1. Conducted each Spring and Fall semester Conducted each Spring and Fall semester On campus, one-on-one intercepts conducted by professional interviewers

1

FINANCIAL SERVICESSPRING 2011

© 2011 STUDENT MONITOR LLC550 North Maple Ave., Ridgewood, NJ 07450

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

2

-METHODOLOGY 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%


3

-COLLEGE STUDENT POPULATION

Two Year Full-time15%

Two Year Part-time25%

Four Year Part-time10%

Four Year Full-time36%

Grad Part-time8%

Grad Full-time6%


4

-DEMOGRAPHICS

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

-TOP 10 ACADEMIC MAJORS

Business, followed by Biology, Education and Engineering continue to be the most common majors

Total%

Male%

Female%

Business 11 14 8Biology 7 6 8Education 7 4 10Engineering 7 10 4Health Professions 6 4 8Psychology 5 4 6Communications 4 3 5Accounting 4 5 3Pre-Med 3 3 3Liberal Arts 3 3 3


6

STUDENT BANKING - 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

-SUMMARY FINDINGS:


7

PAYMENT METHODS - 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

-SUMMARY FINDINGS:


8

CREDIT CARDS - 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)

-SUMMARY FINDINGS:


9

CREDIT CARDS (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

-SUMMARY FINDINGS:


10

STUDENT LOANS -“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”

INSURANCE AND INVESTMENT PRODUCTS -“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)

-SUMMARY FINDINGS:


11

-INTEREST IN INCREASING KNOWLEDGE/LITERACY (“VERY/SOMEWHAT

INTERESTED)”

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

Student loans

Credit cards

Checking

Savings

Credit

Investments

45%

46%

47%

49%

53%

54%


12

-IMPORTANCE OF PAYMENT CARD FEATURES (“VERY/SOMEWHAT

IMPORTANT)”

“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%) Offers a cool card design/unique card shape

Provides merchant savings

Provides credit payment card education

Provides a reward or student only pricing program

Access to merchants that require a credit card

Provides a "limit-control"

Offers a rewards program

Provides budget controls and alerts

Builds a credit history

25%

35%

39%

46%

48%

48%

48%

50%

68%


13

-MONTHLY SPENDING

%Shoppers

MonthlyPurchases

MonthlySpending

$

MostCommonPaymentMethod

Bookstore (off campus) 30 4.2 33.63 ATM/Check/Debit

Bookstore (on campus) 46 3.8 33.32 ATM/Check/Debit

Convenience store (off campus) 68 7.1 28.11 ATM/Check/Debit

Convenience store (on campus) 52 6.9 23.64 ATM/Check/Debit

Department store 58 4.3 45.38 ATM/Check/Debit

Fast food restaurant 81 7.5 30.22 ATM/Check/Debit

Gas station 72 5.8 60.98 ATM/Check/Debit

Movie theater 55 2.4 17.39 ATM/Check/Debit

Online purchases 48 4.2 39.34 ATM/Check/Debit

Other retail or specialty store (off campus) 41 3.7 33.34 ATM/Check/Debit

Other stores on campus 32 4.1 22.39 ATM/Check/Debit

Restaurant (non fast food) 69 4.0 37.43 ATM/Check/Debit

Supermarket 74 6.0 59.10 ATM/Check/Debit


14

-SHARE OF MONTHLYSPENDING BY METHOD

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)

ATM/Debit

/Check card44%

Cash42%

Par-ent's credit card5%

Credit card9%

Check4%

School issued Campus Card7%

Pre-paid2%


15

-INFLUENCE OF PARENTS WHEN . . .

Students report their parents are more influential about “Opening a checking account” or “Selecting a mobile phone provider” than “Obtaining a student loan”

Obtaining renter's insurance

Obtaining student loan

Obtaining auto insurance

Obtaining health insurance

Selecting mobile phone provider

Opening checking account

22%

44%

46%

49%

52%

62%


16

-STATEMENTS ABOUT STUDENT FINANCES(TOP 2 BOX – “STRONGLY” OR “SOMEWHAT AGREE)

“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%


17

Very im-portant

64%

Somewhat important

19%

Neither impor-tant nor

unimportant4%

Somewhat unimportant

2%

Very unimpor-tant2%

Don't know9%

-CREDIT SCORES 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


18

-WHO HAS PRIMARY RESPONSIBILITY TO PROVIDE EDUCATION ABOUT MANAGING YOUR FINANCES?

