The financial literacy of college students: a case study of financial attitudes, beliefs, and confidence

Thomas K. Intoccia

doi:10.17918/00001718

Financial literacy is a persistent problem in society, exemplified by poor financial knowledge among college students and exacerbated by high student debt and inadequate understanding of savings concepts. The goal of this study was to better understand how college students develop financial literacy. This qualitative exploratory case study was guided by the overarching research question: How do students at a large northeastern university develop their financial knowledge? Sub-questions of this study were: (a) In what ways do students' family experiences influence their financial attitudes, beliefs, and behaviors? (b) How do students describe their financial attitudes, beliefs, and behaviors after completing the financial literacy course at a large northeastern university? To understand how college students develop financial knowledge, attitudes, beliefs, and behaviors, this study focused on 10 college students who completed a financial literacy course and on students' financial experiences with family and non-family socializers. Semi-structured interviews were utilized to illuminate the experiences of the selected college students. Findings from the study suggest that students gain financial knowledge and confidence both from family and non-family members as well as from financial literacy classes. Students described being directly and indirectly financially socialized by family and non-family members. After taking the financial literacy course, students perceived an increase in general financial knowledge, specifically regarding stocks, mutual funds, retirement accounts, and debt. Moreover, five of the ten participants described behavioral changes after taking the financial literacy course, including establishing credit, using budgeting apps, opening investment and individual retirement accounts (Roth IRAs), and investing in mutual funds. Findings from the study suggest that students have a strong interest in learning about investments and a strong understanding of debt and credit concepts, and that their direct financial socialization may influence both knowledge and behaviors. To bolster college students' financial knowledge and confidence, it is recommended that institutions of higher education provide financial literacy courses. Future research could evaluate financial literacy course effectiveness and explore the concept of indirect financial socialization.

The financial literacy of college students: a case study of financial attitudes, beliefs, and confidence

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The financial literacy of college students: a case study of financial attitudes, beliefs, and confidence

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