The effect of minority, low-income, and first-generation status on the financial capabilities of students at Mississippi State University

Using data collected from undergraduate students attending a southeastern United States University, the current dissertation includes two manuscripts examining the relationships between personal characteristics, financial socialization, financial capability and financial well-being among college students. These relationships were also compared between a focal group of students identifying as minority, low-income, and first-generation students to a comparison group not identifying as minority, low-income, or first-generation students. The first study used structural equation modeling to explore the relationships between personal characteristics (i.e., attachment, locus of control, and self-esteem), financial socialization, and the four dimensions of financial capability (financial knowledge, access to financial resources, attitudes, and actions). Findings suggest financial socialization partially mediated the relationships between personal characteristics and financial attitudes and financial actions. These findings suggest that parents continue to play a role in the development of financial attitudes and behaviors of college students. The second study used regression analysis to examine how financial knowledge and skills (i.e., applied knowledge), materialistic attitudes, compulsive spending behaviors, and access to financial resources (i.e., number of bank accounts, credit cards, and alternative financial services) are related to students’ financial well-being. Findings suggest greater financial skills and less materialistic views are related to greater financial well-being. However, among those not identifying as minority, low-income, or first-generation college students less compulsive spending behaviors and greater credit card use were positively related to financial well-being; among minority, low-income, or first generation college students, alternative financial services usage was related negatively to financial well-being