First-generation college students have a unique journey. They are often pioneers within their families, navigating an unfamiliar path that brings both excitement and significant challenges. For many, college is a gateway to new opportunities—a stepping stone toward their dreams. However, these students face hurdles which can feel overwhelming, from academic pressures to the complexities of personal finance and decision-making. Fortunately, colleges across the nation recognize these challenges and are implementing programs to support first-generation students, helping them turn their dreams into reality.
About the author: Jeff Hulett leads Personal Finance Reimagined, a decision-making and financial education platform. He teaches personal finance at James Madison University and provides personal finance seminars. Check out his book -- Making Choices, Making Money: Your Guide to Making Confident Financial Decisions.
Jeff is a career banker, data scientist, behavioral economist, and choice architect. Jeff has held banking and consulting leadership roles at Wells Fargo, Citibank, KPMG, and IBM.
Celebrating First-Generation Families and Their Determination
First-generation college students do not walk this path alone. Behind each of them are families who may not have had the chance to pursue higher education themselves but who are wholeheartedly dedicated to their child’s success. These parents and guardians often work tirelessly, showing their children education is a way to “reach for the stars.” Their love, encouragement, and sacrifices lay the foundation for their child’s journey through college. Recognizing and celebrating the support of these families is essential, as their strength and commitment fuel the dreams of the next generation.
Understanding the Challenges First-Generation Students Face
First-generation students face unique challenges, from limited financial resources to adjusting to a college culture which can initially feel foreign. Without a family background in higher education, they may lack guidance on navigating academic structures, financial aid processes, and campus resources. Research, such as Dale and Krueger's study, shows how factors beyond college prestige impact a student’s long-term success, emphasizing individual readiness and support are more influential than institutional ranking. This finding is especially relevant for first-generation students, who often rely on their own resilience and the resources colleges provide.
Studies confirm first-generation students are at higher risk of leaving college due to financial and academic pressures. Financial literacy and decision-making skills can significantly impact a student’s success, reducing the likelihood of taking on unmanageable debt. Although these challenges are real, first-generation students bring resilience, determination, and an appreciation for education’s role in their future. Colleges increasingly offer resources to help these students overcome obstacles and leverage their strengths.
An Example of First-Generation Support: JMU’s Programs
James Madison University (JMU) is one of many colleges recognizing the specific needs of first-generation students. JMU dedicates support to ensure these students succeed and thrive, both academically and personally. One pivotal resource is the Reddix Center for First Generation Student Success, which offers first-generation students targeted guidance and resources throughout their college journey. The Reddix Center provides a supportive community, mentorship opportunities, and access to financial and academic resources, all aimed at empowering students to overcome challenges and build a strong foundation for their future.
In addition to the Reddix Center, JMU offers innovative programs like Personal Finance Reimagined (PFR), founded by Jeff Hulett. PFR delivers personal finance seminars tailored to help first-generation students build financial confidence and understand the critical importance of good financial decisions. These seminars cover budgeting, credit management, and investment fundamentals, providing students with the skills they need to manage finances effectively and reduce stress related to money.
Developing Confidence in Financial and Decision-Making Skills
A cornerstone of PFR’s approach is its focus on decision-making as the primary skill for achieving long-term wealth and health. By shifting the emphasis from financial know-how alone to the process of making strong, consistent decisions, PFR offers a groundbreaking approach to personal finance education. Jeff Hulett, a behavioral economist and professor of personal finance at JMU, brings a unique perspective to this curriculum, combining financial literacy with insights from decision science to make the subject accessible and actionable for students.
Hulett’s background in behavioral economics guides PFR’s emphasis on the mechanics of decision-making—the “why” behind financial choices and the cognitive processes shaping them. For first-generation students, this focus on decision-making provides a framework extending far beyond the classroom, enabling them to apply these principles across various aspects of their lives. By fostering skills in areas like evaluating trade-offs, anticipating future outcomes, and understanding cognitive biases, PFR encourages students to build a repeatable decision process helping them navigate the complex world of personal finance and beyond.
Hulett’s firsthand experience with students has shown understanding how to make effective financial decisions significantly enhances student confidence, creating a mindset shift which empowers them in other areas of life. Through PFR, students learn financial success is not just about knowing the numbers—it involves mastering the decision process underlying every good financial choice. Tools like Definitive Choice, a decision-making app provided by Definitive Business Solutions, help students put this learning into practice. This technology enables them to weigh options, evaluate potential outcomes, and make decisions they can feel confident about. With this foundation, students are better prepared to meet the financial challenges of college and life beyond graduation.
