Money Fit Announces 2023-2024 Scholarship Winner: Carmen Yadi
Money Fit is thrilled to announce Carmen Yadi from College Park, Georgia, as the recipient of the 2023-2024 $1,000 annual Money Fit Scholarship. Carmen was one of 748 applicants who shared opinions and answered questions about personal finance, specifically on credit, debt, savings, and budgeting. The scholarship application process also shed light on the financial literacy and concerns of high school and college students nationwide, as noted below.
Carmen will be entering Kennesaw State University in Kennesaw, Georgia, as an incoming freshman in 2024. We are excited to support her academic journey and financial growth.
Telling Findings
During the scholarship application process, we uncovered important insights into how often students discuss personal finance with their parents or guardians. About 30% of high school juniors and seniors have these discussions at least once a month, while the numbers rise to 45% for college freshmen and 50% for college sophomores. This growing awareness highlights the increasing importance of financial literacy as students advance in their education.
However, the survey also revealed some common misconceptions. Nearly half of college sophomores, and a majority of college freshmen and high school seniors, wrongly believe that the default repayment term for student loans is just one year instead of the actual ten years. This misunderstanding likely contributes to the high percentage of students who believe student loans should be avoided at all costs, with 24% of both college freshmen and sophomores holding this belief.
Students Underestimate the Value of Their Education
The survey found that many students underestimate the financial benefits of a college degree while overestimating its costs. Although decades of evidence show that college graduates typically earn about twice as much as high school diploma holders over a lifetime, around 75% to 80% of both high school and college students believe that a college degree boosts lifetime earnings by just 25%.
Additionally, there is confusion about interest rates on student loans compared to credit cards. More than one-third of college freshmen and sophomores incorrectly think that credit cards have lower interest rates than government-insured student loans. In reality, credit card APRs are currently at historic highs of 22% to 23%, far exceeding the less than 8% maximum interest rate of student loans.
Did You Know?
Our three annual scholarship winners so far attend distinguished institutions: Transylvania University in Lexington, KY, Rutgers University, and Kennesaw State University. These winners reflect the diverse educational backgrounds and academic excellence that Money Fit supports through its scholarship program.
On the Bright Side
Encouragingly, the scholarship application process itself has sparked more interest in personal finance discussions among students. Three-quarters of respondents said that taking the Money Fit survey led them to ask their parents and guardians more questions about personal finance and student loans. This shows a crucial takeaway: young people are eager to learn about money, credit, and debt, and they need accurate information to make smart financial decisions. Parents and guardians play a vital role in this learning process, and when they don’t have all the answers, they can look for reliable resources together to fill those gaps.
Money Fit is committed to promoting financial literacy and empowering students to make sound financial choices. The insights gained from this year’s scholarship application process highlight the urgent need for better financial education and open discussions about money management within families.
Congratulations, Carmen, on your well-deserved scholarship!
