When you think of college you might envision fun times and parties, but these days college students are also honing their financial skills, which includes boosting their credit score, according to a new study by Sallie Mae.
The study called ‘Majoring in Money: How American College Students Manage Their Finances, found that while debit cards are trending with college students, with 85% using them to buy what they need followed closely by using cash and making mobile payments, they are not forgoing credit cards. In fact it’s quite the opposite they are using them to up their credit score, with more than half having and using at least one credit card. They are also pretty rigorous when it comes carrying a balance, with 63% paying their cards off in full every month and 73% paying their bill on their own. Their monthly balance averages $500 a month,but in some cases its less.
Given the last recession and its affect on peoples lives this rigorous handling of credit is not a surprise to Sallie Mae. “It’s clear that today’s college students are focused on effectively managing their finances,” said Raymond J. Quinlan, chairman and CEO, Sallie Mae. “Many of these young people grew up in the wake of a financial crisis and, in turn, have adopted behaviors that promote sound credit management. At the same time, they are eager to learn more to continue on the road to financial stability and success.”
Boning up on credit
Even though college students are more confident in their ability to manage money and credit, 83% are not satisfied and are looking to learn more, especially when it comes to budgeting their money and building their savings.
But that’s not all they are also looking to learn more about credit related topics, including how interest is accrued, as well as how their payment history and the terms that come along with their credit cards affect the overall cost of carrying credit overtime.
And getting more schooling on credit and fiances might be a great idea espcially since when asked three questions on these topics just 31% aced the short quiz.