Financial Literacy Can Hold Key to College Success

EdSource Nov 4, 2019
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Financial Literacy Can Hold Key to College Success Giving Compass

Giving Compass’ Take:

• Low-income students often go into debt without reaping the benefits of college. Teaching financial literacy could help these students to avoid bad situations. 

• How can financial literacy lessons be inserted into schools and government resources to improve access? What can be done to help students who have already fallen victims to this pattern? 

• Here’s why it is necessary to teach financial literacy in schools. 

There are many reasons low-income students don’t get a degree — on average, just 9 percent of low-income students graduate college by age 24. Many of those reasons are related to finances, including attending a school they can’t afford or needing to take a job to afford college, which can detract from their focus on their studies.

To change this statistic, we need to deploy financial guidance — both leading up to college decisions and once students are on campus. Ideally, students can receive the former type of guidance from college counselors at their high schools and the latter type of guidance from their college financial aid counselors. Unfortunately, heavy caseloads often preclude this type of individualized attention. But community-based organizations can also provide financial guidance to students.

While college counseling is generally used to help high schoolers get into college, financial guidance is a powerful tool to help students choose the right financial fit and stay in college and obtain a degree. Infusing financial literacy into college counselor training will help students make a good financial-fit decision from the get go. College counselors typically receive training about how to create a balanced list of prospective colleges and how to navigate the application process, but not about how to interpret financial aid award letters and help families make a financially sustainable decision.

Read the full article on financial literacy and college success by Melissa Fries at EdSource.

If you are looking for more articles and resources for Education, take a look at these Giving Compass selections related to impact giving and Education.

  • This article is deemed a must-read by one or more of our expert collaborators.
    Click here for more.
    NewSchools Looks to Fund New Investments

    Giving Compass' Take: · With up to $8 million in funding, NewSchools Venture Fund has announced new opportunities for investment in innovative schools and diverse leaders. · What skills do students learn in innovative schools? Why is it important to invest in a diverse set of teachers and education leaders? · Here's a sneak peek at NewSchools Venture Fund's ed tech research framework. NewSchools Venture Fund is excited to announce funding opportunities are now open for two investment areas: Innovative Schools and Diverse Leaders. For teams of educators and entrepreneurs who are either dreaming of opening a new innovative school or interested in growing, advancing and supporting Black and Latino leadership in education, this opportunity could provide the funding to launch a new venture. Up to $8 million in total funding is now available. NewSchools supports innovators who are tackling the challenge of making sure every young person in America finishes high school prepared and inspired to create and live the life they want – a good life, full of opportunity, choices, connection and meaning. To reach this aspiration, students need a strong academic foundation and other important mindsets, habits and skills. NewSchools supports diverse teams of educators and entrepreneurs who are reimagining education so more students have learning opportunities designed for this purpose. "This is a great opportunity for innovators with the vision and skills to reimagine learning. In addition to funding support, NewSchools provides management assistance to help entrepreneurs take their ideas from concepts to reality," said Frances Messano, Senior Managing Partner, NewSchools Venture Fund. "Our team is looking for bold ideas from new voices because too often, education philanthropy goes to those who are already connected to funders or successful founders. We want to cast a broader net." Read the full article about new investments by NewSchools Venture Fund at PR Newswire.

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