AI is becoming a go-to financial tool for college students: A new survey found that 71% of students say AI has improved their financial literacy and helped them save money.
Students are using AI for everything from budgeting to debt repayment: Many respondents reported better credit scores, increased savings, and progress paying down debt after using AI-powered financial tools.
Experts say AI can be helpful—but it shouldn’t be the only source of advice: While AI makes financial information more accessible and less intimidating, students should verify important recommendations with trusted sources before making major money decisions.
For today’s college students, artificial intelligence isn’t just helping with homework—it’s increasingly becoming a financial coach, too. From building budgets to learning about credit scores and debt repayment, many young adults are turning to AI-powered tools for guidance on managing their money.
A recent survey from Northern Kentucky University found that 71% of college students believe AI has improved their financial literacy and helped them save money. The findings suggest that tools like ChatGPT are becoming a go-to resource for students looking to navigate financial challenges, often without consulting a traditional financial advisor.
While experts caution that AI-generated advice should always be verified, the research highlights a growing shift in how young people are learning about personal finance and making everyday money decisions. To better understand what’s driving this trend — and the opportunities and risks that come with it — ConsumerAffairs spoke with Peiwei Li, Assistant Professor and MSIS Graduate Program Director at Northern Kentucky University.
What are the risks?
Li explained that many college students are turning to AI tools for their financial questions because they’re accessible and convenient.
“Most students already use AI tools in their daily lives, so asking it about money probably feels normal and low-pressure at this point,” Li said. “Honestly, a lot of financial advice feels out of reach when you’re a student. If you’re stressed about making rent or paying off a credit card bill, you’re probably comfortable opening ChatGPT before you search for an advisor.”
However, with that comfortability comes some risks that consumers need to be aware of. The biggest one: overconfidence in advice provided by AI tools.
“AI can miss a lot of that nuance,” Li said. “Someone might follow advice that technically sounds smart but isn’t a good fit for their actual situation. Financial decisions depend on personal habits and circumstances, including income, debt, credit history, risk tolerance, etc. AI tools can provide useful general guidance and be a helpful starting point, but students should verify the AI-generated advice with trusted sources.”
Reducing intimidation
The survey found that many college students are turning to AI with their finance questions because it feels less intimidating than asking someone in person. The conversational nature of chatbots also helps students feel more comfortable.
“A big selling point is ChatGPT’s conversational interface,” Li said. “Students have varying levels of financial literacy. Chatting with ChatGPT can reduce the intimidating aspects of budgeting.
“Furthermore, AI tools allow students to ask questions in plain language without feeling judged or lost due to financial jargon. Finally, AI tools break down financial goals into smaller, more manageable steps.”
A support tool
Li’s biggest piece of advice for anyone considering AI for financial advice: it’s a solid support tool.
“Think of it like a brainstorming buddy, or someone you’re getting a second opinion from vs. the all-knowing expert,” Li said. “It’s helpful for distilling concepts or helping work through options, but important financial decisions still deserve more than one source of information/advice.”