College is a time of learning, growth, and independence. While you're pursuing your major, there's one subject that often gets overlooked: financial literacy.
Understanding how money works is one of the most valuable skills you can develop, and the earlier you start, the better. Mastering financial literacy doesn’t have to mean investing hours of time, having carloads of money, or getting a degree in Economics. It just means taking the initiative to invest in yourself through learning, discipline, and curiosity.
Here’s why financial literacy matters and how it can set you up for long-term success.
What Is Financial Literacy?
Financial literacy is the ability to understand and effectively use various financial skills, including budgeting, saving, investing, managing debt, and planning for the future. It’s about making informed decisions with your money, whether you have a little or a lot. It’s one of the biggest factors in becoming a responsible adult.
Students who are financially literate are more likely to:
- Graduate with less debt
- Make informed career and salary decisions
- Achieve major life goals like buying a home or starting a business
- Retire comfortably
Why It Matters in College
1. You’re Making Real Financial Decisions
From student loans to credit cards to part-time jobs, college is often the first time you're managing your own money. Financial literacy helps you make smart choices and avoid costly mistakes.
2. It Helps You Avoid Debt Traps
Understanding interest rates, wise spending, and credit card management can help you avoid falling into debt that takes years to pay off.
3. You’ll Be More Independent
Knowing how to manage your money gives you confidence and freedom. You won’t have to rely on others to make financial decisions for you.
4. It Sets You Up for Life After Graduation
Whether you’re planning to start a career, go to grad school, or get married, financial literacy helps you prepare for the real world - rent, bills, insurance, and all.
Key Financial Skills to Learn in College
- Budgeting: Track your income and expenses to stay in control.
- Saving: Build an emergency fund and save for short- and long-term goals.
- Credit Management: Understand how credit cards work and how to build a good credit score.
- Student Loans: Know your repayment options and how interest accrues.
- Investing Basics: Learn how compound interest and investing can grow wealth over time.
Financial literacy isn’t just about money. It’s about freedom, confidence, and control over your future.
Remember, you don’t need to be a finance major to get started. Old Glory Bank has put together a series of articles to help college students learn some of the basics you can build on. You are the future of our country, which means your future matters to us. We want to help it be a future that includes financial wisdom and security.