Building a Foundation of Long-Term Success
Personal finance and decision-making skills do more than help students manage their money; they empower them to make better life choices, from selecting a college major to planning a career. For first-generation students, understanding the long-term impacts of these decisions can be a powerful tool in shaping their future. With personal finance knowledge, students can make choices aligning with their career goals, reduce financial stress, and prepare for life beyond college.
Programs like PFR benefit students during their college years and build skills which carry into adulthood. By understanding concepts such as the time value of money, responsible credit use, and investment strategies, students are better prepared to reach their financial and career goals after graduation.
A Call to Action for All Colleges
As the needs of first-generation students gain more recognition, more colleges invest in personal finance and decision-making programs to support these students. JMU’s example, including the Reddix Center and PFR, is a model for other institutions looking to empower their students through financial literacy and tailored support. Personal finance programming, coupled with decision-making tools like those offered by Definitive Business Solutions, can make a profound difference in a first-generation student’s college journey and long-term success.
Jeff Hulett and the PFR team are eager to share their expertise with colleges nationwide. By offering these resources to first-generation students, colleges can help these students achieve their dreams and honor the legacy of hard work and dedication from their families.
Conclusion: Reaching for the Stars Together
First-generation students embody resilience and ambition. With the right support—academic guidance, financial literacy, and decision-making skills—they can confidently navigate college and pave the way for future success. Their families, who have encouraged them to reach for the stars, can feel pride in seeing their children accomplish the goals they once dreamed of. As more colleges recognize the value of investing in these students, they play a crucial role in fostering a future where all students, regardless of background, have the opportunity to shine.
Resources for the Curious
Dale, S., & Krueger, A. (2002). Estimating the Payoff to Attending a More Selective College: An Application of Selection on Observables and Unobservables. The Quarterly Journal of Economics, 117(4), 1491–1527.
This foundational study examines the impact of college selectivity on student outcomes, which is relevant for first-gen students deciding between different college options.
Stephens, N. M., Hamedani, M. G., & Destin, M. (2014). Closing the Social-Class Achievement Gap: A Difference-Education Intervention Improves First-Generation Students' Academic Performance and All Students' College Transition. Psychological Science, 25(4), 943–953.
Research on interventions that improve academic outcomes for first-gen students by addressing social-class challenges and enhancing college transitions.
Engle, J., & Tinto, V. (2008). Moving Beyond Access: College Success for Low-Income, First-Generation Students. The Pell Institute.
This report identifies barriers and support strategies that can improve college success for first-gen and low-income students.
Hulett, J. (2021). Making Choices, Making Money: Your Guide to Making Confident Financial Decisions. The Curiosity Vine.
A practical guide on personal finance and decision-making, tailored to provide first-gen students and their families with a foundation in financial literacy.
Gibbons, M. M., Rhinehart, A., & Hardin, E. E. (2019). How First-Generation Students Experience College: Insights on Relationships, Resources, and Realities. Journal of College Student Retention: Research, Theory & Practice, 21(3), 301-323.
Explores experiences of first-gen students related to resources, relationships, and barriers to college retention.
Terenzini, P. T., Springer, L., Yaeger, P. M., Pascarella, E. T., & Nora, A. (1996). First-Generation College Students: Characteristics, Experiences, and Cognitive Development. Research in Higher Education, 37(1), 1–22.
Examines cognitive development and experiences specific to first-gen students to help educators and parents understand their unique strengths.
Thaler, R. H., & Sunstein, C. R. (2008). Nudge: Improving Decisions About Health, Wealth, and Happiness. Yale University Press.
Insights from behavioral economics help educators create environments that support better decision-making for students, especially relevant in personal finance education.
Redford, J., & Hoyer, K. M. (2017). First-Generation and Continuing-Generation College Students: A Comparison of High School and Postsecondary Experiences. U.S. Department of Education, National Center for Education Statistics.
Compares experiences of first-gen and continuing-gen students to identify gaps in preparation, motivation, and college persistence.
Padgett, R. D., Johnson, M. P., & Pascarella, E. T. (2012). First-Generation Undergraduate Students and the Impacts of the First Year of College: Additional Evidence. Journal of College Student Development, 53(2), 243–266.
Analyzes how the first year of college impacts first-gen students, focusing on cognitive and social development to suggest early interventions.
The Center for First-Generation Student Success. First-Generation College Students at Four-Year Institutions: A Look at First-Year Persistence and Completion. Center for First-Generation Student Success, 2020.
An overview of best practices and program examples at various universities aimed at improving persistence and graduation rates for first-gen students.
So glad to see this fresh financial decision-making approach to help first-gen students. Keep it up!