College Students Predict Brighter Outcomes for Their Financial Futures, Despite Lingering COVID Concerns and Rising Credit Card Use
AIG Retirement Services, a leading retirement plan provider for tax-exempt and public sector employers, including education institutions, and EVERFI, a leading social impact education innovator, today announced findings from a new survey of over 20,000 college students nationwide. Despite a year of extraordinary challenge—with remote learning, health scares and high unemployment—college students appear optimistic and confident about their economic situation.
One Year Into COVID, College Students Are Confident
Even with the stress, grief and hardship brought on by the global pandemic, many college students believe they are ready to take care of their finances and are optimistic about their post-graduation job prospects. Over half of college students (
Looking at future employment, more than one-third (
In line with this unexpectedly positive outlook for employment, students say their salary expectations have also increased, as
“As students close the books on a second unprecedented school year, they see a light at the end of the tunnel,” said Rob Scheinerman, Chief Executive Officer of AIG Retirement Services. “Students who find themselves in a good economic situation can take advantage of the opportunity to get a strong start on financial security—saving for retirement, building an emergency fund and paying down debt. Still, the challenges created by the pandemic could linger, so good financial habits will continue to be important for college students as well as for graduates just beginning their careers.”
COVID Still Casting a Shadow
Even with their optimism about the future, college students have felt the effects of COVID-19. Nearly one-third (
The impact of COVID-19 also extends beyond financial concerns, with
Rising Credit Card Use Suggests Underlying Concerns
In contrast to the students’ enthusiasm and optimism about the years ahead, an increased use of and reliance on credit cards stand as a warning about the potential for future financial trouble. Nearly half of surveyed students (
College students now have more credit cards in their wallet than in previous years, with
“We have been encouraged to see college students responding to the COVID pandemic with such resilience but worry they may be getting ahead of themselves financially,” said Ray Martinez, Co-founder and President of EVERFI. “Financial literacy will continue to be key as students find the right strategies for managing their money and working toward successful financial futures.”
Personal Finance Areas Where Students Are Still Getting Good Grades
Continuing a positive trend seen earlier this academic year, college students also seem to be responding to the challenge with a healthy amount of pragmatism. They are showing some good personal finance habits, with
Students are also more confident in their plans for repaying student loans. Over three in four college students (
“Student loan debt is typically a major source of financial stress, but college students have perhaps been buoyed by months of student loan relief and stimulus checks,” said Scheinerman. “Student loans can be a drain on the monthly budget, and employers have the opportunity to create programs and services that help their employees take control of their student loan debt.”
Study methodology
This survey from AIG Retirement Services and EVERFI, fielded from October 1, 2020 – March 31, 2021, is a nationally representative sample of 20,181 college students from 135 higher education institutions located in 34 states.
# # #
About AIG Retirement Services
For more than half a century, AIG Retirement Services has served as a leading defined contribution retirement plan provider for tax-exempt and public sector employers, including healthcare, K-12, higher education, government, religious, charitable and other nonprofit organizations. AIG Retirement Services has more than
About AIG
American International Group, Inc. (AIG) is a leading global insurance organization. AIG member companies provide a wide range of property casualty insurance, life insurance, retirement solutions, and other financial services to customers in approximately 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange.
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries and jurisdictions, and coverage is subject to underwriting requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.
ABOUT EVERFI, INC
EVERFI is an international technology company driving social change through education to address the most challenging issues affecting society ranging from financial wellness to prescription drug safety to workplace conduct and other critical topics. Founded in 2008, EVERFI is fueled by its Software-as-a-Service (SaaS) community engagement platform and has reached more than 41 million learners globally. In 2020, the company was recognized as one of the World’s Most Innovative Companies by Fast Company and was featured on Fortune Magazine’s Impact 20 list. Some of America’s leading CEOs and venture capital firms are EVERFI investors including Amazon founder and CEO Jeff Bezos, Google Chairman Eric Schmidt, Twitter founder Evan Williams, as well as Advance, Rethink Education, Rethink Impact, The Rise Fund, and TPG Growth. To learn more about EVERFI and how you can #answerthecall please visit everfi.com or follow us on Facebook, Instagram, LinkedIn, or Twitter @EVERFI.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210512005617/en/