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

Parents or family43%

Myself36%

My bank4%

My school3%

My credit card

company1%

My high school

3%

My friends

1%

Don't know8%

Other2%


19

-REASONS FOR VISITING BANK’S WEBSITE

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%)

Have not visited bank's website

Learn about bank offers

Learn about managing finances

Apply for an auto loan

Create a budget

Access educational resources

Apply for a credit card

Contact bank’s customer service

Apply for a student loan

Find branch location

Find ATM’s

Pay a bill online

Transfer funds from one account to another

Check transaction activity

Check account balance

29%2%3%3%4%4%

6%7%

10%12%

14%16%

20%33%

52%


20

-IMPORTANCE OF HAVING ALL ACCOUNTS WITH ONE BANK

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”

Very im-por-tant25%

Somewhat im-por-tant34%

Neither26%

Some-what unim-

portant8%

Very unimportant7%


21

-CHECKING ACCOUNT OWNERSHIP

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)

Have checking account in own

name65%

My parents and I have a joint checking ac-

count12%

My parents have a checking account for me they manage

4%

I do not have a checking ac-

count18%


22

-STATEMENTS ABOUTCHECKING ACCOUNTS

Top 2 Box“Strongly” or

“Somewhat Agree”%

“My parents think I can handle the responsibilityof my own checking account” 74“My parents did not discourage me from openingmy own checking account 71“My parents had a major influence on my decisionto open my own checking account 63“My parents had a major influence on where to open my checking account 56“I’m actually managing my checking account moreresponsibly than my parents believe I am” 48


23

-WHERE STUDENTSHAVE THEIR CHECKING ACCOUNT

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 BB&T

HSBC

Regions

Citibank

Wachovia

TD Bank

Sun Trust

PNC

Wells Fargo

Bank of America

1%1%1%1%

2%2%2%2%2%2%2%2%

3%4%

5%5%

9%15%

20%


24

-MONTH OPENED CHECKING ACCOUNT

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

Don't know

December

November

October

September

August

July

June

May

April

March

February

January

41%1%2%2%

6%9%9%

8%6%

4%5%

4%4%


25

-HOW STUDENTS OPENEDTHEIR CHECKING ACCOUNT

Six in ten (60%) opened their checking account by “Visited branch with parent” while about one in five (21%) “Visited branch on my own”

Don't know

Other

Opened account at school during bank event

Opened account using bank's website

Visited branch with a friend who banks there

Visited branch on my own

Visited branch with parent

7%

4%

2%

2%

4%

21%

60%


26

-CRITERIA USED WHEN SELECTINGWHERE TO OPEN CHECKING ACCOUNT

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

Visited blogs to see what others had to say

Talked to a bank rep at school

Used the bank’s website to do research

Referred by friends or fellow students

Offered checking specifically for students

Good online banking capabilities

Reasonable pricing and fees

Reputation for good service

Located near my campus

Referred by a parent/family member

Located near my parent’s home

1%

2%

3%

6%

11%

12%

15%

21%

28%

33%

41%


27

-OVERDRAFT PROTECTION

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)


28

-CHECKING ACCOUNTAbout 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


29

-AVAILABILITY/USE OFTEXT & EMAIL ALERTS

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

Not offered7%

Offered and used32%

Offered but not used25%

Don't know if bank of-

fers alerts36%


30

-INTEREST IN RECEIVINGTEXT & EMAIL ALERTS

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%)

Very in-terested

22%

Somewhat interested

27%Neither13%

Some-what un-

interested12%

Not at all interested

27%


31

-TYPES OF EMAIL ALERTS USED

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

Not offered

Offered, do not use

Spending Alert (above a certain dollar amount)

Budget Alert (when approaching/exceeded budget)

Bill Payment Alert (upcoming/due/incomplete)

