Attending college is more expensive than ever before, with significant financial burdens arriving at a time in a student’s life when they are first learning how to maintain academics while adapting to an independent lifestyle. This adjustment period is infamously overwhelming, as students are expected to rapidly develop skills outside of their familiar surroundings.
One of the primary stressors for college students is learning how to manage finances. Independently budgeting for grocery trips, books or monthly rent is a skill that not all 18-year-old college students possess; it is something that must be learned, and therefore, someone must teach it.
A recent study found that, when tested, Generation Z participants were only 38% accurate on a financial literacy test, the lowest of any other generation quizzed. In particular, college students have significant deficiencies in financial knowledge — especially among historically marginalized students.
As more research emerges demonstrating the importance of financial education and well-being for students, universities across the United States have created relevant programming in response. The University of Michigan is clearly aware of this data, as they launched their own financial education program in 2024. By further investing into this program, the University has the opportunity to increase reach and improve student preparation for financial decision-making in post-grad life.
With already high — and rising — tuition of approximately $20,000 for in-state students and $69,000 for out-of-state students, more than one third of University of Michigan students will graduate with a significant amount of student debt, averaging $22,161. While the University recognizes student need via financial aid programs and the number of students in debt is decreasing every year, intangible living expenses like housing, transportation and food are skyrocketing, and options for federal financial aid are dwindling more every year.
Financial literacy goes beyond financial survival or even stability, it teaches students how to thrive and succeed during and after university. From short-term money management like budgeting rent costs and increasing your credit score to big-picture planning for retirement and managing debt, financial education poses long term impacts like improving cognitive financial decision-making and enhancing career outcomes.
College students may be hyper-focused on their careers and majors, but with two-thirds of college students reportedly desiring financial education, it’s clear that there’s demand for institutions to integrate financial education within its programming.
Currently, the Office of Financial Aid provides resources for financial education and engagement such as one-on-one meetings with a financial advisor, workshops, presentations and academic courses. Their website also includes quick tips for financial wellness, a plethora of options for student loans and a list of financial education resources.
This page addresses many student questions and provides resources for those seeking them, but, without a dedicated financial education website or social media presence, the majority of students have no idea that these resources exist, and those who do aren’t always able to access the helpful resources available.
First, the advertised one-on-one meetings with financial advisors rely on a limited number of staff, and two of the three listed staff members are professionals with the financial aid office. This emphasizes the need for increased staffing and support solely dedicated to financial wellness apart from the Office of Financial Aid.
Concerning the offered coursework, the three classes in the financially savvy series listed under Applied Liberal Arts topics in the course guide are only offered for one or two elective credits. They are smaller classes with about 30 seats only offered in the fall and winter semesters that fill quickly due to high demand. Therefore, students who have later advising dates, strict schedules or can’t afford to take classes with the credits that don’t contribute to major or minor requirements are unlikely to enroll in these courses — no matter how much the topics interest them.
Additionally, financial education workshops and presentations are only accessible to hosting clubs and organizations, classes or university programs. There are currently no available presentations for the general student population to attend.
Ohio State University offers a peer-led financial coaching program, Florida State University has a Financial Success hub with numerous student programs and The Pennsylvania State University operates a financial and life skills center — placing them ahead of U-M offerings.
These programs are established and well-funded, and while the University of Michigan has developed a program of its own, there is still an opportunity to expand the existing resources.
Some believe that accessible financial education can be improved through enhancing digital resources. With one Google search, anyone can discover a diverse range of financial resources available online, ask ChatGPT to create retirement savings goals or hire a personal financial advisor. This is disputed by statistics that show despite being the population most connected to resources on the internet, Gen Z is the most financially illiterate generation.
If simply directing college students to existing resources online isn’t increasing financial wellness, creating and growing adequate resources and programs that promote financial literacy will.
Expanding existing initiatives can tangibly change the financial illiteracy crisis on campus. There are a variety of ways to improve financial literacy among the student body: offering more personal finance classes and assigning them to a pre-requisite credit, expanding programming through hiring and supporting staff, creating peer-advising initiatives or student-supported workshops or scheduling frequent free presentations for students to sign up for.
If U-M students are entering college not knowing how to budget for groceries and graduating with over $20,000 in student loan debt, the University should expand programming to better equip students with personal finance skills they need to thrive post-graduation. Using the existing financial education program, they have the opportunity to end the cycle of financial illiteracy for students at the University, and as student need grows, the University needs to continue to support and invest in a program that will grow with them.
Sophia Barczak is an Opinion Analyst who writes about politics, pop culture and student life. She can be reached at sbarczak@umich.edu.
