Hostname: page-component-cd9895bd7-gvvz8 Total loading time: 0 Render date: 2024-12-25T19:33:24.206Z Has data issue: false hasContentIssue false
  • English
  • Français

University Students’ Financial Literacy Levels: Obstacles and Aids

Published online by Cambridge University Press:  01 January 2023

Michelle Cull  and
Diana Whitton
Michelle Cull
Affiliation:
University of Western Sydney
Diana Whitton
Affiliation:
University of Western Sydney
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

In the last decade, the increased complexity of, and levels of access to, financial products and services, together with rising household debt and the funding of an ageing population, have prompted the State to place increased focus on financial education, with the dual objectives of regulating to enhance market efficiency and mitigating social welfare issues attributed to poor financial decisions. Financial literacy is crucial for young adults as they embark on life events involving major expenditure and debt, particularly for university students who have already accrued a debt based on Higher Education contribution scheme liability and who are making labour market decisions. This paper investigates the determining factors of personal financial literacy levels among a sample of university students at different stages of study and across diverse study areas including business, education, arts, humanities and the sciences; with some interesting findings for policy makers. It also provides indicative evidence of students’ preferred method of learning more about personal finance to facilitate the effective design of personal financial literacy programs.

Keywords

A22A23I22I28D14Financial educationfinancial literacylife-cycle incomeuniversity students
Type
Article
Information
The Economic and Labour Relations Review , Volume 22 , Issue 1 , May 2011 , pp. 99 - 114
Copyright
Copyright © The Author(s) 2011

