SPRING 2009 LIFESTYLE & MEDIA

© 2011 STUDENT MONITOR LLC

550 North Maple Ave., Ridgewood, NJ 07450

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 Conducted each Spring and Fall semester

 On campus, one-on-one intercepts conducted by professional interviewers during the week of March 11, 2011

 1,200 Four Year full-time undergrads

 Representative sample

 100 campuses stratified by:

Enrollment size

Administrative Control

Geographic location (U.S. Census Region/Census Division)

 Margin of error +/- 2.4%

© 2011 STUDENT MONITOR LLC – All Rights Reserved, Unauthorized Use Prohibited

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Grad Part-time

8%

Grad Full-time

6%

Two Year Fulltime

15%

Four Year Fulltime

36%

Two Year Parttime

25%

Four Year Parttime

10%


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Compared to last year, declines are seen for monthly discretionary spending, personal earnings and family HH income

 Monthly discretionary spending: $195 (-15%)

 Annual personal earnings: $4,183 (-16%)

 65% get money from home averaging $265 monthly

 7% are employed full-time and 42% are employed part-time and 5% have an internship during the school year

 Average age: 20.6

 Family HH income: $94,118 (-11%)


5

 Business, followed by

Biology,

Education and

Engineering continue to be the most common majors

Business

Biology

Education

Engineering

Health Professions

Psychology

Communications

Accounting

Pre-Med

Liberal Arts


Total

%

Male

%

Female

%

11 14 8

7 6 8

7 4 10

7 10 4

6 4 8

5 4 6

4 3 5

4 5 3

3 3 3

3 3 3

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S TUDENT B ANKING -

 65% have a checking account in their own name, (average balance $647, down 16% from $774 last year)

 38% (down from 48% last year) were offered a credit card when they opened their checking account and 33% accepted the offer and received the card

 48% have a savings account in their own name, average balance $1,127

 20% were offered a credit card when they opened their savings account and 30%

(32% last year) accepted the offer and received the card

 44% have an ATM card in their own name (43% last year) and 62% have a debit or check card in their own name

 68% of those with a Campus Card have a card that acts as an ID, provides building access and also serves as a stored value card

 55% use their computer for online banking or financial services transactions


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P AYMENT M ETHODS -

 32% of monthly spending is cash-based (33% last year), 44% with an ATM/debit or check card , 9% with a credit card and 4% with a school issued Campus Card

 74% (up from 69% last year) use their ATM card to pay for purchases and 74% of these students use their card to pay for purchases weekly or more often. Students using their

ATM card to pay for purchases use their card an average of 14 times monthly

 62% have a debit or check card in their own name. Nearly half are Bank of America

(20%), Chase (14%) or Wells Fargo (9%) issued check cards

 Nearly all with a debit/check card (95%) use their card to pay for purchases and 76% of these students use their card to pay for purchases weekly or more often. Students using their debit/check card to pay for purchases use their card an average of 17 times monthly

 About one in four without a debit/check card (27%) are at least somewhat interested in obtaining one


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C REDIT C ARDS -

 38% (36% last year and down from 53% eight years ago) have a credit card in their own name (VISA, MasterCard, Discover or American Express).

 25% of all students have a VISA card in their own name, 11% MasterCard, 2% American

Express and 2% Discover

 The average student cardholder has 1.3 cards (1.4 last year), 77% have one card, 18% have two cards and 5% have three or more cards. About one in twenty (6%, down from

14%) report that their parents “Don’t know” they have a credit card.

 Chase (17%), Bank of America (16%), and Capital One (6%) are the largest issuers of all

VISA and MasterCard credit cards in students’ own name. Bank of America (19%) is the largest VISA issuer and Chase (14%) is the largest MasterCard issuer

 85% of are satisfied with their credit limit and 27% (38% last year and 42% last year two years ago) received a credit limit increase in the past year (average credit limit is $1,688 or twice that of students’ initial credit limit was when they first acquired their card $849)


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C REDIT C ARDS (continued) -

 86% use their credit card monthly or more often with 50% using their card weekly or more often (a typical month’s charge is $174, down 9% from last year’s $192)

 68% (up somewhat from last year’s 63%) pay their bill in full each month (among the

34% who carry a balance forward, the average balance is $695, up 35% from $513 last year)

 The largest share acquired their credit card by “Applying in person at my bank” (also their preferred method of acquiring a credit card

 56% acquired their first card before starting college

 79% believe they or their parents and family have the primary responsibility to educate them about managing their finances

 Identical numbers of students (47%) believe they received enough credit education from the issuer of their credit card as those who did not (8% “Don’t know”)

 More than four in ten students (44%) are interested in obtaining a credit card in the next year


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S TUDENT L OANS -

 “Parents” (72%) and “School’s financial aid office” 53% are the most influential sources of information about paying for college (31% identify their bank)

 69% of students expect to have undergrad student loan debt averaging $26,450 and nearly $31,095 among students attending Private schools. Anticipated pay off is 7 years

 56% of student loan debt is from government sources, 20% (18% last year) private, bank loans and 20% (up from 14% last year) are loans direct from their school. Nearly half

(47%) plan to consolidate their loans

 61% (down somewhat from 65% last year) are “Confident in my ability to repay student loans according to the loan’s terms and conditions”

I NSURANCE AND I NVESTMENT P RODUCTS -

 “Automobile insurance” is the most commonly owned insurance or investment product and the product students are most likely to purchase in the next year

 17% “Don’t have” health insurance or “Don’t know” if they have health insurance (66% have health insurance through their parents)


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 Students report comparatively equal levels of interest in creasing their knowledge and literacy of a variety of financial services products

