Date of Completion

5-10-2019

Degree Type

Honors Thesis

Discipline

Finance (FNCE)

First Advisor

Joshua Spizman

Abstract

A lack of financial literacy for many people in the United States is a prominent problem that has largely gone unaddressed, but one that can have devastating results. Currently, 43% of student loan borrowers are not making payments and 33% of American adults have $0 saved for retirement (Pascarella 2-4). These alarming statistics amid a strong economic environment highlight the negative affects a lack of financial literacy can have. Higher education at LMU is geared towards providing students an education of the whole person to enable them to become better people. This research investigates whether or not LMU prepares students to be financially literate. It seeks to bring attention to the current rates of financial literacy among LMU students across various majors and determine if there is a link between rates of financial literacy improvement and a student’s area of study over the four years of education. The results of the study indicate concerning levels of financial illiteracy across all areas and stages of study. Students studying finance exhibited the highest levels of financial literacy in both the beginning and ending years of study. There were significant positive changes across the four years of study in the College of Business Administration, but not for Non-CBA students. While LMU does not currently have a core personal finance component available to all students, this study indicates that the significant discrepancy in financial literacy change might be cause for further investigation into personal finance education for Non-CBA LMU students.

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