Since the pandemic and the digitization of most services, the pressing need for improved financial literacy among students has skyrocketed. Students are now faced with the responsibility of managing their finances and planning for their future in an increasingly complex financial landscape.1

As financial products and services become more sophisticated and technology begins to take over, students must have a solid foundation in financial literacy in order to make well-informed decisions that will secure their financial stability. 

For example, new financial avenues such as cryptocurrencies have become widely accessible, but many students lack the necessary knowledge to effectively invest in and manage these digital assets.2 

Colleges and universities must own their role in providing proper financial education to these students so that they can successfully navigate a more and more complicated financial landscape. 

Current Pain Points of Financial Literacy

The importance of financial literacy cannot be overstated, as it equips students with the tools they need to manage their finances effectively and avoid costly mistakes. However, implementing financial education in colleges and universities is a challenging task due to numerous obstacles.

As we look toward the future of financial literacy, it’s important to understand the biggest obstacles that are currently being faced. By understanding these challenges and working towards overcoming them, higher education institutions can play a pivotal role in fostering a generation of financially literate graduates.3

Some of the biggest challenges we are facing now are:

  • Limited resources: Many colleges face budget constraints that can make it difficult to invest in financial literacy programs or hire dedicated staff to teach these subjects.3 
  • Competing priorities: Financial education may be perceived as less important compared to traditional subjects, making it difficult to integrate it into the curriculum.
  • Lack of standardized curriculum: There is no universally accepted financial literacy curriculum, which can make it difficult for educators to determine what topics to cover and in what depth.3 
  • Time constraints: The packed schedules of college students can make it challenging to find time for financial literacy courses, workshops, or other resources.
  • Overcoming financial taboos: Many students and families may be reluctant to discuss personal finances openly, leading to a lack of engagement with financial education initiatives.3 

What Does the Future Look Like? 

The ever-changing social landscape along with evolving technology presents new opportunities to revolutionize financial education for students. 

Colleges and universities must be preparing for the future financial landscape by offering accessible, tailored, and engaging resources that prepare their students for unique financial challenges. 

Financial literacy education for students must be adaptive and responsive to the ever-changing financial system, with an emphasis on equipping them with the skills and knowledge necessary to navigate new and emerging financial products and services.

Although there is a lot of doom and gloom in the financial literacy space, the future of financial literacy for students looks very promising. With a diverse array of programs and approaches emerging, the ability to address the varying financial situations and requirements of young individuals from different backgrounds is increasing.4

There are several key things colleges and universities must consider for the future of their financial literacy programs. 

More Interactive and Personalized Programs

Technology will play a pivotal role in enhancing financial education for students by providing more accessible, engaging, and personalized resources. 

Through the use of digital platforms, apps, and online resources, financial education will reach a wider student audience and cater to their specific needs. Programs should include interactive tools such as videos, games, and quizzes, which can make learning about personal finance more enjoyable and relatable for students. 

Behavioral Aspects

In addition to technology's role in delivering financial education, it will also help address the behavioral aspects of finance among students. 

By understanding the psychological factors that may influence financial decision-making, young individuals will gain greater control over their financial choices and avoid potential pitfalls. 

Programs must facilitate this understanding by offering resources that target specific situations and provide insights into how students can overcome behavioral biases and make better financial decisions.

Increased Accessibility 

Technology also has the potential to democratize finance for students by increasing accessibility to financial products and services for a wider range of young individuals – including first-gen students. 

This accessibility does come with some risks though, as students without sufficient knowledge or resources may be exposed to financial products that they do not fully understand.

So the need for effective financial education is more critical than ever, as it can help mitigate these risks and ensure that students are well-equipped to navigate a complex financial landscape.4 

Increased Entrepreneurship

As more students consider self-employment or freelancing, schools should incorporate entrepreneurial and financial independence concepts into their financial education programs.

These programs need to emphasize equipping students with the skills to navigate economic downturns, job loss, and other financial challenges.5

Start Implementing a Program Now to Stay Ahead of the Curve

To stay ahead of the curve, colleges and universities should take proactive measures and start designing a financial literacy program now that is prepared for the future. This investment in financial education is not only vital for the success of students, but it will also contribute to the overall economic well-being.6 

To ensure that their students are prepared for the future of financial literacy, colleges and universities should take the following steps

  1. Develop a comprehensive financial literacy program: This should include coursework, workshops, and extracurricular opportunities designed to engage students and provide practical financial knowledge.
  2. Collaborate with experts and organizations: Colleges can partner with financial professionals, nonprofits, and government agencies to provide students with access to expertise and resources.
  3. Train faculty and staff: Educators should be well-equipped to teach financial literacy and provide guidance on personal finance matters. This may involve offering professional development opportunities related to financial education.
  4. Utilize technology: Leverage digital platforms, apps, and online resources to make financial education more accessible, engaging, and relevant for students.
  5. Measure and evaluate progress: Regularly assess the effectiveness of financial education initiatives to identify areas for improvement and ensure that programs are meeting the needs of students.

By addressing the pain points of financial education, anticipating future requirements, and implementing a program now, colleges and universities can stay ahead of the curve and ensure their students are prepared for the financial challenges they will face in the future.

Make the Process Easier with iGrad

As the financial landscape evolves, higher-ed institutions must take proactive measures to overcome the challenges they face in implementing financial education programs. 

By designing a well-thought-out financial literacy program that is built to adapt to new technologies and increase the accessibility to financial resources, colleges, and universities can create a more financially literate and empowered generation of graduates.

This is where award-winning services like iGrad come in. iGrad is a state-of-the-art financial education platform that has already made a significant impact on the way colleges and universities approach financial literacy. 

By providing a comprehensive suite of resources, tools, and personalized content, iGrad helps institutions empower their students to make smarter financial decisions and achieve long-term financial success.

By incorporating things like gamification, quizzes, videos, and a wealth of practical advice, iGrad transforms the way students approach personal finance and helps them develop the skills needed to navigate the complex financial world.

The time to act is now. Higher education institutions must commit to providing comprehensive financial education that prepares their students for the unique challenges of the ever-changing financial world. To learn more about iGrad and how the platform can be customized to your university's needs, request a demo. 

 

 

1 - https://www.mckinsey.com/featured-insights/the-next-normal/business-in-2020-and-beyond 

2 - https://ejournal.upi.edu/index.php/IJERT/article/view/50083 

3 - https://files.consumerfinance.gov/f/documents/201709_cfpb_financial-well-being-in-America.pdf 

4 - https://www2.deloitte.com/us/en/insights/industry/financial-services/talent-technology-future-of-financial-services-survey.html 

5 - https://www.gemconsortium.org/report/gem-2019-2020-global-report

6 - https://www.nefe.org/initiatives/financial-education-policy-convenings/Financial-Education-Policy-Convening-Events-Summary--EBOOK.pdf