Investments

Credit

Savings

Checking

Credit cards

Student loans

54%

53%

49%

47%

46%

45%


12

 “Builds a credit history”

(68%) is nearly three times as important as

“Offers a cool card design/unique card shape”

(25%) and nearly twice as important as “Provides merchant savings” (35%)

Builds a credit history

Provides budget controls and alerts

Offers a rewards program

Provides a "limit-control"

Access to merchants that require a credit card

Provides a reward or student only pricing program

Provides credit payment card education

Provides merchant savings

Offers a cool card design/unique card shape

68%

50%

48%

48%

48%

46%

39%

35%

25%


13

Bookstore (off campus)

Bookstore (on campus)

Convenience store (off campus)

Convenience store (on campus)

Department store

Fast food restaurant

Gas station

Movie theater

Online purchases

Other retail or specialty store (off campus)

Other stores on campus

Restaurant (non fast food)

Supermarket

%

Shoppers

30

46

68

52

58

81

72

55

48

41

32

69

74

Monthly

Purchases

4.2

3.8

7.1

6.9

4.3

7.5

5.8

2.4

4.2

3.7

4.1

4.0

6.0


Monthly

Spending

$

33.63

33.32

28.11

23.64

45.38

30.22

60.98

17.39

39.34

33.34

22.39

37.43

59.10

Most

Common

Payment

Method

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

ATM/Check/Debit

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 Nearly half of monthly spending (44%) is with an

ATM/Debit or

Check card followed by

Cash (42%)

 About 14% of monthly spending is with a credit card (virtually identical to last year)

School issued

Campus Card

7%

Check

4%

Credit card

9%

Parent's credit card

5%

Cash

42%


Pre-paid

2%

ATM/Debit/

Check card

44%

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 Students report their parents are more influential about “Opening a checking account” or

“Selecting a mobile phone provider” than

“Obtaining a student loan”

Opening checking account 62%

Selecting mobile phone provider

52%

Obtaining health insurance

Obtaining auto insurance

Obtaining student loan

49%

46%

44%

Obtaining renter's insurance 22%


16

“Financial literacy is more important to me in college” 66%

“I’m concerned about managing my money after graduation” 63%

“I’m concerned about managing my money in school” 60%

“I would be interested in understanding how insurance can help control risks such as medical costs or repaying student loans”

46%

“My school offers me enough relevant financial education” 43%

“I would be interested in advice provided by my bank to help me cope with the challenges of this economy”

41%

“I would be interested in learning about all of the products my bank has to offer at one time”

40%

“The student loan application process is too complicated” 38%

“Compared to last year, I am more likely to need a student loan to stay in school”

38%


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 One in five (20%, up somewhat from 16% last year) know what their credit score is (increases with year in school from 14% among

Freshmen to 24% among Seniors)

 83% believe it is important to have a good credit score or credit history

Somewhat unimportant

2%

Neither important nor unimportant

4%

Very unimportant

2%

Somewhat important

19%

Don't know

9%

Very important

64%


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 Nearly four in five (79%) believe they or their parents have the primary responsibility to provide them with education about managing their finances

My high school

3%

My credit card company

1%

My school

3%

My bank

4%

My friends

1%

Don't know

8%

Other

2%

Myself

36%

Parents or family

43%


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The top reasons for visiting their bank’s website (with a computer, not a cell phone) are:

1. “Check account balance” (52%)

2. “Check transaction activity” (33%)

3. “Transfer funds from one account to another” (20%)

4. “Pay a bill online”

(16%)

Check account balance

Check transaction activity

Transfer funds from one account to another

Pay a bill online

Find ATM’s

Find branch location

Apply for a student loan

Contact bank’s customer service

Apply for a credit card

Access educational resources

Create a budget

Apply for an auto loan

Learn about managing finances

Learn about bank offers

Have not visited bank's website

33%

3%

3%

2%

6%

4%

4%

20%

16%

14%

12%

10%

7%

29%


52%

20

 Nearly six in ten

(59%) believe it is at least

“Somewhat important” to have all accounts with one bank (a fourth as many believe it is

“Unimportant”


8%

Very unimportant

7%

Neither

26%

Very important

25%


Somewhat important

34%

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 82% of students have a checking account

 65% have a checking account in their own name

 The incidence of having a checking account in own name increases with year in school (54% among Freshmen to 75% among

Seniors)

I do not have a checking account

18%

My parents have a checking account for me they manage

4%

My parents and I have a joint checking account

12%

Have checking account in own name

65%


22

“My parents think I can handle the responsibility of my own checking account”

“My parents did not discourage me from opening my own checking account

“My parents had a major influence on my decision to open my own checking account

“My parents had a major influence on where to open my checking account

Top 2 Box

“Strongly” or

“Somewhat Agree”

%

74

71

63

56

“I’m actually managing my checking account more responsibly than my parents believe I am”


48

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 Nearly half of all students with a checking account

(44%) have their checking account with Bank of

America, Chase or

Wells Fargo

 Exactly one in five

(20%) with a checking account have a Bank of

America checking account

Bank of America

Chase

Wells Fargo

Credit Union

PNC

US Bank

Sun Trust

Fifth Third

TD Bank

Citizen's

Wachovia

TCF

Citibank

Key Bank

Regions

Capital One

HSBC

Sovereign

BB&T

1%

1%

2%

1%

1%

2%

2%

2%

2%

2%

2%

2%

3%

5%

4%

5%

9%


15%

20%

24

 Exclusive of the

41% of students who “Don’t know” what month they opened their checking account, 41% of those with a checking account opened it in the three month “Back to school” period

