MADISON, Wis.– One of the best times to reach out with a financial literacy program is just as a college student is about to graduate.
That’s according to a new study by the Filene Research Institute, which found that as college students are about to “enter the real world” that is when they are most interested in learning how to handle their finances.
“Delivering Financial Education to Graduating College Students,” written by Filene Research Fellow Bob Hoel and University of Wisconsin Lecturer Ronald Smith, outlines three often overlooked keys to successful financial literacy outreach:
* Narrow the audience – ¬college students about to graduate share interest in an identifiable set of financial decisions that they have not faced before.
* Just-in-time delivery – ¬People are more likely to pay attention and change behavior when the information relates to an imminent financial decision, or as in the case of soon-to-be graduates, a major change in their financial status.
* Offer concrete advice¬ – small group forums where students can receive topical advice, and where students receive one-on-one advice from a financial expert, are needed.
“People want to be told what to do,” Hoel said. “Knowing that you need to make good decisions isn’t enough. But getting real numbers, specific advice, and one-on-one time with an expert, that’s what makes a difference.”
Filene tested these theories by offering such a program at the University of Wisconsin. The results:
* When surveyed three months after the seminar, 98% say the seminar helped them make real-world financial decisions.
* Within those three months, 79% took at least one major step to improve their financial wellbeing, and 55% took more than one. Some took as many as six steps.
* 94% of graduates who took the seminar three years earlier report that the seminar helped them make real-world financial decisions, and the Net Promoter score for the program was 75%.
