Financial Literacy of African American College Students: Evidence and Implications from One Historically Black Institution

Abstract

This study examines the level and determinants of financial literacy among African American college students of a historically black college. The results from this study show that financial literacy is very low among African-American college students: less than 4% of respondents could answer all five financial literacy questions designed to test basic economics and financial concepts used in everyday lives. While determining factors that influence financial literacy of African American college students, the study finds that being in higher-class ranks and older in age have significant effects on students’ financial literacy levels. The findings of this study support the need for financial literacy education for African American college students of a historically black college to effectively promote their financial literacy levels.