Financial Stress, Self-Efficacy, and Financial Help-Seeking Behavior of College Students
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Connects with: @archuleta2013 @heckman2014
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lim2014 - p. 148
This study focuses on seeking financial help as a coping strategy for college students dealing with stress from personal finances.
lim2014 - p. 148
In this paper, financial help refers to professional personal financial help.
lim2014 - p. 149
The financial help-seeking process consists of five stages: (1) the exhibition of financial behaviors, (2) the evaluation of own financial behaviors, (3) the identification of the causes of financial behaviors, (4) the decision to seek help, and (5) the choice among help assistance options. Based on Grable and Joo’s framework, two streams of research are most prevalent: the decision to seek help (stage 4) and from whom or what type of help to seek (stage 5)
lim2014 - p. 150
Self-efficacy, an important construct in social psychology, refers to a feeling of being able to deal with a situation effectively (Bandura, 1977). High levels of self-efficacy are expected to produce benefits to individual well-being, especially physical and mental health, through its influence on individuals’ behavioral changes (Bandura, 1977, 1982; Gecas, 1989).
lim2014 - p. 150
In the personal finance field, financial self-efficacy has been operationalized by incorporating financial management references into the general self-efficacy concept
lim2014 - p. 151
Financial knowledge (financial education) and financial stressors both remained in the model. The amount of student loan debt was included in the model as a financial stressor along with a factor score for financial stress. Financial attitudes also remained in the model and were measured with the financial self-efficacy variable.
lim2014 - p. 151
The cognitive theory of stress and coping emphasizes that self-efficacy can also have a mediating role on the relationship between stress and help-seeking behavior.
lim2014 - p. 152
This study utilized data from the 2010 Ohio Student Financial Wellness Survey (OSFWS). Following IRB approval, the OSFWS was administered in the fall of 2010 and nineteen Ohio postsecondary schools participated in the survey.
lim2014 - p. 152
The dependent variable was a binary variable distinguishing students who have sought financial help, coded 1, from those who have not, coded 0.
lim2014 - p. 152
gender, racial/ ethnic identity, class rank, and type of institution attended.
lim2014 - p. 152
Financial Education. Financial education was measured with two dummy variables. The survey used a 4-point Likert scale to measure agreement with statements about attending personal finance classes or workshops while in high school and while in college.
lim2014 - p. 152
Student Loans. The respondents to the 2010 OSFWS were asked how much they currently owe in student loans.
lim2014 - p. 153
Financial Stress. Financial stress was measured with a factor score obtained from the following six statements/questions: 1. I feel stressed about my personal finances in general. 2. I worry about being able to pay monthly expenses. 3. I worry about having enough money to pay for school. 4. How much stress does the total amount of money you owe cause you? 5. How much stress does credit card debt cause you? 6. How much stress does student loan debt cause you? For items 1 to 3, students responded on a four-point scale, ranging from 1 (strongly disagree) to 4 (strongly agree). For items 4 to 6, students responded on a six-point scale: 1 (does not apply/no debt), 2 (none), 3 (small amount), 4 (medium amount), 5 (large amount), and 6 (extreme amount). Higher scores on the financial stress factor represent higher financial stress. From the factor analysis, one factor was extracted from the above six items with a Cronbach’s alpha of 0.826.
lim2014 - p. 153
Financial Self-Efficacy. Financial self-efficacy was measured by a single question that prompted self-assessment of one’s ability to manage personal finances. The statement was “I can manage my money well” and students responded on a scale ranging from 1 (strongly disagree) to 4 (strongly agree).
lim2014 - p. 153
The measurement of financial self-efficacy in the survey is a limitation worth noting. Both the question and the scale likely skewed participant responses towards agreeing since disagreeing at any level suggested the student was not competent and a neutral option or larger scale was not available