examining the personal finance attitudes, behaviors, and knowledge levels of first-year and senior

368 Pages·2006·1.78 MB·English

EXAMINING THE PERSONAL FINANCE ATTITUDES, BEHAVIORS, AND
KNOWLEDGE LEVELS OF FIRST-YEAR AND SENIOR STUDENTS AT BAPTIST
UNIVERSITIES IN THE STATE OF TEXAS

Brent A. Marsh

A Dissertation

Submitted to the Graduate College of Bowling Green
State University in partial fulfillment of
the requirements for the degree of

DOCTOR OF PHILOSOPHY

August 2006

Comite:

Robert DeBard, Advisor

Alberto Gonzalez,
Graduate Faculty Representative

Michael D. Coomes

William E. Knight
© 2006
Brent A. Marsh
All Rights Reserved
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ABSTRACT
Robert DeBard, Advisor

For nearly four decades scholars from various disciplines have studied college students'
personal finance characteristics, primarily examining collegians' knowledge of consumer finance
issues, but occasionally considering their attitudes or behaviors. In recent years there has been a
surge in research projects examining college students' personal finance characteristics. No
studies were found that simultaneously examined students' personal finance attitudes, behaviors,
and knowledge, nor did the literature reveal research focused on the subjects of this study:
students enrolled at Baptist universities in Texas. The purpose of this study, which was guided
by eight research questions, was to examine the personal finance attitudes, behaviors, and
knowledge levels of freshmen and seniors at Baptist universities in Texas, and to allow student
affairs administrators employed at these institutions to offer their perceptions of students'
personal finance characteristics and to provide suggestions regarding how institutions might
address personal finance education.
Online surveys were employed for data collection. Six Baptist universities in Texas were
included in the study, 2,100 students (350 per institution, 175 first-year students and 175 seniors)
were systematically sampled, and 408 (19%) usable surveys were completed. A convenience
sample of student affairs administrators (n = 169) was selected and 100 (59%) usable surveys
were completed. Data were primarily quantitative in nature, though administrators were
encouraged to provide written comments that were analyzed through basic qualitative
techniques. Most research questions, however, were answered through descriptive statistics, t
tests, or ANOVA procedures.
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Seniors demonstrated significantly better personal finance attitudes, behaviors, and
knowledge than first-year students. To a significant degree compared with first-year students,
seniors credited their university experience with helping to improve their knowledge, while first-
year students significantly differed from seniors in attributing the university experience with
influencing their attitudes. Student affairs administrators consistently rated students' personal
finance characteristics significantly lower than students rated themselves, and administrators
generally felt college students lacked sound personal finance attitudes, behaviors, and
knowledge.
It was concluded that Christian-based universities should implement personal finance
initiatives to fulfill their distinctive missions and prepare graduates for successful stewardship of
fiscal resources, emphases that could become a hallmark of Christian-based higher education.
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6
Train a child in the way he should go,
and when he is old he will not turn from it.
7
The rich rule over the poor,
and the borrower is servant to the lender.
Proverbs 22: 6-7 (New International Version)
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ACKNOWLEDGEMENTS
As I reflect upon my educational journey at Bowling Green State University (BGSU), the
culmination of which is embodied in this doctoral dissertation, I am reminded of many
individuals who have supported me in countless ways and for whom I am most thankful. Your
contributions, whether small or great, have been a blessing to me.
Miranda, my wife: Your endless support and encouragement have meant the world to me.
You willingly moved to Ohio so I could pursue my degree at BGSU, and you have been my
cheerleader and companion along this journey. I could not have done it without you. I am
continually thankful to God for the precious gift He gave me in you. I love you.
Gary and Lougene, my parents: I have learned so much from you, and am so thankful for
the love you have shown me over the years. To date, I have spent roughly 75% of my life in
some form of schooling. You have always placed a high priority on learning, and you provided a
challenging and supportive home environment that made me want to excel. I am proud to call
you "dad" and "mom."
Jim and Drenda, my parents "in law": You are such a blessing to me. Thank you for your
continual prayers and support. I am grateful to have you in my life.
Family and Friends: I am thankful for the support and prayers of so many other family
members: my grandparents--J.G. and Marie, and Rex and Ann; my brother and his family--Greg,
Julie, Erika, Cooper, and Tyler; and, the entire Killion family. Friends I have made through
BGSU, Bowling Green Christian & Missionary Alliance Church, Southside Baptist Church in
Brownwood, Texas, and Howard Payne University (HPU) in Brownwood have been such an
encouragement to me. Thank you!
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Peggy Haas and Tony Lake: Your companionship was the highlight of my HIED
experience at BGSU. Through all the seeming madness of coursework, prelims, and everything
in between, our little cohort managed to have fun! Thank you for your friendship. L & A forever!
Dr. Bob DeBard: Thanks for your sound advice and guidance through this research
project. Studying college students' personal finance characteristics at Baptist universities in
Texas is not a typical BGSU HIED dissertation topic, and I am grateful that you encouraged me
to explore something important and practical that will make a difference in my career and
hopefully in the lives of many future college students.
My Dissertation Committee: Working with each of you has been a wonderful experience,
and I truly appreciate your time and dedication to making this a rigorous yet enjoyable process. I
am grateful to Dr. Bill Knight for the methodological support and constant availability and
willingness to answer questions and provide direction. Thanks especially for your assistance with
the online survey. Dr. Mike Coomes, your thoughtful and challenging feedback led to a better
piece of research of which I can be proud. Thanks for asking such good questions. Dr. Al
Gonzalez, thank you for stepping in to serve as my GFR. I have appreciated your warm,
supportive style and continual emphasis on the philosophical implications of the study.
Colleagues at Howard Payne University: I am grateful to Dr. Brad Johnson for the
