Financial Literacy: Impact on Student Success

The Honors Program

Senior Honors Project
Student’s Name: Alexandra Cunningham
Faculty Sponsor: Charles Cullinan
Editorial Reviewer: Maryella Gainor
April 2018
Financial Literacy: Impact on Student Success
Senior Capstone Project for Alexandra Cunningham

Table of Contents
ABSTRACT....................................................................................................................................3

INTRODUCTION…………………………………………………………………………...…....4

Research Questions..............................................................................................................6

LITERATURE REVIEW………………………………………………………………………....6

Introduction…………………………………………………………………………….….6
Background……………………………………………………………………………….7
Review…………………………………………………………………………………….9
Conclusions………………………………………………………………………………21
METHODOLOGY........................................................................................................................22

RESULTS......................................................................................................................................24

CONCLUSIONS...........................................................................................................................36

Limitations.........................................................................................................................36

Implications........................................................................................................................37

APPENDICES...............................................................................................................................39

Appendix A – Informed Consent Form.............................................................................39

Appendix B – IRB Approval ............................................................................................40

Appendix C – Survey........................................................................................................41

Appendix D –Financial Literacy Test ...............................................................................46

Appendix E – Sample Email..............................................................................................50

REFERENCES..............................................................................................................................51

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Financial Literacy: Impact on Student Success
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ABSTRACT
Financial literacy has proven to be an essential skill for young adults to help in achieving success

and reaching one’s potential. Many studies find that those with a stronger background in

financial literacy are more likely to demonstrate positive behaviors, both financially and in other

areas. This study will attempt to draw a link between Bryant University students’ background in

financial literacy and benefits within the college classroom. Specifically, my study will look at

whether having a stronger background in financial literacy leads to increased confidence in the

classroom, decreased accounting anxiety, and superior academic performance. The study uses

primary data gathered by administering a survey to 300 Bryant undergraduate students. The

results of this study can be used by students and faculty alike in determining and cultivating a

potential driver of success for students.

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INTRODUCTION

The goal of this Senior Capstone Project is to develop a research project that aims to understand

the impact that a background in financial education prior to entering Bryant University has on

students. Financial literacy is a key driver of success, and numerous studies have drawn a link

between a proficiency in financial literacy and future success and capability. Therefore, this

study has explored the financial background, or lack thereof, that Bryant students have obtained

before entering Bryant, and the ways this background impacts the student, in terms of academic

performance, choice of major, and confidence in the classroom.

As mentioned, this project looks at the impact of a background in financial education on Bryant

students, where financial education is defined as “the process by which financial

consumers/investors improve their understanding of financial products, concepts and risks and,

through information, instruction and/or objective advice, develop the skills and confidence to

become more aware of financial risks and opportunities, to make informed choices, to know

where to go for help, and to take other effective actions to improve their financial well-being”

(OECD, 2005). Though the topic of financial literacy’s impact on student success is not uniquely

applicable to Bryant students, the scope of this project examines only Bryant undergraduate

students. This was done by offering a survey to Bryant students from freshmen to seniors. The

survey inquired about any financial background the individual has had prior to, and since

entering Bryant University, the individual’s academic performance, the individual’s level of

confidence in both social science classes and accounting and finance classes. A brief test of

financial literacy that will then help to determine what level of financial literacy the individual

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has. For the remainder of the paper, accounting and finance courses will be referred to as

“financial business courses”. The paper also refers to something as “accounting anxiety”, which

is best described as a feeling of tension, apprehension, or fear that interferes with accounting

performance. Through the survey results, any correlations between a background in financial

literacy and student success were analyzed and compared to the hypotheses, which are further

explained in the following section.

This project was worth doing because it can help determine a potential driver of success for

Bryant University students. It can help to evaluate how much, if at all, past exposure to financial

literacy courses, readings, etc. can influence future success for students, and in what way. By

understanding the impact financial literacy has on students, Bryant could implement programs or

workshops that would be beneficial to both the students and to Bryant itself, and it could help to

better prepare students and lead to long-term improvement in the classroom. Furthermore, if a

background in financial literacy does prove to be a driver of success in the classroom, a financial

literacy workshop may be worth implementing as a pillar of the First Year Gateway Experience

here at Bryant University to cultivate student success. Financial literacy is a skill that is both

important and necessary for people of all ages to have. However, despite the wealth of research

regarding to financial literacy, there is still more to be done. This project will investigate an

aspect of financial literacy that has not yet been fully examined, which is the impact a

background in financial literacy has in the college classroom.

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Research Questions

The overarching question that defines the research project is the question of: “How does a

background in financial literacy impact the individual in the college classroom?” In synthesizing

the relevant literature, there are three specific research hypotheses that define the scope of the

project and reflect the research question upon beginning the research. They are as follows:

(H1a): Having a background in financial literacy leads to increased confidence in

financial business courses

(H1b): Having a background in financial literacy leads to decreased accounting anxiety.

(H2): Having a background in financial literacy prior to college leads to improved

academic performance in financial business courses upon entering college

LITERATURE REVIEW

Introduction

Financial literacy is defined as “the ability to make informed judgements and effective decisions

regarding the use and management of money” (McCormick, 2006). In a fast-paced and ever-

changing world, the notion of being financially literate is a skill that has become increasingly

important in achieving success. In researching financial literacy, one of the major recurring

themes is the importance of educating students and increasing their understanding and

proficiency in certain financial topics, in order to pave a successful future. Furthermore, many of

these studies draw links between a strong background in financial literacy and future success,

whether it be in the work force or financially, self-confidence, and/or overall quality of life. One

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topic that has been lightly explored, is the idea of a link between classroom success and a

background in financial literacy. In researching the many positive impacts a background in

financial literacy creates, it is important to look into areas the research may have not fully

explored yet.

Much of the information gathered comes from studies that look at the impact of financial

literacy, specifically on youth and college students. The source selection represents a wide range

of topics regarding financial literacy and the benefits it can have, as well as different ways to

evaluate financial literacy. All of the past research that has been explored has helped to shape

the project focus on where the information and research is found to be lacking, and that is the

impact of financial literacy in the classroom, and more specifically, the college classroom.

Background

Financial literacy has been defined and redefined many times over the past few decades.

Throughout the literature, I have come across a multitude of explanations of financial literacy,

some that are unique and others that are widespread and popular. There are certain ones that are

preferred to others, though it is important to evaluate the different definitions and get a

widespread understanding of what financial literacy means to different people. McCormick

(2006) defines financial literacy as “the ability to make informed judgements and effective

decisions regarding the use and management of money”. This definition is adequate, but is

lacking in that it is not as all-encompassing as other definitions. The definition that seems to best

encompasses the idea of financial literacy and illustrates the opportunities that being financially

literate provides is, “Possessing the skills and knowledge on financial matters to confidently take

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effective action that best fulfills an individual’s personal, family and global community goals”

(National Financial Educators Council, 2013). Throughout the research, one may come across

multiple definitions of financial literacy, but the common denominator among all of this research

is the benefits and importance that comes with being financially literate.

