How Is Students' Financial Literacy Related to Their Educational Expectation? Evidence From the U.S. PISA 2018

• In Event: International Foci on College Access

Abstract

Abstract
Using data from the 2018 Progamme for International Student Assessment (PISA) for United States, this study investigates the relationship between students’ financial literacy and their educational expectation. Results from the structural equation modeling (SEM) indicated that students’ financial literacy had significant direct and indirect effects on their expectation of obtaining a Bachelor’s degree. Students with higher financial literacy scores are more likely to expect that they will obtain at least a Bachelor’s degree in the future. Students with higher financial literacy scores are more likely to realize the value/benefits of schooling or education, which explains their expectations of obtaining at least a Bachelor’s degree.

Authors

• Fanya Wu, University at Buffalo - SUNY

• Ren Liu, Shandong University of Economics and Finance