In April 2015, the fifth-largest commercial bank in the United States, U.S. Bank, surveyed over 1,600 college students. The survey’s goal was to find out how much do students understand personal finance. Areas of concern included budgeting, saving, and credit. Results from the 12-question quiz concluded that 91 percent based their handling of money on what they were taught by their parents. Fifty-five percent of students said that their number one source for financial information or advice is their parents.

So, are parents to blame for their children’s lack of confidence and knowledge about money? The survey results suggests this and gives insight on a students’ daily thought process around personal finance. Below are additional survey results in the three top areas of concern:

Budgeting

  • Twenty-one percent of students say they are barely keeping up on day-to-day expenses. (Only five percent of students say they are prepared for unexpected expenses.)
  • Forty-four percent say they have little to no knowledge of creating and maintaining a budget.
  • Sixty-five percent grade themselves a “C” or worse in managing their money.

Credit

  • Only 39 percent of students correctly know that paying off a delinquent loan or credit card balance is not enough to remove it from a credit report.
  • Sixty percent believe using checks and debit cards can help build credit.
  • Forty-seven percent believe a co-signer will not be held accountable for paying off the loan if the student doesn’t find a job.

Saving for the Future

  • Sixty-three percent of students think 401k investments are guaranteed or don’t lose value.
  • More than 60 percent say they had little to no knowledge of investments or retirement savings.

 

To help push the importance of financial education, the U.S. Bank created the “Student Union” website. The site will provide tools and various resources to help put the fun back into financial literacy. There will be events and peer-to-peer feedback dialogue offered through the site as well. The Student Union will help students and parents discuss finances, money management, and the significance of credit scores.

Speaking of credit scores, students will receive free access to CreditView from TransUnion via the Student Union website. CreditView will allow students to see their credit score and outstanding balances. The service is free for U.S. Bank online banking customers and non-customers who signs up through the Student Union website. CreditView is also showing students how things can happen to their money using an interactive simulator.

For more information about the survey or CreditView, visit www.usbank.com.

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