Money management in college
Financial wellness is very important from an early stage in life. This is especially the case
for people that are in higher education. Financial awareness has always been an important topic
and some institutions take the initiative to ensure that students receive the right information on
financial management. In most cases, financial awareness programs do require some effort but
they are worth the effort considering the benefits that are associated with. Financial awareness is
incredibly important for people in college and below are just a few of the reasons.
Low retention rates
Research shows that one of the top reasons why students drop out of college is because of
financial stress. This is especially the case for first generation students since as much as 30
percent of them drop out in the first three years of college if they are facing financial stress. First
generation students are highly vulnerable since they have less money compared to other students
and they lack the advice and requisite knowledge to manage the little they have. With the right
knowledge on financial management, such students would learn how to manage their funds, they
could remain in school and even learn how to earn so they could have more to spend.
Loan default
Understanding how to manage finances is an important step in understanding how to
avoid loan defaults. Loan defaults are some of the most troubling issues facing students today.
For example, research shows that as of 2015, the average student left college with more than
35,000 dollars in student loans. 71 percent of students had student loans to pay which was an
increase of 7 percent from the decade before and more than 20 percent from twenty years before.
These statistics indicate that students are increasingly not aware of all the financial aspects of the
