Faculty Publications - School of Business

Determinants of the Financial Literacy of Undergraduate Students: A Survey-Based Analysis

Nathanael D. Peach, George Fox University
Andrew D. Van der Werff, George Fox University

Summary of the study presented at George Fox University on Wednesday, April 17 under the title "Enrolled to Succeed or Ignored to Fail?"

Abstract

A sample of undergraduate students at a private, liberal arts university in the Pacific Northwest were surveyed to determine contributing factors to financial literacy. Respondents were asked questions on basic personal financial concepts such as the time value of money, impacts of inflation, and home mortgage repayment plans. Results showed that Caucasian students majoring in business-related disciplines were the most likely to be financially literate while non-Caucasian, non-business majors were the least. The most influential predictors of financial literacy in the sample are the respondent's self-assessment of their financial literacy and their race. These results suggest that targeted efforts to improve financial literacy of undergraduate populations will yield improvements in financial literacy.