July through

September

January

February

March

April

May

June

July

August

September

October

November

December

Don't know

9%

9%

6%

2%

2%

1%

4%

4%

5%

4%

6%

8%


41%

25

 Six in ten

(60%) opened their checking account by

“Visited branch with parent” while about one in five (21%)

“Visited branch on my own”

Visited branch with parent

Visited branch on my own

Visited branch with a friend who banks there

Opened account using bank's website

Opened account at school during bank event

Other

Don't know

4%

2%

2%

4%

7%

21%


60%

26

 “Location” and “Family referral” are the most frequently mentioned reasons students used when selecting where to open their checking account

Located near my parent’s home

Referred by a parent/family member

Located near my campus

Reputation for good service

Reasonable pricing and fees

Good online banking capabilities

Offered checking specifically for students

Referred by friends or fellow students

Used the bank’s website to do research

Talked to a bank rep at school

Visited blogs to see what others had to…

3%

2%

1%

15%

12%

6%

11%

33%

21%

28%

41%


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 Nearly six in ten (57%, up from 49% last year) were offered overdraft protection when they opened their checking account

 57% (up from 53% last year) have overdraft protection

(transfer from a savings account is the most common protection)

 “Avoiding bounced check fees” (46%) and “Avoid potential negative reports to credit agencies (32%) are the most commonly reported benefits of overdraft protection

 47% (down from 56% last year) have been charged an ISF fee (user mean of 2.1 times)


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 About four in ten (38%, down from 48% last year) were offered a credit card when they opened their checking account (33%, down somewhat from 37% last year, accepted the offer)

 Students write an average .7 paper checks per month (down from 1.3 last year). 63%, up from

47% last year, write “None”)

 Students maintain an average monthly balance of

$647, down 14% from $749 last year


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 56% of those who know their bank offers alerts, use those alerts

 More than a third (36%)

“Don’t know” if their bank offers alerts

Don't know if bank offers alerts

36%

Offered but not used

25%

Not offered

7%

Offered and used

32%


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 Virtually half

(49%) are at least

“Somewhat interested” in receiving text or eMail alerts from their bank

(somewhat more so than those not interested at

39%)

Somewhat uninterested

12%

Not at all interested

27%

Neither

13%

Very interested

22%

Somewhat interested

27%


31

The most commonly used alerts are

 “Balance alerts”

 “Security alerts”

 “General banking alerts”

 “Bill payment alerts”

Among those offered alerts, 50% don’t use any

Balance Alerts (current balance; low balance; approaching limit)

Security alerts

General Banking Alert (statement available, address changed, etc.)

Bill Payment Alert

(upcoming/due/incomplete)

Budget Alert (when approaching/exceeded budget)

Spending Alert (above a certain dollar amount)

Offered, do not use

31%

25%

14%

10%

8%

13%

44%

Not offered 12%


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 Students would be most likely to use alerts for

“Withdrawing cash from

ATM” (51%) and least likely for a

“Specific merchant”

(30%)

Definitely would use Probably would use

Withdrawing cash from ATM

Total amount

Maximum single purchase

Geographic location

Day or time

Online vs. retail location

Specific merchant categories

Specific merchant

11%

10%

8%

7%

19%

16%

14%

12%

25%

27%

24%

23%

32%

31%

31%

28%


33

 About seven in ten (71%) prefer to receive alerts

“Within seconds of purchase” while one in four (24%) prefer “Day after purchase”

Day after purchase

24%

3 to 5 days after purchase

5%

Within seconds of purchase

71%


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 About six in ten

(61%) prefer an text message from their bank while about three in ten

(29%) prefer an eMail message from their bank

 Nearly six in ten

(57%) would prefer to “turn on/off as I wish”

Phone call from bank

9%

Other

1%

Money management tool

1% eMail from bank

28%

Text message from bank

61%


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 More than half (53%) would set a spending alert

 Males would prefer a single transaction to trigger an alert at a somewhat higher amount than females ($292 compared to $279 among females)

 30% want the transaction to be declined and an alert sent if transaction exceeds a pre-determined amount

 $231 is the average, minimum amount that would trigger a “declined” for the purchase

Total Male Female

Would set alert 53% 57% 50%

$50 or less

$51 to $100

$101 to $200

More than $200

User Mean

Would not set

24% 26% 22%

26% 22% 30%

15% 15% 15%

36% 38% 34%

$285 $292 $279

46% 42% 50%


36

About two in three (65%) receive money from home each month and among this group receiving money;

 80% for living expenses

 72% for general spending money

 47% for books and supplies

My parents give me cash 31%

My parents transfer money into a checking account

I have a debit card linked to my parent's checking account

27%

11%

My parents send me a check 10%

My parents pay my credit card bill

I don't receive money from home

8%

35%


37

 Nearly four in ten

(36%) and the largest group of students report “I keep my spending in my head”

 The next largest group (28%) report “I keep track of my spending by recording it”

I do not have a budget

14%

I do not keep track of my spending

9%

I receive balance or spending alerts from my bank and/or issuer of my credit card

13%

I keep track of my spending by recording it

28%

I keep my spending in my head

36%


38

 66% of students have a savings account

 48% have a savings account in their own name

 The incidence of having a savings account in own name increases with year in school (39% among Freshmen to 56% among

Seniors)

Parents have a savings account for me they manage

8%

I do not have a savings account

34%

Have savings account in own name

48%


Parents and I have a joint savings account

11%

39

 About one in five (20%, virtually unchanged from last year) were offered a credit card when they opened their savings account

