Lindsay Soriano is a staff writer of the Daily Titan. All opinions expressed in this article are those of the author and do not reflect the opinions of the Daily Titan as a whole.
Finance management can be confusing for those entering adulthood, leading to anxiety about budgeting and planning for the future. Despite the need for possessing well-rounded money management skills, financial literacy is not taught at the age when it is most critical.
A student’s endurance and outcomes may be hindered by a lack of financial literacy. To prevent future financial hardships, Cal State Fullerton should require students to complete a personal finance course for graduation.
Financial literacy courses would teach students to be more responsible and mindful with their finances, such as budgeting, opening a credit card and the importance of financial benefits that are received from full-time jobs.
Many young people lack a comprehensive understanding of personal finances. Data from the National Association of Student Financial Aid Administrators found that only 40% of students at four-year colleges and 45% of students at two-year colleges have taken a personal finance course.
“I think that it matters a lot for students because…the financial decisions that you make early on are going to be important for the rest of your lives,” said Maria Casanova, an associate professor of economics at CSUF.
Students in college often don’t know much about personal financing. A 2022 survey from Inside Higher Ed found that 67% of students are unaware whether their college offers financial education.
CSUF’s Basic Needs Services has developed a Financial Literacy Program that offers mentorship to equip students with financial literacy skills while empowering them to expand their financial knowledge.
The program offers one-on-one meetings with financial wellness peer mentors to discuss credit basics, debt management and budgeting, giving students a sense of direction in becoming financially independent in their futures.
Providing comprehensive financial resources and requiring students to develop these skills better prepares them for the financial challenges they may face as they enter adulthood, rather than throwing students into the complex world of money management blind.
Only 35 of the 50 states in the United States require financial literacy courses, according to a 2024 survey from the National Council for Economic Education. California does not currently require them; however, the state is set to pass a bill requiring K-12 schools to add financial literacy as a graduation requirement before students head to college, starting with the 2030-31 graduating class.
“California is one of the states where personal finance is not required to be taught in high school,” said Radha Bhattacharya, the chair of the economics department and director of the Center for Economic Education. “That is a big mistake because financial literacy skills are learned early in life, you know, just like good eating habits, exercise and so on.”
In 2017, the U.S. Department of Labor conducted a study in which 42 students enrolled in a personal finance course and were encouraged to set aside $500 for an emergency fund throughout the semester.
Students who participated saved an average of $719 in their savings account and $475 in their emergency fund at the end of the semester. This analysis alone illustrates how curated advice, such as a specific savings goal, can transform a student’s finances.
NASFAA found that additional education in personal finance improves students’ financial literacy. This additional education enhances their knowledge and better prepares them to become more financially responsible in their futures.
It has also been debated whether personal finance education should be taught during or after high school. A survey from the American Bankers Association found that 87% of people believe financial literacy should be taught in high school.
“It would be more important if we were taught that in high school because that’s where they can teach us in high school, once we leave, we start our part-time jobs or even our full-time job,” said Yader Garcia, a fourth-year business administration student.
Teaching basic financial literacy skills in high school can better prepare students to understand more complex topics as they enter college. By requiring an expansion of financial literacy knowledge previously built in students’ K-12 years, CSUF ensures that its students possess the skills needed to manage their personal and professional economic futures.
Prioritizing financial literacy among college students is essential preparation for their transition into the economic society as adults. CSUF’s dedication to Titans’ preparedness beyond graduation must include ensuring that students have necessary financial literacy skills.
CSUF’s commitment to student success is a hollow promise if graduates are entering the workforce financially illiterate. The university must bridge the gap between academic achievement and economic success to ensure students are prepared to flourish in the modern economy.