“College graduates spent 16 years gaining skills that will help themcommand a higher salary; yet little or no time is spent helping them save, invest, and grow their money.”

- Vince Shorb, CEO, National Financial Educators Council

Tax returns, investing, college loans, interest rates. This list of terms can be rather daunting at first sight. However, the knowledge and importance of each of them is imperative to yourself and your financial future. Too many college students across America head off to school uneducated financially to what is for most the greatest investment of their lives. However they end up to their chosen institution, whether it is through scholarships, financial aid, loans, or the generosity of their parents, a large number of students are unaware of the finances surrounding them. According to Charles Schwab, less than 35% of parents have taught their teen how to balance a checkbook and explain how credit card interest and associated fees work. While 93% of American parents worry that they children might overspend or live beyond their means. The list of similar statistics goes on and on, all pointing to how young Americans have not been properly educated about money and the financial world.

While it is easy to let this population of young America hang out to dry and learn the hard way, there needs to be change. While attending a public Indiana high school it was a graduate requirement for myself to take and pass a one-semester course in economics. While this was very good thing to have, and is a step in the right direction, this is simply not enough. The economics course in which I took educated me very briefly in regards to my financial literacy. However, the course did not provide me with the right amount of necessary knowledge to continue on with the freedom in going to college. This freedom is the frightening thing for college students, as mom and dad are no longer by their children’s side to monitor and guide their child financially. According to College Parents of America, the average credit card debt of graduating college seniors is $4,100. Credit cards are one of the biggest reoccurring financial problems for college students, as the plastic card provides students with a sense of endless money and spending. Thankfully to the national Credit CARD Act of 2009 this amount has decreased, as since 2009 consumers under the age of 21 must prove that they have an independent income or get a co-signer before applying for a credit card. While this national act is another step in the right direction, more needs to be done.

Colleges nationwide have specific requirements and guidelines regarding classes that must be taken and passed to graduate, so why is financial literacy not one them? If every college freshman were required to take a course in financial literacy, this would be extremely beneficial to the economy, themselves, as well as their financial future. According to Capital One, about 50% of teens are eager to learn more about money management. While only 14% of them have taken a class on a financial literacy topic. These numbers prove not only that a majority of college students want to be informed about their finances, but that the thing that is holding them back is that they have not had the opportunity to become educated about it.

While I believe that it should be a passed act and a nationwide requirement for college freshman to take and pass a course in financial literacy, what makes sense does not always happen. So as a current college student, go out and become educated yourself. If college students are not going to be provided with substantial information and education regarding the financial word, then we must learn ourselves. Websites such as Investopedia and Khan Academy provide important, understandable, and relevant information, as well as educational videos to almost every aspect of the financial world. While we cannot learn everything in one day, it is crucial to make informed and educated financial decisions.

In a perfect world, this financial literacy class will be offered at your college this upcoming fall; unfortunately, this is unlikely. So understand how important it is to become educated financially and do something about it. Set aside a small portion of your day to become informed about the financial world, as this knowledge may be some of the most essential information you ever encounter.