Financial Literacy Survey Conducted at Lehman College Suggests a Need for Student Support

How well do college students understand key financial concepts and what gaps might be holding them back? A two-year Financial Literacy Survey administered to Lehman College students in core Economics courses reveals a need for interventions to support our students in developing understanding of key economic and financial planning concepts. This study, conducted by Finance professor Alexander Núñez Torres and Business Librarian Martha Lerski, presents granular, nuanced findings in a paper completed this Spring.

The study allowed for long-term data collection to support deeper discovery. The COVID pandemic impacted the survey’s logistics and contextual environment of economic uncertainty, and possibly participant engagement or financial perceptions. The authors made adjustments to ensure all surveys submitted met protocol criteria (students had to be 18 or over, could not take the survey twice if enrolled in both participating course groups, etc.). Participation was voluntary.

Co-PI Núñez Torres reflected on the survey process:

One of the biggest challenges was managing the logistics of survey distribution and data collection. Ensuring a high response rate required careful coordination, especially when reaching different group schedules. Scheduling and conducting surveys – whether in person or online – demanded flexibility to accommodate participants’ availability. Additionally, securing reliable data while minimizing survey fatigue was difficult, as some respondents are usually hesitant to complete a lengthy survey.

Our process was facilitated by support from School of Business faculty teaching Introduction to Macroeconomics and Microeconomics sections. Lehman’s Multimedia Center also contributed significantly via flexible responses to multiple requests for tablet carts to enable direct and secure online capture of survey data.

The project arose from a research question about financial knowledge of Lehman students within the context of broader studies on financial literacy. As research collaborators, we surveyed the literature and brought together our individual skill sets. Lerski worked on preparing the research protocol and coordinating with the College’s IRB administrator. We designed research questions that could a) help us evaluate students’ financial literacy, and b) understand the de-identified demographic characteristics which reflect our student body. We elected to survey courses with enrollment from students across the campus.

Using probabilistic regressions to assess possible relationships between financial literacy and participant-reported academic and demographic variables, the paper reports on results of the survey conducted online and onsite between Fall 2021 and Spring 2023. The study identified gaps in participants’ understanding of key financial concepts such as inflation, mortgages, and bond prices.

Many respondents perceived they had strong financial literacy, yet their responses (to well-established financial literacy measurement questions) revealed gaps in critical areas like debt management, savings, and investment strategies. This highlights need for more targeted financial education programs.

With assistance of PSC-CUNY funding, three student research assistants were hired. First, two students were recruited to input PI-created survey questions into the Lime survey tool, and then they helped schedule classroom visits to participating Macroeconomics and Microeconomics classes. A third student assisted with analyzing de-identified data.

Núñez Torres reflects that research supervision provided students with “direct exposure to survey design, data collection, and analysis – skills that are crucial in economics and policy research.” All student research assistants undertook IRB training before participating. The study was guided by IRB protocol 2021-0525, with strict attention to protecting student privacy and data.

Among factors investigated in this study to discover where our students might benefit from financial literacy instruction were how academic standing or majors; gender, race, or age might relate to students’ financial literacy. Statistical analysis showed that students identifying as of high academic standing, older, white, or male demonstrated better understanding of financial literacy.

The survey findings indicate a place for data-informed financial education programs to advance Lehman students’ financial decision-making skills. Núñez Torres reflects, “The results suggest that accessible, culturally relevant financial education programs could help address these gaps.”

With the granular data and analyses from this research, we can now work to design interventions which might bridge unequal levels of financial understanding – and ultimately strengthen financial decision-making capabilities among Lehman students.

Martha Lerski