The relationship between objective financial knowledge, financial management, and financial self-efficacy among African American students

Abstract

Research consistently shows the positive associations of objective financial knowledge, man- agement, and self-efficacy on college students’ financial literacy. However, there is a need for a more nuanced examination of the factors contributing to African American college students’ fi- nancial literacy. Using the National Student Financial Wellness Study and structural equation modeling, findings suggest that for African American students, objective financial knowledge is not directly or indirectly associated with financial self-efficacy. Only financial management is significantly associated with increased financial self-efficacy. These findings indicate that expe- riential learning may be effective for improving African American students’ financial literacy.