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

Security alerts

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

12%

44%

13%

8%

10%

14%

25%

31%


32

-LIKELIHOOD OF USING ALERTS

Students would be most likely to use alerts for “Withdrawing cash from ATM” (51%) and least likely for a “Specific merchant” (30%)

Specific merchant

Specific merchant categories

Online vs. retail location

Day or time

Geographic location

Maximum single purchase

Total amount

Withdrawing cash from ATM

7%

8%

10%

11%

12%

14%

16%

19%

23%

24%

27%

25%

28%

31%

31%

32%

Definitely would use Probably would use


33

-WHEN PREFER TO RECEIVE ALERTS

About seven in ten (71%) prefer to receive alerts “Within seconds of purchase” while one in four (24%) prefer “Day after purchase”

Within sec-onds of

purchase71%

Day after purchase

24%

3 to 5 days after purchase

5%


34

-PREFERRED WAY TO RECEIVE ALERTS

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”

eMail from bank

28%

Text message

from bank61%

Phone call from bank

9%

Money management tool1%

Other1%


35

-AMOUNT THAT TRIGGERS SPENDING ALERTS

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 24% 26% 22%

$51 to $100 26% 22% 30%

$101 to $200 15% 15% 15%

More than $200 36% 38% 34%

User Mean $285 $292 $279

Would not set 46% 42% 50%


36

-MONEY FROM HOMEAbout 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 I don't receive money from home

My parents pay my credit card bill

My parents send me a check

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

My parents transfer money into a checking account

My parents give me cash

35%

8%

10%

11%

27%

31%


37

-SPENDING & BUDGETS 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 keep my spending in

my head36%

I keep track of my spending by recording it

28%

I receive bal-ance or spend-ing alerts from

my bank and/or issuer of my credit card

13%

I do not keep track of my

spending9%

I do not have a budget

14%


38

-SAVINGS ACCOUNT OWNERSHIP

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)

Have savings account in own

name48%

Parents and I have a joint savings account

11%

Parents have a savings account

for me they manage

8%

I do not have a savings ac-

count34%


39

-SAVINGS ACCOUNT

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

-ATM CARDS 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

-DEBIT/CHECK CARD

http://www.google.com/imgres?imgurl=http://www.fnbli.com/images/FinalDebitCard.jpg&imgrefurl=http://www.fnbli.com/page.cfm?id=1750&usg=___7BGrAjrej5EWLM7MC6u9LeM5DE=&h=681&w=1059&sz=232&hl=en&start=8&tbnid=O88Xspj8JrmTOM:&tbnh=96&tbnw=150&prev=/images?q=image+of+a+Mastercard+debit+or+check+card&hl=en


42

-DEBIT/CHECK CARD 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

USAA

Sovereign

Regions

Key Bank

Wachovia

TD Bank

PNC

US Bank

Wells Fargo

Bank of America

1%1%1%1%1%

2%2%2%2%2%2%2%

3%3%

4%6%

9%14%

20%


43

-BANKING ONLINEMore 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

-REASONS WHY STUDENTSAPPLY FOR A CREDIT CARD

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)

Keep up with friends

ID for check cashing

Rewards

Emergencies

Manage spending

Safer than cash

Become more independent

Can buy things when don't have cash

Convenience

Become more financially responsible

Build credit history

2%

4%

14%

16%

16%

19%

21%

24%

37%

42%

46%


45

-IMPORTANCE OF REASONS FOR HAVING A CREDIT CARD (TOP 2 BOX –

“VERY/SOMEWHAT IMPORTANT”)

“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

Rewards on purchases

Benefits

Convenience

Control

Security

Use where other payment options are not accepted

Start building credit history

Emergencies

48%

52%

53%

56%

57%

58%

63%

66%


46

-IF STUDENTS RECEIVED THEIRFIRST CREDIT CARD TODAY . . .