References

ANZ (2005) ANZ Survey of Adult Financial Literacy in Australia 2005, ANZ Banking Group and AC Nielsen.Google Scholar
Beal, D., Delpachitra, S. (2003) ‘Financial literacy among Australian University students’, Economic Papers, 22(1), pp. 65–78.Google Scholar
Chatzky, J. (2002) ‘Teach our children well’, Money, 31(7), p. 128.Google Scholar
Chen, H., Volpe, R. (1998) ‘An analysis of personal financial literacy among college students’, Financial Services Review, 7(2), pp. 107–128.CrossRefGoogle Scholar
De Bruin, W., Vanderklaauw, W., Downs, J., Fischhoff, B., Topa, G., Armantier, O. (2010) ‘Expectations of inflation: The role of demographic variables, expectation formation, and financial literacy’, Journal of Consumer Affairs, 44(2), pp. 381–482.CrossRefGoogle Scholar
Fama, E. (1970) ‘Efficient capital markets: A review of theory and empirical work’, Journal of Finance, 25(2), pp. 383–417.CrossRefGoogle Scholar
Fear, J., O’Brien, J. (2009) ‘Where does the buck stop? Community attitudes to over-lending and over-spending’, Australasian Accounting Business and Finance Journal, 3(1), pp 3–12.Google Scholar
Financial Literacy Foundation (FLF) (2007) Financial Literacy — Australians Understanding Money, Commonwealth of Australia, Canberra; available: http://www.financialliteracy.gov.au/media/209293/australians-understanding-money.pdf [accessed 4 May 2011].Google Scholar
Greenspan, A. (2003) Remarks by Chairman Alan Greenspan at the JumpStart Coalition’s Annual Meeting, Washington, DC, 3 April 2003, The Federal Reserve Board, 2003 Speeches, available: http://www.federalreserve.gov/boarddocs/speeches/2003/20030403/default.htm [accessed 26 April 2011].Google Scholar
Harrison, D. (2011) ‘Growth in uni places good for economy, says Labor’, The Sydney Morning Herald, 22–24 April, p. 9.Google Scholar
Huston, S. (2010) ‘Measuring financial literacy’, The Journal of Consumer Affairs 44(2), pp. 296–316.CrossRefGoogle Scholar
Jefferson, T., Preston, A. (2005) ‘Australia’s “other” gender wage gap: Baby boomers and compulsory superannuation accounts’, Feminist Economics, 11(2), pp. 79–101.CrossRefGoogle Scholar
Joo, S., Garman, E. (1998) ‘Workers want more than retirement education at their workplace: A report of research findings’, Personal Finances and Worker Productivity, 2(2), pp. 156–161.Google Scholar
Kezar, A., Yang, H. (2010) ‘The importance of financial literacy’, About Campus 14(6), pp. 14–21, available: www.onlinelibrary.wiley.com/doi/10.1002/abc.20004/pdf [accessed 19 April 2011].CrossRefGoogle Scholar
Lowenstein, R. (2000) When Genius Failed: The Rise and Fall of Long-Term Capital Management, Random House, New York.Google Scholar
Lusardi, A., Mitchell, O. (2007) ‘Financial literacy and retirement preparedness: Evidence and implications for financial education’, Business Economics, 42(1), pp. 35–44.CrossRefGoogle Scholar
Lusardi, A., Mitchell, O., Curto, V. (2010) ‘Financial literacy among the young’, Journal of Consumer Affairs, 44 (2), pp. 358–380.CrossRefGoogle Scholar
Lusardi, A., Tufano, P. (2009) ‘Debt literacy, financial experiences, and overindebtedness’, NBER Working Paper 14808, National Bureau of Economic Research, United States, available: http://www.nber.org/tmp/19952-w14808.pdf [accessed 25 April 2011].CrossRefGoogle Scholar
Lyons, A. (2004) ‘A profile of financially at-risk college students’, Journal of Consumer Affairs, 38(1), pp. 56–80.CrossRefGoogle Scholar
Marcolin, S., Abraham, A. (2006) Financial literacy research: Current literature and future opportunities, University of Wollongong Faculty of Commerce Working Papers, available: http://ro.uow.edu.au/commpapers/223 [accessed 1 May 2011].Google Scholar
Marriott, P. (2007) ‘An analysis of first experience students’ financial awareness and attitude to debt in a post-1992 UK university’, Higher Education Quarterly, 61(4), pp. 498–519.Google Scholar
Ministerial Council for Education, Employment, Childhood Development and Youth Affairs (2009) National Consumer and Financial Literacy Framework (Introduction), available: http://www.mceetya.edu.au/mceecdya/default.asp?id=14430 [accessed 2 May 2011].Google Scholar
Peters, E., Dieckmann, N., Dixon, A., Hibbard, J., Mertz, C. (2007) ‘Less is more in presenting quality information to consumers’, Medical Care Research and Review, 64(2), pp. 169–190.CrossRefGoogle ScholarPubMed
President’s Advisory Council on Financial Literacy (2009) 2008 Annual Report to the President, The Department of the Treasury, United States, January, available: http://www.jumpstart.org/assets/files/PACFL_ANNUAL_REPORT_1-16-09.pdf [accessed 25 April 2011].Google Scholar
Schagen, S, Lines, A (1996) Financial Literacy in Adult Life: A Report to the Natwest Group Charitable Trust, National Foundation for Educational Research, Berkshire.Google Scholar
Thaler, R., Sunstein, C. (2009) Nudge: Improving Decisions about Health, Wealth, and Happiness. Penguin, New York.Google Scholar
Universities Australia (2007) Australian University Student Finances 2006: Final report of a national survey of students in public universities, August 2007, available: http://www.universitiesaustralia.edu.au/resources/135/Final%20AUSF%20report.pdf [accessed 26 April 2011].Google Scholar
University of Western Sydney (2007) Student Satisfaction Survey (SSS) Report (Quantitative), UWS Office of Planning and Quality, p. 25.Google Scholar
Wagland, S. P., Taylor, S. (2009) ‘When it comes to financial literacy, is gender really an issue?’, AABFJ Financial Planning Special Issue, May 3(1), pp. 13–25.Google Scholar
Worthington, A. (2006) Financial literacy in Australia, Paper presented at Conference of the Accounting and Finance Association of Australia and New Zealand, Wellington.Google Scholar