Analyzing Financial Literacy Among Undergraduate Students and Current Methods of Increasing Financial Literacy

Abstract

This study examines the financial literacy levels of students at Middle Tennessee State University and the best tools on campus to increase students’ knowledge of basic financial topics and their own student debt. A survey was administered across campus to students in multiple finance classes and to the general population of students. The survey was administered twice, once at the end of the Spring 2019 semester and once at the beginning of the Fall 2019 semester. The first set of data includes a total of 142 completed surveys. Results showed that students had a higher than average financial literacy level, with 55.63% of students being able to correctly answer all the Big Three questions. The results from the second round of collection, in Fall 2019, are less favorable with 41.14% of students correctly answering all the Big Three questions. There were mixed results regarding respondents’ understanding of their own student loan debt with some aspects being almost fully understood and others being vastly misunderstood. The most effective instrument on campus to help students improve their literacy was found to be the completion of a finance course. Respondents who said they had completed a Middle Tennessee State University finance class were significantly more likely to answer the Big Three questions correctly and more likely to understand their own student loan debt.