College Students Are Smarter (Financially) Than My Generation (Not a High Bar)
I must admit I was pretty clueless about money when I went to college. We could start the story with the $500 plus of parking tickets that I received because I didn't realize you walked to class. OK, maybe I was just clueless. Fortunately, today's college student is going to school with a much higher level of understanding how money works. However, they could use a little fine tuning. Below are the findings from Wallethub just released 2018 Student Money Survey (my comments in bold).
- Nearly 5 million college students – 1 in 4 of those currently enrolled – believe an excellent credit score is worth more than a college degree. Well right off the bat, that statistic is baffling.
- 45% of college students don’t have their own credit card account yet. That credit report 1 in 4 think is so important need a credit card to establish credit.
- 1 in 3 college students think they’ll be worse off financially than their parents. At least for now that might be true.
- 4 in 10 college students say credit card debt worries them more than student loan debt. 4 in 10 probably don't have student loan debt? Student loan debt is by far the worst liability you could have other than money owed to the IRS.
- Best Credit Card for Students: Journey Student Rewards from Capital One – 1% cash back across all purchases, plus an additional 0.25% when you pay your bill on time. No annual fee. Don't carry a balance - Capital One can afford those benefits while they charge 24% in interest - that goes up along with rising interest rates.
- Best Checking Account for Students: Bank of Internet USA X Checking – No monthly fee or overdraft fee, and all domestic ATM fees are reimbursed. READ THE FINE PRINT - THERE IS ALWAYS FINE PRINT.
Well at least today's college student is smarter than my generation when it comes to money. Which isn't a high bar. However, results like above still support the notion that financial classes need to be taught in high school....and we are not out of the woods when it comes to the plight of financial literacy!