Thrifty Thinking: 2021 College Student Financial Survey

 With the new academic year about to start, WalletHub today released the results of its 2021 College Student Financial Survey, along with its editors’ picks for 2021’s Best Student Checking Accounts and Best Student Credit Cards, selected from hundreds of offers. Even if college isn’t the same during the pandemic, students still need to prepare for their financial future, and these types of accounts are essential building blocks.

Please find key takeaways below, followed by commentary from WalletHub experts (audio and video files included).

• Not Enough Support: 46% of students think universities did not do enough to support them during the pandemic.
   
• Helping Parents: 41% of college students get help from their parents with their credit card bills.
   
• Less Financial Knowledge: 35% fewer students grade their knowledge of personal finance with an A in 2021 vs 2020.
   
• Spenders Not Savers: Fewer than 1 in 3 students consider themselves spenders, rather than savers.
   
• Harder Job Hunting: Two-thirds of students say the pandemic will make it harder for them to get a job.
   
• Financial Literacy Contrast: 26% more students from medium-income households say a lack of financial literacy holds them back the most financially, compared to students from high-income households.
   
• Best Credit Card for Students: Bank of America® Unlimited Cash Rewards credit card for Students offers unlimited 1.5% cash back on all purchases, a $200 bonus for spending $1,000 in the first 90 days, 0% intro APR for 15 months and no annual fee.
   
• Best Checking Account for Students: Capital One Money Teen Checking Account has no monthly fee, overdraft fee or ATM transaction fee. It offers 0.1% APY on all balances. 

 
Q&A with WalletHub 
 
Are universities doing enough to support students during the pandemic?

“WalletHub’s new survey found that 46% of college students think universities did not do enough to support them during the pandemic,” said Jill Gonzalez, WalletHub analyst. “It’s easy to understand why students would come to the conclusion that colleges and universities are not providing enough support, considering the challenges that online learning during Covid has presented. Paying full price for a fraction of the college experience is bound to leave many people disgruntled.”

Should college students get help from their parents with their credit card bills?

“Whether or not parents should provide assistance with their college-aged kids’ credit card bills is largely a family matter, but it’s clear that a lot of a parents are doing it. Roughly 41% of students polled by WalletHub are getting help from their parents with their credit card bills,” said Jill Gonzalez, WalletHub analyst. “There’s really nothing wrong with parents helping their kids, as long as everyone’s clear on the arrangement. Students should have to pay their parents back for non-essentials to gain some responsibility, though.”

Did students improve their financial knowledge in 2021?

“If you ask students themselves, you’ll get the impression that they did not improve their financial know-how in 2021, as 35% fewer students grade their knowledge of personal finance with an A in 2021 than they did in 2020,” said Jill Gonzalez, WalletHub analyst. “But the pandemic did provide a lot of real-world lessons to those who were paying attention, in terms of saving, sustainable spending, job stability and more. Investing became more popular among younger groups, too. So it’s fair to say that young people probably soaked up a lot more knowledge than they realize.”

Do students consider themselves spenders or savers?

“Fewer than 1 in 3 students consider themselves spenders, rather than savers. This is a surprisingly low figure, considering the reputation that most students have for frivolous purchases and shortsightedness,” said Jill Gonzalez, WalletHub analyst. “When you think about it, though, most students don’t have enough income to truly consider themselves spenders, and they do have to stretch their limited resources as far as they can go. Plus, many students probably aren’t being very honest.”
 
Should students expect getting a job to be harder as a result of the pandemic?
 
“Even though two-thirds of students say the pandemic will make it harder for them to get a job, that is largely hyperbole. The pandemic will not prevent most students from getting their degree, and finding a job is not dependent on learning from an actual classroom the whole time you’re in school,” said Jill Gonzalez, WalletHub analyst. “Sure, Covid could complicate internships and part-time work in the short term, but job prospects in the long run are as promising as ever.”  
 
Is financial literacy among students a bigger issue for lower-income households?
 
“Yes, 26% more students from medium-income households say a lack of financial literacy holds them back the most financially, compared to students from high-income households,” said Jill Gonzalez, WalletHub analyst. “High-income households obviously have more resources at their disposal, and there’s more of an opportunity for kids to emulate positive financial behaviors. The key to changing things is to give financial literacy the same amount of attention in the classroom and at home as subjects such as algebra and history.”