 About a third (30%) of those who were offered a credit card when they opened their savings account accepted the credit card offer and were approved (3% accepted the offer but were declined)

 Students maintain an average monthly savings account balance of $1,127, down from $1,728 last year


40

 44% of students have an ATM card in their own name

(compared to 43% last year)

 63% use their ATM card for banking transactions weekly or more often

 “Getting cash” (86%), “Check account balance” (49%) and

“Make deposits to an account” (40%) are the most common activities

 Nearly eight in ten (79%, up from 69% last year) use their ATM card to pay for purchases and 74% of these students use their card to pay for purchases weekly or more often

 Students using their ATM card to pay for purchases use their card an average of 14 times monthly to pay for purchases


41

 62% of students have an Debit or Check card in their own name

 More than four in ten (43%) have a Bank of America, Chase or

Wells Fargo issued Debit/Check card

 More than eight in ten (82%) report their card has a VISA or

MasterCard logo on it

 Nearly all (95%) use their card to pay for purchases and 76%

(78% last year) use their card to pay for purchases weekly or more often an average of 17 times monthly

 About one in four without a Debit/Check card (27%) are at least

“Somewhat interested” in obtaining one


42

 Among the

70% of students with a

Debit or Check card in their own name,

43% identify

Bank of

America, Chase or Wells Fargo as the issuer of their card

Bank of America

Chase

Wells Fargo

Credit Union

US Bank

SunTrust

PNC

Fifth Third

TD Bank

TCF

Wachovia

Citibank

Key Bank

Citizens

Regions

Capital One

Sovereign

HSBC

USAA

9%

14%

2%

2%

2%

2%

1%

2%

1%

1%

1%

1%

2%

2%

3%

3%

4%

6%


20%

43

 More than half (53%) are at least “Somewhat interested” in banking online (increases with year in school)

 55% use their computer for online banking or financial services transactions (also increases with year in school ranging from 45% among Freshmen to 59% among

Seniors)

 “Checking balances” (88%), “Check transactions” (59%),

Transfer funds” (41%) and “Pay bills” (33%) are the most commonly reported online transactions


44

 By a narrow margin, “Build a credit history” is the most commonly reported reason why students apply for a credit card (increases with year in school ranging from 45% among

Freshmen to 65% among Seniors)

Build credit history

Become more financially responsible

Convenience

Can buy things when don't have cash

Become more independent

Safer than cash

Manage spending

Emergencies

Rewards

ID for check cashing

Keep up with friends

4%

2%

16%

16%

14%

24%

21%

19%

46%

42%

37%


45

 “Emergencies” and “Start building a credit history” are the most commonly reported reasons

(based on importance) why students believe it is important to have a credit card

Emergencies

Start building credit history

Use where other payment options are not accepted

Security

Control

Convenience

Benefits

Rewards on purchases

66%

63%

58%

57%

56%

53%

52%

48%


46

 The largest share (20%) would shift 11% to 25% of their spending away from other payment methods to their credit card (including the 41% who would shift 0%)

 A third (33%) would use the card weekly or more often (23% would “never use it)

 More than four in ten (45% and the largest share) would spent $1 to $100 monthly with the card or an average of $134 among the 72% who would spend something


47

 More would prefer a card requiring proof of income

(37%) than would prefer a card requiring a savings account as collateral

(22%)

Card that is authorized user of parent's card

18%

Card cosigned by parents

23%

Card in own name requiring proof of income

37%


Card requiring savings account as collateral

22%

48

 Most (43%) would use their debit card and reapply for a credit card if they were declined or received an insufficient credit line

Obtain an authorized user card 9%

Apply for card cosigned by parent 12%

Apply for a different card 24%

Use debit card, reapply after graduation

43%

Apply for a secured card

12%


49

 Students are most concerned about “Worry about making monthly payments” (16%) and somewhat less concerned about “Paying for someone else’s charges” or

“Identify theft”

(each 11%)

Worry about making monthly payments

Spending beyond my means, getting into debt

Potential for paying someone else's charges

Identity theft

16%

14%

11%

11%


50

 When asked which one card comes to mind when thinking about general purpose credit cards or charge cards, about three in ten

(31%) mention VISA

VISA

American Express

MasterCard

Chase

Capital One

Bank of America

Discover

Citibank

Capital One Visa

Bank of America Visa

Wells Fargo Visa

Wells Fargo

Wachovia

US Bank

Citibank Visa

Chase VISA

Chase MasterCard

Capital One MasterCard

Bank of America MasterCard

None

1%

1%

1%

1%

1%

1%

1%

1%

1%

3%

2%

2%

2%

7%

7%

7%

6%

11%

16%


24%

51

 48% have access to a credit card

(own card or authorized use of someone else’s card)

 38% have a VISA,

MasterCard,

American Express or Discover card in their own name

 22% have a cosigned credit card

Any card

48

VISA

MasterCard

American Express

Discover

Have

%

26

11

2

2


Have in own name

%

Card is

Co-signed

%

38 22

25 14

11 6

2 1

2 1

52

The most commonly reported reasons why students don’t have a credit card in their own name are;

Concerned about debt

Have no use

Parents don't want me to have

1. “Concerned about debt” (26%)

Prefer a debit card

2. “Have no use” (24%)

Not prepared for responsibility

Use parent's card when needed

3. “Parents don’t want me to have” (20%)

4. “Prefer a debit card”

(20%)

Applied but declined

Use someone else's when needed

Don't know

1%

4%

11%

9%

20%

24%

20%

26%

29%


53

Based on “first card in own name”, Bank of America is the largest issuer of:

