Financial literacy can be defined as the confident understanding of varying economic concepts that allow you to competently manage your monetary resources. Some of the elements involved with this concept include saving, investment, and debt management.
The main objective of attaining this knowledge is to allow you to gain a level of stability when it comes to monetary management. It’s a highly useful subject for anyone, especially college students about to head out into the world.
Financial literacy in the academic system
One of the major complaints by many people concerning the academic curriculum of many schools is the lack of practical life skills that will prove essential in the future. Education should be based on a guide that will not only develop the traditional intelligence of a student but prepare them for the rigors of the outside world as well.
This includes offering a class on how to properly manage one’s money at the start of their career. Most students make a lot of mistakes when they get their first major paycheck because they were not taught about the economic expectations that come with this compensation. According to CNBC, only 25 states offer personal finance classes, and most are offered as a non-mandatory option.
Finance literacy in African American colleges
Multiple studies have indicated the existence of a racial, financial wealth gap in the USA. Further research has identified the presence of a knowledge gap as one of the main reasons behind this inequality. According to a study published by Research Papers in Economics (RePEc), the financial literacy of most African-American college students are significantly low.
Less than 4% of the study’s respondents could answer all five questions in an exam designed to test basic financial knowledge used in everyday life. Another study published by the Teachers Insurance and Annuity Association of America-College Retirement Equities Fund (TIAA) found that the absence of financial resilience was more common in African Americans compared to their Caucasian counterparts. These findings portray the need to expand the BLM movement to classes and academics. One of the best ways to do this is through writing essays, for which you can refer to a collection of Black Lives Matter essay samples on WritingBros. It’s the best digital resource that offers free essay examples on BLM and many other burning issues.
How African American colleges are addressing the issue of financial literacy
The issue of introducing a financial literacy lesson in many African American colleges has gradually gained traction in recent years. The introduction of financial literacy isn’t mandatory in any curriculum or library. The need to take the initiative in this sector is essential when looking to address this factor.
Some colleges have acknowledged this fact and have taken it upon themselves to assist their students in reading up on this sector. The University Business reported that Howard University, University of the District of Columbia and Medgar Evers College have partnered with Carver Federal Savings Bank and The Society for Financial Education and Professional Development to provide a Student Ambassador Program. The program gives students the opportunity to learn from more experienced peers on how to make smart investments with their money.
The provision of financial literacy resources
College students can get affordable financial literacy resources from a variety of sources, with many established online programs offering a degree in this particular sector. Some students can choose to take up a finance-based course related to business or economics or pick a customized short-term course that would school individuals on how best to manage their money.
The US Department for Education offers a free faculty book on financial literacy. The National Endowment for Financial Education also provides a variety of free resources for institutions that would like to offer financial workshop kits under a CCLC program. Many organizations have hired a writer to provide short booklets that allow students to peruse through an essay or two during their free time.
Creating public awareness
Another major avenue that has been implemented in addressing the need for promoting financial literacy in African American Colleges is through spreading public awareness. In many cases, the lack of knowledge about the situation has made it difficult for the groups concerned to take up the mantle and change the existing status quo.
Multiple studies have been conducted regarding the racial disparity in financial literacy, and the topic has gradually come to the forefront of most academic discussions. Different organizations have joined forces with the government to try and address this problem. As a result, a lot of recognition has been garnered because of different campaigns.
The promotion of financial literacy in African American colleges is crucial in addressing racial disparity when it comes to economics and finances. The earlier an individual is introduced to this information, the better. However, college represents a stage where an individual is at a state of mind that allows them to clearly understand the elements involved with this sector. College graduates are also technically at the stage of their life where they are one step away from becoming wholly independent.