Though financial literacy is widely discussed and not always agreed upon, there are certain

studies and researchers that serve as pillars in financial literacy research. For example, Lusardi

(2010) created a survey with a series of questions to test financial literacy, and this test has been

used and adapted in many of the other studies related to financial literacy. Furthermore, the

Jump$tart Coalition is a non-profit organization that strives to increase financial education,

specifically for students. Their mission is to improve the overall financial literacy of youth, and

they have used many avenues to achieve this mission. Therefore, much of the research that has

been explored has cited ideas or suggestions by the Jump$tart Coalition in their own studies, or

uses them as a point of reference in discussing financial literacy education. The National

Financial Educators Council (NFEC) was another source that served as a pillar for this research

project, as they are advocates for financial education and for understanding the level of financial

literacy among individuals. They also offer a series of different tests to determine one’s level of

financial literacy, which was the source of some of the test questions administered in this

project’s survey. The remaining test questions came from the FINRA Investor Education

Foundation. These pioneer studies draw a link between much of the research done with this

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project, and is helpful in offering a point of guidance on where to start the research, and where to

go with it.

An increasingly important topic in the field of financial literacy is the idea of starting a financial

education at young age. Though it is not widely accepted, or at least widely utilized, many

schools across the country have begun to implement lessons that help increase a person’s

financial literacy. Furthermore, the idea of implementing curricular or co-curricular lessons and

workshops for college students is gaining widespread recognition. Although there seems to be an

abundance of research and even agreement on the overall importance of financial literacy, one

gap that has been identified in the literature is that there is not much research to be done on any

connection between financial literacy and academic success, which is where this research project

fits.

Review

I. Patterns

In reviewing the literature, a few trends and patterns continuously arise in the research. The most

prevalent ideas found or sought after in this research project include the overall benefits of

financial literacy, the link between financial literacy and success in higher education, and the

best ways to implement financial education. There are other trends that have been noticed and

will be discussed in this paper, but these major patterns are widely discussed and researched by

all ranges of researchers, including educators, students, psychologists, and journalists.

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a. Overall benefits of financial literacy

Many different studies are tied together by the underlying idea that a background in financial

literacy can provide a multitude of benefits for the individual. For example, Rosacker’s (2009)

study references the idea that highly financially literate individuals are more financially

responsible in terms of saving, budgeting and planning, and are also more likely to have a higher

level of income and education than those who are not as financially literate. This exemplifies the

idea that having the skill of financial literacy is not just beneficial in that the individual has a

strong understanding on financial matters. Rather, the individual also reaps the residual benefits,

which include higher income and more education. Similarly, Godfrey (2006) defines financial

education as a critical key to success, which emphasizes the sheer importance when paving an

individual’s future. He goes further to say that more students go bankrupt than graduate college,

which reiterates the importance of receiving a background in financial literacy. The background

in financial literacy helps to warn against behaviors that are detrimental to one’s financial well-

being, while also guiding them toward a successful future financially, career-wise, lifestyle-wise,

and more. Furthermore, Johnson’s (2007) research highlights Rosacker’s ideas as well as

bringing forward the idea that students who are financially educated at a young age will be more

financially capable than those who do not receive this education until later, if at all. This idea

touches upon the importance of financial literacy and youth, and the fact that those students who

are exposed to financial literacy at a young age end up with improved financial capability, which

is of course a long-term benefit. Hoelzl & Kapteyn (2011) further explain this idea of financial

capability by addressing its five different domains, “(1) managing money: making ends meet...

(2) managing money: keeping track... (3) planning ahead... (4) choosing products...and (5)

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staying informed” (p. 543). With the understanding of financial capability, it is clear that

improving one’s financial literacy often results in personal benefits that can vastly improve one’s

quality of life.

Another added benefit of financial literacy is the notion that an individual who is more

financially literate is better prepared with sought after skills in the working world. Plush (2013)

discusses the link between financial literacy and work force readiness. Plush also says that

teaching financial literacy can positively influence students and lead to personal growth. Thus,

an individual who has a higher level of financial literacy has concurrently developed skills that

will help him get a head not only financially, but also in the workplace, which could translate to

the classroom, as well. Furthermore, Kezar (2010) also supports the idea that an education in

financial knowledge can lead to confidence, judgement skills, and critical thinking skills. These

skills are another personal advantage that come about in connection with financial literacy.

As previously discussed, being financially literate oftentimes goes hand in hand with positive

skills and behavioral traits that can ultimately improve the individual’s life in the classroom, the

workplace, and just overall quality. However, it is important to note that there is a link between

being financially literate and having positive psychological effects, as well. Williams (2009)

discusses the idea that financial education leads to financial literacy, which ultimately leads to

good financial decisions and behavior and confidence. With this understanding that financial

literacy can lead to psychological benefits, as well as financial benefits, it is important that this

study takes into account how participants’ confidence is affected by their background, or lack

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thereof, in financial literacy, and if this confidence is changed after taking an introductory

accounting or finance course.

In looking at the psychological benefits and personal and professional skills that are correlated

with financial literacy, it is interesting to place focus onto young people, specifically college

students. College students and young adults are currently the group that holds the highest amount

of debt. Gavigan (2010) also discusses the idea that today’s students are very weak in terms of

financial literacy, and that being financially educated will help college students prepare for a

successful future. While the benefit of increased financial literacy includes increased financial

capability, young people can gain many other benefits from being financially literate. Cull’s

(2011) research reiterates Gavigan’s notion that financial literacy is critical for young people by

explaining the repercussions of not having strong financial knowledge. The lack of financial

literacy can lead to financial trouble such as major debt, but also physical and emotional troubles

such as bad health and low quality of life. Therefore, one can see that, apart from the palpable

results of low financial literacy, (poor financial behavior) the non-obvious effects are just as

important. If a lack of financial literacy is related to physical and emotional strife, this may

translate to the college classroom. If individuals are experiencing a lower quality of life or

increased stress, this could take a toll on their schoolwork as well, whether it is in performance

or in confidence in the classroom. Beal (2003) also saw the importance in studying financial

literacy among college students. His study focused on Australian students, and looked at mostly

first year business students and tested their financial knowledge skills, which parallels many

aspects of this study. Overall, Beal noticed low financial literacy skills and deducted that

improving financial literacy will have better outcomes for the individual and the economy as a

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whole. Again, though Beal did not specifically state any specific “outcomes” that he predicts,

this creates an opportunity for further research to explore what these outcomes will be. Similarly,

Cull (2011) tested financial literacy among Australian university students and analyzed the

results based on a few key things, notably how business majors scored against students of the

arts or education, which is further expanded on in the Results & Methods Section. The research

widely supports the idea that a strong background in financial literacy has positive impacts on

the individual, aside from just healthier finance behavior, which is important because it shows

that there could very likely be a link between financial literacy and academic success.

b. Success in Higher Education

Perhaps the most relevant research to this project is in regard to the relationship between

financial literacy and higher education. Though studies that specifically measure academic

success in relation to a background in financial literacy have not been found or discussed within

this research project, many researchers do note the effects and benefits, or the potential benefits,

financial education has on college students.

One of the main points of investigation in the research is whether a background in financial

literacy has any impact on an individual’s chosen major. Tenaglia’s (2010) study made a

connection among chosen major and financial behavior. She describes this in saying, “...quant

majors, which included Accounting, Finance, Financial Services, and Actuarial Math, had a

negative coefficient. This means that Quant majors were less likely to have credit problems”.

Because Tenaglia found that college major does correlate with financial behavior, perhaps the

inverse is true and financial understanding leads to college major.

