Project Director

Eschman, Bret

Department Examiner

Howell, Ashley

Department

Dept. of Psychology

Publisher

University of Tennessee at Chattanooga

Place of Publication

Chattanooga (Tenn.)

Abstract

Many college students experience financial stress, yet financial hardship is often explained as a simple lack of financial knowledge. Recent research suggests that how students are socialized around money may matter just as much as what they know. In this study, I examined whether parental education, specifically first-generation college status, changes the relationship between household income and financial health among undergraduate students at a regional public university in the southeastern United States. Participants included 204 undergraduates recruited through the university research pool. Students reported household income (categorized as < $50,000 or >$50,000), first-generation status, and financial behaviors. Financial literacy was measured using an adapted OECD/INFE Core Questionnaire. Financial health was assessed using an adapted Financial Capability Scale for Young Adults and a composite Hardship Index. Independent-samples t-tests were conducted to compare financial literacy across income groups, and regression analyses tested whether first-generation status moderated the link between income and financial outcomes. Results showed no significant difference in financial literacy between students from lower-income and higher-income households, t(201) = -1.07, p = .287. However, parental education significantly moderated financial behavior. Higher income predicted fewer late fees and stronger financial capability among continuing-generation students, but income was not significantly related to financial behavior among first-generation students (p = .316). First-generation students also reported higher hardship scores regardless of income level. These findings suggest that financial well-being among college students is shaped less by access to information and more by early socialization experiences. Supporting first-generation students may require mentorship and skill-building programs that address financial habits and money beliefs, not just financial facts.

Acknowledgments

I want to sincerely thank Dr. Bret Eschman, my thesis director, for his tremendous advice and encouragement during the course of this study. Dr. Ashley Howell, who served on my committee, has my sincere gratitude as well. Her insightful critiques and viewpoint have improved the caliber and scope of this work.

IRB Number

25-139

Degree

B. S.; An honors thesis submitted to the faculty of the University of Tennessee at Chattanooga in partial fulfillment of the requirements of the degree of Bachelor of Science.

Date

5-2026

Subject

Households--Economic aspects; Financial literacy--Study and teaching; College students—Finance, Personal; Finance, Personal; Life skills

Keyword

Financial Socialization; First generation college students; Invisible Safety Net; Money Scripts; Financial Literacy Parity; Parental Education

Discipline

Finance

Document Type

Theses

Extent

iii, 19 pages

DCMI Type

Text

Language

English

Rights

http://rightsstatements.org/vocab/InC/1.0/

License

http://creativecommons.org/licenses/by-nc-nd/4.0/

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Finance Commons

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