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8/9/2019 College Student's Knowledge of Personal Finance - NCEE
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College Students ConsumerCollege Students Consumer
KnowledgeKnowledgeNCEE/NAEE/GATE National ConferenceNCEE/NAEE/GATE National Conference
Denver, ColoradoDenver, Colorado
October 5, 2007October 5, 2007
Greg Valentine, DirectorGreg Valentine, Director Center for Economic EducationCenter for Economic Education
Katherine Sauer, Assistant ProfessorKatherine Sauer, Assistant Professor EconomicsEconomics
University of Southern IndianaUniversity of Southern Indiana
Evansville, IN 47712Evansville, IN 47712
gvalenti@usi.edugvalenti@usi.edu 812.465.1610812.465.1610
kmsauer1@usi.edukmsauer1@usi.edu 812.465.7034812.465.7034
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Previous SurveyPrevious Survey
1993
Consumer Federation of America &
American Express Travel Related Services
Administered - Princeton Survey Research Assoc.
2,010 Jr.& Sr. at 75 four-year colleges and universities Public, Private, and HBC
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Current SurveyCurrent Survey
2006-2007 (fall, spring, fall)
University of Southern Indiana
Personal Finance ClassPre-Test
N = 234
104 -- Males
130 -- Females
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Breakdown ofBreakdown of Question CategoriesQuestion Categories
Credit Card 14 Questions
Auto Insurance 6 Questions
Checking/Saving 6 Questions
Life Insurance 12 Questions
Housing 6 Questions
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Overall ResultsOverall Results
1994
Overall Score --- 51%
Credit Cards 53%
Auto Insurance 58%
Checking/Saving 53%
Life Insurance 43%
Housing 48%
2007
Overall Score --- 55%
Credit Cards 52%
Auto Insurance 51%
Checking/Saving 54%Life Insurance 48%
Housing 69%
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Characteristics of the SampleCharacteristics of the Sample
Age n
percent of
sample
18 - 22 186 79.5%
23 - 29 34 14.5%
30 - 39 9 3.8%
40 and up 5 2.1%
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Characteristics of the SampleCharacteristics of the Sample
Gender n
percent of
sample
Male 104 44.4%
Female 130 55.6%
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Characteristics of the SampleCharacteristics of the Sample
Ethnicity n
percent of
sample
Caucasian 219 93.6%
African Am. 9 3.8%
Hispanic 4 1.7%
Other 2 0.9%
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Characteristics of the SampleCharacteristics of the Sample
Marital Status n
percent of
sample
Not married 168 71.8%
Married 35 15.0%
Divorced 31 13.2%
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Characteristics of the SampleCharacteristics of the Sample
Hours Worked npercent of
sample
0 hours 82 35.0%
1-5 hours 7 3.0%6-10 hours 25 10.7%
11-20 hours 42 17.9%
21-30 hours 42 17.9%
31- 40 hours 24 10.3%
over40 hours 12 5.1%
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Characteristics of the SampleCharacteristics of the Sample
Number ofCredit Cards n
percent ofsample
None 92 39.3%
One 70 29.9%
Two 45 19.2%
Three10
4.3%
Four 6 2.6%
Five 5 2.1%
Six 6 2.6%
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Characteristics of the SampleCharacteristics of the Sample
Checking Account n
percent of
sample
Yes 221 94.4%
No 13 5.6%
Savings Account
Yes 174 74.4%
No 60 25.6%
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Characteristics of the SampleCharacteristics of the Sample
Major npercent of
sample
Business 154 65.8%
Education 11 4.7%Health
Professions 14 6.0%
Engineering 73.0
%
Liberal Arts 14 6.0%
Undecided 34 14.5%
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Overall Scores (Average Score)Overall Scores (Average Score)
Age
n percent difference
correct
18-22 186 52.11%
23 and older 48 58.71%
-0.0660**
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Overall Scores (Average ScoreOverall Scores (Average Score))
Gender
n percent difference
correct
Male 104 53.21%
Female 130 53.57%
-0.0046
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Overall Scores (Average Score)Overall Scores (Average Score)
Workingn percent difference
correct
Not Working 82 5 1.50%