1. All cards

2. All VISA &

MasterCard

3. All VISA cards

B ANK OF A MERICA

C HASE

W ELLS F ARGO

C APITAL O NE

C ITIBANK

Share of

All

Cards

%

Share of

Visa/

MasterCard

%

15 16

14 15

6 7

6

4

6

4

C REDIT U NION

US B ANK

PNC

4

4

3

4

4

4

A MERICAN E XPRESS 2 -

D ISCOVER 2 -


5

5

4

6

2

-

-

Share of

VISA

%

18

Share of

MasterCard

%

8

15 13

8 3

2

1

3

5

9

-

-

54

 AMERICAN

EXPRESS cardholders are the most likely to cancel their card in the next

12 months

(38%)

 VISA cardholders are the least likely to cancel their card (15%)

Top 2 Box, Very/Somewhat likely

American Express

Discover

MasterCard

VISA

38%

25%

18%

15%


55

 Preference for a particular credit card brand interested in obtaining in the next year correlates with market share

VISA

MasterCard

American Express

Discover

Don't know

None of these

13%

5%

4%

3%

21%

56%


56

 Among the nearly one in four students (23%) interested in applying for a new card in the next year nearly one in five (19%) will apply to Chase

 About one in seven

(14%) “Don’t know” who they will apply to

Chase

Bank of America

Capital One

Wells Fargo

Citibank

Credit Union

US Bank

TD Bank

Don't know

1%

3%

5%

8%

7%

6%

14%

19%

17%


57

 By a wide margin,

“Cash back”

(48%) is the reward students are most interested in receiving

Cash back

Points toward airline tickets

Rebates on gas purchases

Tickets to concerts, movies, events

Discounts on airline or hotel rates

Hotel discounts/stays

Gift certificates/cards

Restaurant discounts

Music downloads

Event/concent tickets

Points toward electronics

Cell phone minutes

Car rentals

Sporting goods

Rebate for car purchase

Wellness

Video downloads

4%

4%

4%

3%

2%

1%

1%

6%

6%

5%

4%

12%

12%

12%

7%

11%


48%

58

 Chase and Bank of America are the largest issuers of all VISA and

MasterCard credit cards combined

 Bank of America is the largest VISA issuer

 Chase is the largest

MasterCard issuer

Chase

Bank of America

Capital One

Citibank

Wells Fargo

Credit Union

PNC

US Bank

Key Bank

Share of

VISA/MasterCard

%

17

17

10

7

4

3

6

5

2


Share of

VISA

%

18

20

9

5

5

3

8

6

0

Share of

MasterCard

%

14

8

10

10

1

1

1

1

7

59

 71% with a VISA in there own name have a checking or savings account with the issuer of their VISA card

 60% with a

MasterCard in their own name have a checking or savings account with the issuer of their

MasterCard

Have account Don't have account

Have VISA

Have MasterCard

71%

60%

29%

40%


60

 Current credit limits average

$1,688 or nearly twice that of the initial limit

 More than eight in ten

(85%) are satisfied with their credit limit

 Less than three in ten (27%) report an increase in their credit limit in the past year

All cards

VISA

MasterCard

American Express $1,369 $1,888 77

Discover

Initial

Credit

Limit

Current

Credit

Limit

Satisfied

With

Limit

%

$849 $1,688 85

$801

$922

$1,396

$1,428

84

85

$880 $1,228 89

Limit

Increased

In Past

Year

%

27

29

24

29

29


61

 Most prefer to acquire their card in person at their bank (29%)

 Equal numbers prefer responding to a mail offer, responding to an

Internet ad/offer or a Company rep off campus

In person at bank

Responding to mail offer

Responding to an Internet ad/offer

Company rep off campus

Company's web site

Company rep on campus

Online search

Calling 800 number

App on campus

App off campus

App in college bookstore bag

Responding to an email offer

Mail offer sent to me at school

Don't know

1%

1%

1%

1%

4%

3%

2%

2%

8%

6%

5%

4%


29%

33%

62

The most compelling reasons are:

1. “Parents”

2. “Good credit limit”

3. “Have account at bank”

4. “First card applied for”

Parents

Good credit limit

Have account at bank

First card applied for

Greater access to credit

No annual fee

Cash back rewards

Pre-approved status

Card parents use

Low APR

Issuing bank

Friends

Only offer received

Frequent flyer rewards

Entertainment rewards

TV ad

Internet features

Premium

Card design

Customizable features

Don't know

4%

3%

3%

2%

2%

2%

2%

2%

4%

7%

7%

6%

5%

14%

13%

13%

10%

9%

12%

9%


37%

63

 Exactly seven in ten students with a credit card in their own name owned a

VISA card first

 About one in four

(23%) owned a

MasterCard first and about one in twenty five (4%) owned a Discover or American

Express card first

VISA

70%

Discover

4%

American

Express

4%

MasterCard

23%


64

 Seven in ten (70%) acquired their first credit card at age

18 or younger

 94% acquired their first card before their 21 st birthday

20

7%

Older than

20

6%

Younger than 18

18%

19

17%

18

52%


65

 Excluding the

35% of students who

“Don’t know” what month they applied for their first credit card,

(42%) applied during the 3 month period

June through

August

January

Feburary

March

April

May

June

July

August

September

October

November

December

Don't know

6%

5%

4%

5%

4%

3%

1%

3%

6%

9%

8%

10%


35%

66

 More than eight in ten

(81%) believe they were prepared for the responsibility of owning and using their credit card

Not very prepared

13%

Not at all prepared

6%

Somewhat prepared

46%

Very prepared

35%


67

 Nearly half

(46%) believe they received enough credit education from the issuer of their first card (about three in ten

