Introduction
Most college students have low financial literacy skills. A 2018 study by RTI International and the RAND Corporation found “undergraduate students in the U.S. demonstrated low levels of financial literacy” (Conzelmann and Lacy). This is in part due to a lack of educational opportunities for the subject. According to a 2019 report by AIG Retirement Services, only 35% of their sample of adults--consisting of “over 30,000 college students from more than 440 institutions located in 45 states”--had taken a personal finance course in high school. At USC Lancaster, there is a Personal Finance course (FINA 369) offered, and it covers the following: “Life insurance, health insurance, wills, trusts, Social Security, stocks, bonds, real estate, mutual funds, and other uses of funds.” However, this course may not fit into every student’s schedule or degree requirements. As such, it is important to offer additional financial literacy resources outside of a formal setting to ensure accessibility for all students. To address low financial literacy skills, the USC Lancaster Financial Aid Office should offer personal finance workshops that give students the opportunity to learn and build knowledge necessary for financial success before and after graduation.
Many colleges have already begun to address the lack of financial literacy on their own campuses. For example, Ithaca College, located in Ithaca, New York, started the Personal Finance Clinic for Students on its campus (De Castro). This clinic is run by “students in the Wealth Management concentration in the School of Business” (De Castro). This allows them to better serve their peers as they are able to embrace their common identities as college students. Steven Novakovic, instructor in the Department of Finance and International Business, commented on the effects of having a student-run clinic: “This is a place you can go and you can feel like you’re going to be able to talk to someone who’s been in your shoes” (De Castro). Whether in a clinic or a workshop, this type of environment where students feel comfortable and understood is crucial. Because USC Lancaster is a smaller satellite campus, creating a personal finance clinic would not be the most effective solution as it would likely require funding and additional staff to run it. Rather, financial literacy workshops would be most effective to increase student’s access to financial literacy knowledge.
Implementation
Step One: Identify key stakeholders and collaborators.
For financial literacy workshops to be successful at USC Lancaster, it would be key to collaborate with USCL’s Financial Aid Office. For example, Kenneth Cole, the Director of Financial Aid and Veteran Affairs, would be an important person to consult when developing workshop curriculums and collecting resources. In addition, Mr. Cole, other staff in the Financial Aid Office, and professors who teach Personal Finance would be instrumental in hosting the workshops.
Step Two: Develop workshop curriculums, including presentations, activities, and supplemental materials.
USCL's Financial Aid Office website already has financial literacy resources on the following topics: Consumer Protection, Credit & Debt Management, Loan Default Prevention, Saving, and Student Loan Debt Management. These resources could be developed into workshops that are hosted every month. Additionally, these workshops could be recorded and posted on the Financial Aid website to supplement the existing resources.
Step Three: Advertise workshops and raise students' awareness.
Advertising would be necessary to raise students' awareness of the workshops so that they will take advantage of them. There are many places where the workshops could be advertised. USCL’s Director of Student Life Ryleigh Waiters sends out a “Lancer Update” email monthly/bimonthly in which the workshops could be included. The TRiO Learning Center would also be an effective place to advertise in order to reach many first-generation college students and those who have a financial need and may benefit from additional financial literacy skills.
Step Four: Evaluate the successfulness and effectiveness of workshops.
Next, it is important to evaluate the workshops to ensure the needs of students are being met and to ensure the effectiveness of the workshops. This could be done through measuring attendance of the workshops, surveying those who attend the workshop, and measuring the financial literacy rates and knowledge of attendees before and after the workshops.
Conclusion
As complex problems require complex solutions, personal finance workshops for college students is only one prong of a complex solution addressing low financial literacy. Many more efforts and initiatives would be necessary to address such a complex problem as low financial literacy. Taking a formal financial literacy course in high school or college would allow students to learn about financial literacy from an academic lens, allowing for a fuller understanding and better financial literacy. Additionally, financial literacy workshops would allow more students to acquire personal finance knowledge and be more financially successful.
Most college students have low financial literacy skills. A 2018 study by RTI International and the RAND Corporation found “undergraduate students in the U.S. demonstrated low levels of financial literacy” (Conzelmann and Lacy). This is in part due to a lack of educational opportunities for the subject. According to a 2019 report by AIG Retirement Services, only 35% of their sample of adults--consisting of “over 30,000 college students from more than 440 institutions located in 45 states”--had taken a personal finance course in high school. At USC Lancaster, there is a Personal Finance course (FINA 369) offered, and it covers the following: “Life insurance, health insurance, wills, trusts, Social Security, stocks, bonds, real estate, mutual funds, and other uses of funds.” However, this course may not fit into every student’s schedule or degree requirements. As such, it is important to offer additional financial literacy resources outside of a formal setting to ensure accessibility for all students. To address low financial literacy skills, the USC Lancaster Financial Aid Office should offer personal finance workshops that give students the opportunity to learn and build knowledge necessary for financial success before and after graduation.
