College students face many stereotypes, one of the most common being that they are broke; however, this stereotype seems to be true. According to a 2022 survey, 1 in 5 college students have less than $100 in their bank account, and 61% have less than $1,000 saved.
This pattern continues on the LSUS campus, where Brandon Lars uncovered that 4 of 6 students could not cover a $500 emergency without using a credit card. The Consumer Financial Protection Bureau’s questionnaire highlights how the lack of an emergency fund contributes to a year-over-year peak in financial stress, occurring at a rate of 51%. Students are losing not only peace of mind but also experiences and necessities. Within the last month, five of the six interviewed students skipped social events because they had no money left over after school and living expenses.
Even basic needs are not guaranteed. One student revealed that if they lost their current income, they could not make it a full week on their own; they had only $13 in their checking account. For this individual, it wouldn’t be the first time they had faced economic pressure. They had skipped dinners before to ensure they had food for lunch at school, a practice they described as common at one point. It’s a struggle no one should have to endure, and it highlights the failings of our higher education system.
Each student had a different definition of being “broke,” but the most common range was $0 to $150. Despite these grim numbers, the students also offered practical solutions that could reduce financial stress on campus: dynamic payment plans that adjust to students’ needs, paid on-campus internships that provide funds to continue education, and a shift toward open-source curricula that eliminate the need for expensive textbooks to access assignments.
College students may experience some of the highest levels of financial insecurity across demographics. This says less about college students and more about the reality of a broken, overly expensive education system.
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