(29%) received

“Very little” or

“None”

None

14%

Don't know

8%

Very little

15%

Enough

37%

Not as much as I would have liked

17%


More than enough

9%

68

 86% use their card at least monthly (10.3 times monthly charging $219)

 33% carry a balance averaging $695

 20% have been charged a late payment fee (46% of these more than once)

Discover

MasterCard

VISA

American Express

All cards

Use

Monthly

%

User

Mean

Times Used

Per Month

User

Mean

Amount

Charged

Per

Month

Carry

Balance

%

User

Mean

Balance

Charged

Late

Payment

Fee

%

82 11.0

$160 29 $364 22

81

89

71

8.8

$173 32 $788 20

10.8

$173 35 $655 22

4.7

$217 14 $1,483 17

86 10.3

$219 33 $695 20

Charged Late

Payment Fee

More Than

Once

%

50

54

59

0

46


69

 About three in ten

(31%) “Don’t know” what they would have liked to know about having a credit card when they first opened their account

 Other than “Don’t know”, the most common response is “How card affects credit rating” (17%)

How card affects credit rating

How to manage spending

Card's interest rate

Card fees such as over limit

Credit limit

How to manage account online

Importance of paying on time

Card's grace period

Card basics

How to pay bill

Card's rewards

Risk of identity theft

Who to contact with a problem

How to get more info about account

Don't know

7%

7%

6%

11%

10%

9%

17%

16%

16%

15%

12%

12%

12%

11%

31%


70

 Parents have a significant influence on students and their credit card

"My parents think I can handle the responsibility of my own credit card"

“My parents think credit cards are a good way for me to establish my own credit history"

“My parents did not discourage me from acquiring my own credit card"  About one in four believe their school is

“too pushy” about promoting a credit card with the school logo on it

“I’m actually managing my credit card more responsibly than my parents believe

I am"

“My parents had a major influence on my decision to acquire my own credit card"

“My school is too pushy about promoting a credit card with the school logo on it"

67%

64%

61%

54%

53%

22%


71

 The brand of credit card used most often correlates with each brand’s overall share

VISA

68%

Discover

5%

Amercian

Express

3%

MasterCard

24%


72

 Bank of America

(16%) is the most frequently mentioned issuer of “credit card used most often”

 Chase (14%) and

Capital One (7%) follow

Bank of America

Chase

Capital One

Wells Fargo

Citibank

Credit Union

PNC

US Bank

Discover

American Express

First Financial

Key Bank

Don't know

3%

2%

2%

2%

4%

3%

5%

5%

7%

6%

6%


16%

14%

73

 About half (49%) know what the interest rate for their card is

(average of 11% among those reporting)

 About one in eight or 13% experienced a rate increase within the last 1 to 6 months (51%

“Don’t know” when they last experienced a rate increase)

Last month

Last three months

Last six months

Within last year

No increase last year

Never increased

Don't know

3%

5%

3%

12%

10%

19%


51%

74

 “First card I obtained”,

“From my bank”, “Most convenient” and “Card my parents use” are the most common reasons why students use a particular card most often

First card obtained

From my bank

Most convenient

Card my parents use

Higher credit limit

Widely accepted

Offers cash back

Low APR

Has available credit

Brand I trust

Brand I prefer

First card I see in my wallet

Like their customer service

Offers rewards points

Card my friends use

Card design

Special incentives to sign up

Support school or org

Don't know

1%

1%

1%

1%

2%

3%

6%

5%

5%

3%

4%

5%

5%

5%

8%

8%

14%

13%


21%

75

 Half (50%) use their card weekly or more often

 About one in five

(21% use their card once a month or less often

Less of than monthly

12%

Don't know

9%

Once a month

9%

Daily

9%

A few times a month

23%


One a week

17%

Several times a week

24%

76

 In a typical month, students are most likely to receive a credit card solicitation via U.S.

Mail (59% received at least 1) and least likely to receive a solicitation via a tele-marketer

(17% received at least 1)

Receive

Any

% Average

U.S. Mail 59 3.1

eMail 39 3.7

Tele-marketer 17 4.5


77

 Among the

14% applying for a credit card, 65% were approved and 88% of the approved cards were activated

None

1

2-3

4-6

Total Mean

Applied

For Approved Activated

86% 35% 18%

9% 53% 72%

4% 10% 9%

1%

.2

2%

.9

2%

1.0

User Mean 1.7

1.3

1.2


78

The five most important card characteristics or features are:

1. Accepts payment online

2. Can be used at ATM machines

3. 24 hour toll free customer service

4. Card for college students

5. Can view account online

Accepts payment online

Can be used at ATM machines

24 hour toll free customer service

Card for college students

Can view account online

Can get in own name

Cash back rewards

Airline miles

Low annual fee

Wide acceptance

No annual fee

Discounts on travel

Convenient accesses to cash

Auto payment from checking

Good overal value

Can use as ID for check cashing

Don't have to pay in full

Discounts at stores/restaurants

Rewards I want

From my bank

Encourages responsible use

Easy approval

Track spending online

Low annual fee

High credit limit

Free checking with card

8%

7%

7%

7%

7%

6%

6%

6%

6%

14%

16%

18%

11%

13%

13%

10%

9%

14%

14%

22%

27%

34%

33%

32%

32%

38%


79

The three most important card design attributes are:

1. Photo on card for ID purposes

2. Cool design

3. Customized with choice graphics, photo

Photo on card for ID purposes

Photo on card I choose

31%

Cool design

Customized with choice of graphics, photo

Associated with brand or organization I identify with

26%

22%

18%

16%

Mini card

9%

Contactless

9%


80

“It is my responsibility to keep track of how much I spend with credit cards”

% Completely or Somewhat

Agree

65

“Credit cards encourage me to spend too much” 63

“I am responsible enough to have a credit card in my own name”

“Credit card companies should do more to teach students how to use credit responsibly”

“My parents taught me how to use credit responsibly”

“Credit card issuers are too aggressive in marketing their cards”


58

55

53

52

81

“I use my credit card for emergencies only”

“Credit cards give me more consumer security in making purchases than cash or checks”

“I do use or would use my credit card for recurring payments such as payments to cell phone providers, utilities, cable, etc .”

