Financial Literacy (original) (raw)
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Financial literacy has been evaluated in many different surveys of American adults and children. College students are a dynamic population who face unique financial challenges, yet they have not been broadly sampled as part of existing work measuring financial literacy. This is a notable void in the literature given the rapid increase in college prices and the number of students who finance their college investment using loans. The 2015-16 National Postsecondary Student Aid Study (NPSAS:16) included, for the first time, a standard set of financial literacy questions as well as a new set of questions measuring awareness of student loan repayment terms. Students demonstrated objectively low levels of financial literacy, but levels were higher among groups with social, demographic, economic, and institutional characteristics that are predictive of success in college. Student borrowers tended to have higher student loan literacy, even if they were part of groups with lower financial literacy. We conclude from this that financial literacy
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The goals of this study are to examine the relationships between loan knowledge, money management skills, debt tolerance attitudes, and student income potential to their willingness to incur educational debt at a mid-western university. The current study showed that freshmen students lacked personal and general loan knowledge and had unrealistic expectations of future income at graduation.
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Effective consumer financial education provides relevant information to meet special needs of targeted audiences. The purpose of this study is to compare financial capability among three types of student loan holders, who completed, did not complete, and are enrolled in a higher education program. Four indicators of financial capability are used: objective financial literacy, subjective financial literacy, desirable financial behavior, and perceived financial capability. In addition, an index of financial capability is constructed based on the four indicators. Using data from the 2015 U.S. National Financial Capability Study, the results show that student loan holders who completed their education program had higher scores in all four indicators and the index of financial capability than college dropouts and enrollees. Further analyses show that differences in specific financial knowledge points are found among college graduates, dropouts, and enrollees. In addition, college graduates are more likely to perform several specific desirable financial behaviors than college dropouts and enrollees, and college dropouts and enrollees differ in two specific financial behaviors. The research findings have implications for consumer policy and education as they demonstrate the necessity of providing tailored financial education programs for different types of student loan holders in order to meet their individual needs.
2006
Mary Beth Pinto is an associate professor of marketing and director of the Center for Credit and Consumer Research at Penn State Behrend, and Phylis M. Mansfield is an assistant professor of marketing at Penn State Behrend. College students today face heavy student loan debt that is intensified by the amount of credit card debt they carry. This study provides a profile of financially at-risk students based on their credit card usage behavior. When compared to the non-financially at-risk students, those in the financially at-risk group were found to have higher student loan balances, both currently and expected at graduation. In addition, if forced to prioritize debt repayment after graduation, students in the financially at-risk group indicated they would pay their credit card bills before making their student loan payments.
College Students and Financial Literacy
Previous research focused on college students and their credit card usage. This study examines college students' overall financial management practices using quantitative and qualitative data from a multi-state research project. Specifically, the study investigates how college students acquire financial knowledge and behaviors and the factors that place some students at greater financial risk than others. The findings show that parents play a key role in their children's financial socialization. The results provide important insight into financial education opportunities for students, parents, campus administrators, and financial professionals and educators.
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Through an experimental design with two treatment groups and a control group, this research highlights the significant positive effects of financial education on reducing debt stress and promoting informed borrowing decisions. The study also uncovers gender differences, with female students showing more negative attitudes toward debt. This study sheds light on the crucial role of financial education in shaping future graduate students' financial choices.
An Investigation Measuring the Impact of Financial Literacy Programs on University Student Debt
2018
Student loan debt is the most common form of debt in the United States today outside of mortgage debt. The research for this study sought to (1) investigate whether financial literacy programs in the State of Florida have an impact on student debt levels, as well as (2) determine how the responsibility for the provision of financial literacy education was distributed throughout a university community. The research provided for a survey that was sent to 70 institutions in the State of Florida analyzing whether or not these institutions had financial literacy programs in place. A survey was also sent out to a private university in South Florida where the students and staff were invited to share opinions on a former financial literacy program and views on financial literacy in general. Finally, a comprehensive analysis of cohort loan default rates was conducted using publicly available data. There is broad consensus among those who participated in the research that financial literacy has a positive impact upon an institution's cohort default rate. Literature suggests that cross-campus collaboration is the key to designing a successful financial literacy program. The research indicated a gradual increase in the default rate of the schools participating in the study, yet the change in the default rate as a percentage of the previous year was actually decreasing. iv Copyright v Acknowledgements I began Lynn University's Doctorate of Education in Educational Leadership on the weekend of August 28, 2015. As with any journey, this would not have been possible without the help, support, and guidance of so many. My wife, Jenny, and children, Caitlin, Sean, and Molly, have been by my side from day one, supporting, encouraging, and never letting me give up. Without their support, I would never have completed this journey, and it was a truly combined effort from Team O'Sullivan. My parents have always been there for me, and without the emails and long-distance calls at all hours of the night, the journey would have had many more bumps. Their words helped to keep me focused on the end goal and turned numerous bumps into minor blips. My sisters, Christina and June, were full of ideas and always there to listen and laugh as I bounced many of my ideas off them across the Atlantic. My sister, Rosemary, did so much that words are not enough to thank her for her expertise in design and guidance when developing my final product. Michael and Robert helped with the gathering of resources and research and even brought textbooks across the pond to aid in the research process. Words seem so little when I think of all that my family did for me. Go raibh míle maith agaibh. At work, Vivian Pearlman sought to keep my spirits up on a daily basis, offering guidance and support. Evelyn Nelson was always there in the background, encouraging and supporting along the way. Lynn University will always hold a special place in my heart. The support and words of encouragement from the beginning from Dr. Donald Ross, President Emeritus, show how the organization is truly family. The head of the Education Department, Dr. Kathleen Weigel, was inspiring with her energy and commitment. She is a true leader and her love of education and enthusiasm to help others highlights what every leader should aspire to. vi My chair, Dr. Kelly Burlison, has been infallibly by my side. No matter how big a problem seemed, or how daunting a challenge appeared, Dr. Burlison would always put my mind at ease and keep me on track. Her belief in me from the onset made me feel that no challenge was too big to overcome. Dr. Migliano and Dr. Kline, as other members of my committee, reviewed over numerous rewrites and edits. They were both a constant support and treasure trove of ideas. Finally, for all of those not mentioned, I would like to thank you for the constant support, guidance, and friendship that these last few years have brought. vii