U.S. BANK

2017 U.S. Bank Student Financial Literacy StudyOverview

July 2017

2U.S. BANK |

Students most want to learn about saving, investing and credit

51%43% 40%

34% 34% 32% 30% 28% 26%21%

10% 10%

Thinking about what you currently know about finances, which areas are you most interested in learning more about? Select up to five.

3U.S. BANK |

Thinking about what you currently know about finances, which areas are you most interested in learning more about? Select up to five.

0%10%20%30%40%50%60%

African American and Hispanic students are more likely to want to learn about saving

4U.S. BANK |

Thinking about what you currently know about finances, which areas are you most interested in learning more about? Select up to five.

0%

10%

20%

30%

40%

50%

60%

Male Female

Female students are more likely than males to want to learn about credit

5U.S. BANK |

“I am more concerned with this than when I was a freshman”

For each of the following rows, tell us how, if at all, your attitudes have changed since you were a freshman.

69%

60% 59%

71%

55%

47%

57%54%

50%

61%

49%

38%

59%

51% 51%

59%

45%41%

65%

54%

48%

67%

49%

39%

Being able to save money Budgeting my day-to-dayspending

My credit score Saving for the future Learning about investing Learning about retirement

College leaves students with more questions than answers

6U.S. BANK |

Many students believe common myths about credit

Please read the following statements and say whether they are true, false, or you are not sure

Once a delinquent loan or credit card balance is paid off, the item is removed from a credit report

Having too many credit cards can negatively impact your credit score

A parent co-signing a student loan is not responsible for re-paying the loan, if their child doesn’t have a job

Social Security should be enough for retirement

Checking a credit report will hurt your score

An emergency savings fund should cover a minimum of 3 months of living expenses

Once a credit score is bad, it can never be rebuilt

Not paying bills on time can affect your credit score

If one spouse has poor credit history, it can affect the other one’s ability to apply for loans

401K investments can lose value, they are not guaranteed

Using check(s) / debit cards can help build credit

The amount of money you have in the bank does not affect your credit score

2017True/False

True 87%

False 84%

True 69%

False 55%

False 53%

True 54%

False 55%

True 50%

False 44%

True 45%

False 42%

True 34%

2016

84%

77%

70%

57%

54%

54%

52%

50%

44%

41%

39%

36%

7U.S. BANK |

84% 77% 75% 68%

Do you know what credit score is?

Yes, I know what a credit score is

To your knowledge, what is a credit score used for? To deteriminewhether…

Total White African American

Hispanic Asian

a person qualifies for a loan 78% 84% 63% 74% 75%

a person qualifies to rent an apt/house 67% 71% 59% 64% 62%

a person qualifies for a credit card 66% 71% 57% 58% 61%

a person qualifies for insurance 32% 32% 32% 29% 37%

a person qualifies for a savings account 18% 17% 23% 17% 19%

a person qualifies for a job 16% 15% 22% 15% 15%

a student can be accepted to a college 9% 6% 14% 13% 8%

True

Fals

e

Credit knowledge is lower among multicultural students

8U.S. BANK |

80% 80%

Do you know what credit score is?

Yes, I know what a credit score is

To your knowledge, what is a credit score used for? To determine whether…

Total Male Female

a person qualifies for a loan78% 73% 83%

a person qualifies to rent an apt/house67% 59% 74%

a person qualifies for a credit card66% 61% 70%

a person qualifies for insurance32% 34% 30%

a person qualifies for a savings account18% 22% 15%

a person qualifies for a job16% 20% 13%

a student can be accepted to a college9% 11% 7%

True

Fals

e

Female students demonstrate greater knowledge than males about credit

9U.S. BANK |

Top 2 Box: This describes me completely/very well Total White AfricanAmerican

Hispanic Asian

Because of my money situation, I feel like I will never have the things I want in life 35% 31% 42% 40% 35%

I am just getting by financially 41% 39% 50% 45% 38%

I am concerned that the money I have or will save won’t last 54% 55% 50% 54% 53%

I have money left over at the end of the month 41% 40% 45% 40% 39%

My finances control my life 50% 50% 48% 52% 49%

How well do the following statements describe you or your financial situation?