opportunity to serve at HPU as Dean of Student Life and for encouraging me to finish my
dissertation. Thanks to Dr. Lanny Hall, HPU President, for supporting my research and helping
me "get my foot in the door" at our sister schools in Texas. Thanks to the Student Life staff for
your constant encouragement. You helped me finish strong.
Research Participants: Thanks to the students and student affairs administrators who
willingly took time out of busy schedules to complete the Personal Finance Survey and provide
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candid and thoughtful information, without which this research endeavor would not have been
possible.
Personnel at Other Baptist Universities: Many individuals at the participating Baptist
universities in Texas helped make this project possible. Baylor University--Mr. William
Underwood, (former) Interim President; Dr. Dub Oliver; and Mrs. Fay Barkley. East Texas
Baptist University--Dr. Bob Riley, President; Dr. Rutledge McClaran; and Mr. Barry Hale.
Hardin-Simmons University--Dr. Craig Turner, President; Dr. Robert Friberg; Mr. Forrest
McMillan; and Miss Katie Lindeman. Houston Baptist University--Dr. Doug Hodo, President;
and Mr. Norm Slothsthed. Howard Payne University--Mr. Randy Weehunt; Mr. Nathan Brown;
and Mrs. Rebecca Mainka. University of Mary Hardin-Baylor--Dr. Jerry Bawcom, President;
and Mrs. Amy Bawcom.
The Lampo Group, Inc.: Thanks to Dave Ramsey, Louis Falzetti, and all those at the
Lampo Group, Inc. who are diligently working to help people learn money management God’s
way through Financial Peace University (FPU) and other great resources. The wonderful FPU
experience Miranda and I had was a major impetus for this study. Thank you for donating prizes
which encouraged students to participate in this research project.
My Heavenly Father: Thank you for loving and saving me, for directing my steps, and for
answering my prayers and those of countless others who have lifted me up during this adventure.
Any credit or recognition I receive from this research is all Yours.
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TABLE OF CONTENTS
Page
CHAPTER I. INTRODUCTION...........................................................................................001
Introduction................................................................................................................001
Overview....................................................................................................................005
Statement of the Problem...........................................................................................006
Significance of the Problem.......................................................................................007
Research Questions....................................................................................................009
Definition of Terms....................................................................................................010
Assumptions...............................................................................................................012
Limitations .................................................................................................................013
Delimitations..............................................................................................................014
CHAPTER II. REVIEW OF THE LITERATURE................................................................016
Introduction................................................................................................................016
Financial Status of United States General Population ...............................................016
Financial Status of College Students in the United States.........................................021
College Students’ Knowledge of Money Management and Personal Finance..........031
College Students’ Attitudes about Money Management and Personal Finance ........042
College Students’ Behaviors Regarding Money Management and Personal
Finance.......................................................................................................................046
The Interrelatedness of Attitudes, Behaviors, and Knowledge in Personal
Finance.......................................................................................................................055
Student Development Theory Meets Personal Finance .............................................059
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Input-Environment-Outcome (I-E-O) Model for Assessment
in Higher Education ...................................................................................................063
The Millennial Generation: Today's College Consumer ...........................................065
Overview of Baptist Higher Education in Texas .......................................................067
Baylor University...........................................................................................068
East Texas Baptist University........................................................................069
Hardin-Simmons University ..........................................................................070
Houston Baptist University............................................................................071
Howard Payne University ..............................................................................072
University of Mary Hardin-Baylor ................................................................074
Christian Higher Education and a Biblical Approach to Personal Finance ...............075
Self-Report Data in Research.....................................................................................080
Surveys of Perception ................................................................................................081
Administering Web-based Surveys............................................................................082
Conclusion .................................................................................................................083
CHAPTER III. METHODOLOGY .......................................................................................085
Research Questions....................................................................................................085
Data Sources ..............................................................................................................086
Participating Institutions ................................................................................086
Student Data...................................................................................................087
Students..............................................................................................087
Survey Instrument..............................................................................089
Student Affairs Administrator Data ...............................................................092