By Jordan Bynum, Edwardina Beeko, Connor O’Chuida, Quincy Barber and Julia Mongan
Baltimore Watchdog Staff Writers
Financial literacy is a growing concern for Gen Z students, especially as they transition from college into the real world. Many high schools are beginning to require personal finance courses; however, many students graduate without the tools necessary to manage their finances. According to the National Financial Educators Council, over 40% of college students feel unprepared when it comes to being financially secure.
Selena Pinkney graduated from Towson University in 2024 and says that her financial education was minimal. “Towson gave me what I needed to get a job, but the skills that I need for life were kind of sparse,” she said. “I didn’t learn about credit until I was already using it, and I definitely didn’t learn about interest rates or how to build credit.”
Students face several challenges, such as food and housing insecurity and credit card and student loan debt, and many take financial risks that they don’t fully understand. These challenges are especially intimidating without a solid foundation in financial literacy.
Student-athletes like Mike Swain share similar sentiments to Pinkney. “There are speakers who come talk to us sometimes about financial stuff, but it’s hard to absorb it all when it’s just one session. We need an actual course that walks us through how to manage money.”
Some universities like the University of Maryland and University of Maryland, Baltimore County (UMBC) offer optional financial literacy workshops or seminars, but students like Pinkney and Swain believe that financial literacy should be a mandatory course. Building a strong financial foundation could do wonders for students who want to be financially confident and career ready.
“Figuring it out on your own shouldn’t be the default,” Pinkney said. “We shouldn’t be left to make expensive mistakes just because no one taught us the basics.”
As college costs and postgraduate responsibilities grow, students say it’s time for schools to take financial literacy as seriously as any core requirement.
The financial literacy gap among college students didn’t just appear overnight; it’s a systemic issue that has long flown under the radar. Recognizing its growing impact, Dr. Chris Boyd Leon and Dr. Melissa Groves, both professors in Towson University’s Department of Economics, have started a study to focus on understanding how well college students, particularly at Towson University, are equipped to manage their finances.
“Being Professors and being advisors…we realized that there are many students that work with us and have a lot of problems that could be easily solved,” said Dr. Boyd Leon. “If they have some more financial litigation, if they were financially literate, they will be in a better spot.”
She added that financial challenges often interfere with students’ academic performance.
“Sometimes the students do not do well on an exam; they miss a midterm, and then they come telling you, yeah, it’s related to some financial issue that I had at home,” said Boyd Leon.
“It’s happening to more than just TU students. A lot of students are failing because they’re focusing on working and funding their studies,” said Boyd Leon.
That insight drove home the urgent need to examine the issue more closely. The study, currently in progress, aims to shed light on the connection between financial literacy and academic success. To ultimately advocate for change in how institutions support students’ financial education.
One of the key concerns emerging from early conversations is equity. Access to financial education isn’t distributed evenly.
“Students of color and first-gen students have less access to financial literacy,” said Boyd Leon. “Those who are middle-upper class tend to have people around them who provide them with financial advice and tips.”
A 2018 national study conducted by FINRA (Financial Industry Regulatory Authority), suggests that household income and education are the two primary indicators of financial literacy, and there is a significant racial wealth gap within the United States
Further supporting the need for early intervention, a 2022 study published in the Journal of Research in Business Education found that students who receive formal instruction in financial literacy, especially at the high school level, are more confident and better prepared to make informed financial decisions.
Adding to the problem is the lack of early education on the subject.
“Maryland is one of the states that don’t mandate students to take a financial literacy class in high school,” said Dr. Boyd Leon
Maryland Public Schools do not enforce a stand-alone graduation requirement, but local leaders have the choice to offer stand-alone financial literacy education or embed the content in other courses.
That leaves many students arriving on campus with little to no understanding of budgeting, debt management, or saving. Basic skills that become critical the moment they step into college life.
A report by EBSCO reinforces this trend, revealing that a significant number of college students feel unprepared to manage their own finances and are eager for more formal financial education.
This research serves as a wake-up call, not only to universities but also to state and federal education systems. If the goal is to see students graduate not just with degrees, but with real-world readiness, then closing the financial literacy gap must be a priority.
According to the National Library of Medicine, 75% of students have been dealing with moderate to high financial stress for the past year.
“I try to get them to be more relaxed, but if there’s any type of hostile body language, I try to get them calm down and try to understand and get to their level.” Amirah Dockins, one of the four financial coaches at Towson University, is a source that distressed college students can go to in order to better understand how to navigate a work-life balance being a college student with financial responsibilities.
The process that occurs usually involves learning goals and prepping for future situations like student loans, going to grad, and more.
Big parts that go into peer leader’s assistance as described by Dockins are, “Just be open. Open to listening, open to, you know, understanding that there are going to be bumps in a room, and that’s when you come for advice, and I will help you do that.”
A lot of connection building is fundamental, as it’s “me and the student against the problem” philosophy is crucial.
Even with such a helpful outlet, there is still a level of tenseness going on during discussions. When asked about it, Dockins explains, “sometimes. It depends on the person and their circumstances.”
That’s why other outlets/sources of solutions like the WhichWay financial literacy app are available for any Towson students. It is a multi-course online course that gives multiple videos and practices to help enhance people’s knowledge of financial literacy.
The issue with this app, though, is that a lot of people don’t have knowledge of its existence. Even when bringing up the app to Dockins, she questioned, “no what is that?” It is clear that the app might need more promotion, as the student body should be aware of every option they have.
Situations like this display a lacking sense of encouragement and advertising for students to reach out for help through various platforms and sources.
“I feel like the biggest hurdle people face post-graduation with financial literacy is managing or budgeting money from their employment,” said Sami Kahout, a Towson University graduate.
Many graduates enter the workforce with steady paychecks for the first time but little knowledge of how to allocate income for expenses, savings, and debt. Without a financial plan, it’s easy to fall into patterns of overspending or living paycheck to paycheck.
“Understanding credit scores, credit cards, budgeting living expenses, and managing student loan debt are just a few examples of this,” Kahout said.
These concepts, though critical to adult life, are often overlooked in traditional education. Missteps in these areas can have long-term consequences, including damaged credit, high-interest debt, or defaulted student loans.
“I think a great method to budgeting is through apps or using a journal to keep a log of how your money is being spent.”
There are apps available like Mint, YNAB (You Need a Budget), or even simple handwritten logs that can make tracking expenses easier and reveal unnecessary spending. Building awareness around personal habits is a key first step to gaining control over finance.