Half of students say that their finances control their life

10U.S. BANK |

Top 2 Box: This describes me completely/very well Total White AfricanAmerican

Hispanic Asian

Because of my money situation, I feel like I will never have the things I want in life 0% -4% 6% 1% 2%

I am just getting by financially -7% -9% 4% -7% -9%

I am concerned that the money I have or will save won’t last -2% -2% 1% -3% -2%

I have money left over at the end of the month 1% 2% -3% -5% -13%

My finances control my life 7% 8% 4% 6% 5%

How well do the following statements describe you or your financial situation? (% change since 2016)

Students are more likely than last year to say that their finances control their life

11U.S. BANK |

In the first 5 years after college, what are your top three financial goals? (% ranked in top three)

45%

27% 25% 25% 25% 24%

14% 13% 12% 11% 11% 10% 12%9%

Having a steady job is students’ top financial goal in the first five years after college

12U.S. BANK |

Having a steady job is the top financial goal across all segments

0%

10%

20%

30%

40%

50%

60%

In the first 5 years after college, what are your top three financial goals? (% ranked in top six)

13U.S. BANK |

How involved are you, personally, in the following aspects of your family’s/parents’ household finances? (top two box)

47%

40%

33%

Budgeting/Day-to-DayManagement

Long-term planning and bigpurchases

Taking out loans andmanaging lines of credit

BC

Nearly half of students are involved in their family’s basic household finances

14U.S. BANK |

African American and Hispanic students are more likely to be involved in household finances

How involved are you, personally, in the following aspects of your family’s/parents’ household finances? (top two box)

ADAD

42%36%

29%

58%

47%

38%

53%48%

41%44%

28% 26%

Budgeting/day-to-daymanagement

Long-term planning and largepurchases

Taking out loans/line of credit

ADADD

ADAD AD

15U.S. BANK |

40%37% 36%

20%

13%

9%

22%

41%38%

37%

17%

9% 8%

21%

39% 39%

36%

25%

18%

11%

26%

41%

35%33%

26%

19%

9%

21%

37%

34%36%

19% 19%

10%

30%

I’m good at being budget conscious

I’m interested in running my own

household one day and want the practice

now

We do financialplanning together as a

family

I’m better at math/ accounting than

anyone else in my family

My family/parents don’t fully understand this and need my help

No one else in myfamily has time

It is a familyexpectation

You said you are involved in your family’s/parents’ household finances. Which of the following best describes why you are involved in the specific activities you mentioned?

A A A

A A

Reasons vary for students’ involvement in household finances

16U.S. BANK |

Male students are more likely than females to be involved in household finances

How involved are you, personally, in the following aspects of your family’s/parents’ household finances? (top two box)

AD AD

48%45%

39%

45%

35%

27%

Budgeting/day-to-daymanagement

Long-term planning andlarge purchases

Taking out loans/line ofcredit

Male (G) Female (H)

H

17U.S. BANK |

After parents, students turn to online resources for financial information

If your parents/guardians do not have financial answers to your questions about specific financial topics, where would you go for information?

40%

30% 30% 28%

20%17%

13% 11%

Online Bank branch Financialadvisor

Bankwebsite/app

School A peer (e.g.friend, fellow

student)

Readingfinancialcontentoffline

Other familymember (nota parent orguardian)

18U.S. BANK |

Which sources on social media, if any, would you trust about financial information?

18% 20% 21% 17%I wouldn’t trust any source

on social media about finances

19%

34% 47% 51%Banks 47% 44%

43% 45% 46% 37%My family 42%

14% 28% 25% 34%News sources 28%

13% 15% 12% 16%Bloggers 14%

9% 6% 5% 5%Celebrities 6%

24% 29% 19% 26%Friends 25%

TotalUnder-

classmenUpper-

classmen2-Year Degree

HS Senior

Students gain trust in finance-related social media posts from banks, media during college

19U.S. BANK |

Quantitative Assessment

Methodology:

Online quantitative survey among undergraduate students and highschool seniors. 1,628 undergraduates/high school seniorsaged 18-30 completed the survey.

WeightingBenchmarks:

• Race/ethnicity*: • 60% White• 15% African American• 18% Hispanic• 7% Asian

• Gender:• 45% men• 55% women

Cuts:• Race/Ethnicity• Gender• Year in school• Banked status

*African American (n=474), Hispanic (n=478), and Asian (n=205) segments have been deliberately oversampled. Data has been weighted to be representative of the U.S. undergraduate university student population with regard to race and gender, in accordance with the 2015 American Community Survey (ACS).**Only differences that appear between subgroups (race, gender, banked status, year in school) that are statistically significant at the 0.95 confidence level (two-tailed) are noted within the deck.

Qualitative Assessment

Methodology:21 qualitative in-depth interviews with undergraduate students and highschool seniors.

Participant overview:

• Ages 18-28• Mix of race/ethnicity:

• 5 White• 7 African American• 5 Hispanic• 4 Asian

• Gender:• 48% men• 52% women

• Living with or without parents

Methodology

20U.S. BANK |

Methodology

5%

28%

67%

15%

34%

51%

11%

37%

51%

4%

21%

75%

High School Senior (18+) Undergraduate (2 YearCollege)

Undergraduate (4 YearCollege)

Which of the following best describes your current education status?