MANAGING YOUR MONEY
10 New Financial Avenue Modules Help College Students Expand Their Knowledge of Personal Finance
NSLP's Financial Avenue, an online financial education program for college students, has added 10 new, interactive mini-modules to further expand students' knowledge of key money management topics. Module topics include Banking Basics, Borrowing Money, Understanding Insurance, Investing in the Future, Understanding a Paycheck, Taxes and You, and Your First Job.
The modules, paired with the six existing Financial Avenue courses that cover budgeting, credit cards, paying for college, credit history, identity theft and contracts meet all of the US Department of Treasury's Financial Literacy and Education Commission's Financial Literacy Core Competencies Requirements. These Core Competencies are designed to help students establish a solid foundation to help them navigate financial matters through college and beyond.
The interactive modules engage participants from the start. Through video, social media posts, "practical application" exercises and knowledge checks, participants can quickly grasp the skills they need to navigate their way through each topic; each mini-module takes just five to fifteen minutes to complete.
Studies show financial education is vital to helping students and young adults better achieve their career and financial goals. Many higher education students are learning for the first time how to manage their own money. While some students have held jobs during high school, many have not been responsible for making fundamental decisions such as choosing a bank, buying insurance or borrowing money.
Using the Financial Avenue program, students first focus on the main courses of budgeting, contracts, credit cards, credit history, identity theft, and paying for college. The mini-modules expand student knowledge beyond the basic financial capability topics, reinforce basic concepts, and coach students to put what they learn into practical application. For example, students learn about the advantages and disadvantages of on- and off-campus jobs, the components of a typical paycheck, the difference between gross and net pay, how banking fees work, and how to tackle debt. These issues are often major stressors for students.
"In study after study we're seeing the same thing -- students want to increase their financial capability," said Kate Trombitas, NSLP vice president of financial education and former associate director of student wellness at Ohio State University. "We knew on our campus that money was the second-leading cause of stress, and that it was creating a barrier to academic success."
Many schools now realize that financial education can have a positive effect on student spending and savings habits, as well as on lowering student loan default rates. As a result, more schools are seeing the value in providing financial education to their students.
Several reports reinforce the importance of financial education. A 2009 Sallie Mae report underscores the importance of educating college students about using credit effectively, weighing their spending decisions and considering their source of borrowing. In that study, researchers analyzed credit card use among select groups of student loan applicants and found that 92 percent of undergraduate credit cardholders charged textbooks, school supplies, or other direct education expenses, up from 85 percent in the previous study. The 2009 "Journal of Student Financial Aid" states that researchers who explored the effects of loan counseling or consumer education programs found they appear to be related to lower rates of default.
Students need and want to improve their money-management skills. The Financial Avenue program provides students with practical knowledge to help them make informed decisions about how to manage their money. In difficult economic times, it is imperative to give students the resources they need to be effective money-managers today, as well as plan for a successful financial future.
For more information about Financial Avenue visit www.financialavenue.org.
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