Financial Literacy Programs: What The New Program By Student Development Services (SDS) Offers
How Students Handle Personal Finance
A 2014 survey by the Council for Economic Education (CEE) showed that only 19 of the 50 states in the U.S. require high school students to take a personal finance class before graduating. Consequently, most of these students go to college with almost zero skills in financial management. To demonstrate the severity of the situation, EverFi and Higher One conducted a survey that proved that although college students are managing their own money, they are becoming less responsible about it. The report indicated that only 39% of the fourth year students had budgets- and of these, only 47% kept track of their spending.
Wharton professor, Olivia S. Mitchell, who is also the director of the Pension Research Council, says that financially literate people tend to plan more, save more, invest smarter and have more wealth at retirement. He however clarifies that this is a correlation not a causal analysis. With this in mind, financial literacy programs are quite necessary for students to ensure that they secure their future and prevent financial frustrations.
An Insight On The New One Million Reasons Program By SDS
To help achieve this goal, the Student Development Services (SDS) announced in October that it wants to prepare students for the future by teaching them a few personal finance principles, through the One Million Reasons program. The program, which is a partnership between SDS, Office of Admission and Office of Financial Aid,mainly focuses on three areas. The students will be taught how to master the basics such as savings and budgeting; developing their skills including credit bureau and insurance; and considering the future for sample lessons in real estate and investments.With financial support from the Office of Admission and Office of Financial Aid, SDS will provide online resources, programming and in-class facilitations.
According to Melet Leafgreen, assistant director of Financial Aid, these students will graduate with financial knowledge which will make them more successful in managing funds and debts. He added that this cohort would even find it easier to repay their college loans. To reiterate this, Rachael Capua,assistant director of the sophomore and junior year experience, said that there were one million reasons why students should enroll for this program, noting that the education and experience was more than just financial health. It impacts one professionally, personally, spiritually and emotionally. To sum it all up, Logan Skoog, Senior child development major and an OMR ambassador for the College of Science and Engineering, thoughtfully pointed out that the program is going to be more effective because it is tailor-made for students, as opposed to the general idea of retirement and future kid’s college funds, which are currently viewed as ideas of great financial management.
In conclusion, college students and even working professionals have been known to make a couple of small but extremely detrimental financial mistakes, which would otherwise have been avoided if one had earlier enrolled in a financial literacy program.Therefore, more states should ensure that high school students graduate only after taking personal finance courses to adequately prepare them for college and adult life.