Class
Article
Faculty Mentor
Yoon Lee
Presentation Type
Poster Presentation
Abstract
The purpose of this study was to examine differences in financial literacy and the student loan decision across ethnicities among the millennial generation. In previous research, racial differences have been found in financial knowledge and financial behaviors (Lusardi et al., 2010) and Millennials carry more student loan debt than previous generations (Fry, 2012). Using data from the 2018 National Financial Capability Study (NFCS), we attempted to examine the difference in financial literacy among racial groups and the influence of race and sources of financial education on the student loan decision among Millennials. We found that the majority of Millennials (60.4%) had not participated in any financial education. The results showed that there was no statistical difference in financial literacy among Whites, Blacks, Hispanics, and other races. However, those who participated in financial education had greater financial literacy than those who did not among Millennials. Interestingly, high school only financial education was not a significant factor in financial literacy. It is possible that individuals who only receive high school financial education may not have quality programs. High school financial education is not required in every state, and current programs have vague standards (Epperson & Manning, 2020). The results also indicate that when compared to Whites, Blacks were more likely to take out a student loan, whereas Asians/Others were less likely. The findings of this study could help financial educators and policy makers understand the needs of financial education in different communities and prepare future generations for financial decisions such as student loans. Presentation Time: Thursday, 12-1 p.m. Zoom link: https://usu-edu.zoom.us/j/83544115581?pwd=dllPNVdPZlVaNWljTWpEbGI3QXR3dz09
Location
Logan, UT
Start Date
4-11-2021 12:00 AM
Included in
Difference in Financial Literacy and Student Loan Decision Across Races: The Millennial Generation
Logan, UT
The purpose of this study was to examine differences in financial literacy and the student loan decision across ethnicities among the millennial generation. In previous research, racial differences have been found in financial knowledge and financial behaviors (Lusardi et al., 2010) and Millennials carry more student loan debt than previous generations (Fry, 2012). Using data from the 2018 National Financial Capability Study (NFCS), we attempted to examine the difference in financial literacy among racial groups and the influence of race and sources of financial education on the student loan decision among Millennials. We found that the majority of Millennials (60.4%) had not participated in any financial education. The results showed that there was no statistical difference in financial literacy among Whites, Blacks, Hispanics, and other races. However, those who participated in financial education had greater financial literacy than those who did not among Millennials. Interestingly, high school only financial education was not a significant factor in financial literacy. It is possible that individuals who only receive high school financial education may not have quality programs. High school financial education is not required in every state, and current programs have vague standards (Epperson & Manning, 2020). The results also indicate that when compared to Whites, Blacks were more likely to take out a student loan, whereas Asians/Others were less likely. The findings of this study could help financial educators and policy makers understand the needs of financial education in different communities and prepare future generations for financial decisions such as student loans. Presentation Time: Thursday, 12-1 p.m. Zoom link: https://usu-edu.zoom.us/j/83544115581?pwd=dllPNVdPZlVaNWljTWpEbGI3QXR3dz09