Web Resources for Student Financial Education
Jeff Southard, Debt Management Specialist
NELA

When asked whether interest earned on a savings account is taxable, 51 percent of high school students answered "No." Fifty-five percent of these same students thought that U.S. Savings Bonds were the best method of saving for college because they provided a better rate of return than stocks and bonds. When asked about credit cards, 13 percent of the students surveyed believed that those who pay their bills in full each month pay the greatest amount in annual finance charges.

Surveys, such as the one cited above, demonstrate that the majority of students do not have the basic financial skills necessary for success in the real world. Students who enter college without fundamental money management skills often graduate with unmanageable debt. Additionally, poor money management skills and excessive credit card debt are forcing a growing number of students to abandon their education altogether. Both high school and college students are often ill-prepared to deal with the financial challenges they will face in the future as consumers, investors, home-buyers, parents, credit card holders, and later, retirees.

To address this alarming situation, many secondary and postsecondary institutions are providing courses in financial literacy, saving, investing and debt management to prepare students to make informed decisions about their money and their futures. A growing number of organizations- such as the National Council on Economic Education- are also developing programs to help prepare students to make competent financial decisions, knowledgeable consumer choices, and wise saving and investing arrangements.

Educators, parents, school administrators and students can take advantage of the enormous amount of print, electronic and instructional programs now available. Many organizations, lenders, credit counseling services and participants in the student loan industry offer these money management programs and resources to help ensure that America's youth are prepared to successfully manage their money.

Additionally, many postsecondary schools find that offering basic money management courses also serves as a way to proactively prevent student loan default. Arming students with effective money management skills can help students stay on top of their student loan payments and avoid delinquency.

Here is a partial list of organizations with Web sites that schools can use to help educate students about money management.