2017 u.s. bank student financial literacy study u.s. bank student financial literacy study ......
TRANSCRIPT
2U.S. BANK |
Students most want to learn about saving, investing and credit
51%43% 40%
34% 34% 32% 30% 28% 26%21%
10% 10%
Thinking about what you currently know about finances, which areas are you most interested in learning more about? Select up to five.
3U.S. BANK |
Thinking about what you currently know about finances, which areas are you most interested in learning more about? Select up to five.
0%10%20%30%40%50%60%
African American and Hispanic students are more likely to want to learn about saving
4U.S. BANK |
Thinking about what you currently know about finances, which areas are you most interested in learning more about? Select up to five.
0%
10%
20%
30%
40%
50%
60%
Male Female
Female students are more likely than males to want to learn about credit
5U.S. BANK |
“I am more concerned with this than when I was a freshman”
For each of the following rows, tell us how, if at all, your attitudes have changed since you were a freshman.
69%
60% 59%
71%
55%
47%
57%54%
50%
61%
49%
38%
59%
51% 51%
59%
45%41%
65%
54%
48%
67%
49%
39%
Being able to save money Budgeting my day-to-dayspending
My credit score Saving for the future Learning about investing Learning about retirement
College leaves students with more questions than answers
6U.S. BANK |
Many students believe common myths about credit
Please read the following statements and say whether they are true, false, or you are not sure
Once a delinquent loan or credit card balance is paid off, the item is removed from a credit report
Having too many credit cards can negatively impact your credit score
A parent co-signing a student loan is not responsible for re-paying the loan, if their child doesn’t have a job
Social Security should be enough for retirement
Checking a credit report will hurt your score
An emergency savings fund should cover a minimum of 3 months of living expenses
Once a credit score is bad, it can never be rebuilt
Not paying bills on time can affect your credit score
If one spouse has poor credit history, it can affect the other one’s ability to apply for loans
401K investments can lose value, they are not guaranteed
Using check(s) / debit cards can help build credit
The amount of money you have in the bank does not affect your credit score
2017True/False
True 87%
False 84%
True 69%
False 55%
False 53%
True 54%
False 55%
True 50%
False 44%
True 45%
False 42%
True 34%
2016
84%
77%
70%
57%
54%
54%
52%
50%
44%
41%
39%
36%
7U.S. BANK |
84% 77% 75% 68%
Do you know what credit score is?
Yes, I know what a credit score is
To your knowledge, what is a credit score used for? To deteriminewhether…
Total White African American
Hispanic Asian
a person qualifies for a loan 78% 84% 63% 74% 75%
a person qualifies to rent an apt/house 67% 71% 59% 64% 62%
a person qualifies for a credit card 66% 71% 57% 58% 61%
a person qualifies for insurance 32% 32% 32% 29% 37%
a person qualifies for a savings account 18% 17% 23% 17% 19%
a person qualifies for a job 16% 15% 22% 15% 15%
a student can be accepted to a college 9% 6% 14% 13% 8%
True
Fals
e
Credit knowledge is lower among multicultural students
8U.S. BANK |
80% 80%
Do you know what credit score is?
Yes, I know what a credit score is
To your knowledge, what is a credit score used for? To determine whether…
Total Male Female
a person qualifies for a loan78% 73% 83%
a person qualifies to rent an apt/house67% 59% 74%
a person qualifies for a credit card66% 61% 70%
a person qualifies for insurance32% 34% 30%
a person qualifies for a savings account18% 22% 15%
a person qualifies for a job16% 20% 13%
a student can be accepted to a college9% 11% 7%
True
Fals
e
Female students demonstrate greater knowledge than males about credit
9U.S. BANK |
Top 2 Box: This describes me completely/very well Total White AfricanAmerican
Hispanic Asian
Because of my money situation, I feel like I will never have the things I want in life 35% 31% 42% 40% 35%
I am just getting by financially 41% 39% 50% 45% 38%
I am concerned that the money I have or will save won’t last 54% 55% 50% 54% 53%
I have money left over at the end of the month 41% 40% 45% 40% 39%
My finances control my life 50% 50% 48% 52% 49%
How well do the following statements describe you or your financial situation?
