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Freshmen More Financially Responsible than Seniors

Posted By Nammi Nadella On Apr 18, 2011 @ 12:20 am In Sandbox | Comments Disabled

credit cardAs we come up on mid-April, also known as the dreaded tax season, adults all over the nation feel the stress of getting their dues in on time. Living on a college campus, we generally don’t see this hubbub of taxy time but it prompted some researchers to wonder: How exactly do college students manage their finances?

Obviously, one of the things that makes college so kick ass is increased freedom in personal decisions. However, this doesn’t necessarily result in better decisions as brain development — an important factor in good decision-making — isn’t complete until the early twenties. So what exactly did these researchers discover about college students’ financial decisions?

One study found that financial behavior worsens as a student progresses through college. While 49 percent of seniors neglected to pay their credit-card balances, only 29 percent of freshman failed to do the same thing. Additionally, seniors were far more likely to report credit card debt than freshmen (78 percent of seniors compared to 49 percent of freshman to be exact). Despite the grim statistics, students are still more likely to write good checks and pay bills on time than they are to budget their money or balance a checkbook. Well, at least there’s some good news.

Image Source: liewcf [1] under Creative Commons

College Students’ Financial Literacy and Behavior [Psychology Today [2]]

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URL to article: http://clog.dailycal.org/2011/04/18/freshman-more-financially-responsible-than-seniors/

URLs in this post:

[1] liewcf: http://www.flickr.com/photos/liewcf/2374657184/sizes/m/in/photostream/

[2] Psychology Today: http://www.psychologytoday.com/blog/the-campus/201104/college-students-financial-literacy-and-behavior

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