1. A comparative study of UNA students vs
A comparative study of UNA students vs. the National Norm: Evaluating the five subject categories of the Financial Literacy of Young American Adults Survey
John Thornell, Ph.D., Molly Vaughn, and Nathan Pitts

2. Why this topic? College students and current financial challenges
Outstanding student loans are approaching $1 trillion
Since 2000 tuition has increased 72% at public 4-yr schools (adjusted for inflation)
Student loan debt is 2nd largest in country behind mortgages
Student loans have increased 75% since 2007
66% of recent college graduates have balances > $25,000
81% underestimated the ‘time to pay off’ for credit cards

3. The Changing Demographic
Over 25 years of age, working full-time, supporting families
Grades may suffer due to these demands, which in turn can affect eligibility for certain aid
Time to completion extends due to competing responsibilities
New government regulations (deferred interest, increased rates, time restrictions, money limits, etc.)

4. What is being done nationally?
Universities across the nation are creating programs, courses, and partnerships to increase financial literacy.
All but 3 states require a personal finance course (AL, FL, MS)
Higher education has not completely embraced the idea of financial literacy due to competing educational interests and a lack of funding

5. What is being done locally?
University of North Alabama
The Center for Financial Literacy, created through a partnership of UNA and Listerhill Credit Union, offers educational financial resources to help ensure students begin their post-college lives on a solid financial footing. The center employs UNA students professionally trained in financial products by Listerhill.

6. Purpose of the Study
Develop a baseline from which these programs can improve
Demographic differences
Gender
Age (traditional/non-traditional)
Race (minority/non-minority)
Compare these results to the national norm

7. Instrument Jump$tart Coalition Survey of Personal Financial Literacy
Developed in 1997 by Mandell with the Aspen Institute
Nationally recognized assessment
31 item multiple choice survey
Moderately high consistency overall
Measures financial literacy by giving one overall score upon completion
Contains 5 Subscale categories

8. Participants/Procedures
Full-time undergraduate students
Approximately 4,800 students
Survey administered via Qualtrics
IBM SPSS Statistical Software was utilized in running a 2x2x2 factorial analysis of variance (ANOVA)
The factors were gender, age, and race
Subscale analysis
Income, Money Mgmt, Saving, Spending, Credit

9. ANOVA Results
No significant main effect for gender, F(1, 161) = 0.05, p = .816.
(Male M = and Female M = 19.92)
No significant main effect for ethnicity, F(1, 161) = 2.84, p =
(Non-Minority M = and Minority M = 18.96)
Significant main effect for age, F(1, 161) = 20.57, p < .001.
(Non-Traditional M = and Traditional M = 17.08) * M (Mean) represents the average number of correct answers not overall score

10. Results
Average Percent Score on Financial Literacy by Gender, Race/Ethnicity, and Age
Gender
Race/Ethnicity
Traditional Age*
Non-traditional Age
Female
Minority**
48.7% (n=18)
75.3% (n=3)
White
59.1% (n=79)
73.9% (n=22)
Male
43.2% (n=5)
77.4% (n=2)
69.4% (n=34)
71.0% (n=6)
* Traditional ages are ages less than 25.
** Minority consists of all races other than "White"

11. Results compared to National Norm
Gender
Average Percent Score on Financial Literacy by Gender
UNA
National*
Female
60.6 (n=122)
62.6
Male
67.1 (n=47)
59.7
Total
62.4 (n=169)
61.9
* 2008 Jump$tart survey of College Students (N=1,030)

12. Results compared to National Norm
Race/Ethnicity
Average Percent Score on Financial Literacy by Race/Ethnicity
UNA
National*
White
64.4% (n=141)
63.30%
African American
47.1% (n=17)
55.30%
Hispanic
79.0% (n=2)
59.80%
Asian American
46.8% (n=2)
57.10%
American Indian
55.6% (n=4) -
Other
Minority**
52.6% (n=28)
* 2008 Jump$tart survey of College Students (N=1,030)
** Minority consists of all races other than "White"

13. Subscale Analysis Subscales Income Money Management Saving
Decisions about future income; Sources of income; Taxes’ affect on income
Money Management
Retirement plans; Effects of inflation of wealth; Cost and management of insurances
Saving
Budgeting; Risk, Return and Liquidity; Effect of Taxes and Inflation on Savings

14. Subscale Analysis Subscales cont. Spending
The bulk (11 questions) of the questions
Timing; Transaction Instruments; Price of Credit; Credit History
Credit (a subset of Spending)
8 of the 11 Spending subscale questions

15. Subscale Results Compared to National Norm
Subject Subscores
Average Percent Score on Financial Literacy by Race/Ethnicity
UNA
National*
Income
69.4%
69.5%
Money Mgmt
53.7%
53.3%
Saving
55.0%
Spending
67.4%
67.1%
Credit
51.6%
60.1% -
* 2008 Jump$tart survey of College Students (N=1,030)
** Minority consists of all races other than "White"

16. Discussion Performance was on par when compared to national data.
The results suggest that all students could benefit from financial education and certain groups, minority and aged students, may need greater opportunity for participation.
Lower credit subscale scores are concerning
Share information with UNA Center for Financial Literacy

17. Additional Research
Expanding the demographic variables to include parental education, rural vs. urban, socioeconomic status, etc.
Re-assessing students participating in these new programs to determine the effect of personal financial education.