Learning Money Management in College Pays Off
Raising financial capabilities among young adults and community members forms the main goal of an exciting campaign now being sponsored by the National Financial Educators Council (NFEC). Recent research indicates that students who learn money management in college have a clear advantage post-graduation. Gaining skill proficiency builds confidence, and confidence in turn leads to good decision-making.
The NFEC’s approach to teaching money management for college students is multi-pronged. This independent, socially responsible organization believes that education alone, while important, is not enough to help students achieve financial wellness. Raising awareness and building sustainable programs are equally vital pieces of a successful financial literacy effort. Thus their college initiatives include outreach and media components to raise awareness, plus consultation about fundraising and partnership building to foster sustainability.
The money management tips for college students presented in the college-level curriculum and events are practical in nature. That’s because the NFEC bases all its programs on theory-based education, which shows that experiential learning is the best way to teach money skills. Some examples of lessons in the university curriculum include banking essentials, building a clean credit history, avoiding bad debt, preparing for one’s dream job, and investing basics. All these lessons come complete with hands-on activities that allow students to practice making sound financial decisions.
When armed with a good grasp of financial literacy, college students gain a distinct advantage over those with no money management skills once they enter the real world. Money savvy students are better equipped to avoid the crippling burden of credit card and/or student debt. They will have a solid understanding of compounding interest, how and why to invest, so they can reap the benefits of watching their money grow without having to work for every penny. The tips college students learn by experiencing the NFEC programs will yield lasting benefits for a lifetime.