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

-DESCRIPTION OF CREDIT CARDSTUDENTS WOULD PREFER TO USE

More would prefer a card requiring proof of income (37%) than would prefer a card requiring a savings account as collateral (22%)

Card in own name re-quiring

proof of in-come37%

Card requiring savings account as collateral

22%

Card co-signed by parents

23%

Card that is authorized

user of parent's

card18%


48

-REACTION TO BEING DECLINED OR RECEIVE INSUFFICIENT CREDIT LINE

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

Use debit card, re-apply after gradua-

tion 42%

Apply for a secured card 12%

Apply for card co-signed by parent 12%

Obtain an authorized

user card 9%

Apply for a different card 24%


49

-IMPORTANCE OF CONCERNS ABOUT HAVING A CREDIT CARD (TOP 2 BOX – “VERY” OR

“SOMEWHAT IMPORTANT”

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%)

Identity theft

Potential for paying someone else's charges

Spending beyond my means, getting into debt

Worry about making monthly payments

11%

11%

14%

16%


50

-CREDIT CARDS TOP OF MIND, UNAIDED AWARENESS

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

NoneBank of America MasterCard

Capital One MasterCardChase MasterCard

Chase VISACitibank Visa

US BankWachovia

Wells FargoWells Fargo Visa

Bank of America VisaCapital One Visa

CitibankDiscover

Bank of AmericaCapital One

ChaseMasterCard

American ExpressVISA

11%1%1%1%1%1%1%1%1%1%

2%2%2%

3%6%

7%7%7%

16%24%


51

Have%

Have inown

name%

Card isCo-signed

%

Any card 48 38 22VISA 26 25 14

MasterCard 11 11 6American Express 2 2 1

Discover 2 2 1

-CREDIT CARDS OWNERSHIP

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 co-signed credit card


52

-WHY STUDENTSDON’T HAVE A CREDIT CARD

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

1. “Concerned about debt” (26%)

2. “Have no use” (24%)

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

4. “Prefer a debit card” (20%) Don't know

Use someone else's when needed

Applied but declined

Use parent's card when needed

Not prepared for responsibility

Prefer a debit card

Parents don't want me to have

Have no use

Concerned about debt

29%

1%

4%

9%

11%

20%

20%

24%

26%

http://www.goneindia.com/mastercard.jpg

http://www.goneindia.com/visa-large.gif

http://www.schoolmatch.com/images/discover.jpg

http://www.moolawiki.com/images/american-express-green.jpg


53Share of

AllCards

%

Share ofVisa/

MasterCard%

Share of

VISA%

Share ofMasterCard

%

BANK OF AMERICA

15 16 18 8

CHASE 14 15 15 13

WELLS FARGO 6 7 8 3

CAPITAL ONE 6 6 6 5

CITIBANK 4 4 2 9

CREDIT UNION 4 4 5 2

US BANK 4 4 5 1

PNC 3 4 4 3

AMERICAN EXPRESS

2 - - -

DISCOVER 2 - - -

-ISSUER OF FIRST CREDIT CARDIN OWN NAME

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






54

VISA

MasterCard

Discover

American Express

15%

18%

25%

38%

Top 2 Box, Very/Somewhat likely

-LIKELIHOOD OFCANCELLING CREDIT CARD

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%)






55

CREDIT CARDS INTERESTED INOBTAINING IN THE NEXT YEAR

Preference for a particular credit card brand interested in obtaining in the next year correlates with market share None of these

Don't know

Discover

American Express

MasterCard

VISA

56%

21%

3%

4%

5%

13%






56

-ISSUER WILL APPLY TO FORCARD INTERESTED IN OBTAINING

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 Don't know

TD Bank

US Bank

Credit Union

Citibank

Wells Fargo

Capital One

Bank of America

Chase

14%

1%

3%

5%

6%

7%

8%

17%

19%


57

-REWARDS MOSTINTERESTED IN RECEIVING

By a wide margin, “Cash back” (48%) is the reward students are most interested in receiving

Video downloadsWellness

Rebate for car purchaseSporting goods

Car rentalsCell phone minutes

Points toward electronicsEvent/concent tickets

Music downloadsRestaurant discounts

Gift certificates/cardsHotel discounts/stays

Discounts on airline or hotel ratesTickets to concerts, movies, events

Rebates on gas purchasesPoints toward airline tickets

Cash back

1%1%2%3%4%4%4%4%5%6%6%7%

11%12%12%12%

48%






58

-ISSUER OF CREDIT CARD(VISA/MASTERCARDS IN STUDENTS’ OWN NAME)

