Connect * Empower * Impact


2019 AFCPE® Research and Training Symposium


AFCPE Pre-Symposium: Sunday, November 17 - Tuesday, November 19
AFCPE Symposium: Tuesday, November 19 - Thursday, November 21
Schedule Subject to Change

Thursday, November 15th, 2018
Category: Financial Stress
Applying Human Capital Framework to College Student's Financial Well-Being
This study examined the association between financial knowledge and application of knowledge with financial behaviors and financial well-being among college students. Using path analysis, indicators of financial knowledge and application (i.e., financial mastery and being a first-generation student) had a significant impact on financial behavior, which in turn had a significant impact on financial well-being. These findings show support for the human capital framework as applied to financial literacy and financial well-being.
Implications for Practitioners
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Subjective financial knowledge has a significant impact on financial behavior, while employment status and credit card usage did not. This implies that subjective financial knowledge is more important in driving positive financial behavior and financial well-being than hands on financial experience. Otherwise stated, subjective financial knowledge was a bigger drive of financial well-being among college students than work history or credit card ownership. Universities should provide more opportunities for students to grow their subjective financial knowledge, such as through peer financial counseling.