Financial Literacy: 5 Most Important Lessons for College Students

By Kris Alban

We all are part of post-economic crunch times. The financial meltdown of major banks last decade has had its effects on people from all walks of life - including college students. Many states have cut educational funding, making it even more difficult for students to pay for college. This troubling situation has had serious repercussions over the past few years, and many students and recent graduates are having difficulty covering their expenses. The situation is getting graver as educational costs continue to skyrocket, leaving many college students with massive debt loads which they will likely endure for 10 years or more.
Because of little or no financial literacy, college students often do not understand what they are getting into when applying for a financial aid. According to inquiries made by the U.S. Consumer Financial Protection Bureau, there is over $1.2 trillion in student loan debt - and fewer than half of these loans are in repayment. While a significant number of Direct Loan recipients are still in college, there are quite a few cases of non-payments including forbearance, deferment and default.
Below are five of the most important areas where college students require financial literacy to help them improve their financial habits and make more-informed financial decisions:
1. Make an Informed Choice
Students need to be able to make an informed choice. They need the right guidance since these debts can stay with them for a long time after they're done with their education.
2. Be Educated on Income Taxes
Students need to be educated on how to fill the basic tax forms and file for themselves, in addition to knowing how the system works so they can proactively make better decisions which will help them during tax season