Page 43 - Payne Research Center ~ Money Matters

P A Y N E C E N T E R . OR G
Insight
The Financial Well-Being survey revealed that many students aspire to build generational wealth; however, the path to achieving this goal can be complex. Survey participants described generational wealth as financial freedom, stability, and comfort, providing lasting benefits for themselves and future generations. This goal, however, can be challenging, especially for historically marginalized students who face systemic inequalities and grow up with economic challenges (Federal Reserve Bank of San Francisco, 2015) or have limited financial skills or access to quality resources (Yakoboski, Lusardi, & Sticha, 2024). The allure of accessible credit, frequent exposure to targeted advertising, and social media influences can further exacerbate financial challenges (Sharma, 2024).
Students’ responses to questions regarding generational wealth leads to the key observation from this survey: There is a misalignment between some of the current financial behaviors of students and their aspirations for generational wealth. Helping students align their financial practices with their aspirations is a central idea that could be integrated throughout the Financial Well-Being initiative. This includes developing students’ goal-oriented mindset in financial planning, as described in Theme 3.
The survey findings reveal a potential disconnect between some of the students’ current financial behaviors and their long-term aspirations for generational wealth. While students express a strong desire to achieve financial freedom, stability, and comfort for themselves and their families, some of their financial practices, such as focusing on short-term savings goals and carrying credit card debt, may hinder their ability to achieve these goals. This misalignment underscores the importance of providing students with the knowledge, skills, and support they need to align their financial behaviors with their long-term aspirations.
The Financial Well-Being initiative can be instrumental in helping students develop goal-oriented mindsets in financial planning. This involves teaching students how to set realistic financial goals, create a step-by-step plan for achieving them, and stay motivated and disciplined in their financial decision-making. By aligning their financial practices with their aspirations, students can increase their chances of achieving generational wealth and creating a lasting legacy of financial security and well- being.
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