Working 152 54.33%
-0.0303**
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Overall Scores (Average ScoreOverall Scores (Average Score))
Credit Cards
n percent difference
correct
none 92 52.88%
1 or more 142 53.84%
-0.0095
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Overall Scores (Average Score)Overall Scores (Average Score)
Car Insurance
n percent difference
correct
Other Pays 126 51.75%
Pay Own 100 56.03%
0.0428**
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Overall Scores (Average Score)Overall Scores (Average Score)
Major
n percent difference
correct
Business 154 52.94%
Non-Business 80 54.49%
-0.0155
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Other SignificantOther Significant FindingsFindings
CreditCredit
n avg. score difference
Age
18-22 186 50.96% -0.0737**
23 and over 48 58.33%
Working
Not Working 82 50.00 % -0.0380**
Working 152 53.80%
Car Insurance
Others Pay 126 51.08% -0.0335**
Pay Own 100 54.43%
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Other SignificantOther Significant FindingsFindings
Auto InsuranceAuto Insurance
n avg. score difference
Age
18-22 186 48.92% -0.1046**23 and older 48 59.38%
Gender
Males 104 45.35% -0.1029**
Females 130 55.64%
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Other SignificantOther Significant FindingsFindings
Auto Insurance cont.Auto Insurance cont.
n avg. score difference
Car Insurance
Others Pay 126 48.81% -0.0636**
Pay Own 100 55.17%
Major
Business 154 53.57% 0.0732**
Other 80 46.25%
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Other SignificantOther Significant FindingsFindings
Checking/Savings AccountsChecking/Savings Accounts
n avg. score difference
Gender
Males 104 60.26% 0.1193**
Females 130 48.33%
Car Insurance
Other Pay 126 56.88% 0.0705**
Pay Own 100 49.83%
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Other SignificantOther Significant FindingsFindings
Life InsuranceLife Insurance
n avg. score differenceAge
18-22 186 45.97% -0.0941**
23 and over 48 55.38%
Car Insurance
Other Pays 126 43.32% -0.1068**
Pay Own 100 54.00%
MajorBusiness 154 44.81% -0.0904**
Other 80 53.85%
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High Score QuestionsHigh Score Questions in Each Sectionin Each Section
Credit97.4% knew that the MOST important factorsthat lenders use in deciding whether to approve a loanare the bill-paying record and income
Auto Insurance 69.2% knew that if a car is stolen,that the type of insurance coverage that pays for itsreplacement is Comprehensive
Checking/Saving Accounts 82.1% knew that in orderto avoid all regular fees on a checking account, theaccount holder usually MUST keep a minimumbalance in the account at all times.
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High Score Questions inHigh Score Questions in Each SectionEach Section
Life Insurance 87.6% knew that the beneficiary
named in a life insurance policy is the person to
whom the policy value will be paid
Housing Rental 87.2% knew that a landlord is not
responsible for providing electronic security
systems.
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Low Score Questions inLow Score Questions in Each SectionEach Section
Credit Only 12.4% of the students knew that if theowner of a credit card that is lost or stolen is legallyresponsible foronly the first $50 of anyunauthorized charges.
Auto Insurance Only 13.2% of the students knewthat auto insurance prices offered by different
insurance companies to people who live in the samearea, have the same accident history, and drive thesame type of auto can vary by as much as 100% ormore.
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Low Score Questions inLow Score Questions in Each SectionEach Section
Checking/Saving Account Only 29.5% of thestudents knew that when a check bounces both thecheck writer and the person to whom the check iswritten is usually charged a fee.
Life Insurance Only 16.7% of the students knew thata policy loan is NOT available on term lifeinsurance policies.
Housing Rental Only 35.5% of the students knewthat in most areas of the United States, a landlordmust go to court in order to evict a tenant.
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