Factors Related to Financial Stress among College Students

Abstract

Concerns that debt loads and other financial worries negatively affect student wellness are a top priority for many university administrators. Factors related to financial stress among college students were explored using the Roy Adaptation Model, a conceptual framework used in health care applications. Responses from the 2010 Ohio Student Financial Wellness Survey were analyzed using proportion tests and multivariate logistic regressions. The results show that financial stress is widespread among students -71% of the sample reported feeling stress from personal finances. The results of the proportion tests and logistic regressions show that this study successfully identified important financial stressors among college students. Two of the most important financial stressors were not having enough money to participate in the same activities as peers and expecting to have higher amounts of student loan debt at graduation. The results also indicate that students with higher financial self-efficacy and greater financial optimism about the future are significantly less likely to report financial stress. Implications for student life administrators, policymakers, financial counselors, and financial therapists are discussed.

Coping with Economic Stress: A Test of Deterioration and Stress-Suppressing Models

“…The importance of self-efficacy in this model corresponds to previous studies that demonstrate the salience of self-efficacy in the association between stress and personal well-being in the context of economic stress (Chen & Lim, 2012;Lim, Heckman, Montalto, & Letkiewicz, 2014;Liu et al, 2014). The findings indicate a similar pattern among whites, blacks, and Latinos with respect to self-efficacy and financial strain, the study's outcome measure.…”

“…In a meta-analysis of job search interventions, Liu et al (2014) found the odds of obtaining employment increased with interventions that included a component that boosted self-efficacy. Lim et al (2014) found that college students with high financial self-efficacy were more likely to seek help from professionals when they were experiencing financial stress. A recent review of interventions used to negate the harm of debt and job loss on mental health (see Moore et al, 2017 review a discussion of interventions) found mixed results.…”

Money and Emerging Adults: A Glimpse into the Lives of College Couples’ Financial Management Practices

“…In fact, a majority of college students (90%) who did not have the financial resources to get involved in the same activities as their friends reported feeling financial stress, thus impacting their overall relationship with friends (e.g., less time spent together; Heckman et al, 2014). According to Britt and Huston (2012), college students who had greater perceptions of personal mastery and higher net worth reported feeling less stressed about their financial situations.…”

“…Prior research has shown that 71% of college students have had a consistent challenge in overcoming financial stress (Heckman, Lim, & Montalto, 2014;Trombitas, 2012). In fact, a majority of college students (90%) who did not have the financial resources to get involved in the same activities as their friends reported feeling financial stress, thus impacting their overall relationship with friends (e.g., less time spent together; Heckman et al, 2014).…”

Does Salient Financial Information Affect Academic Performance and Borrowing Behavior among College Students?

“…The financial strain caused by suboptimal borrowing to finance college may reduce academic performance or delay college completion (Heckman et al 2014). Over the longer term, graduation with a significant amount of student loan debt has been loosely associated with numerous adverse outcomes, such as delays in forming independent households and reduced homeownership (Brown et al 2015;Dettling and Hsu 2014).…”