The Relationship between Financial Knowledge, Financial Management, and Financial Self-Efficacy Among African-American Students

30 Pages Posted: 25 Oct 2019

See all articles by Kenneth White

Kenneth White

University of Georgia

Narang Park

University of Georgia

Kimberly Watkins

University of Alabama - Department of Consumer Sciences

Megan McCoy

Kansas State University

Michael G. Thomas

University of Georgia

Date Written: October 12, 2019

Abstract

The personal finance literature has documented the positive effects of financial knowledge, financial management, and financial self-efficacy on the lives of college students. However, there is a need for a more nuanced examination of how these factors shape financial decision making among African American college students. Using data obtained from the 2014 National Student Financial Wellness Study and structural equation modeling, results indicated that financial knowledge is not directly or indirectly associated with financial self-efficacy for African American students. Only financial management is significantly associated with increased financial self-efficacy. Findings indicate that financial education based on experiential learning may be effective for the well-being of African American students. Further, as the personal finance profession seeks to increase diversity in the field, experiential learning may be the vehicle to attract more African American professionals pursuing financial counseling, planning, and education professions in the future.

Keywords: African American students, financial education, financial knowledge, financial management, financial self-efficacy

Suggested Citation

White, Kenneth and Park, Narang and Watkins, Kimberly and McCoy, Megan and Thomas, Michael G., The Relationship between Financial Knowledge, Financial Management, and Financial Self-Efficacy Among African-American Students (October 12, 2019). Available at SSRN: https://ssrn.com/abstract=3468751 or http://dx.doi.org/10.2139/ssrn.3468751

Kenneth White

University of Georgia ( email )

United States

Narang Park (Contact Author)

University of Georgia ( email )

Athens, GA 30602-6254
United States

Kimberly Watkins

University of Alabama - Department of Consumer Sciences ( email )

Tuscaloosa, AL 35487-0158
United States

Megan McCoy

Kansas State University ( email )

303 Justin Hall
Manhattan, KS 66506-1403
United States

Michael G. Thomas

University of Georgia ( email )

Athens, GA 30602-6254
United States

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