The reasons behind stress in college are vast, but most students can agree that finances are among the highest stressors.
Nearly 70% of college students are stressed about their personal finances, according to a webpage from Scholarship America.
Emily Gonzalez, a communications major at San Jose City College, moved from Texas to San José to attend school.
“I would say the biggest stressor currently (is) having to pay out-of-state tuition,” Gonzales said.
She said when she first came to California, she quickly recognized the costliness of the area.
Financial literacy campaigner and consultant, Mary Le, started her consulting business Partner with Mary Le after being laid off in 2015 and realizing that even though she had her own income, she didn’t know where it was going.
“I will say parents sometimes don’t want to share the financial burden with their kids,” Le said. “Some families don’t talk about budgeting, some parents don’t know budgeting themselves.”
She said when someone doesn’t get a financial education, they’re not going to be able to pass that knowledge on to their kids, which creates a vicious cycle.
“I had to teach myself,” Gonzalez said. “Especially coming from a (first generation) family, they had to learn how to (manage) their own income.”
Financial literacy is when one has the understanding and ability to use different financial skills such as budgeting, financial management and investing, according to a webpage on Investopedia.
Le said that financial literacy also includes understanding financial foundations, which are fundamental concepts about wealth, managing money and everything about personal finances.
Alicia Nguyen, a senior executive vice chairman for the World Financial Group said she saw the positive effects of being the financially literate person of her family.
Nguyen’s parents came to America from Vietnam as refugees of the Vietnam War, her mother was an accountant and her father was a social worker. Her father joined the World Financial Group 38 years ago.
“It’s because of financial education and financial literacy that me and both of my brothers (went to) school debt free,” Nguyen said.
Financial freedom is when one has control over their finances and life choices, according to a 2021 article by Forbes.
Only 11% of Americans report they are living what they believe to be financial freedom, according to a webpage on PR Newswire.
“I personally believe that financial literacy can solve a lot of America’s issues,” Nguyen said.
Financial stress among college students is correlated with lower GPA’s, increased mental health problems, poor physical health and a reduction in class loads, according to a webpage from iGrad for Schools.
Financial literacy can aid income inequality, according to a 2023 article by the National Education Association.
Le said a study done by the Federal Reserve showed that income gaps have widened each year since 1989.
Income gaps, commonly known as income inequality, are the uneven distribution of income throughout the population, according to a webpage from the International Monetary Fund.
“10% of the total wealth in America belongs to the top 1%,” Le said.
Nguyen said college students hesitate to begin a conversation about finances, because of the amount of money they have.
“When you don’t know how to handle $1,000, you won’t know how to handle $10,000 or $100,000,” Ngyuen said.
Only one in three college students has more than $1,000 saved in their bank account, and 11% have nothing saved, according to a webpage on Deposit Accounts by Lending Tree.
“We have come to idolize people that show off their money,” Nguyen said. “We have learned to also judge people or put them down if they don’t have a lot of money.”
She said the journey into money management begins with credible education.
“Sometimes if you talk to just one specific company, they might only offer financial products or advice in that field,” Nguyen said.
Le said students should look into financial workshops such as the ones her company offers.
“You can find (30 for 30 campaign) in libraries but we also provide it free on Zoom five (days) a week, three times a day,” she said.
Nguyen said college students should also avoid ambiguous goals and set concrete goals that they can put realistic numbers and dates on.
“Finance is not one of those things where you set a goal and that’s forever,” Nguyen said. “You’re gonna have to review (it).”
Financial education classes are slowly finding their way into schools. Currently, 25 states require high schoolers to take financial education courses according to a 2023 article by Ramsey.
“Money doesn’t equal happiness,” Ngyuen said. “But having (money) or having financial literacy and education can give you the confidence to control your future.”
