How effectively do high schools and universities prepare individuals for the real world? Not so well, according to some recent U.S. grads and other Americans in a new study.
The survey of more than 2,000 U.S. adults, conducted in January by the internet-based research platform Quizlet, aimed to investigate new high school and college graduates’ confidence and competency in basic life skills—such as financial planning, auto maintenance, cooking, and more.
According to the survey results, about one-third of recent graduates said they don’t believe they possess the financial and fundamental life skills necessary to succeed in the world or are unsure whether they do.
Approximately 68% of recent graduates believe that taking non-academic courses in schools would improve their preparation for the real world.
Almost one in five new grads said they are least comfortable performing automotive maintenance, such as changing a tire or oil. This was followed by financial planning (17%), insurance (12%), minor home repairs (11%), cooking (11%), cleaning (8%), and organizing (8%), the survey found.
Financial planning was perceived as overwhelming by the majority of new graduates, with 29% of respondents saying it had an impact on their cognitive well-being.
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However, survey respondents reported that social media was bridging the skills gap, with 33% of recent graduates relying on it for knowledge of life skills.
Angel Davis, a fourth-year scholar at NYU and cultural media secretary for Quizlet, said in a statement, “I think people would agree that giving young people the tools and information to easily take on the world is in all of our best interests.”
The study included 500 people who “indicated that they had graduated from high school in the last two years” and 500 who had completed college in the last two decades. Another 1,002 members were from “the broader U.S. general population, who were not required to meet any education criteria,” Quizlet said.
New Grads Lack Financial Confidence, Survey Finds
According to the study, recent graduates’ major financial planning topics appeared to produce the most anxiety: tax organization, saving for emergencies, debt management, and managing credit.
A majority (56%) of recent graduates reported feeling uneasy about how to budget and control long-term expenses, such as a 401(K) or credit score. About 60% of people said the same about their financial stability.
Females in Gen Z, or those born between 1997 and 2012, said insurance (84%) is the most overwhelming aspect of long-term investing and planning. Financial planning (83%) and automotive insurance (83%) tied for second, according to Quizlet’s survey.
Gen Z males said they’re most overwhelmed by financial planning (85%), followed by organizing (81%) and insurance (81%).
Generations Agree: Financial Literacy and Planning is Important
Financial planning (45%), time management (38%), and emotional well-being/management (37%), according to recent graduates, are the top three non-academic courses that, if taught in school, would have increased their chances of success.
Across generations, the survey’s Gen Z to Boomer respondents agreed, according to Quizlet. Financial literacy is also cited as the top non-academic course that respondents said they would have benefited the most from if it had been offered in their school years.
Additionally, courses like critical thinking and communication were identified as courses that survey respondents believed would have helped them succeed.
The findings come as Americans deal with numerous financial strains frequently discussed in the news cycle, such as high inflation and the resumption of student loan repayment. Some colleges are now offering financial literacy classes, and Walmart announced last year that it would provide one for free.
“Recent graduates face a tough job market, high cost of living and inflation, so it’s no surprise that students want essential life skills, like financial literacy, covered in their formal education,” Caroline Walthall, Quizlet’s director of product and lifecycle marketing, said in a statement.
These findings “suggest that students are eager for information that can prepare them for the real world,” Walthall continued. “An increased focus on these skill gaps should also improve mental well-being and confidence in the process.”