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

Share ofVISA/MasterCard

%

Share ofVISA

%

Share ofMasterCard

%

Chase 17 18 14Bank of America 17 20 8

Capital One 10 9 10Citibank 7 5 10

Wells Fargo 6 8 1Credit Union 5 6 1

PNC 4 5 1US Bank 3 3 1

Key Bank 2 0 7




59

-HAVE CHECKING/SAVINGS ACCOUNTWITH ISSUER OF CREDIT CARD

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 MasterCard

Have VISA

60%

71%

40%

29%

Have account Don't have account






60

-CREDIT LIMITS 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

InitialCreditLimit

CurrentCredit Limit

SatisfiedWithLimit

%

LimitIncreased

In Past Year

%

All cards $849 $1,688 85 27

VISA $801 $1,396 84 29

MasterCard $922 $1,428 85 24

American Express $1,369 $1,888 77 29

Discover $880 $1,228 89 29






61

-PREFERRED APPLICATION METHOD

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

Don't knowMail offer sent to me at school

Responding to an email offerApp in college bookstore bag

App off campusApp on campus

Calling 800 numberOnline search

Company rep on campusCompany's web site

Company rep off campusResponding to an Internet ad/offer

Responding to mail offerIn person at bank

33%1%1%1%1%2%2%3%4%4%5%6%

8%29%






62

-REASONS FOR APPLYING FORLAST CREDIT CARD

The most compelling reasons are:

1. “Parents”

2. “Good credit limit”

3. “Have account at bank”

4. “First card applied for”

Don't knowCustomizable features

Card designPremium

Internet featuresTV ad

Entertainment rewardsFrequent flyer rewards

Only offer receivedFriends

Issuing bankLow APR

Card parents usePre-approved status

Cash back rewardsNo annual fee

Greater access to creditFirst card applied for

Have account at bankGood credit limit

Parents

37%2%2%2%2%2%

3%3%

4%4%

5%6%

7%7%

9%9%

10%12%

13%13%

14%






63

Discover4% American Express

4%MasterCard

23%

VISA70%

-CREDIT CARD OWNED FIRST

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






64

-AGE WHEN ACQUIREDFIRST CREDIT CARD

Seven in ten (70%) acquired their first credit card at age 18 or younger

94% acquired their first card before their 21st birthday

Younger than 18

18%

1852%

1917%

207%

Older than 206%






65

-MONTH WHEN APPLIED FORFIRST CREDIT CARD IN OWN NAME

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

Don't knowDecemberNovember

OctoberSeptember

AugustJuly

JuneMayApril

MarchFeburaryJanuary

35%1%

3%3%

4%10%

8%9%

6%5%

4%5%

6%






66

-PREPAREDNESS FOR RESPONSIBILITY OF OWNING & USING A CREDIT CARD

More than eight in ten (81%) believe they were prepared for the responsibility of owning and using their credit card

Very prepared

35%

Somewhat prepared

46%

Not very prepared

13%

Not at all prepared6%






67

-CREDIT EDUCATION RECEIVEDFROM ISSUER OF FIRST CARD

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”

More than enough9%

Enough37%

Not as much as I would have liked

17%

Very little15%

None14%

Don't know8%






68

-CREDIT CARD USE

UseMonthly

%

UserMean

Times UsedPer Month

UserMean

AmountCharged

PerMonth

CarryBalance

%

UserMean

Balance

ChargedLate

PaymentFee%

Charged LatePayment FeeMore Than

Once%

Discover 82 11.0 $160 29 $364 22 50MasterCard 81 8.8 $173 32 $788 20 54VISA 89 10.8 $173 35 $655 22 59American Express 71 4.7 $217 14 $1,483 17 0

All cards 86 10.3 $219 33 $695 20 46

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)






69

-KNOWLEDGE WOULD HAVE LIKED TOHAVE HAD WHEN FIRST OPENED ACCOUNT

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%)

