OUR VIEW: Personal finance education has a place, but it’s not here
The Oklahoma State Regents for Higher Education discussed the possibility of adding financial literacy lessons for college freshmen Thursday during their meeting at the Noble Center in Ardmore.
The course would be similar to the alcohol abuse course students are required to take upon college entry, regent Ron White said.
It would consist mostly of information on how to handle a credit card account and explain interest rates on loans, White said.
“We need to help them understand,” regents secretary Joseph Parker said. “They’re vulnerable. They don’t understand loans.”
When polled, 67 percent of students said they didn’t need more financial information, but institutions see many students making poor financial decisions based on a lack of knowledge, White said.
Oklahoma universities have some type of system to make students more financially conscious, but all are different and tailor to different types of students, said Kermit McMurray, vice chancellor for Student Affairs.
For example, some universities or colleges have more or fewer non-traditional students who are older and may already know about financial responsibilities, McMurray said.
The regents’ goal is to make a model program for state universities and colleges to follow.
College students are more susceptible to financial trouble than other groups, McMurray said.
“Research has shown that some students walk into college with at least two credit cards in their pockets,” McMurray said.
College students are the only known consumers that can get a credit card without proof of a job or the ability to pay it back, he said.
The Oklahoma State Regents for Higher Education will be working with the President’s Council to implement the program, McMurray said.
“The regents are deeply concerned about the financial consequences of students,” he said. “We want to ensure that institutions are as serious as [the regents] are about this.”
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TAG 3 years, 1 month ago
Good idea, because I have friends that have not been responsible. Also a Sustainability engagement class might be good as well. OU could save millions down the road for implementing that.
DrFuego 3 years, 1 month ago
I would only support this if we were allowed to CLEP out of the class :)
oksunny 3 years, 1 month ago
good idea--these types of classes should be part of the high school curriculum also, along with how a mortgage works, how to balance a checkbook, etc..Yes, parents should be teacing their kids this at home, but it's not happening. Economics is super confusing, I am a grad. student and don't really understand how my student loans---I am afraid I might be in for a big shock when I graduate...maybe I'll just keep going and get my Ph.D....yikes
datboymccoy 3 years, 1 month ago
I like applying for credit cards at promotional events like a jimmy johns for a free meal
ymesa 3 years, 1 month ago
It’s important to teach traditional college students good financial habits before they get deep into debt. College is the first time that most students handle money on their own. They frequently get credit cards or take out student loans without realizing the cost. With fewer college students qualifying for student loans, and those with loans carrying large balances, more students are withdrawing from college for financial reasons. In fact, financial stress is the #1 reason why students are withdrawing from college today. Students who learn how to manage their money are more likely to stay in school and graduate, earning more money over their careers.
Some private and public colleges and universities are taking a new approach by teaching personal financial management skills. Missouri Southern State University, Benedictine University, and Jamestown Business College, and most recently the 46 campuses of the Louisiana Community and technical College System have added money management classes to their curricula. The schools are using an online personal finance program, Goodmoneyhabits.com.