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Increasing Financial Literacy Among Undergraduate Students

Author

Listed:
  • Montgomery Barreto
  • Keith Jacks Gamble

Abstract

This study examines the financial literacy levels of students at Middle Tennessee State University and the effectiveness of tools on campus to increase students’ knowledge of basic financial topics and their own student debt. We administer a survey across campus to students in multiple finance classes and to the general student population. Around half of our student respondents answer correctly all of the “Big Three” questions testing financial literacy, a higher proportion answering correctly than the average in several prior studies conducted around the world. We find mixed results regarding our respondents’ understanding of their own student loan debt with some aspects being well understood and others being vastly misunderstood. Our results show that the most effective instrument on campus to improve students’ financial literacy is the completion of a finance course. Respondents who have completed a Middle Tennessee State University finance course are more likely to answer questions on financial topics correctly and to understand their own student loan debt.

Suggested Citation

  • Montgomery Barreto & Keith Jacks Gamble, 2020. "Increasing Financial Literacy Among Undergraduate Students," Working Papers 202001, Middle Tennessee State University, Department of Economics and Finance.
    • Handle: RePEc:mts:wpaper:202001
    as

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    File URL: http://capone.mtsu.edu/berc/working/Barreto_and_Gamble_2020.pdf
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    References listed on IDEAS

    as
    1. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
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    More about this item

    Keywords

    Financial Literacy; Student Loans; Education;
    All these keywords.

    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate

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