A new study shows that high school and college students who are exposed to cumulative financial education show an increase in financial knowledge, which in turn drives increasingly responsible financial behavior as they become young adults. University of Arizona researchers say this “snowball effect” exponentially increase the likelihood that students will pursue more financial education as time goes on, including informal learning through books, magazines and seminars.
The study, Arizona Pathways for Life Success in University Students, surveyed more than 1,500 students and drop-outs four years after they entered the University of Arizona in the fall of 2007. Results show young adults display three distinct financial identities that reflect varying degrees of parental influence and autonomy:
- Pathfinders (31%) are those most engaged in defining their financial style and see themselves as having actively chosen their approach to financial management. Of the 3 groups, Pathfinders exhibit more positive financial attitudes, feel much better about their efficacy and control and report the most positive financial behaviors.
- Followers (39%) tend to follow their parents’ guidance and imitate their parents’ financial management style. Although they are exploring finances on their own, they also are the most unconcerned about the process of doing so.
- Drifters (30%) are the least accepting of their parents’ financial management style, but they have not yet established any approach of their own. They are not necessarily unconcerned about personal finance, but their financial behaviors tend to be worse than their peers. However, their financial knowledge and awareness overall are solidly average.
Researchers discovered many important influences on young adults, which work together to form their financial identities. Cumulative financial education was pinpointed as a key positive influence.
Posts
0 comments:
Post a Comment