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Another aspect of the research for this project focuses on the overall performance in the college

classroom. With the understanding that increased financial literacy leads to improvements in

things like confidence and critical thinking skills, the inverse is presumably true. If an individual

is financially illiterate, he or she may be struggling with decreased confidence and weaker

critical thinking skills. This is explored in Rosacker’s study based on college business freshmen

which also noted that a lack of financial literacy can hinder success in higher education, among

other things previously listed. In support of this, Xu (2012) addressed the idea in her findings

that greater financial literacy leads to higher educational attainment, in terms of degrees rather

than academic success. Financial literacy is related to the pursuit of higher education, and the

pursuit of higher education oftentimes is connected with academic performance, thus drawing a

connection between financial literacy and academic performance. Similarly, Lusardi (2010)

conducted a study that found those who attend or plan on attending college scored better on a test

of financial literacy. Furthermore, Lusardi noted the importance of starting financial literacy

education in high school, or at least before students start making serious financial decisions on

their own. Therefore, there may be a direct link between financial literacy and educational

achievement, though these studies do not take into account grade point average or other

measures of academic success.

One of the most repeated notions among researchers is the idea of financial literacy being a

critical tool for the college student. A 2014 study by Heather Jagman focuses on financial

education at DePaul University in Chicago. Jagman emphasizes the importance of financial

literacy in terms of success and college students by stating that financial literacy is critical to

education and the college degree nowadays, and offers the suggestion of implementing a

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campus-wide, first-year experience workshop to increase students’ financial literacy. This idea is

something that can be seamlessly implemented into Bryant’s Gateway Experience, and is

something that can be seen as a critical factor of success for students. Jagman goes further to

quote Kezar’s (2010) study that discussed the multitude of benefits for college students with a

background in financial literacy. Some of these benefits are addressed in saying, “…financial

literacy can increase the odds that students will stay—and succeed—in college…Financial

education can be a key component of learning in college and that students who possess practical

competence in personal finance are more confident and academically successful” (16). Kezar

goes on to discuss the current practices in financial education and recommendations for future

practices. Overall, Kezar discusses the fact that financial literacy is widely important and is a

necessary element of a college degree. Though Kezar does not back up her claims with a study

explicitly proving a link with academic success, she too makes it clear why there may be a

connection, and that it is something worth exploring.

II. Results & Methods

c. How to implement

One of the prevalent themes in the research studied in this project are recommendations about

the best way to conduct financial literacy education for students. Overall, the most widely

accepted recommendation is to implement a face-to-face, hands-on workshop on college

campuses. Totenhagen’s (2015) study surveyed much of the same literature used in this study,

and decided on the best, most effective ways to implement a financial literacy education for

students. However, Totenhagen focused more heavily on younger students, and not as much on

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college students. Totenhagen did conclude that face-to-face education and hands-on learning did

produce the best results for improving students’ financial literacy, which is in line with nearly all

the research surveyed, in terms of ways to implement financial education. These findings are

helpful in looking through the lens of Bryant University because we already have the Gateway

Experience here, and in looking at the relevant literature, financial literacy would be a beneficial

addition to the Gateway Experience.

Much of the research includes the idea of including a test of financial literacy, as well as

demographic questions to draw different connections. As briefly mentioned before, Cull (2011),

tested financial literacy by giving out a survey with questions based on different financial topics.

Because the study was done in Australia, the questions were designed with an Australian context.

However, Cull’s methodology is similar to what this study plans to do in that she gathered

demographic data regarding field of study, age, and more and then created a test to determine the

individuals’ level of financial literacy. In terms of results, Cull’s study found that university

students, overall, had a low level of financial literacy. The study broke down financial literacy

into different aspects, such as compound interest, debt, banking, and more, and analyzed the

results that way. Therefore, each topic had its own analysis. Notably, in looking at compound

interest, students of the sciences scored better than those of business students, whereas business

students scored the highest in questions about taxes. Something to consider when evaluating this

data, and any data that will be read or analyzed, is the idea that self-reports can lead to errors,

and that there is commonly a misperception and over optimism when it comes to self-reporting,

which was also identified in Willis’ (2009) study. Though Cull’s research is relevant and

significant, there are a few gaps that this study plans to explore more, such as what kind of

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financial literacy background students had before this survey and how that affects or does not

affect performance. Cull’s (2011) study also found that students’ preferred method of gaining

financial literacy is through workshops or face-to-face interactions with whoever is educating

them on the topic. Similarly, McWilliams (2008) study noted the idea that university students

need to improve financial literacy, and other university students can help them. It listed specific

suggestions such as the 360 Degrees of Financial Literacy program or a collaborative workshop

led by accounting majors and/or CPA students.

In terms of actually testing the financial literacy of students, many different things can be done.

However, one of the popular ones among the research is Lusardi’s (2010) survey, which can be

considered a sort of pioneer in its field. From that survey, many researches have adapted or

copied the same questions in order to test financial literacy in its different aspects. However, in

conducting this research, the most preferred tests are the 2017 tests administered by the National

Financial Educators Council and the FINRA Investor Education Foundation.

III. Financial Literacy and High School Students

Because this research focuses on an individual’s financial background prior to entering college, it

is essential to understand research that has already been done regarding financial literacy and

high school students. It is widely accepted that there is a need for financial literacy among the

young. Many studies take an “earlier the better” approach in deciding how early an individual

should start receiving a financial education. In response to the idea that financial literacy, though

it may not be a skill that children actively exercise now, is something that children will need to

know in the future, Johnson & Sherranden (2007) discuss the sensibility in beginning to develop

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financial capabilities in childhood. It is important to build a wealth of knowledge on the subject

of financial literacy before being thrown into a situation that requires this kind of knowledge. For

example, think of an incoming college student trying to apply for a student loan. If the individual

has some financial knowledge, they will be more apt to find a loan with better terms, whereas an

individual with no financial literacy is going into the situation blind. Upon entering college, there

are many financial decisions to be made, and for some students they will be making those

decisions with no prior knowledge on the subject.

Not only is a background in financial literacy starting in high school or prior a potential driver of

financial success, it is something that young adults desire. In a study by the National Financial

Educators Council (2017), they found that the majority of young adults said that a course in

money management would benefit their life the most.

Source: National Financial Educators Council, 2017

Young adults, similar to numerous researchers on the topic, recognize the need for a financial

education course. Despite that, there is no mandate for any financial literacy program in the

public school systems. Some schools offer some form of a personal finance or related course as

an elective, but very few schools have required courses, which is something that could be both

beneficial to the student and also desired by the student.

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Another factor to determine when analyzing financial literacy and high school students is

whether the students found the programs to be effective or not. If the individual found the

program to be effective, it is more likely to stick with them and be carried forward into the

future. Tenaglia (2010) examined the connection between financial training in high school

students and credit behavior of college students. In that, she found that if students had useful

financial training in high school, they were likely to have better credit behavior. Ultimately, if

the students found their program to be effective, they were able to transfer that knowledge into

different aspects of their life. Therefore, it is expected that if the students examined had effective

financial training in high school, they too will be able to bring those skills with them into the

college classroom. Tenaglia goes forward to suggest, “Perhaps if students were required to take

basic business classes in high school, they would have good credit behaviors in the future” (33).

On the contrary, the students who found those programs ineffective did not carry those behaviors

forward.

IV. Effectiveness of Financial Literacy Programs

In order to look toward the future in terms of financial literacy, it is necessary to understand how

effective different financial literacy programs are, and what makes these programs more

successful than others. One of the main drivers behind effectiveness of financial literacy

programs is not the program itself, but rather the motivation of the individual participating.

