Financial literacy refers to the knowledge of essential topics and skills related to personal finance. It also involves using this knowledge in real-world situations. Being financially literate is key to economic stability and well-being. 

Financial literacy is especially important for college students who often have limited funds, substantial college debt, and little experience with money. 

Did you know? 

• 25% of college students have experienced food insecurity. 

• 53% of students say they don’t feel prepared to manage their money. 

• 75% of teenagers are not confident in their knowledge of personal finance. 

• 79% of students delay graduation due to financial issues. 

Benefits of financial literacy for college students: 

• Teaches you effective spending habits. 

• Prevents you from making devastating financial choices. 

• Assists you in handling financial emergencies. 

• Allows you to become wealthier. 

• Guarantees you a financially stable future. 

Understand these 5 fundamental principles:  

1. Earning 

Generating a steady income is essential for achieving financial stability. Increase your earnings by learning new diverse skills, negotiating your salary, or picking up a new side hustle. 

2. Spending 

Going overboard with unnecessary purchases can get you into trouble. Avoid prioritizing wants over needs, focus on an item’s quality over quantity, and track your expenses. 

3. Saving 

Putting away a portion of your earnings ensures you never run out of money. You can save effectively by creating an emergency fund, determining areas to cut back on, and automating your savings contributions. 

4. Borrowing 

Even if you get very good at budgeting, you’ll likely have to borrow money. To avoid pitfalls, try paying your credit card balance every month to avoid interest, borrowing within your means, and accumulating debt and accruing interest. 

5. Protecting 

Every person’s money is subject to dangers like theft and unforeseen expenses. To minimize the risks, make sure to protect your funds by purchasing insurance coverage, using strong passwords on financial asset accounts, and never sharing personal data online. 

Actionable strategies to improve financial literacy skills: 

Take advantage of discounts. Check your favorite services and local stores – do they offer products at a lower price for students or offer loyalty discounts? 

Consider buying second-hand items. Clothes, furniture, and household goods cost much less when they’re not brand new. 

Start thinking about your future early on. Even if retirement is decades away, it’s best to start saving as early as possible. 

Get the most out of scholarship opportunities. A scholarship may cover a substantial part of your college expenses. 

Build a good credit score. If you have a good score, you’ll get lower interest rates on credit cards and loans. 

Additional Resources at Missouri S&T: 

Parent Guide – Help your student become financially savvy. 

Miner Money Management – Learn about financial basics and test your knowledge with financial literacy games. 

Source 

Article adapted from https://studycorgi.com/#financial-literacy . Please Note: Missouri S&T does not endorse or have a relationship with SOURCE and articles are provided for information purposes only. Missouri S&T and SOURCE do not assume responsibility for error or omission in materials.    

Family & Friends 

105 Norwood Hall• 320 W. 12 Street / family@mst.edu  

Phone: 573-341-6323 • Website: http://family.mst.edu/ 

Facebook: Missouri S&T Family and Friends