The impact of financial education in high school and college

This post is in relation to House Bill 51

In order to secure the financial future of our nation’s families and citizens, people need to make sound money managing decisions. Financial education can serve to help increase financial literacy and awareness. A recent study investigated the impact of finance education on investment knowledge and household savings rates years after the financial education was delivered from 1,039 alumni of a large Midwestern university.

Results:
Participation in college level course in personal finance was associated with higher levels of investment knowledge and savings rates.

This study found that financial education in college can have a positive impact on financial decision making. Individuals and families who make sound financial decisions are more likely to have secure financial futures. Educating people in college may be at least one important avenue for helping to build a financially secure nation.

The connection between lack of financial knowledge and credit card debt

This post is in relation to House Bill 51

Future financial security depends on making sound financial decisions today. Financial awareness is important to making financial decisions and managing money. College students are at particular risk for accumulating credit card debt and making other poor financial decisions that may have long-term negative consequences. A recent study of 448 students from 5 different college campuses found a connection between lack of financial knowledge and credit card debt.

Results:
Lack of financial knowledge was related to increased credit card debt.
Students reporting greater debt reported greater stress and decreased financial well being.

Recommendation:
There is a need for comprehensive financial literacy education among college students.

The authors of this research article recommend that college students be exposed to comprehensive financial literacy education in order to safeguard their future financial security. Their results show that a lack of financial knowledge is at least one important factor that needs to be addressed in order to help people make more sound financial decisions for their future. Financial literacy can be an important part of helping people and college students in particular make good choices.