Mandell & Klein (2007) say, “Students retain little of what they learn in personal finance and

money management classes because they do not perceive that it is relevant to their lives” (108).

That being said, if an individual understands the importance of financial literacy and the benefits

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of being financially literate, they may have a stronger inclination toward the subject matter.

Tenaglia discusses the impact of a financial literacy program that was not relatable to high

school students, “Students who did not find the financial training in high school useful most

likely either forgot the information they were given or didn’t bother to pay attention at the time

because they didn’t feel it was relevant to their lives” (33). Furthermore, if a program is geared

towards goals that motivate the student, such as ways to grow personal wealth or ways to

manage student loan debt, the student would be more motivated and thus the program would be

more successful. Hathaway & Khatiwada (2009) discuss this in saying that the most effective

financial education programs are targeted toward a specific group or facet of financial activities.

This reiterates the point of Mandell & Klein in that if a program is personally relevant to the

individual, or in this case, group of students, there will be an increased motivation to learn, and

thus increased effectiveness of the program. On the contrary, programs that are too broad or

untailored do not yield the best results. Lusardi, among other researchers, also notes the fact that

interactive programs are typically more effective than other types of programs.

Much of the research agrees on the fact that there is not one, all-encompassing way to evaluate

financial literacy programs. Hathaway & Khatiwada describe this in saying “Existing research on

the effectiveness of financial education programs is incomplete and unconvincing...Many

researchers have discussed the need for improved program evaluation; arguing it should be better

planned, planned earlier, and conducted as an integral component of every program” (16).

Therefore, the effectiveness of every financial literacy programs cannot be accurately and

completely measured on the same scale. However, insights from the research have led this

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research to look for key elements of an effective financial literacy program: it should be targeted

to a specific audience as to increase motivation to learn, and it should be interactive.

Conclusion:

Reviewing the literature was very informative and helped to shape the proposed project idea. In

reviewing the relevant literature, there were clear major focuses that people have done before

this project and it was also clear to see the window of opportunity in which people have not

thoroughly explored. Additionally, this study has observed different benefits that come from

having a background of financial literacy, though there are more that still need to be explore,

such as the potential benefits related to academic success. This project will use some of the tools

used in prior research.

The most significant discovery made while reviewing the literature is just how important

financial literacy is in terms of paving a successful path for the individual. Before starting the

research for this project, it was unclear how beneficial and impactful having a background in

financial literacy is. Therefore, this has created even more interest than before in studying the

potential link between financial literacy and academic success, and how this could affect the

Bryant community. Many studies have discussed the idea of increasing financial education for

college freshmen, and therefore, it is thought that the Gateway Program could be a great start for

Bryant to help in furthering the success of the students.

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METHODOLOGY

This project was executed as a traditional research thesis. The traditional research thesis was

carried out by first conducting a literature review, addressing an aspect of that research and

building upon it, coming up with hypotheses, and then testing and analyzing the hypotheses and

results. The main source of data and key component of the research was collected from a survey

and test of financial literacy administered to Bryant University undergraduate students.

The literature review was conducted by finding, reading, and analyzing over twenty scholarly

sources related to financial literacy and financial education, as well as classroom anxiety. The

literature review was used to gather background knowledge on the topic of financial literacy, as

well as to see what prior research had found and where the research has not yet gone. The

literature review was also significant in constructing the financial literacy test.

Before administering the survey, it was sent to Bryant’s Institutional Review Board (IRB) along

with an informed consent form (see Appendix A and B) to ensure the privacy and safety of all

participants. Prior to sending out the final version of the survey to the Bryant undergraduate

population, it was sent to approximately 12 graduate students for any critiques. This served as a

pre-test in order to have their evaluations, critiques, and suggestions for the survey itself. Their

survey responses were not used when analyzing the survey data, but their feedback was taken

into consideration prior to composing the final survey.

The survey is composed of two parts: (1) questions that address demographic information and

any background in financial literacy (see Appendix C) and (2) a test of financial literacy (see

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Appendix D). Part 1 of the survey gathered demographic information regarding class year,

major, and GPA. Then, the survey asked participants about any background or training they had

in financial literacy, both before and upon entering college. The next set of questions dealt with

accounting anxiety and situations that may or may not cause classroom anxiety for students,

using a 5 point Likert Scale. Then the survey asked about comfort, confidence, and preference

towards accounting and finance classes versus social science classes, again using a 5 point Likert

Scale.

The financial literacy test is comprised of twelve questions gathered from financial literacy tests

by both the National Financial Educators Council and FINRA Investor Education Foundation.

The 12 questions were condensed from the original tests, which have more questions. Each of

the twelve questions were chosen based on the fact that they encompass different elements of

financial literacy and addressed different topics such as time value of money, budgeting, interest

impact, and more. The survey was sent online, by directly e-mailing students the link or e-

mailing professors and asking them to distribute it to their classes (see Appendix E).

Approximately 300 Bryant undergraduate students completed the survey. Once the data had been

collected in Qualtrics, it was exported to Excel. From Excel the data was sent to the statistical

analysis program, SAS. SAS was used in order to perform tests and analyze the data using factor

analysis and regression analysis. Factor analysis was chosen to look at multiple factors within a

certain section and see if that could be condensed into a clearer construct (i.e. accounting

anxiety). Regression analysis was used to estimate the relationships among different variables

(i.e. major and accounting anxiety). Then, because there were two clusters of results being

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analyzed, a t-test was chosen as an appropriate statistical analysis tool. In excel, the t-test

function was used in order to calculate the probabilities associated with the t-values of the

findings, in order to determine the statistical significance, if any, between the differences. That

is, what is the probability that the findings occurred by chance alone? Using the multiple tools

for analysis allowed us to determine whether the hypotheses were supported, and whether the

findings were statistically significant.

RESULTS

A majority of the findings were split up in two sections: “before college” and “after college”.

The “before college” questions asked respondents about any background they had in financial

literacy prior to entering Bryant University, and “after college” asks about background students

have gotten during their time at Bryant.

Accounting Anxiety

On the survey, respondents were asked to rate their overall level of accounting anxiety. Then,

follow up questions outlined specific situations that may induce accounting anxiety, and

respondents were asked to rate their level of accounting anxiety in each individual situations.

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Factor Pattern

Factor1

Accounting Anxiety 0.76091

Using Tables in Book 0.83882

Taking an Exam 0.80082

Listening to a Lecture 0.8987

Starting a new
0.90485
Chapter

Watching teacher
0.88874
work a new concept

Table 1

Factor analysis concluded that the question of overall accounting anxiety was generally reflective

of the individual situations, as Table 1 demonstrates. So from then on, the one construct of

“accounting anxiety” was representative of overall accounting anxiety as well as the accounting

anxiety each situation induces.

Following the factor analysis, regression analysis was performed in relation to the independent

variables of respondents’ majors.

