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The consequences young adults are facing after the raging GameStop saga proves why colleges need to require financial literacy programming. 

A 2017 report suggested that only two-fifths of students think they understand student finances well. However, a lot of the money issues college students face could be avoided if financial literacy was taught in school. 

At Syracuse University, this could look like college students watching financial literacy videos, talking to a Smart Money coach and attending a financial foundation workshop once a year. It’s just a matter of whether students are taking advantage of these opportunities.

Financial literacy is especially important for college students because it’s the time when you start building financial habits that can set the tone for the rest of your life. 

“A lot of decisions that you make in college — for example, like getting a credit card — can affect you in the long-term,” said Kelsey Woodford, assistant director of the Office of Financial Literacy. “It’s really important because it’s the time that you’re starting to lay the groundwork of your financial house.”

So many college students struggle with financial literacy because there is so much that young people have to handle these days. As a result, other things take precedence over learning about financial literacy. 

Most college students that visit the Office of Financial Literacy ask questions about student loans and credit. As of 2021, 45 million borrowers collectively owe nearly $1.7 trillion in student loan debt. This is in part because students have little understanding of how student loans work. More than half of millennials take on student loans without calculating what their payments will be, and 83% of graduates will never repay their loans in full. Being financially literate would allow students to grasp a better understanding of interest rates, the best places to get personal and student loans and different, effective strategies to pay off loans. 

“Credit is very confusing, and there’s a lot of myths surrounding credit,” Woodford said. Simple things such as the difference between your credit report and your credit score, as well as different types of credit scores, can add to a world of confusion. 

According to a report from EVERFI and AIG, 36% of U.S. college students already have more than $1,000 in credit card debt. Colleges and universities should mandate programming to help students build credit, find the right credit card and learn smart ways to pay off credit card debt. 

At SU, students can further develop their financial foundations by taking advantage of the Office of Financial Literacy’s programs and services. The office has the Smart Money coaching program, which Woodford believes is the biggest resource for students because the student coaches can relate to students who need financial help and the program provides monthly workshops covering a range of topics. 

Requiring some type of participation at the Office of Financial Literacy — or creating more programs, like the Money Awareness Program, that require students to regularly speak with a Smart Money coach —would help students become more financially literate. This year, all first-year students were required to watch comedy financial literacy videos, which led to an increase of about 30 appointments at the Office of Financial Literacy, said Woodford. 

That being said, many students don’t visit the Office of Financial Literacy until they’re already experiencing financial problems. 

“Oftentimes, students don’t come to a Smart Money coach until they have an issue, so it’s kind of like going to the doctor any time you have an issue instead of going just routinely even if there’s nothing wrong,” Woodford said. 

A national survey in 2015 found that a staggering 70% of college students feel stressed about their finances. Worries about money can cause ongoing stress, anxiety and depression. Given that negative health experiences can affect college students’ academic performance and social life, mandated financial literacy programming could not only greatly improve students’ mental health but also their grades and relationships. 

Mandating programming would ensure that all students survive and thrive in today’s financial environment. 

Jenna Wirth is a junior studying magazine journalism. Her column appears biweekly. She can be reached at jwirth@syr.edu. She can be followed on Twitter at @jenna__wirth.

Published on March 2, 2021 at 2:25 am