Half of students say that their finances control their life
10U.S. BANK |
Top 2 Box: This describes me completely/very well Total White AfricanAmerican
Hispanic Asian
Because of my money situation, I feel like I will never have the things I want in life 0% -4% 6% 1% 2%
I am just getting by financially -7% -9% 4% -7% -9%
I am concerned that the money I have or will save won’t last -2% -2% 1% -3% -2%
I have money left over at the end of the month 1% 2% -3% -5% -13%
My finances control my life 7% 8% 4% 6% 5%
How well do the following statements describe you or your financial situation? (% change since 2016)
Students are more likely than last year to say that their finances control their life
11U.S. BANK |
In the first 5 years after college, what are your top three financial goals? (% ranked in top three)
45%
27% 25% 25% 25% 24%
14% 13% 12% 11% 11% 10% 12%9%
Having a steady job is students’ top financial goal in the first five years after college
12U.S. BANK |
Having a steady job is the top financial goal across all segments
0%
10%
20%
30%
40%
50%
60%
In the first 5 years after college, what are your top three financial goals? (% ranked in top six)
13U.S. BANK |
How involved are you, personally, in the following aspects of your family’s/parents’ household finances? (top two box)
47%
40%
33%
Budgeting/Day-to-DayManagement
Long-term planning and bigpurchases
Taking out loans andmanaging lines of credit
BC
Nearly half of students are involved in their family’s basic household finances
14U.S. BANK |
African American and Hispanic students are more likely to be involved in household finances
How involved are you, personally, in the following aspects of your family’s/parents’ household finances? (top two box)
ADAD
42%36%
29%
58%
47%
38%
53%48%
41%44%
28% 26%
Budgeting/day-to-daymanagement
Long-term planning and largepurchases
Taking out loans/line of credit
ADADD
ADAD AD
15U.S. BANK |
40%37% 36%
20%
13%
9%
22%
41%38%
37%
17%
9% 8%
21%
39% 39%
36%
25%
18%
11%
26%
41%
35%33%
26%
19%
9%
21%
37%
34%36%
19% 19%
10%
30%
I’m good at being budget conscious
I’m interested in running my own
household one day and want the practice
now
We do financialplanning together as a
family
I’m better at math/ accounting than
anyone else in my family
My family/parents don’t fully understand this and need my help
No one else in myfamily has time
It is a familyexpectation
You said you are involved in your family’s/parents’ household finances. Which of the following best describes why you are involved in the specific activities you mentioned?
A A A
A A
Reasons vary for students’ involvement in household finances
16U.S. BANK |
Male students are more likely than females to be involved in household finances
How involved are you, personally, in the following aspects of your family’s/parents’ household finances? (top two box)
AD AD
48%45%
39%
45%
35%
27%
Budgeting/day-to-daymanagement
Long-term planning andlarge purchases
Taking out loans/line ofcredit
Male (G) Female (H)
H
17U.S. BANK |
After parents, students turn to online resources for financial information
If your parents/guardians do not have financial answers to your questions about specific financial topics, where would you go for information?
40%
30% 30% 28%
20%17%
13% 11%
Online Bank branch Financialadvisor
Bankwebsite/app
School A peer (e.g.friend, fellow
student)
Readingfinancialcontentoffline
Other familymember (nota parent orguardian)
18U.S. BANK |
Which sources on social media, if any, would you trust about financial information?
18% 20% 21% 17%I wouldn’t trust any source
on social media about finances
19%
34% 47% 51%Banks 47% 44%
43% 45% 46% 37%My family 42%
14% 28% 25% 34%News sources 28%
13% 15% 12% 16%Bloggers 14%
9% 6% 5% 5%Celebrities 6%
24% 29% 19% 26%Friends 25%
TotalUnder-
classmenUpper-
classmen2-Year Degree
HS Senior
Students gain trust in finance-related social media posts from banks, media during college
19U.S. BANK |
Quantitative Assessment
Methodology:
Online quantitative survey among undergraduate students and highschool seniors. 1,628 undergraduates/high school seniorsaged 18-30 completed the survey.
WeightingBenchmarks:
• Race/ethnicity*: • 60% White• 15% African American• 18% Hispanic• 7% Asian
• Gender:• 45% men• 55% women
Cuts:• Race/Ethnicity• Gender• Year in school• Banked status
*African American (n=474), Hispanic (n=478), and Asian (n=205) segments have been deliberately oversampled. Data has been weighted to be representative of the U.S. undergraduate university student population with regard to race and gender, in accordance with the 2015 American Community Survey (ACS).**Only differences that appear between subgroups (race, gender, banked status, year in school) that are statistically significant at the 0.95 confidence level (two-tailed) are noted within the deck.
Qualitative Assessment
Methodology:21 qualitative in-depth interviews with undergraduate students and highschool seniors.
Participant overview:
• Ages 18-28• Mix of race/ethnicity:
• 5 White• 7 African American• 5 Hispanic• 4 Asian
• Gender:• 48% men• 52% women
• Living with or without parents
Methodology