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R-Square Coeff Var Root MSE

0.2207 38.11320 0.99275

Standard
Parameter Estimate t Value Pr > |t|
Error
Intercept 2.85099 0.47774 5.97 <.0001

Accounting -1.02143 0.29054 -3.52 0.0005

Data Science 0.04368 0.45666 0.1 0.9239

Finance -0.35412 0.24966 -1.42 0.1577

Global Supply
-0.186 0.45696 -0.41 0.6844
Chain

International
-0.15807 0.22477 -0.7 0.4828
Business

Management 0.14946 0.29889 0.5 0.6176

Marketing -0.03528 0.26649 -0.13 0.8948

Psychology -0.67382 0.41048 -1.64 0.1023

Communications 0.52929 0.44163 1.2 0.2322

History/Social
-0.84607 0.6203 -1.36 0.1742
Science

Mathematics -0.6652 0.3382 -1.97 0.0506

Science -0.88964 0.48037 -1.85 0.0656

Undeclared -0.21095 0.29691 -0.71 0.4783

Table 2

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Table 2 indicates that accounting, math, and science majors have lower levels of accounting

anxiety. This statistically significant connection is evident by the P values less than 0.1. These

relationships could be explained by the fact that accounting, math, and science majors all have in

common the necessary skill of numerical analysis within their fields. It is interesting to note that

finance majors have just as much accounting anxiety as any other non-accounting major.

Research Question 1 explores whether having a background in financial education leads to

decreased accounting anxiety (and increased confidence). Responses were analyzed based on the

two tails of responses, those who have none to slight accounting anxiety, and those who have

moderate to extreme accounting anxiety.

Signifies those with

Moderate- Extreme Signifies those No-
Anxiety slight anxiety % Change
General Business Course in
High School 17 14% 38 20% 6%
Learning from Parents 33 28% 69 36% 8%
Little to no training/background 45 38% 46 24% -14%
Personal Finance Course in
High School 20 17% 37 19% 2%
Use of a Financial Literacy
Program (i.e. Jump$tart) 1 1% 0 0% -1%
Other, please explain 2 2% 3 2% 0%
118 100% 193 100%

P Value 0.025747

Table 3

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Table 3 confirms that those who have had little to no training or background in financial literacy

prior to entering college are 14% more likely to feel extreme to moderate accounting anxiety.

These results were expected because those students who have no background in a financial

education are being exposed to something new upon entering Bryant University classes, and

apprehension and anxiety typically go hand-in-hand with new, unfamiliar situations. The P Value

of .025747 illustrates the statistical significance of this finding, as it is less than 0.1.

Confidence

In addition to anxiety, Research Question 1 explores whether there is a connection between a

background in financial literacy and classroom confidence. It was hypothesized that those

students who have had a background in financial literacy would be more confident in their

accounting classes.

Signifies those that are Signifies those that are

%
extremely confident in not confident at all in
Change
accounting classes accounting classes
General Business Course in
High School 8 21% 6 11% -10%
Learning from Parents 15 38% 16 28% -10%
Little to no
training/background 5 13% 27 47% 35%
Personal Finance Course in
High School 11 28% 7 12% -16%
Use of a Financial Literacy
Program (i.e. Jump$tart) 0 0% 0 0% 0%
Other, please explain 0 0% 1 2% 2%
39 100% 57 100%

Little to no training/background 0.001348

P Value
Personal Finance Course in HS 0.012865
Table 4

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Table 4 illustrates the survey results relating classroom confidence and background in financial

literacy prior to entering college. The results show an extremely strong correlation between the

level, or lack thereof, of training and background and confidence. That is, those students who

had little to no training and background in financial literacy are 35% more likely to report feeling

not at all confident in accounting classes. Another interesting finding is that those students who

took a personal finance course in high school are 16% more likely to feel extremely confident in

their accounting class. This finding can potentially be explained by the notion that typically, the

more someone is exposed to something, the more they become comfortable with it. Therefore, in

having some financial education prior to entering the college classroom, by the time the student

gets to college they may already be comfortable and familiar with some of the things introduced

to them, and thus feel more confident in approaching it.

Signifies those that are Signifies those that are

extremely confident in not confident at all in % Change
accounting classes accounting classes
Finance 201 11 32% 13 27% -6%
Other Business Course that
addressed these topics 16 47% 8 16% -31%
None 4 12% 28 57% 45%
Other 0 0% 0 0% 0%
Seminar 3 9% 0 0% -9%
34 100% 49 100%

Other Business Course that

P Value addressed these topics 0.0000976
None 0.000109
Table 5

Similar to Table 4, Table 5 also demonstrates survey responses in regards to classroom

confidence, but Table 5 represents level of background in financial literacy after entering Bryant.

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This data suggests that students who have taken another business course, aside from Finance

201, that addressed topics in financial literacy are 31% more likely to report feeling extremely

confident in accounting classes than those who report feeling not confident at all. Similar to

Table 4, Table 5 also demonstrates that those students who have not yet taken a course that

addresses topics in financial literacy are 45% more likely to report feeling not confident at all in

accounting classes. These findings may be explained by the idea that the more familiar with

something a person is, the more confident they are. Overall, these findings demonstrate support

for the original hypothesis regarding the expectation that a background in financial literacy

would lead to increased classroom confidence. It was surprising to notice that there was not a

major difference between the two tails of confidence when looking at students who have taken

Finance 201.

Performance

The second and final research question explores the idea of a connection between a background

in financial literacy leading to improved classroom performance. It was hypothesized that there

would be a strong positive connection between those who have a stronger background in

financial literacy and those who perform better in accounting classes. The data in the following

table investigates this hypothesized connection.

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Signifies those
who perform Signifies those who
%
much better in perform much worse
Change
accounting in accounting classes
classes
General Business Course in High
School 10 36% 4 19% -17%
Learning from Parents 7 25% 5 24% -1%
Little to no training/background 3 11% 7 33% 23%
Personal Finance Course in High
School 8 29% 4 19% -10%
Use of a Financial Literacy Program
(i.e. Jump$tart) 0 0% 0 0% 0%
Other, please explain 0 0% 1 5% 5%
28 100% 21 100%

P General Business Course in HS 0.037306

Value Little to no
training/background 0.140384
Table 6

Table 6 investigates the relationship between performance in accounting classes and background

in financial literacy prior entering Bryant. The data showed a strong connection between

performance and both having little to no training, and taking a general business course in high

school. However, upon performing the t-test, it is evident that the connection between

performance and having little to no training is not statistically significant, so it will not be

considered in analyzing the findings. The connection between classroom performance and taking

a general business course is statistically significant, and it is strong. That is, those who have

taken a general business course in high school are 17% more likely to report performing much

better in accounting classes.

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Signifies those who Signifies those who

perform much better in perform much worse in % Change
accounting classes accounting classes
Finance 201 10 48% 9 56% 9%
Other Business Course
that addressed these
topics 7 33% 1 6% -27%
None 4 19% 6 38% 18%
Other 0 0% 0 0% 0%
Seminar 0 0% 0 0% 0%
21 100% 16 100%
Other Business Course that addressed
P Value these topics 0.0143984
None 0.466816
Table 7

Table 7 explores the relationship between background in financial literacy after entering Bryant,

and performance in accounting classes. As the table illustrates, there appears to be a link between

those who have not yet taken courses addressing financial literacy, and those who perform much

better in accounting classes than in social science classes. However, the P Value of 0.467

concludes that these findings are not statistically significant, and it is possible they could have

occurred by chance alone. The table also illustrates a connection between other business courses,

aside from Finance 201, and classroom performance that is statistically significant. That is, those

students who have taken other business courses that addressed financial literacy topics are 27%

more likely to report performing much better in accounting classes than those who have taken

other business courses and perform much worse.

