New U.S. Bank Study Finds College Leaves Students with More Personal Finance Questions Than Answers
July 26 2017 - 9:00AM
Business Wire
U.S. Bank rolls out 2017 Student Financial Literacy Study
results and incentivizes students to learn through scholarship
program.
Students are most interested in learning about saving, investing
and credit, and the majority have more concerns about each topic at
graduation than they did entering college. This according to
results of U.S. Bank’s 2017 Student Financial Literacy Study, which
includes quantitative survey and qualitative interview research
with incoming and current college students.
Credit, in particular, stands out as an area where students
continue to need more financial education during their college
years:
- Many students believe common myths. For
example, 55% of students do not know that their credit score is not
impacted by how much money is in their bank account.
- There is a gap between white and
multicultural students; 84 percent of white students say they know
what a credit score is, compared with 77 percent of African
American students, 75 percent of Hispanic students and 68 percent
of Asian students.
- There’s a gender gap, too, although
male students don’t realize it. Females demonstrated more knowledge
than males about what a credit score is used for.
U.S. Bank Scholarship program incentivizes students to
learn
The study found that students recognize the importance of
financial education, but don’t feel the need to learn now. To
incentivize students to take control of their finances, the U.S.
Bank Financial Genius 2017 Scholarship program includes a series of
online financial education tutorials about credit and more.
Students can enter by registering online and those who complete
tutorials receive up to eight additional entries (one per tutorial
completed) in a sweepstakes to win scholarships. The program
includes one grand prize $20,000 scholarship, one $10,000
scholarship and three $5,000 scholarships.
“Our goal is to be our customers’ most trusted choice when it
comes to financial education,” said Ederick Lokpez, head of U.S.
Bank’s student financial education program. “To establish that
trusted relationship, it’s critical we have conversations – online
or in-person – that can help students understand personal finance
and start them on a path toward goals big or small.”
Lokpez recently partnered with the bank’s innovation team to
host two co-creation sessions with college students to get their
ideas on how to integrate education into students’ banking
experience. “The sessions help us make financial education relevant
enough for students to want to learn today. A solution for
students, made by students,” he said.
Where students turn for financial information
As part of the 2017 study’s focus groups and interviews,
students said they’re most likely to turn to their parents first.
Sometimes, though, it goes both ways. The survey found that African
American and Hispanic students were most likely to be involved in
their family’s finances, and also most likely to cite that was
because their parents relied on them due to their math or
accounting skills. African American and Hispanic students were also
most likely to list “owning my own business” as a top financial
goal in the five years after college graduation.
If parents aren’t able to answer students’ financial questions,
they’re most likely to turn to online resources – and how they view
some resources can change over time. For example, as students get
older during their college years their trust in personal
finance-related social media posts from banks and news sources
increases, while their trust in those from family members and
celebrities decreases.
About the 2017 Student Financial Literacy Study
The 2017 Student Financial Literacy Study was conducted by
Latinum Network to uncover insights about students’ financial
literacy. It included an online survey with 1,628 undergraduate
college and high school students ages 18-30 and 21 in-depth
interviews.
About U.S. Bank
Minneapolis-based U.S. Bancorp (NYSE: USB), with $464 billion in
assets as of June 30, 2017, is the parent company of U.S. Bank
National Association, the fifth largest commercial bank in the
United States. The Company operates 3,088 banking offices in 25
states and 4,826 ATMs and provides a comprehensive line of banking,
investment, mortgage, trust and payment services products to
consumers, businesses and institutions. Visit U.S. Bancorp on the
web at www.usbank.com.
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U.S. BankPat Swanson, 651-587-3590patrick.swanson@usbank.com
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