Everyone wants to achieve and maintain a state of financial well-being for oneself and one’s family. Employee financial well-being is thus increasingly a point of focus among employers, including colleges and universities. However, achieving financial well-being is not just a matter of having a good job and enough money. Certainly, resources matter, as does access and opportunity in the financial system. But so, too, does the ability to make sound, appropriate financial decisions.
How does financial literacy affect the debt levels, savings behavior, and overall financial wellness of the higher education workforce? A new report from the TIAA Institute and the College and University Professional Association for Human Resources says the vast majority of college and university employees—82 percent—carry some kind of debt, and just over half are debt-constrained in some way.
The report’s findings show that financial well-being among the higher education workforce tends to be better among those with greater financial literacy, highlighting the value of campus programs to improve personal finance knowledge. Debt is a particular point of focus as many individuals report being debt constrained. Savings behavior is also examined, as well as several indicators of financial well-being.