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STATISTICS
RESOURCES
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PARENTS! Have you had that TALK yet?
By the time their teenager leaves for college, most parents have brought up some of the difficult topics that have to be discussed in a world with increasing risks to those who are inexperienced. Typically, parents may bring up topics such as underage drinking, illegal drug use, tobacco, sexuality, unhealthy relationships.
And certainly as their children prepare to leave for college, there is discussion about the importance of a good education and focusing on their studies.
However, there is one topic that parents routinely forget to discuss. And lack of knowledge and skills in THIS area could cause a student to endanger their future financial well-being, as well as their ability to stay in school. The topic is MONEY MANAGEMENT.
There is a concentrated effort underway to increase the financial literacy of our youth. Currently only 15% of our nation’s high school seniors graduate with any formal instruction in personal finance. 26% of 13- to 21- year-olds have reported that their parents actively taught them how to manage money. With a third of the nation’s high school seniors using credit cards, and bankruptcy filings for those in the 18 to 25 age bracket undergoing a tenfold increase in just five years, the need for that MONEY TALK with parents before college is VERY apparent.
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STATISTICS
Consider the following:
College Student Credit Card Debt
The use of credit cards by undergraduate students is at an all-time high. A survey of college students by Nellie Mae published in April 2002 found:
- 83% of undergraduates have at least one credit card
- An average credit card balance of $2,327
- 27% of undergraduates who have cards, have high-level balances
- 21% between $3,000 and $7,000
- 6% over $7,000
- Students double their average credit card debt - and triple the number of credit cards in their wallet- from the time they arrive on campus until graduation.
- The average student has 4.25 credit cards
And what about student loans:
Undergraduate Student Loans
Student loan debt has increased steadily along with the cost of a college education. Students often take on this debt, as well as credit card debt, not realizing the impact on their quality of life after graduation.
Median undergraduate debt: $16,500*
- Average undergraduate debt: $18,900
Class of 2002:
- Average student loan debt of private-school graduates: $21,200
- Average student loan debt of public-school graduates: $17,100
Source: Nellie Mae http://www.nelliemae.com/library/research_10.html
*Half of students with loans have more
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RESOURCES
The following articles will provide more information about what our kids are facing with a lack of money management skills.
Keep your college kid financially sane
» WEBSITE
Credit cards on campus: Article in newsletter “Enough!”
» WEBSITE
Importance of financial literacy among college students
» WEBSITE
Credit cards: big debt on campus
» WEBSITE
Parent Smarts – Credit information series for parents
Individual fact sheets are listed below
» WEBSITE
Putting your student on the road to financial independence
» PDF
Setting the stage for financial success
» PDF
Talking with your student about credit
» PDF
What every student should know about credit cards
» PDF
Beware - It could happen to your student
» PDF
Helping your student get out of credit card debt
» PDF
What about you?
Are you interested in learning more about managing money, especially saving for retirement? An excellent link with multiple resources is Financial Security in Later Life, which is a National and New Hampshire Initiative for the Cooperative Extension System.
You can find other links to Cooperative Extension in the Links section under Cooperative Extension Resources. UNH Cooperative Extension provides money management classes and publications in each county throughout NH. Check their website for contact information. Cooperative Extension exists in each state. Follow the link for the UNH Cooperative Extension site for contact information in a different state.
For more excellent resources on credit and debt, as well as savings and investments, consumer issues such as identity theft, saving for retirement and lots more, check the Project C.A.S.H. website section on Links.
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“...the financial world has become increasingly complex. If this instruction (money management) is not received in school or at home… it is taught at the school of hard knocks, which has a very high tuition.”
Dara Duguay – Jumpstart Coalition, Executive Director
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