A study has revealed a clear need for greater and more differentiated financial literacy education in the K-12 environment.
The “Money Matters On Campus” report, now in its second-year, polled some 65,000 first-year college students across the country. In addition to the need for an early financial understanding, survey results indicate that colleges and universities should provide financial education at the onset of a student’s college experience to better ensure that students will make sound financial decisions later on. The study was conducted by Higher One and education technology specialist EverFi.
The study polled students on banking, savings, credit card usage and school loans, as well as featured a series of questions designed to assess students’ financial knowledge. Significant differences in students’ financial understanding were found based on age, race, gender and institution type. Moreover, survey data suggests that a mandatory financial literacy education in high school underlines fosters a positive relationship between knowledge, attitudes and behaviors in the financial arena.
The survey shows that those students who received financial literacy education in high school scored significantly higher than their peers on financial knowledge questions and have made more responsible financial decisions.