Survey Finds College Upperclassmen Remain Optimistic About Their Financial Future, Despite Current Economy

NEW YORK, May 13 /PRNewswire-FirstCall/ -- Amid an uncertain economy and job cutbacks, college upperclassmen continue to embrace a youthful optimism towards their financial prospects after graduation. This year's survey by Credit-ED(R), Citi's award-winning financial literacy program for young adults, reveals that the majority of college juniors and seniors expect to secure a full-time job with a solid annual income right after graduation. Compared to previous years, students' credit management behaviors are improving and their desire to build good credit is greater -- with more anticipating graduating with no credit card debt. Yet only 54% feel strongly that they have enough credit knowledge to handle their finances responsibly, and more anticipate relying on their parents for financial support post-graduation.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070424/NYTU104LOGO )

A rosy financial outlook -- with help from parents

What are the biggest concerns for students after they receive their diploma? Results of the annual Citi Credit-ED/Synovate national survey of more than 1,000 college juniors and seniors found that securing a good job (38%) and their physical/mental well-being (21%) were their top issues.

Once attaining their degrees, 6 out of 10 look ahead to full-time employment within 3 months of graduation. The average expected annual income after graduation is $37,165, with one-third anticipating their earnings will be at least $40,000. But they are not ready to cut the purse strings from their parents just yet. Over two-thirds said they expect at least some financial support from their parents and a growing number would lean on them as a financial "crutch," if needed, after graduation.

Parents are a growing influence in how students are handling their money as well. Eighty-three percent of respondents said their parents are their financial role model -- a significant increase from the last two years.

Better credit management behaviors, but still room for improvement

This year, establishing good credit became significantly more essential to upperclassmen than in previous years, with 82% saying it is very important to them. Supporting this objective are better credit management behaviors. Yet some still need to understand the long-term implications of their current payment habits.

     -- The percentage that consistently paid their bills on time increased
        significantly in 2008, while those who feel they do a good job of
        managing day-to-day spending is also trending upward.

     -- Since 2007, there has been a significant decrease in the percentage of
        students who have bounced checks, had a bill turned over to
        collections and used one credit card to pay off another.

     -- Almost half of upperclassmen said their current spending habits will
        not have a major impact on their credit report in the future.

Students' improved credit management behaviors and desire to build good credit this year could be part of their plan to graduate without credit debt. After steadily declining since 2005, the number of upperclassmen who expect to not have any credit card debt after graduation increased significantly in 2008 to 58 percent.

Despite these positive trends, only 54 percent are confident they have enough credit knowledge to handle their finances responsibly.

"While it is encouraging that students are realizing the importance of building good credit and practicing better credit management behaviors, this year's survey underscores the continued need for financial education resources to help young adults achieve financial independence," said Anthony Merola, senior vice president, Citi Cards.

Free credit education resources, online and on-campus

To provide students with the resources and support they need to manage their finances wisely in college and beyond, Citi's Credit-ED Program offers a website, www.Students.UseCreditWisely.com that provides free essential information and tools they need to develop healthy money management skills. The site features comprehensive credit education information on spending wisely, learning the ABCs of credit and protecting against fraud, as well as interactive tools such as the Budget Builder, an easy-to-use, step-by-step guide to creating a personalized spending and savings plan, and mini-movies.

Citi also provides the Credit-ED(R) Challenge, an interactive, free financial education workshop available as an on-line tutorial at www.Students.UseCreditWisely.com and as a one-hour workshop on-campus. The Credit-ED Challenge helps students examine their own spending habits and attitudes towards money, recognize how a budget helps them meet their financial goals and understand the rewards and responsibilities of credit card use. Once students have completed the Credit-ED Challenge, they are encouraged to take the Credit-ED Challenge Certification quiz to become Credit-ED Certified.

"Citi is committed to delivering the necessary financial education information and tools to help young adults develop a solid foundation and confidence needed to attain a healthy financial future," adds Merola.

Since its inception in 2000, Citi's Credit-ED Program, an ongoing and comprehensive credit education initiative for students, has distributed over 5 million credit education materials for free to students, administrators and parents.

In 2004, Citigroup and the Citigroup Foundation announced a 10-year, $200 million global financial education commitment, the formation of the Office of Financial Education and a global initiative designed to encourage its 300,000 employees around the world to devote time to support financial education and other charitable causes. Under the initiative, employees may take a day off from work to volunteer for non-profit organizations in their communities.

Survey Methodology

Total for the 2008 sample includes 1,046 U.S. juniors and seniors at a 4-year college or university. All interviewing was conducted on-line, averaging 10 minutes in length. The margin of error is +/- 3.0 percentage points.

About Credit-ED(R)

Credit-ED is part of Use Credit Wisely, Citi's ongoing comprehensive credit education program that provides free financial tools to help people of all ages, backgrounds and economic levels develop healthy credit habits. In addition to Credit-ED, Use Credit Wisely also includes Hablando de Credito, Citi's credit education program for the Hispanic community.

Citi

Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com .

SOURCE Citi

Copyright © 2009, PRNewswire
Copyright © 2009, NewsBlaze, Daily News

Tags: ,FIN,EDU,HED,SVY,Citi-Survey-College

   _   _