NEWBURYPORT — For 15 years, North Shore-based Institution for Savings, a $5 billion community bank with 13 locations, has been hosting annual Credit for Life fairs to expose local students to critical money management lessons they will use throughout their lives. The bank’s annual event for more than 1,000 North Shore high school juniors is the largest one in the state.
Now, this 205-year-old institution is bringing its interactive budgeting simulation to incoming Salem State University freshmen, hosting its first college Credit for Life Fair at the university’s Ellison Campus Center on Friday, during the first week students are back in school. More than 700 incoming freshmen and transfer students are expected to take advantage of the opportunity to hone their budgeting skills as they enter this critical time in their lives.
“This is an important time for college freshmen because for the first time so many of them are taking on increased responsibility for their own fiscal decisions,” Institution for Savings President and CEO Michael J. Jones said. “From budgeting for tuition and textbooks to handling day-to-day expenses like food and transportation, understanding financial basics is crucial. Having financial knowledge and skills can help them make informed financial decisions now that will set them up for future success. And we are happy to help them on that journey.”
Credit for Life is an interactive financial literacy program designed to teach high school students about budgeting, saving, and making responsible financial choices. Using the Credit for Life website developed several years ago by seven Massachusetts banks (creditforlife.org), students take on the role of 25-year-old adults, choose careers, receive mock salaries, credit cards and savings accounts, then navigate various expenses such as housing, transportation, and groceries. The goal is to help them understand the real-world costs of adulthood and develop crucial financial management skills before they face these challenges themselves.
“The habits students form in their early high school years can shape their financial futures. Salem State University is proud to partner with the Institution for Savings to provide these young learners with the tools they need to make smart money decisions now — building a strong foundation for whatever paths they choose after graduation,” Salem State University President John Keenan said. “As the Commonwealth’s Civic Engagement University, we are committed to serving youth from across our communities. It is through partnerships like these that today’s generation of students becomes tomorrow’s generation of financially conscious leaders.”
Recent statistics indicate that many college students do not have the skills needed to effectively set themselves up for financial success. A recent Forbes article found that more than half of students leave college with debt. The average student loan debt for a 2024 graduate may be as high as $42,673 according to the Education Data Initiative. A recent Ellucian report found that 59% of college students surveyed considered dropping out due to financial stress; 57% said they had to choose between college expenses and basic needs like food and clothing.
Massachusetts is one of only 21 states that currently does not mandate a personal finance course as a graduation requirement. This number, while representing a significant increase in states adopting personal finance requirements for graduation in recent years, still leaves the Commonwealth well behind other states in offering appropriate financial education in its public schools. Still, the trend suggests a growing recognition of the importance of equipping students with essential financial literacy skills before entering adulthood.
“Until financial education is required in all our schools, we will continue to do our part to provide these critical life skills when we can,” Jones said. “Knowing how to manage debt, balance a budget and live within our means is a basic life skill that will set these students up for future success, financially and in life.”