These findings are reflective of the hypothesis that a stronger background in financial literacy

leads to improved academic performance in accounting courses. This could be explained by the

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old saying “practice makes perfect”, in that those who have taken business courses in high school

and college have likely been exposed to accounting and other financial business topics before,

and thus have an academic advantage in those areas.

Financial Literacy Test

The last portion of the survey was a test of financial literacy test. Data analysis was done to

examine any link between a background in financial literacy before and/or after entering college

and financial literacy test results.

Signifies those who Signifies those who

scored higher than scored lower than % Change
75% 25%
General Business Course in
High School 13 22% 17 15% -6%
Learning from Parents 20 33% 27 24% -9%
Little to no
training/background 12 20% 49 44% 24%
Personal Finance Course in
High School 14 23% 15 14% -10%
Use of a Financial Literacy
Program (i.e. Jump$tart) 1 2% 1 1% -1%
Other, please explain 0 0% 2 2% 2%
60 100% 111 100%

Little to no
P Value training/background 0.026428545
Table 8

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Signifies those who

scored higher than Signifies those who % Change
75% scored lower than 25%
Finance 201 19 23% 20 12% -10%
Other Business Course
that addressed these
topics 21 25% 15 9% -16%
None 8 10% 56 34% 25%
Other 36 43% 69 42% -1%
Seminar 0 0% 4 2% 2%
84 100% 164 100%

Other Business Course that

P Value addressed these topics 0.0000401
None 0.0000130
Table 9

Table 8 and 9 represent the results regarding the financial literacy test and background in

financial literacy, prior to and after entering college, respectively. The data in Table 9 shows a

connection between the financial literacy test scores and taking other business courses, aside

from Finance 201, upon entering college. That is, those who have taken other business courses

are 16% more likely to score in the highest quartile on the financial literacy test. Both tables

demonstrate a correlation between not having a background in financial literacy and scoring in

the lowest quartile of the financial literacy test. This finding is not surprising as the test is a

direct representation of how much or little a person knows in regards to financial literacy, and so

it is unlikely that those students who have not yet had exposure to topics in financial literacy

would perform well on the test.

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Lastly, as Table 10 illustrates, we explored a connection between GPA and the financial literacy

test.

Signifies those Signifies those who

who scored scored lower than % Change
higher than 75% 25%
2.5-2.99 2 6% 13 15% 9%
3.0-3.39 11 31% 27 31% 0%
3.4-3.69 14 39% 35 40% 1%
3.7-4.0 9 25% 12 14% -11%
36 100% 87 100%

2.5-2.99 0.0969358
P Value
3.7-4.0 0.1647087
Table 10

Table 10 shows a link between students’ GPA in the highest bracket (3.7-4.0) and scoring in the

highest quartile on the financial literacy test, but this was not found to be statistically significant

after performing the t-test. However, there is a statistically significant connection between

scoring in the lowest quartile on the test and being in the lowest GPA quartile. This finding is not

entirely surprising, especially after reviewing abundant literature about the benefits a background

in financial literacy has on students. Being financially literate has a multitude of benefits on

individuals, and so it is relatively unsurprising that those who scored lowest on the financial

literacy test are also likely to be performing lower in their overall academic career, as well.

Summary of Findings

Overall, the data analysis provided us with multiple key takeaways from this study. The major

research hypotheses are supported by the findings. H1a is supported in that those who do not

have a background in financial literacy are less likely to feel confident in financial business

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courses. Moreover, those who have taken personal finance or other business courses are more

likely to feel confident. H1b is supported in that those who have had little to no training in

financial literacy are more likely to feel moderate to extreme accounting anxiety. The findings

also were in support of H2 in that those who have taken business courses are more likely to

perform much better in accounting classes. However, there was not a statistically significant

connection between classroom performance and those who have had no background or courses

in financial literacy. Lastly, the analysis showed a connection between scoring low on the

financial literacy test with having had no background or courses in financial literacy, as well as

having a lower GPA.

CONCLUSIONS
Limitations

I anticipated that there is always the possibility of potential research problems and limitations in

regards to the survey. If survey respondents do not answer accurately or honestly, for example

searching the answers to the financial literacy test questions, this could skew survey results.

Another potential problem could be if respondents cannot recall certain information related to

their background in financial literacy. For example, if they do not remember when or how they

gained the knowledge that they have. Another potential limitation of the research is uncertainty

about the direction of the relationship. For example, if there is a connection between financial

literacy and decreased anxiety in the classroom, it is unclear if that connection is caused because

financial literacy decreases classroom anxiety, or because those with decreased classroom

anxiety are more likely to take a course in financial literacy. One element of this study that was

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not anticipated was that the survey population was not entirely representative of the Bryant

undergraduate population. That is, freshmen made up 45% of survey respondents, while the

remaining three grade years made up the other 55%.

Another limitation of this study stems from the fact that this study only focused on Bryant

University students. Bryant is predominantly a business school, which signifies that most of its

students are already business-minded individuals upon entering and potentially are already

inclined toward mastering their financial literacy. Furthermore, students are introduced to

business courses, many of which have some aspect of financial education, early on in their career

here. Therefore, Bryant university students may likely create a skewed view of overall financial

literacy of college students. That is, Bryant University students may produce less surprising or

varying results than students at other universities.

Future Research Implications

This study could be the foundation for a number of future research projects. It would be

interesting to compare Bryant’s results versus that of a liberal arts school, for example. Another

interesting possibility would be to add to the survey and ask students to report their own level of

financial literacy and then compare their self-assessment with what they actually score on the

financial literacy test.

There are also implications for Bryant that could be imperative in helping to create a more well

rounded, confident student. As mentioned earlier, the National Financial Educators Council

found that a course in financial literacy was voted to be the course that young adults would find

most beneficial to their life. It would be compelling to survey Bryant University students and see

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if this is reflective of the Bryant population as well. With the knowledge that young adults would

find a course in financial literacy beneficial to their life, paired with the findings of this study, it

is evident that financial literacy is a critical tool for success, specifically for young adults. With

this in mind, Bryant University, and other higher education institutions, may want to consider

implementing a course, seminar, or experience that provides financial education for students.

Specifically, Bryant could consider adding or incorporating financial literacy training into the

First-Year Gateway Experience in order to reach students early in their career and increase the

likelihood that they achieve the Bryant University (2018) mission to “educate and inspire

students to discover their passion and become innovative leaders of character around the world”.

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APPENDICES

Appendix A: Informed Consent Form

Research Consent Form:
Financial Literacy: Impact on Student Success

INTRODUCTION
You are invited to join a research study that aims to understand what impacts a background in financial
education prior to entering Bryant University has on students. You were selected as a participant in this
study because you are an undergraduate student at Bryant University. The decision to join, or not to join,
is up to you.

WHAT IS INVOLVED IN THE STUDY?

If you decide to participate you will be asked to answer some demographic questions and then to
complete a brief test of financial literacy. We think the survey will take approximately 15-20 minutes, but
you may take as long as you like.

CONFIDENTIALITY
Any information obtained in connection with this study will remain confidential and will not be disclosed to
the general public in a way that can be traced to you.

INFORMATION SECURITY
This consent form, with your signature, will be stored separately and independently from the data
collected so that your responses will not be identifiable.

