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Financial Socialization, Financial Education, and Student Loan Debt

Author

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  • Lu Fan

    (University of Missouri)

  • Swarn Chatterjee

    (University of Georgia)

Abstract

This study examines the role of financial socialization, financial knowledge, and receiving financial education on student loan repayment behaviors and related financial stress, as reported by the participants. From an analysis of the 2015 National Financial Capability Study dataset, we find that individuals who received financial education in an academic or professional setting were less likely to be late on student loan payments or worry about their student loan debt. Additionally, those who received both financial education and learned about finances from their parents were even less likely to worry about their student loan debt. The broader implications of the main findings for financial counselors, therapists, and planners are also discussed.

Suggested Citation

  • Lu Fan & Swarn Chatterjee, 2019. "Financial Socialization, Financial Education, and Student Loan Debt," Journal of Family and Economic Issues, Springer, vol. 40(1), pages 74-85, March.
    • Handle: RePEc:kap:jfamec:v:40:y:2019:i:1:d:10.1007_s10834-018-9589-0
    DOI: 10.1007/s10834-018-9589-0
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    Cited by:

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    2. Nicoleta Andreea Neacșu & Carmen Elena Anton & Camelia Mirela Baba & Anca Popescu, 2023. "Financial and Banking Education of Consumers in the Context of Sustainable Development Society," Sustainability, MDPI, vol. 15(13), pages 1-22, June.
    3. Terri Friedline & Zibei Chen & So’Phelia Morrow, 2021. "Families’ Financial Stress & Well-Being: The Importance of the Economy and Economic Environments," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 34-51, July.
    4. Suzanne Bartholomae & Jonathan J. Fox, 2021. "A Decade Review of Research on College Student Financial Behavior and Well-Being," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 154-177, July.
    5. Julie Miller & Samantha Brady & Alexa Balmuth & Lisa D’Ambrosio & Joseph Coughlin, 2021. "Student Loans at the Dinner Table: Family Communication Patterns About Student Loans Before Accrual and During Repayment," Journal of Family and Economic Issues, Springer, vol. 42(2), pages 251-271, June.
    6. Kenneth White & Kimberly Watkins & Megan McCoy & Bertranna Muruthi & Jamie Lynn Byram, 2021. "How Financial Socialization Messages Relate to Financial Management, Optimism and Stress: Variations by Race," Journal of Family and Economic Issues, Springer, vol. 42(2), pages 237-250, June.
    7. Adam Ndou, 2023. "Parental Financial Socialisation and Child’s Gender," International Journal of Economics and Financial Issues, Econjournals, vol. 13(5), pages 59-66, September.
    8. Jing Jian Xiao & Nilton Porto & Irene McIvor Mason, 2020. "Financial capability of student loan holders who are college students, graduates, or dropouts," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(4), pages 1383-1401, December.

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