Survey says students uneducated on credit

A national survey of 500 college students found that the majority of students are credit-dependent, but don’t understand the basics of borrowing and interest rates. The Center for Economic and Entrepreneurial Literacy said its study revealed a need for more education about personal finance.

Study results:

• 44 percent of respondents did not know the annual percentage rate of the credit card they use most
• 54 percent reported having overdrawn their bank account
• 25 percent reported owing more than $1,000 in credit card debt
• 60 percent reported keeping a monthly budget
• 92 percent said they understood the basics of supply and demand
• 75 percent of those with student loans thought they would be able to pay them off in 10 years or less

Source: www.econ4u.org, the Web site for The Center for Economic and Entrepreneurial Literacy