Page 11 - Payne Research Center ~ Money Matters

P A Y N E C E N T E R . OR G
Financial literacy, savings habits, and a goal- oriented mindset positively influence financial well-being. Many individuals have poor financial literacy, with financial proficiency lowest amongst Black and Hispanic Gen Z, ages 18 to 26 (Yakoboski, Lusardi, & Sticha, 2024). A higher level of financial literacy is usually associated with better financial well- being—people with lower proficiency levels are more likely to have debt burdens, lack emergency savings, spend more than they earn, and borrow money from payday and high-cost lenders (Lin et al., 2022). Educational approaches that develop financial knowledge and skills while also cultivating savings habits and a goal-oriented mindset to financial planning can significantly improve young adults’ financial well-being (Fan & Park, 2021; Lusardi, 2019).
Money plays a crucial role in the lives of college students, especially those attending HBCUs, as they navigate the complexities of financing their education and preparing for their financial futures. For many, college is the first time they are fully responsible for managing their finances andmakingdecisionsaboutbudgeting,spending, and saving. The choices they make during these formative years can have long-lasting consequences on their financial well-being and their ability to accumulate wealth over time.
Debt Savings
Moreover, the historical and systemic financial disadvantages faced by many African American families place an even greater emphasis on the importance of financial literacy and responsible money management for HBCU students. Given HBCUs’ demographics, findings are likely reflective of Black student experiences but cannot be assumed to represent them exclusively.
This research highlights the importance of understanding the unique financial challenges and aspirations of HBCU students. By examining their perspectives on financial well-being and generational wealth, this study aims to inform interventions and educational programs that can effectively support their financial success. The findings of this research underscore that money is not merely a medium of exchange, but a fundamental tool that can empower HBCU students to overcome systemic barriers, achieve their goals, and build a more secure financial future for themselves and their communities.
P A Y N E CE N T E R . O R G
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