Does Financial Stress Influence Students’ Campus Climate Perceptions and Sense of Belonging?

Abstract

Studies of financial stress, college debt, campus climate, and sense of belonging have each been conducted to better understand student retention and persistence, but few studies have explored the relationship between these variables and student outcomes. Researchers have found that financial need has a negative effect on student's psychological experiences, while other studies have explored the impact of general stress in college on psychological constructs, such as campus climate. However, little evidence exists of a relationship between financial stress, student's climate and belonging perceptions, and retention. This study investigates financial-related stressors that may impact two psychological dispositions, feelings of belonging to the institution and how they perceive the campus climate. Findings demonstrate a negative relationship between financial stress and campus climate perceptions among Students of Color, possibly explaining lower retention rates among these students.

Financial Literacy and Financial Stress among College Students within Davao Region

“…Moore et al [12], also found that students encountering financial stress struggle to handle interactions with wealthier peers, frequently resulting in feelings of isolation and embarrassment. Additionally, financial stress reduces students' motivation, influences their educational choices, disrupts their sense of belonging, and alters their perceptions of the campus environment, leading to school dropout and reduced retention rates [15,16,17].…”