Don't knowHow to get more info about account

Who to contact with a problemRisk of identity theft

Card's rewardsHow to pay bill

Card basicsCard's grace period

Importance of paying on timeHow to manage account online

Credit limitCard fees such as over limit

Card's interest rateHow to manage spending

How card affects credit rating

31%6%7%7%9%10%11%11%12%12%12%

15%16%16%17%






70

-AGREEMENT WITH STATEMENTS

Parents have a significant influence on students and their credit card

About one in four believe their school is “too pushy” about promoting a credit card with the school logo on it “My school is too pushy about promoting a credit card with the school logo on it"

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

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

“My parents did not discourage me from acquiring my own credit card"

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

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

22%

53%

54%

61%

64%

67%






71

-CREDIT CARD USED MOST OFTEN

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

Discover5%

Amercian Express

3%

MasterCard24%

VISA68%






72

-ISSUER OF CARDUSED MOST OFTEN

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

Chase (14%) and Capital One (7%) follow

Don't knowKey Bank

First FinancialAmerican Express

DiscoverUS Bank

PNCCredit Union

CitibankWells FargoCapital One

ChaseBank of America

6%2%2%2%

3%3%

4%5%5%

6%7%

14%16%






73

-INTEREST RATESAbout 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) Don't know

Never increased

No increase last year

Within last year

Last six months

Last three months

Last month

51%

19%

10%

12%

3%

5%

3%






74

Don't knowSupport school or org

Special incentives to sign upCard design

Card my friends useOffers rewards points

Like their customer serviceFirst card I see in my wallet

Brand I preferBrand I trust

Has available creditLow APR

Offers cash backWidely accepted

Higher credit limitCard my parents use

Most convenientFrom my bank

First card obtained

13%1%1%1%1%

2%3%3%

4%5%5%5%5%5%

6%8%8%

14%21%

-WHY USEONE CARD MOST OFTEN

“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






75

-FREQUENCY OF USINGCARD USED MOST OFTEN

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

About one in five (21% use their card once a month or less often

Daily9%

Several times a week24%

One a week17%

A few times a month

23%

Once a month

9%

Less of than

monthly12%

Don't know9%






76

-CREDIT CARD SOLICITATIONS

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)

ReceiveAny% Average

U.S. Mail 59 3.1

eMail 39 3.7

Tele-marketer 17 4.5






77

AppliedFor Approved Activated

None 86% 35% 18%1 9% 53% 72%

2-3 4% 10% 9%4-6 1% 2% 2%

Total Mean .2 .9 1.0User Mean 1.7 1.3 1.2

-CREDIT CARDS APPLIED FOR,APPROVED & ACTIVATED

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






78

-FIVE MOST IMPORTANTCARD CHARACTERISTICS/FEATURES

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

Free checking with cardHigh credit limitLow annual fee

Track spending onlineEasy approval

Encourages responsible useFrom my bank

Rewards I wantDiscounts at stores/restaurants

Don't have to pay in fullCan use as ID for check cashing

Good overal valueAuto payment from checkingConvenient accesses to cash

Discounts on travelNo annual fee

Wide acceptanceLow annual fee

Airline milesCash back rewards

Can get in own nameCan view account online

Card for college students24 hour toll free customer service

Can be used at ATM machinesAccepts payment online

6%6%6%6%

7%7%7%7%

8%9%

10%11%

13%13%

14%14%14%

16%18%

22%27%

32%32%

33%34%

38%






79

-THREE MOST IMPORTANTCARD DESIGN ATTRIBUTES

The three most important card design attributes are:

1. Photo on card for ID purposes

2. Cool design

3. Customized with choice graphics, photo

Contactless

Mini card

Photo on card I choose

Associated with brand or organization I identify with

Customized with choice of graphics, photo

Cool design

Photo on card for ID purposes

9%

9%

16%

18%

22%

26%

31%






80


% Completelyor Somewhat

Agree

“It is my responsibility to keep track of how much I spend with credit cards” 65

“Credit cards encourage me to spend too much” 63“I am responsible enough to have a credit card in my own

name” 58“Credit card companies should do more to teach students

how to use credit responsibly” 55“My parents taught me how to use credit responsibly” 53

“Credit card issuers are too aggressive in marketing their cards” 52






81


% CompletelyOr Somewhat

Agree

“I use my credit card for emergencies only” 44“Credit cards give me more consumer security in making

purchases than cash or checks” 36“I do use or would use my credit card for recurring payments

such as payments to cell phone providers, utilities, cable, etc.” 36“Credit cards allow me to manage my spending more

effectively than cash or checks” 34“My college provides me with resources to use credit

responsibly” 31






82

-ACCOUNTS CLOSED IN THE PAST 12 MONTHS

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

None of these

American Express credit card

Discover credit card

MasterCard credit card

VISA credit card

Savings account

Checking account

86%

1%

1%

1%

3%

6%

9%


83

-BANK WHERE CLOSED . . .

