshops, and various speakers are brought in from the community and the Financial Aid Office to create robust programming for students.
Bridgewater State University
In a strategic effort to reach college students at a time when financial education is critical to their long-term success, Bridgewater State University has established the Office of Financial Literacy Initiatives. Spearheaded by Professor Margaret Brooks and the Center for Economic Education at BSU, students have the opportunity to participate in meaningful and relevant financial literacy programming throughout the year. Presentations and workshops focus on topics such as budgeting and saving, the effects of borrowing for education and personal expenses, credit scoring, managing one’s online identity and entrepreneurship. In addition, Professor Brooks plans to make available a free online stock market challenge meant to encourage students to learn about trading in real-time.
The BSU Office of Financial Literacy Initiatives is currently partnered with other offices on campus, including the Financial Aid Office and the Career Services Department. In its early stages, the Office of Financial Literacy Initiatives plans to also work in partnership with outside sources, including government officials, BSU alumni, community volunteers and local businesses to create an inclusive program.
West Virginia University
In the fall of 2015, West Virginia University launched a personal finance program to assist students in coping with stress associated with the financial burden of being in college. The financial literacy program consists of the Transit Financial Wellness course as its foundation – a mandatory first-year seminar for all freshmen but made available to all undergraduate students within the WVU system. While the initiative is in its first semester, administrators plan to accept feedback from both faculty and students as it relates to the relevancy of topics covered. Currently, the program includes education on budgeting tips, saving and general debt and cash-flow management.
Leaders at WVU hope to join the previously offered financial literacy resources with the new personal finance initiative, creating a robust program comprised of workshops, financial literacy instruction and online calculators and articles. The Financial Aid Office at WVU is leading the charge on the Transit Financial Wellness Course, and seeks to engage the help of the Office of Student Accounts, the Career Services Center and additional campus offices to ensure students receive the education they desire on financial literacy topics.
