Getting an “F” in Financial Literacy

12872231_2ab30f3227_zWith student loans growing at an alarming rate, it may not surprise you that many college freshman have little knowledge when it comes to financial literacy.

On average, freshmen at four-year colleges could only answer about two out of six questions correctly about topics like the right amount of money to set aside in case of a financial emergency, the conditions placed on student loan borrowers and how long a late payment remains on your credit history, according to a study published by Higher One, a financial aid disbursement company, and EverFi, an education technology company.

The study also found that just 39% of four-year college students use budgets and 12% don’t even check their account balances because it makes them nervous.

Find out more about college students’ lack of financial knowledge at Market Watch.

Photo courtesy of: Gus Dahlberg