Many colleges have already begun to address the lack of financial literacy on their own campuses. For example, Ithaca College, located in Ithaca, New York, started the Personal Finance Clinic for Students on its campus (De Castro). This clinic is run by “students in the Wealth Management concentration in the School of Business” (De Castro). This allows them to better serve their peers as they are able to embrace their common identities as college students. Steven Novakovic, instructor in the Department of Finance and International Business, commented on the effects of having a student-run clinic: “This is a place you can go and you can feel like you’re going to be able to talk to someone who’s been in your shoes” (De Castro). Whether in a clinic or a workshop, this type of environment where students feel comfortable and understood is crucial. Because USC Lancaster is a smaller satellite campus, creating a personal finance clinic would not be the most effective solution as it would likely require funding and additional staff to run it. Rather, financial literacy workshops would be most effective to increase student’s access to financial literacy knowledge.
Implementation
Step One: Identify key stakeholders and collaborators.
For financial literacy workshops to be successful at USC Lancaster, it would be key to collaborate with USCL’s Financial Aid Office. For example, Kenneth Cole, the Director of Financial Aid and Veteran Affairs, would be an important person to consult when developing workshop curriculums and collecting resources. In addition, Mr. Cole, other staff in the Financial Aid Office, and professors who teach Personal Finance would be instrumental in hosting the workshops.
Step Two: Develop workshop curriculums, including presentations, activities, and supplemental materials.
USCL's Financial Aid Office website already has financial literacy resources on the following topics: Consumer Protection, Credit & Debt Management, Loan Default Prevention, Saving, and Student Loan Debt Management. These resources could be developed into workshops that are hosted every month. Additionally, these workshops could be recorded and posted on the Financial Aid website to supplement the existing resources.
Step Three: Advertise workshops and raise students' awareness.
Advertising would be necessary to raise students' awareness of the workshops so that they will take advantage of them. There are many places where the workshops could be advertised. USCL’s Director of Student Life Ryleigh Waiters sends out a “Lancer Update” email monthly/bimonthly in which the workshops could be included. The TRiO Learning Center would also be an effective place to advertise in order to reach many first-generation college students and those who have a financial need and may benefit from additional financial literacy skills.
Step Four: Evaluate the successfulness and effectiveness of workshops.
Next, it is important to evaluate the workshops to ensure the needs of students are being met and to ensure the effectiveness of the workshops. This could be done through measuring attendance of the workshops, surveying those who attend the workshop, and measuring the financial literacy rates and knowledge of attendees before and after the workshops.
Conclusion
As complex problems require complex solutions, personal finance workshops for college students is only one prong of a complex solution addressing low financial literacy. Many more efforts and initiatives would be necessary to address such a complex problem as low financial literacy. Taking a formal financial literacy course in high school or college would allow students to learn about financial literacy from an academic lens, allowing for a fuller understanding and better financial literacy. Additionally, financial literacy workshops would allow more students to acquire personal finance knowledge and be more financially successful.
Works Cited
Conzelmann, Johnathan G., and T. Austin Lacy. “Financial and Student Loan (IL)Literacy among US College Students.” Brookings, Brookings, 15 October 2018, https://www.brookings.edu/blog/brown-center-chalkboard/2018/10/15/financial-and-student-loan-illiteracy-among-us-college-students/.
De Castro, Elijah. “College Offers Personal Finance Workshops to Students.” The Ithacan, 27 Oct. 2021, https://theithacan.org/news/college-offers-personal-finance-workshops-to-students/.
“FINA 369 - Personal Finance.” Academic Bulletin, University of South Carolina Lancaster, http://bulletin.usclancaster.sc.edu/preview_course_nopop.php?catoid=11&coid=6103. Accessed 11 Nov 2021.
“Financial Literacy and Default Prevention.” University of South Carolina Lancaster, https://sc.edu/about/system_and_campuses/palmetto_college/internal/financial_aid/financial_literacy_and_default_prevention/index.php. Accessed 11 Nov 2021.
Wood, Sarah. “New Survey Finds College Students Lack Financial Literacy.” Diverse, 15 July 2019, https://www.diverseeducation.com/students/article/15105068/new-survey-finds-college-students-lack-financial-literacy.
De Castro, Elijah. “College Offers Personal Finance Workshops to Students.” The Ithacan, 27 Oct. 2021, https://theithacan.org/news/college-offers-personal-finance-workshops-to-students/.
“FINA 369 - Personal Finance.” Academic Bulletin, University of South Carolina Lancaster, http://bulletin.usclancaster.sc.edu/preview_course_nopop.php?catoid=11&coid=6103. Accessed 11 Nov 2021.
“Financial Literacy and Default Prevention.” University of South Carolina Lancaster, https://sc.edu/about/system_and_campuses/palmetto_college/internal/financial_aid/financial_literacy_and_default_prevention/index.php. Accessed 11 Nov 2021.
Wood, Sarah. “New Survey Finds College Students Lack Financial Literacy.” Diverse, 15 July 2019, https://www.diverseeducation.com/students/article/15105068/new-survey-finds-college-students-lack-financial-literacy.