The alarming rise in financial illiteracy hurts both the financial well-being of individuals and the economy. Institutions of higher education should be preparing their students to make financial choices throughout their lives that enable them to effectively participate in our economy, build wealth, and attain their goals. According to Adrianna Kezar and Hannah Yang of the University of Southern California’s Center for Higher Education Policy Analysis, financial literacy, “as a life skill, as a requisite to citizenship, and as a critical intellectual competency, is an essential component of a college degree.” Financial illiteracy can cause people to become victims of predatory lending, subprime mortgages, fraud and high interest rates, potentially resulting in bad credit, bankruptcy or foreclosure. Critical decisions that students and families make before, during, and after their postsecondary education influence their financial future. Personal finance education provides students with the knowledge and skills they need to manage their financial resources effectively for a lifetime of financial well-being.

The purpose of this study is to contribute to the growing discussion on the importance of financial literacy education in a liberal arts environment and to propose ways in which a liberal arts curriculum can be designed to include financial literacy.

In this study we will:

• Research current financial literacy offerings in small liberal arts colleges in Pennsylvania
• Identify the essential elements of effective student financial literacy education
• Outline an approach to integrating financial literacy education as part of the Liberal Arts experience