Students Make Costly Mistakes With Financial Aid

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It is a constant concern of financial aid directors that students come woefully prepared understand their financial obligations. I agree that parents role and more financial literacy is needed in middle and high school.
However, this January 2008 the National Endowment for Financial Education (NEFE) launched a free "turnkey" program that allows a University financial aid office and other offices to link to the NEFE CashCoure website. CashCourse is a great resource for students to access timely financial information such as financial aid basics, Paying for college, College Life. The tool is not supported by vendors and fully supported by NEFE.
Obviously more needs to be done in this area, but this is a great start. I urge financial aid colleagues to check out the CashCourse website at www.CashCoure.org
And one last comment: We would not want to see a student get into legal or financial trouble using their financial aid to purchase a car, etc as noted in the article. While it may happen, it cannot be condoned. More reason to help students understand how to manage their money.

JHall of 10:26AM July 30, 2008

We can place blame on quite a few people--parents, schools, students, administrators, etc.--but the reality is the individual controls the information he/she chooses to absorb over time. Most students today ARE exposed to money management curriculum from a wide variety of resources (beginning in elementary school and continuing on through higher education). No matter how much information we spoon feed an individual, it is their choice whether or not they will absorb the information and integrate it into their lives. The old adage, "you can lead a horse to water, but you can't make him drink" holds true here. Money management is a personal responsibility issue and individuals have to step up to the plate or take responsibility for the consequences.

D. Lynn Byrne, Ph.D. of TX 10:02AM July 30, 2008

I do not disagree that colleges should further the understanding of financial issues with courses and counseling for their students. However, if parents have not taught their children how to manage a checking account and the basics of financial literacy how is the school supposed to instill those values upon them?
It all begins in the home - with teaching them that one cannot have everything ones heart desires. Parents who have huge credit card debt and mortgages that they cannot afford but still go out and buy the kid a new car when he turns 16 cannot expect that college will teach them what they have not.

Caron Surrett of NC 8:58AM July 30, 2008

I am not surprised that many students fail at managing their money. I'd bet most of them can't even balance a checkbook!
I can't blame the students, however for their financial ignorance. I place the blame squarely on the shoulders of our educators. Courses in basic money management, such as how to create a balance sheet and income and expense report should be taught in every high school in the country. This will provide our students with the foundation to make prudent decisions regarding their money.

Vic Berliant of CA 10:29PM July 29, 2008