YOUR RIGHTS AS A RESEARCH PARTICIPANT

Participation in this study is voluntary. You have the right not to participate at all or to leave the study at
any time. Deciding not to participate or choosing to leave the study will not result in any penalty and it will
not harm your relationship with Bryant University or its employees in any way.

CONTACTS FOR QUESTIONS OR PROBLEMS

If you have any questions, please contact Alexandra Cunningham ([email protected]) at (781)
484-6894. If you have any additional questions later, we will be happy to answer them and you can have
a copy of this form to keep.

SIGNATURE INDICATING INFORMED CONSENT

Please sign below if you have decided to participate. Your signature indicates only that you are at least
18 years of age and have read the information provided above. Your signature does not obligate you to
participate, and you may withdraw from the study at any time without consequences.

Signature of Participant: Signature of Principle Investigator

Date: Date:

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Appendix B: IRB Approval

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Appendix C: Survey
Q1 Class Year

o Freshman (1)
o Sophomore (2)
o Junior (3)
o Senior (4)
o Other (5)
Skip To: End of Survey If Class Year = Other

Q2 Gender

o Male (1)
o Female (2)
Q3 Major (select all that apply)

▢ Accounting (1)

▢ Data Science (CIS/ISA) (2)

▢ Finance (3)

▢ Global Supply Chain (4)

▢ International Business (please check off concentration along with IB) (5)

▢ Management (6)

▢ Marketing (7)

▢ Psychology (8)

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▢ Communication (9)

▢ Economics (10)

▢ History or Social Science (11)

▢ English or Cultural Studies (12)

▢ Mathematics (applied Math/Statistics or Actuarial) (13)

▢ Science (Biology/Environmental Science) (14)

▢ Other, please specify (15) ________________________________________________

▢ Undecided (16)

Q5 Cumulative GPA

o 0-1.99 (1)
o 2.0-2.49 (2)
o 2.5-2.99 (3)
o 3.0-3.39 (4)
o 3.4-3.69 (5)
o 3.7-4.0 (6)
o N/A (7)

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Q6 Before coming to college, have you had any training/background in financial literacy*?
*Where financial literacy is defined as, “Possessing the skills and knowledge on financial matters to
confidently take effective action that best fulfills an individual’s personal, family and global community
goals”

▢ Personal Finance Course in High School (1)

▢ General Business Course in High School (2)

▢ Use of a Financial Literacy Program (i.e. Jump$tart) (3)

▢ Learning from Parents (4)

▢ Little to no training/background (6)

▢ Other, please explain (5) ________________________________________________

Q7 Since being in college, have you had any financial literacy training?

▢ Finance 201 (1)

▢ Other Business Course that addressed these topics (2)

▢ Seminar (3)

▢ Other, please explain (4) ________________________________________________

▢ None (5)

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Q8 1. What, if any, level of accounting anxiety* do you experience?

*Where accounting anxiety is defined as a feeling of tension, apprehension, or fear that interferes with
accounting performance.

None (1) Slight (2) Somewhat (3) Moderate (4) Extreme (5)

Level of
Accounting
Anxiety (1)
o o o o o

Q9 Please indicate how anxious you would feel in the following situations regarding accounting/finance
courses.

None (1) Slight (2) Somewhat (3) Moderate (4) Extreme (5)

Having to use the

tables in the back
of an
o o o o o
accounting/finance
book (1)

Taking an
examination in an
accounting/finance
o o o o o
course (2)

Listening to a
lecture in an
accounting/finance
o o o o o
course (3)

Starting a new
chapter in an
accounting /
o o o o o
finance book (4)

Watching the
teacher work a
new
o o o o o
accounting/finance
concept on the
blackboard (5)

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Q10 Please rate your comfort/confidence level in the following courses

(*Social Science classes could be psychology, sociology, history, law, anthropology, economics, political
science, philosophy.)

Not Slightly Somewhat Moderately Extremely N/A (6)

confident Confident Confident Confident Confident
at all (1) (2) (3) (4) (5)

Social Science*
Classes (1) o o o o o o
Accounting/Finance
Classes (2) o o o o o o
Q12 Please rank your preference toward Accounting/Finance classes vs. Social Science classes

o Strongly prefer accounting/finance courses (1)

o Moderately prefer accounting/finance courses (2)
o Neutral (3)
o Moderately prefer social science courses (4)
o Strongly prefer social science courses (5)
Q13 Please rate your performance in the following courses

Much Somewhat The same Somewhat Much N/A (6)

worse than worse than as I better than better
I perform I perform in perform in I perform in than I
in other other other other perform in
courses (1) courses (2) courses (3) courses (4) other
courses (5)

In
accounting/finance
courses, I typically
o o o o o o
perform: (1)

In social science
courses, I typically
perform: (2)
o o o o o o

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Appendix D: Financial Literacy Test

Q56 Now, the final process of this survey is to take a brief, 12 question test of financial literacy. Please
do not consult any outside sources when answering the questions. If you do not know an answer,
choose your best guess or select “I don’t know”.

Q17 Why would I want to improve my credit score?

o To save money when purchasing a car with a loan. (1)

o To earn more interest on investments. (2)
o To help you get a job, because many employers check their prospective employees’ credit. (3)
o Both "A" and "C" (4)
o I don't know (5)
Q18 From the following list, choose the answer that contains the best suggestions for building and
maintaining a good credit rating.

o Have money in savings and protect against identity theft. (1)

o Keep your debt low and pay your bills on time. (2)
o Make safe investments and set clear financial goals. (3)
o None of the above. (4)
o I don't know (5)
Q19 If I invest $100 per month starting at age 21, and that money earns a 7.5% annual return, how much
will I have after 70 years?

o $138,957 (1)
o Between $150,000 and $225,000 depending on life expectancy. (2)
o More than 1.5 million dollars (3)
o None of the above (4)
o I don't know (5)
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Q20 Choose the answer that best describes how to automate your finances.

o Keep track of all the bills you pay on a spreadsheet, have a written budget, and set up an account
with a bank or credit union. (1)

o Have your employer direct deposit your paycheck, set up automatic bill-pay, set up automatic
transfers to your savings account, and track all your finances on the mint.com website. (2)

o Have all the companies you owe deduct their monthly payments directly from your checking
account. (3)

o None of the above. (4)

o I don't know (5)
Q21 Which loan term is best if you want to minimize the total amount you will repay over the life of the
loan?

o 3-year (1)
o 5-year (2)
o 7-year (3)
o 10-year (4)
o I don't know (5)
Q22 Loan payments are based on:

o APR (1)
o Interest Rate (2)
o Length of the loan (3)
o All of the above (4)
o B & C only (5)
o I don't know (6)

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Financial Literacy: Impact on Student Success
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Q23 When you purchase a brand-new car:

o You own an asset that is likely to appreciate in value (1)

o Your net worth will probably decrease immediately by at least 5% of the car’s purchase price (2)
o You will receive reduced auto insurance rates compared to older-model cars (3)
o You will receive lower registration rates compared to older-model used cars (4)
o I don't know (5)
Q24 What should you research and be prepared to pay prior to moving into a rental property?

o Current month's rent (1)

o Last month's rent (2)
o Security deposit (3)
o Expenses associated with establishing utilities (4)
o All of the above (5)
o I don't know (6)

Q25 True or false: Buying a single company’s stock usually provides a safer return than a stock mutual
fund.

o True (1)
o False (2)
o I don't know (3)

