College students need serious help with financial literacy, according to a 2019 study by WalletHub.
The survey found that two million college students – 1 in 10 – think credit cards offer free money.
“Unfortunately, I am not surprised that 1 in 10 students think credit cards are free money, considering the current state of financial literacy education,” said WalletHub CEO Odysseas Papadimitriou. “Schools aren’t teaching money management, at least not nearly enough, and many parents are actually more comfortable talking about sex than money.”
The study of over 200 students found that 14 percent would rather miss a payment than a party. Low-income students were four times more likely to choose missing a payment than their peers.
Meanwhile, 30 percent of students graded their financial know-how a C or below, with five times more female students giving themselves an F.
According to Papadimitriou, parents should do more to prepare college students for their financial responsibilities in college.
“It’s important to lead by example, for starters,” he said. “Even if you don’t manage your finances responsibly, having an open dialogue about money management matters in your household and recognizing your mistakes can go a long way. Your children will naturally pick up a lot of good habits and useful information.”