Why is financial literacy important for students?

Financial literacy is important for students because it helps them avoid financial mismanagement. Understanding how to budget, save, invest, and use credit responsibly equips students with the necessary skills to make informed financial decisions. This knowledge is crucial in managing their expenses, especially as they may start to take on student loans, credit cards, and other financial responsibilities for the first time.

When students are financially literate, they are more likely to navigate their financial resources effectively, leading to better outcomes in their academic and personal lives. For instance, managing their finances can relieve stress and allow them to focus more on their studies and extracurricular activities, thus fostering a successful college experience. Being knowledgeable about finances also prepares them for future independence and long-term financial health.