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Financial Literacy: Impact on Student Success
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Q26 Suppose you owe $1,000 on a loan and the interest rate you are charged is 20% per year
compounded annually. If you didn’t pay anything off, at this interest rate, how many years would it take
for the amount you owe to double?

o Less than 2 years (1)

o 2 to 4 years (2)
o 5 to 9 years (3)
o 10 or more years (4)
o I don't know (5)
Q27 Imagine that the interest rate on your savings account is 1 percent a year and inflation is 2 percent
a year. After one year, would the money in the account buy more than it does today, exactly the same
or less than today?

o More (1)
o Same (2)
o Less (3)
o I don't know (4)
Q28 True or false: A 15-year mortgage typically requires higher monthly payments than a 40-year
mortgage but the total interest over the life of the loan will be less.

o True (1)
o False (2)
o I don't know (3)

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Appendix E: Sample Email to Professors

Good Afternoon Professor _______,

I am currently working on my Honors Capstone Project and trying to gather as much research as possible
from Bryant undergraduate students of all levels/majors. I am working with Professor Charlie Cullinan as
my advisor. The title of my project is "Financial Literacy: Impact on Student Success", and the goal of my
research is to understand the impact that a background in financial education prior to entering Bryant
University has on students. Therefore, I am interested in researching the financial background, or lack
thereof, that Bryant students have obtained before entering Bryant, and in what ways this impacts the
student in terms of academic performance, choice of major, and confidence in the classroom.

In order to conduct my research I have created a 5-10 minute anonymous survey and brief test of
financial literacy that has been approved by the IRB. I am writing to you to see if you would be willing to
send this survey out to your undergraduate classes as I am trying to get my survey to reach as many
Bryant students as possible. It is not something that needs to be taken in the classroom as it is all
online. I have copied the link to the survey below if this is something you are willing to help me with.

https://bryant.qualtrics.com/jfe/form/SV_aV0wmLdRkLkcKa1

If you have any questions, please let me know. Thank you for your consideration!

Sincerely,

Ally Cunningham

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Financial Literacy: Impact on Student Success
Senior Capstone Project for Alexandra Cunningham

REFERENCES
Beal, D. J., & Delpachitra, S. B. (2003). FINANCIAL LITERACY AMONG AUSTRALIAN
UNIVERSITY STUDENTS. Economic Papers, 22(1), 65-78.

Carey, E., Hill, F., Devine, A., & Szűcs, D. (2017). The Modified Abbreviated Math Anxiety
Scale: A Valid and Reliable Instrument for Use with Children. Frontiers in Psychology,
8, 11. http://doi.org/10.3389/fpsyg.2017.00011

Cull, M., & Whitton, D. (2011). University students' financial literacy levels: Obstacles
And aids. The Economic and Labour Relations Review : ELRR, 22(1), 99-114. Retrieved
from
http://bryant.idm.oclc.org/login?url=http://search.proquest.com/docview/870057029?acc
ountid=36823

Financial Literacy Definition by NFEC, Jump$tart & GAO. (2013). Retrieved April 25, 2017,
from https://www.financialeducatorscouncil.org/financial-literacy-definition/

“Financial Literacy Test & Survey Center.” National Financial Educators Council, National
Financial Educators Council, 2013, www.financialeducatorscouncil.org/financial-
literacy-test/.

Gavigan, K. (2010). Show Me the Money Resources: Financial Literacy for 21st-Century
Learners. Library Media Connection, 28(5), 24-27.

Godfrey, N. S. (2006). Making Our Students Smart About Money. (Cover story). Education
Digest, 71(7), 21-26.

Hathaway, Ian & Khatiwada, Sameer. “Do Financial Education Programs Work?” FRB of
Cleveland Working Paper No. 08-03. April 1, 2008. Sept. 2009

Hoelzl, E., & Kapteyn, A. (2011). Financial capability. Journal of Economic Psychology, 32(4),
543-545. doi:10.1016/j.joep.2011.04.005

Improving financial literacy: analysis of issues and policies. Paris: OECD, 2005.

Jagman, H. (2014). LIBRARIES AND FINANCIAL LITERACY EDUCATION financial

literacy across the curriculum (and beyond). College and Research Libraries News, 75(5),
254-257.

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Financial Literacy: Impact on Student Success
Senior Capstone Project for Alexandra Cunningham

Johnson, E., & Sherranden, M. (2007). FROM FINANCIAL LITERACY TO

FINANCIAL CAPABILITY AMONG YOUTH. Journal of Sociology & Social Welfare,
34(3), 119-146.

Kezar, A., & Yang, H. (2010). The importance of financial literacy. About Campus,
14(6), 15-21. doi:10.1002/abc.20004

Lusardi, A., Mitchell, O. S., & Curto, V. (2010). Financial Literacy among the
Young. Journal Of Consumer Affairs, 44(2), 358-380. doi:10.1111/j.1745-
6606.2010.01173.x

Mandell, Lewis & Schmid Klein, Linda. “Motivation and Financial Literacy.” Financial Services
Review. Summer 2007. Vol. 16, Iss. 2; p105-116: 12 pgs.

Mccormick, M., & Godsted, D. (2006). Learning Your Monetary ABCs: The Link
between Emergent Literacy and Early Childhood Financial Literacy . Networks Financial
institute, 2006(NFI), 03rd ser. Retrieved April 23, 2017, from
http://www2.indstate.edu/business/nfi/leadership/reports/2006-NFI-03_Godsted-
McCormick.pdf

McWilliams, J. (2008). FINANCIAL LITERACY: UNIVERSITY-FOCUSED

ACTIVITIES. Tax Adviser, 39(5), 314-316.

Mission Statement / Overview. (2018). Retrieved April 10, 2018, from

http://catalog.bryant.edu/undergraduate/missionoverview/

“National Financial Capability Study.” FINRA Investor Education Foundation, FINRA Investor
Education Foundation, 2017, www.usfinancialcapability.org/quiz.php.

Plush, J. (2013, Apr 29). Banking on solutions: Webster bank invests in financial literacy.
The Hispanic Outlook in Higher Education, 23, 15. Retrieved from
http://bryant.idm.oclc.org/login?url=http://search.proquest.com/docview/1352760479?ac
countid=36823

Rosacker, K. M., Ragothaman, S., & Gillispie, M. (2009). FINANCIAL LITERACY OF

FRESHMEN BUSINESS SCHOOL STUDENTS. College Student Journal, 43(2), 391-
399.

Tenaglia, Lisa, "Financial Literacy: The Impact of Financial Training in High School on the

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Financial Literacy: Impact on Student Success
Senior Capstone Project for Alexandra Cunningham

Credit Behavior of College Students" (2010). Honors Projects in Finance.Paper 14.

http://digitalcommons.bryant.edu/honors_finance/14

Totenhagen, C. J., Casper, D. M., Faber, K. M., Bosch, L. A., Wiggs, C. B., & Borden, L.
M. (2015). Youth financial literacy: A review of key considerations and promising
delivery methods. Journal of Family and Economic Issues, 36(2), 167-191.
doi:http://dx.doi.org/10.1007/s10834-014-9397-0

Willis, L. (2009). Evidence and ideology in assessing the effectiveness of financial literacy
education. San Diego Law Review, 46(2).

Xu, L. and Zia, B. (2012) Financial literacy around the world: An Overview of the Evidence with
Suggestions for the Way Forward, In: World Bank Policy Research Working Paper, No.
6107.

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