Checking Savings VISA MasterCard*Bank % Bank % Bank % Bank %

Bank of America 25 Bank of America 20 Chase 23 Chase 17

Chase 11 Chase 12 Capital One 15 Capital One 17

Credit Union 6 Credit Union 8 Bank of America 12 Key Bank 17

Citibank 5 Key Bank 5 Citibank 12 US Bank 8

Key Bank 4 Wells Fargo 5 Wells Fargo 8 Citibank 8

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

* CAUTION: Small Sample


84

-CAMPUS CARD OWNERSHIP 40% have a

Campus Card

Among the 40% with a Campus Card, 19% report their Campus Card has a bank logo on it

Have Campus

Card40%

Do not have

campus card60%


85

-DESCRIPTION OF CAMPUS CARD 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 only18%

Student ID and building

access14%

Student ID, building ac-

cess and stored value

68%


86

-IMPORTANCE OF SCHOOL PROVIDING CAMPUS CARD

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

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

Very unimportant

Somewhat unimportant

Neither

Somewhat important

Very important

1%

2%

8%

22%

62%


87

-LOCATIONS WHERE SCHOOL ISSUEDCAMPUS CARD IS USED TO MAKE PURCHASES

Students are most likely to use their school issued Campus Card in the;

1. “Dining Hall” (95%)

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

3. “Campus bookstore” (70%)

Laundry machines

Vending machines

Printers or copiers

Campus bookstore

Other on campus restaurants

Dining hall

51%

59%

63%

70%

71%

95%


88

-FREQUENCY OF USING CAMPUS CARD TO MAKE PURCHASES

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

Daily42%

Several times a week23%

About once a week

8%

A few times a month

8%

Less than once a month

9%

Never8%

Don't know2%


89

-AMOUNT SPENT WITH SCHOOL ISSUED CAMPUS CARD IN A TYPICAL MONTH

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

Nothing4%

$10 or less23%

$11 to $2512%

$26 to $5022%

$51 to $10019%

$101 to $20012%

More than $2008%


90

-NUMBER OF PURCHASES MADE WITH SCHOOL ISSUED CAMPUS CARD IN A TYPICAL MONTH

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

None4%

10 or less51%

11 to 2521%

26 to 5019%

51 to 754%

More than 751%


91

-PERCENT OF SPENDING WITH SCHOOL ISSUED CAMPUS CARD ON CAMPUS VERSUS OFF CAMPUS

68% of students spend 100% on campus (highest among students living at home and commuting to school at 74%)

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

Total%

OnCampus

%

OffCampus

%

AtHome

%Spending on campus . . .

None 3 0 7 4 1% to 25% 3 1 7 0 26% to 50% 11 7 17 15 51% to 75% 3 4 1 0 76% to 99% 12 16 6 4 100% 68 72 62 74Spending off campus . . .

None 62 64 56 74 1% to 25% 13 18 6 4 26% to 50% 10 7 15 15 51% to 75% 3 2 5 0 76% to 99% 2 1 6 0 100% 3 1 6 4


92

-IMPORTANCE OF BENEFITS OFSCHOOL ISSUED CAMPUS CARD

The highest rated benefits of a school issued Campus Card are:

1. “Convenience” (76%)

2. “Don’t have to carry cash” (68%)

3. “Already pre-paid” (66%)