“Credit cards allow me to manage my spending more effectively than cash or checks”

“My college provides me with resources to use credit responsibly”

% Completely

Or Somewhat

Agree

44

36

36

34

31


82

 14% of students closed 1 or more accounts in the past 12 months

 Students were most likely to have closed a checking account and least likely to have closed a credit card account

Checking account

Savings account

VISA credit card

MasterCard credit card

Discover credit card

American Express credit card

9%

6%

3%

1%

1%

1%

None of these


86%

83

 Those closing a Checking or Saving account were most likely to have closed a Bank of America, Chase or Credit Union account

 Those closing a VISA account were most likely to have closed a Chase, Bank of America, or Capital

One VISA account

 Those closing a MasterCard account were most likely to have closed a Chase, Capital One or Key Bank

MasterCard account

Checking

Bank %

Savings

Bank %

Bank of America 25 Bank of America 20

Chase

Credit Union

Citibank

Key Bank

5

4

11

6

Chase

Credit Union

Key Bank

Wells Fargo

5

5

Bank

VISA

Chase

12 Capital One 15

8 Bank of America 12

Citibank

Wells Fargo

%

23

12

8


MasterCard*

Bank %

Chase 17

Capital One

Key Bank

US Bank

Citibank

8

8

17

17

* CAUTION: Small Sample

84

 40% have a

Campus Card

 Among the 40% with a Campus

Card, 19% report their Campus

Card has a bank logo on it

Do not have campus card

60%

Have

Campus

Card

40%


85

 Among the 40% with a Campus

Card, 68% have a campus card that acts as a

Student ID, provides building access and serves as a stored value card

Student ID, building access and stored value

68%

Student ID only

18%

Student ID and building access

14%


86

 Nearly nine in ten

(85%) believe it is at least “Somewhat important” for their school to provide them with a school issued Campus Card

Very important

Somewhat important

 Importance ranges from a high of 88% among students living on campus to a low of 63% among students living at home and commuting to school

Neither


Very unimportant

8%

2%

1%

22%


62%

87

Students are most likely to use their school issued Campus

Card in the;

Dining hall

Other on campus restaurants

1. “Dining Hall”

(95%)

2. “Other on campus restaurants” (71%)

3. “Campus bookstore” (70%)

Campus bookstore

Printers or copiers

Vending machines

Laundry machines

95%

71%

70%

63%

59%

51%


88

 Among those whose Campus

Card serves as a stored value card,

92% use it to make purchases

 73% use it to make purchases weekly or more often

Less than once a month

9%

Don't know

2%

Never

8%

A few times a month

8%

About once a week

8%

Several times a week

23%

Daily

42%


89

 Among those whose

Campus Card serves as a stored value card, 96% use it to make purchases and spend an average of

$88 monthly

 One in five (20%) spend more than

$100 monthly

 About four in ten

(39%) spending more than $50 monthly

$101 to

$200

12%

More than

$200

8%

Nothing

4%

$51 to $100

19%

$26 to $50

22%

$10 or less

23%

$11 to $25

12%


90

 Among those whose Campus

Card serves as a stored value card, 96% use it to make purchases making an average of 18 purchases monthly

 About one in four (24%) make more than 25 purchases monthly

51 to 75

4%

More than 75

1%

26 to 50

19%

11 to 25

21%

None

4%

10 or less


51%

91

 68% of students spend

100% on campus

(highest among students living at home and commuting to school at 74%)

Spending on campus . . .

None

1% to 25%

26% to 50%

100%

Spending off campus . . .

Total

%

3

3

11

3

On

Campus

%

 38% of students spend some portion with their card off campus

(highest among students living off campus at 44%)

 Among the 38% spending off campus,

31% of spending is done off campus

51% to 75%

76% to 99%

None

1% to 25%

26% to 50%

51% to 75%

76% to 99%

100%

62 64

13 18

10

3

7

2

2

3

1

1


7

4

0

1

12 16

68 72

Off

Campus

%

At

Home

%

7

7

17

1

6

62

56

6

15

5

6

6

4

0

15

0

4

74

74

4

15

0

0

4

92

The highest rated benefits of a school issued Campus

Card are:

1. “Convenience”

(76%)

2. “Don’t have to carry cash”

(68%)

3. “Already prepaid” (66%)

Convenience

Don't have to carry cash

Already pre-paid

All on and off campus financial needs satisfied

Only need to carry one card

Helps control spending

Provides record of spending

Parents pay for it

Can access different pools of funds

76%

68%

66%

56%

56%

55%

53%

44%

44%


93



“Car insurance” is

 The most commonly owned insurance or investment product

 The product students were most likely to make the purchase decision for

 The product students are most likely to purchase in the next year

Own Plan to purchase

Car insurance

Cell phone/personal electronics insurance

Savings bonds

Stocks

Student loan insurance

Dental insurance

Life insurance

Bonds

CD's

Mutual Funds

Renter's insurance

Money Market funds

Home Owners insurance

Real estate

Travel insurance

ID theft insurance

Tuition insurance

5%

2%

5%

4%

5%

1%

1%

1%

2%

1%

2%

1%

2%

1%

1%

1%

1%

1%

2%

1%

1%

1%

1%

2%

3%

3%

4%

5%

3%

3%

8%

9%


14%

14%

94

 46% report their schools requires them to have health insurance

 One in twelve

(7%) “Don’t have health insurance”

