Racial Differences in the Returns to Financial Literacy Education

Al‐Bahrani, Abdullah; Weathers, Jamie; Patel, Darshak

doi:10.1111/joca.12205

Cited by 45 publications

(39 citation statements)

References 45 publications

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“…Grinstein‐Weiss et al () suggest that low‐ and middle‐income Black and White students who face similar liquidity constraints and borrowing risks are at unequal risk of accumulating education debt. Further, there is evidence of a financial literacy gap with Whites having higher financial literacy scores than minorities despite financial literacy education (Al‐Bahrani, Weathers, and Patel ).…”

Section: Discussion Conclusion and Policy Implicationsmentioning

confidence: 99%

“…There are already some initiatives that help students make informed decisions about planning for, finding, and paying for college, such as the likelihood of finishing their degree and earnings in their field of study and budgeting under economic shocks (Avery and Turner ). However, there is a need for policymakers to examine if there is a systemic bias in the provision of financial literacy education (Al‐Bahrani, Weathers, and Patel ).…”

Section: Discussion Conclusion and Policy Implicationsmentioning

confidence: 99%

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Does Student Loan Debt Contribute to Racial Wealth Gaps? A Decomposition Analysis

Kakar¹,

Daniels²,

Petrovska

2019

Journal of Consumer Affairs

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There is evidence of a large and growing student debt burden over the last decade. Previous research has shown that the presence of student debt jeopardized the short‐term financial wealth of U.S. households during the Great Recession. We examine the effects of student loan use on the wealth of U.S. households post‐recession, using recent data from the 2013 and 2016 Survey of Consumer Finances. We find that mean 2016 wealth for households with no outstanding student debt is more than four times higher than households with student debt. We find that living in a household at the 15th, 30th, 50th, 70th, and 85th percentile of the wealth distribution with student debt is associated with an 80%, 49%, 37%, 35%, and 36% wealth loss compared with a similar household with no student debt. Our decomposition results suggest that student loan use can explain between 3% and 7% of the Black‐White wealth gap across the wealth distribution but is insignificant in explaining the Hispanic‐White wealth gap.

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Section: Discussion Conclusion and Policy Implicationsmentioning

confidence: 99%

Section: Discussion Conclusion and Policy Implicationsmentioning

confidence: 99%

Does Student Loan Debt Contribute to Racial Wealth Gaps? A Decomposition Analysis

Kakar¹,

Daniels²,

Petrovska

2019

Journal of Consumer Affairs

View full text Add to dashboard Cite

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“…Previous studies have generally focused on sociodemographic and socioeconomic determinants, finding that the level of financial literacy depends on many characteristics such as gender, age, race (Al‐Bahrani, Weathers, and Patel ; Bucher‐Koenen et al ; Gerardi, Goette, and Meieret ; Lusardi and Tufano ; Van Rooij, Lusardi, and Alessie ), net family income, type of job, educational attainment, marital status, and the number of family members (Calamato ; Gerardi, Goette, and Meieret ; Monticone ; Shim et al ; Van Campenhout ).…”

mentioning

confidence: 99%

Financial Literacy: The Role of the Local Context

Cucinelli

Trivellato

Zenga

2019

Journal of Consumer Affairs

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In this article, we investigate the role of local factors associated with the financial literacy of Italian adults (no. 945). Using a multilevel regression model, together with the common socioeconomic and sociodemographic variables already used in previous studies, we also add certain environmental variables at the local level. We separately analyze the three indexes that define the OECD financial literacy index—Financial Attitude Index (FAI), Financial Knowledge Index (FKI), and Financial Behavior Index (FBI)—because they show a dynamic of their own in each region. Our findings confirm that the FKI and the FAI are associated to some extent with environmental traits, while the FBI is not. We conclude that not only the sociodemographic and socioeconomic conditions of individuals but also certain features of the regional context where they live have an impact on their financial literacy. Consequences for financial education programs are highlighted.

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“…Literature suggests that those with special needs especially need better financial education (Mansfield and Pinto 2008 [27]). Our study responds to a call to examine the content of financial literacy curricula to ascertain what may be lacking in reaching minorities (Al-Bahrani et al (2018) [59]. This study fills a gap in the literature by identifying one specific curriculum for financial literacy that does have many culturally responsive elements: Practical Money Skills for Life.…”

Section: Discussionmentioning

confidence: 91%

“…As noted by Mittapalli et al (2009) [14], there is a dearth of culturally responsive curricula for financial literacy. Al-Bahrani et al (2018) [59] found that financial literacy education actually appears to widen the financial knowledge gap between whites and minorities. Literature suggests that those with special needs especially need better financial education (Mansfield and Pinto 2008 [27]).…”

Section: Discussionmentioning

confidence: 99%

Pre-Service Teachers’ Perception of Financial Literacy Curriculum: National Standards, Universal Design, and Cultural Responsiveness

Johnston-Rodriguez

Henning

2019

Education Sciences

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For youth with disabilities, the economic challenges of adulthood pose substantial risks. While the need for financial skills to navigate the economic climate is critical, access to financial education presents many challenges. High school is the optimal time for students with disabilities to access financial education; however, contact is limited. One factor in this limited access may be linked to special educators’ lack of knowledge of financial literacy curricula as such resources are typically not part of their teacher preparation. Using a rubric developed by Henning and Johnston-Rodriguez, preservice teachers evaluated five examples of relevant financial literacy curricula: Financial Fitness for Life, Practical Money Skills, Finance in the Classroom, Money Talks 4 Teens, and Money Smart for Young Adults. Preservice teachers found one curriculum to be most comprehensive in teaching standards-based financial literacy concepts relevant to students with special needs as well as principles of universal design and cultural responsiveness. Each of the other curricula was found to have merit in some respects, suggesting an eclectic approach of mixing some of the curricula depending on teacher and student goals.

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Racial Differences in the Returns to Financial Literacy Education

Cited by 45 publications

References 45 publications

Does Student Loan Debt Contribute to Racial Wealth Gaps? A Decomposition Analysis

Does Student Loan Debt Contribute to Racial Wealth Gaps? A Decomposition Analysis

Financial Literacy: The Role of the Local Context

Pre-Service Teachers’ Perception of Financial Literacy Curriculum: National Standards, Universal Design, and Cultural Responsiveness

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