Financial Literacy

Chapter 12 presented information on different pillars of self-care and sources of stress and anxiety. Financial stress is considered one of the leading external causes of stress, anxiety, and depression among college and university students. Finances are often associated with a college or university student’s decision to abandon their academic goals. This chapter builds on the information presented in the preceding chapter by emphasizing financial self-care" \i. This chapter discusses the importance of a student’s ability to understand and effective use various financial skills, namely, planning, budgeting" \i, and overall personal financial management. A student with higher levels of financial literacy is can effectively plan for the cost of their education, create a budget to ensure healthy spending habits, and manage their money (i.e., savings, grants, loans) to ensure it will meet their needs from admission to degree completion. A student may encounter various expenses throughout their academic journey, and this chapter provides an idea of what a student should expect as they plan for their education. Chapter 13 also explains the characteristics and differences that exist between loans, grants, and scholarships. Students need to understand these terms and the implications associated with each source of funding. An understanding of the various sources of funding can help a student to utilize or borrow money responsibility, and with intent. Finally, this chapter provides students with several best practices for making informed decisions, engaging in financial self-care, identifying sources of funding, and accessing various resources and services to assist in financial planning" \i and management. Additional recommendations are provided to guide students in educating themselves and maintaining abreast of funding opportunities for higher education degree programs. Although the emphasis of this chapter is on education funding for US students, non-US students will find much of the information relevant to their needs as they navigate and explore funding opportunities within their own contexts.