 Two in three

(65%) of all students are part of their “parent’s policy”

Parent's policy

Through school

Medicare/Medicaid

Through job

State subsidized policy

Through spouse

Don't have health insurance

Don't know

3%

1%

9%

7%

1%

7%

10%


65%

95

 Small numbers

(less than one in five) regard themselves at

“High risk” for any of five accident, illness or theft related experiences

 Somewhat more regard themselves at “High risk” for

“Identify theft” than for an “Auto accident” or “Loss of personal property”

Highest - 5 4 3 2 Lowest -1

Identify theft

Hospitalization for illness

20% 17%

Hospitalization for accident 16%

Loss of personal property

Auto accident

17% 19%

16%

27%

27%

15% 24%

33%

29%

35%

35%

34%

15% 15%

17% 17%

14% 7%

14% 7%

15% 11%


96

 Students are more likely to have been or know someone who has been hospitalized or involved in an auto accident in the past two years (44% and

37% respectively).

 One in eight (13%) has had to withdraw from school in the middle of the semester or knows someone who had to withdraw for a medical emergency or death in the family

Hospitalized 44%

Involved in an auto accident 37%

Victim of loss of personal property 28%

Required medical attention 26%

Victim of identify theft 20%

Withdraw for a medical emergency

Suffered injury requiring hospitalization or medical attention

13%

6%


97

Students generally report a perceived lower level of risk of experiencing an illness, accident or form of theft than they report actually having personally experienced or knowing someone else has personally experienced in the past two years

Risk Experienced

Hospitalized

Involved in an auto accident

Victim of loss of personal property

Victim of identify theft

Suffered injury requiring hospitalization or medical attention

34%

44%

39%

37%

43%

28%

36%

20%

40%

44%


98

 More than four in ten (45%, and the largest group)

“Don’t know” where they are most likely to purchase insurance products

 About one in three

(32%) are most likely to purchase insurance products from “a local insurance agent”

Internet insurance website

5%

Government assistance program

4%

Local insurance agent

32%

Other

10%

Multi-product insurance website

3%

Don't know

45%


99

 More than six in ten are “Confident in my ability to repay my student loans according to the terms and conditions”

 About half believe their “school’s financial aid office was helpful in identifying ways to pay for college”

TOP 2 Box Completely agree Somewhat agree

"I'm confident in my ability to repay my student loans according to the terms and conditions"

"My parents did most of the work when it came to figuring out how to pay for college"

"My school's financial aid office was helpful in identifying ways to pay for college"

"I found the process of identifying ways to pay for college to be complicated and confusing"

61%

25%

36%

55%

27%

28%

53%

15%

37%

49%

13%

36%


100

 By a wide margin,

“Parents”

(72%) are the most influential source of information about paying for college

Parents

Financial aid office

Relatives (not parents)

Internet

HS guidance counselor

Friends

Student loan company

Bank

Information in the mail

High school seminar

Affinity group

72%

53%

44%

42%

37%

36%

32%

31%

28%

22%

14%


101

 Among the

69% of students anticipating having some student loan debt, the average amount is

$26,450

More than

$25,000

23%

$20,001 to

$25,000

4% $10,001 to

$20,000

15%

None

31%

$1 to

$10,000

27%


102

 Nearly half

(46%) plan to consolidate their student loans

 About three in ten (31%)

“Don’t know” if they will consolidate their student loans

Don't know

31%

Very likely

24%

Somewhat likely

22%

Very unlikely

9%

Somewhat unlikely

5%

Neither

9%


103

 More than half of student loan debt is from government

(56%, up from

53% last year) while 20%, 18% last year, of student loan debt are private, alternative loans

Credit card

3%

Friends

2%

Other

5%

Relatives

14%

Loans direct from school

20%

Government loan

56%

Private loan

20%


104

 On average, students believe it will take 7 years to repay their student loan

 Half (50%) believe it will take more than 5 years to repay their student loan

 About one in eight

(12%) believe it will take more than 10 years

More than

10 years

13%

6 to 10 years

37%

5 years or

© 2011 STUDENT MONITOR LLC – All Rights Reserved, Unauthorized Use Prohibited less

50%

105

F

ALL

2011 T

IMETABLE

L

IFESTYLE

& M

EDIA

, C

OMPUTING

& T

HE

I

NTERNET

8 th

In Field

17 th

Final Report,

Presentations

Begin

A UGUST S EPTEMBER O CTOBER N OVEMBER D ECEMBER

16 th

Draft

Questionnaire

Distributed

12th

Comments,

Proprietary

Questions Due

20 th

Questionnaire

Finalized

12 th

Topline

Distributed


SPRING 2009 LIFESTYLE & MEDIA

Any card

Have VISA

Have MasterCard

None

1

2-3

4-6

Total Mean

ALL

IMETABLE

IFESTYLE

EDIA

OMPUTING

HE

NTERNET

Related documents

Products

Support

SPRING 2009 LIFESTYLE & MEDIA

Any card

Have VISA

Have MasterCard

None

1

2-3

4-6

Total Mean

ALL

IMETABLE

IFESTYLE

EDIA

OMPUTING

HE

NTERNET

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