By: Andrew O’Donnell, intern for the U.S. Department of Education’s Office of Federal Student Aid
As someone currently attending community college, I can tell you firsthand about many of its benefits. Not only is community college significantly cheaper than four-year institutions and often much closer to home, it’s also a great place to begin your postsecondary education if you’re someone like me who was unsure of a specific program of study to pursue right after graduating from high school.
President Biden issued a proclamation deeming April 2021 as National Financial Capability Month. This communication emphasizes the benefits of financial capability, the value of financial literacy, and the importance of access to financial resources. Understanding personal finance topics such as savings, loans, and investments is seldom a straightforward task, especially in the context of paying for college. Subjects, such as borrowing, can be complex for incoming postsecondary students to fully grasp. With the notable year-over-year rising cost of pursuing higher education, some students may be left with a large amount of debt and regrets about how they chose to finance their college education. According to Teach for America, a recent survey suggests that 53% of college students said that they felt less prepared to manage their money than to face any other challenge associated with college. So, how can postsecondary student’s financial literacy be improved and regrets about financing their education minimized? One solution to consider is effective financial literacy education.
