A recent Student Money Survey from WalletHub reveals a troubling lack of personal finance education among U.S. students, as nearly half say their schools are not adequately preparing them for financial independence. The survey sheds light on key concerns and challenges students face as they transition into adulthood.
Key Findings
- Financial Literacy Deficiency: 47% of students feel their school fails to educate them on personal finance effectively.
- Post-Graduation Fears: The top concerns among students include job scarcity (39%), student loan debt (35%), and credit card debt (13%).
- Peer-Pressured Spending: Alarmingly, 75% of students report feeling pressured by friends to spend beyond their means.
- Career Priorities: While 46% of students aim to maximize their earning potential, others prioritize following their passions.
- Parental Influence: Over half (54%) of students say a parent’s debt has negatively impacted them, while 30% describe their parents’ financial attitudes as “overly cautious.”
WalletHub’s Recommendations
To support graduates in navigating these financial hurdles, WalletHub has identified the Chase Freedom Rise as the best credit card for new grads. This card offers:
- $0 annual fee.
- 1.5% cash back on all purchases.
- Accessibility for those with limited or no credit history, making it ideal for building a credit profile.
Expert Insights
“Students need personal finance role models,” says WalletHub CEO Odysseas Papadimitriou in a press release. “Without guidance, many end up spending recklessly due to peer pressure or social media influences.”
The findings highlight an urgent need for better personal finance education at schools and in homes. WalletHub encourages educators, parents, and policymakers to collaborate on equipping students with financial knowledge.