Two State universities have initiated on teaching college students to be financially literate by creating programs and setting up a website that offers advice on managing credit cards and money.
Kimberlee Davis, Ph.D., Assistant Professor of Consumer Science in University of Texas, said there is an urgent need to educate young students about managing their finances. She cited a 2007 study at Buffalo State College, which showed that college students have an average of $1,035 debt in credit card.
She further said that students in the Texas State carried more than one credit card.
In this same study, young borrowers showed confidence that their financial status will get better after college.
Davies commented that students believe they will earn more money after finishing college, but their financial condition depends on their behavior and attitude in handling money.
In relation to this, the state university created Money Savvy Cats, a financial literacy program, and put up a website that are loaded with topics and advises on budgeting and planning finances, tips to protect credits, and promotes saving money.
Money Savvy Cats was introduced to freshmen students last week. Soon the university will require incoming freshmen and transferees to participate in the program as part of their routine orientation.
In Utah, Bowling Green State University (BGSU) has banned card issuers from soliciting students for credit cards.
BGSU Spokesperson, Dave Kielmever, said long before the drafting of Credit Card Reform Act of 2009 - which aims to protect consumers and change credit system in the country - that the university has prohibited credit companies to solicit in the campus ground.
He added that the university put up money management programs that encouraged students to be a good steward of money and use credit cards responsibly.
BGSU decided to put up such a program following the study made by a private student loan firm which showed that students, who used credit cards for their education expenses, are paying as high as $2,200. The charges increased more than double compared to 2004's $942.
In this same survey, 30 percent of students pay their tuition fee using credit cards and 92 percent college students also used plastic to buy their textbooks and other school expenses.
The credit card reform law directed universities and colleges to conduct credit card and debt counseling to its students.
The law also prohibited credit card companies to approve applications of students 21 years old and below without a co-signer, who would be more than 21 years old and has good credit standing.