College Students Show Confidence in Managing Their Finances, No Thanks to AI, Finds College Ave Survey

Students mastering smart budget habits; parents rank as the number one source of financial information

WILMINGTON, Del., April 29, 2025 /PRNewswire/ -- College students feel confident in many of their financial habits, thanks in part to support from their parents, according to a recent College Ave survey of 1,060 current college students at four-year universities. The College Ave survey, conducted by Barnes & Noble College Insights™, finds the majority of students pay their bills on time (76%), have personal financial goals they are working toward (63%), and track their spending (55%). Of those who have a credit card (56%), more than two-thirds feel they use it responsibly (68%).

For many in Generation Z, their keen financial habits can be attributed to their parents. Parents rank as the number one source of financial guidance for students (71%), ahead of online research (53%), classes (44%) and friends (34%). One of the least trusted financial sources? Artificial intelligence. Most students report they would never use AI to research financial companies and products (71%). Even fewer say they would act on an AI chatbot's financial recommendations without doing further research (5%).

Despite students' efforts to stay informed and manage their day-to-day finances, many are still surprised by the overall costs of college. Most find college costs to be more than they anticipated (61%). Of those, 1 in 4 say college costs exceeded their planned budgets by more than $10,000 a year. Perhaps the unanticipated costs can be attributed to the fact that many students find figuring out how to pay for college confusing (41%).

Nearly half of students (44%) rely on student loans to help cover college expenses throughout their academic journey. While the vast majority of borrowers (80%) understand that they will need to repay more than they initially borrowed, many are surprised to find that student loan payments will take up a larger portion of their budget than expected (59%). Although fewer than half of students feel fully confident about their understanding of student loans (40%), borrowers are still taking responsible steps to manage their debt. Among those who borrowed, 62% have thought about the total student debt they'll face upon graduation, while about half (52%) have factored in their anticipated future salary when taking out loans. Additionally, over one in five borrowers (23%) are already making student loan payments while still in school.

"Our College Ave survey highlights that college students are building strong financial habits and are solidly paving the way for a bright future," said Dan Kennedy, Chief Marketing Officer, College Ave. "Though the survey finds students and families may be surprised by the cost of college, they are diligent about researching their options on how to pay, including student loans. College Ave is proud to be a trusted partner in this journey. We offer a variety of resources – from guides to calculators, along with our private student loans with competitive rates and flexible repayment options – to help students and their families borrow wisely and achieve their higher education goals."

In addition to the statistics around paying for college, the College Ave survey also finds:

• Students are proud to be "loud budgeters." More than half feel comfortable saying no or offering alternative suggestions to peers if they can't afford the activity (59%).
• Students who live on-or-off campus pay just under $1,400 a month on average for housing or rent.
• $335 a month is the average stipend for those students who receive an allowance from their parents while in college.
• Students who work to help pay for college work an average of 16 hours a week. They contribute an average of just over $12,000 a year toward their personal and college expenses.

College Ave offers incredible resources, guides and tools to help families plan and pay for college. Check out their student budget worksheet, student loan calculator and $1,000, no-essay scholarship sweepstakes. For more information, visit CollegeAve.com.

About College Ave
College Ave started with a big vision and a simple mission – take the stress out of paying for college so students can focus on preparing for a bright future. Now a leading financial services company, College Ave remains committed to using best-in-class technology and deep industry expertise to deliver practical and personal solutions that give young adults a running start on their roads to financial success. We offer best-in-class products with competitive rates and a customer-friendly experience from start to finish. Visit: collegeave.com.

About the Survey
The College Ave survey was conducted by Barnes & Noble College Insights™. The national online survey of undergraduate students who attend a 4-year college or university at one of the campuses served by Barnes & Noble College had 1,060 respondents and was fielded in late February-March 2025. Last year, Barnes & Noble College Insights conducted more than 50 research studies and 100+ survey polls of students, faculty and parents that interact with one of its more than 770+ campus bookstores across the nation.

SOURCE College Ave