Can access different pools of funds

Parents pay for it

Provides record of spending

Helps control spending

Only need to carry one card

All on and off campus financial needs satisfied

Already pre-paid

Don't have to carry cash

Convenience

44%

44%

53%

55%

56%

56%

66%

68%

76%


93

-INSURANCE/INVESTMENT PRODUCTSOWN & PLAN TO PURCHASE

“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

Tuition insurance

Travel insurance

Home Owners insurance

Renter's insurance

CD's

Life insurance

Student loan insurance

Savings bonds

Car insurance

1%

2%

1%

2%

1%

1%

2%

1%

1%

1%

3%

3%

1%

4%

2%

5%

8%

1%

1%

1%

1%

1%

1%

2%

2%

3%

3%

5%

4%

5%

5%

9%

14%

14%

Own Plan to purchase


94

-HEALTH INSURANCE

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”

Don't know

Don't have health insurance

Through spouse

State subsidized policy

Through job

Medicare/Medicaid

Through school

Parent's policy

10%

7%

1%

1%

3%

7%

9%

65%


95

-STATEMENTS ABOUT RISK

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”

Auto accident

Loss of personal property

Hospitalization for accident

Hospitalization for illness

Identify theft

15%

16%

16%

17%

20%

24%

27%

27%

19%

17%

34%

35%

35%

29%

33%

15%

14%

14%

17%

15%

11%

7%

7%

17%

15%

Highest - 5 4 32 Lowest -1


96

-“IN THE PAST TWO YEARS, I HAVE OR HAVE HAD A CLOSE FRIEND…”

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

Suffered injury requiring hospitalization or medical attention

Withdraw for a medical emergency

Victim of identify theft

Required medical attention

Victim of loss of personal property

Involved in an auto accident

Hospitalized

6%

13%

20%

26%

28%

37%

44%


97

-“IN THE PAST TWO YEARS, I HAVE OR HAVE HAD A CLOSE FRIEND…”

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

Suffered injury requiring hospitalization or medical attention

Victim of identify theft

Victim of loss of personal property

Involved in an auto accident

Hospitalized

44%

20%

28%

37%

44%

40%

36%

43%

39%

34%

Risk Experienced


98

-WHERE MOST LIKELY TO PURCHASE INSURANCE PRODUCTS

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”

Don't know45%

Other10%

Local in-surance agent32%

Internet in-surance web-

site5%

Government assistance program4%

Multi-product insurance website3%


99

-PAYING FOR COLLEGE 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”

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

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

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

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

36%

37%

28%

36%

13%

15%

27%

25%

49%

53%

55%

61%

TOP 2 Box Completely agree Somewhat agree


100

-INFLUENTIAL SOURCES ABOUTPAYING FOR COLLEGE

By a wide margin, “Parents” (72%) are the most influential source of information about paying for college Affinity group

High school seminarInformation in the mail

BankStudent loan company

FriendsHS guidance counselor

InternetRelatives (not parents)

Financial aid officeParents

14%22%28%31%32%36%37%42%44%53%72%


101

-AMOUNT OF UNDERGRAD STUDENTLOAN DEBT EXPECT TO HAVE

Among the 69% of students anticipating having some student loan debt, the average amount is $26,450

None31%

$1 to $10,00027%

$10,001 to

$20,00015%

$20,001 to $25,000

4%

More than $25,000

23%


102

-LIKELIHOOD OF CONSOLIDATINGSTUDENT LOANS

Nearly half (46%) plan to consolidate their student loans

About three in ten (31%) “Don’t know” if they will consolidate their student loans

Very likely24%

Somewhat likely22%

Neither9%

Somewhat unlikely

5%

Very un-likely

9%

Don't know31%


103

Govern-ment loan

56%

Private loan20%

Loans direct from school20%

Relatives14%

Credit card3%

Friends2%

Other5%

-SOURCES OF STUDENT LOANS

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


104

-YEARS REQUIREDTO REPAY STUDENT LOANS

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

5 years or less50%

6 to 10 years37%

More than 10 years

13%


105

FALL 2011 TIMETABLELIFESTYLE & MEDIA, COMPUTING & THE INTERNET

16th DraftQuestionnaireDistributed

12th ToplineDistributed

17th Final Report,PresentationsBegin

8th In Field

AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

12th Comments,Proprietary Questions Due

20th QuestionnaireFinalized

Documents

1. Conducted each Spring and Fall semester Conducted each Spring and Fall semester On campus, one-on-one intercepts conducted by professional interviewers