Paying for a college education requires a lot of financial planning. Most parents begin thinking about how to finance college many years before a student is ready to embark on a college career. Your college student may or may not be involved in this planning. But whether or not your college student is involved in the bigger financial issues such as tuition and other college expenses, it is important that your student become financially literate in order to survive financially during and beyond the college years.
A growing national problem
Financial literacy involves the ability to read, manage, and communicate about personal finances and to have the skills and knowledge to make competent financial choices about banking, credit, insurance, taxes and investments. How does your student stack up? Most high school graduates don’t do very well. High school student spending may create an unrealistic lifestyle. Iowa State University tested high school seniors’ understanding of money management. The average score was a 57% – a dramatically failing grade.