Low-income youth attend post-secondary institutions in lower numbers and that the gap is widening. Young people must first understand the inherent value of what higher education can provide, understand the difference between the sticker price and the true cost, make the financial commitment to engage in it, have the ability to wade through the forms and applications for grants and loans, be able to financially survive during their post-secondary education, and ultimately understand the terms of repayment if they received a loan. This is a lot to ask of teenagers, particularly if the teenagers do not have the family background or social network to guide them.
In Financial Literacy of Low-income Students: Literature review and environmental scan, the authors found that low-income students tend to vastly overestimate the cost of post-secondary education while both low- and high-income youth underestimate the economic benefits of attending university. Knowledge about financial aid programmes is lacking even among university students who hold student loans.
The HEQCO found only 2 programs in Canada, the Toronto-based Pathways to Education Canada and the Manitoba-based Career Trek, that simultaneously promote participation in higher education while offering some financial literacy support targeted to lower-income youth.
