The preponderance of studies investigating youth financial literacy has revealed that the majority of students are failing to demonstrate adequate knowledge of the consequences of debt and the importance of investing (Eitel & Martin, 2009; Garth, 2009). They are disproportionately failing within these key areas, where lack of knowledge will affect future success, health, and well-being (Avard, English, Manton, & Walker, 2005; Chen & Volpe, 1998). This study was a multiple manuscript, mixed method examination of emerging adult college students’ financial capability (knowledge, attitudes, behavior) in the areas of credit/debt (C/D) and savings/investing (S/I) and the influence of parental socialization on the students’ knowledge, attitudes, and behavior. This research was guided by life course and emerging adult theories. Students from a large Midwestern university formed the sample for both quantitative and qualitative portions of the study. The completed quantitative measure was the 156 question Emerging Adult Financial Capability Survey (EAFCS) (Jorgensen, 2013). The survey was administrated across six semesters in a pre-and post-test design to students enrolled in a personal financial course. A total of 855 completed pre-and post-test sets were used for analysis. Structural equation modeling (SEM)—latent change, mediation, and structural regression models—were used to analyze the 12 proposed research questions and hypotheses across both manuscripts. Previous to running the full models, the data were cleaned and organized, then exploratory factor analysis (EFA), item response theory (IRT), confirmatory factor analysis (CFA), and tests of measurement invariance were run. Following the quantitative data collection and analysis, two qualitative focus groups were assembled to provide depth, rich description, and triangulation to the study as a whole. The sessions were held on campus and lasted approximately two hours. Each group had seven or eight student participants. In each group session introductions were made, informed consent and rules were reviewed, and a short demographic survey was completed, prior to the semi-structured discussion. Notes and observations were recorded, and transcripts were coded using an opening-coding scheme. Major findings from the quantitative analysis include: (a) behavior change over time was limited, aspects of behavior changed at different rates, in different relationships, and by different predictors; (b) change in one area (knowledge, attitudes, and behavior) often related to change in another area; (c) students with high time one scores on C/D and S/I attitudes and behavior had little change overtime; (d) financial attitudes were a significant mediator of S/I knowledge and behavior, much more than C/D knowledge and behavior, (e) explicit parental financial socialization was a greater predictor of knowledge, attitudes, and behavior than implicit socialization, and (f) parental financial experiences had a negative relationship (significant and non-significant) with all financial capability variables except C/D behavior related to holdings and usage. The qualitative results supported and elaborated on the quantitative findings. Overarching themes from both focus group sessions include: (a) the positive nature of saving; (b) the negative nature of credit; (c) developmental appropriateness of financial teaching and learning, (d) the need for change in collegiate education, and (e) the influence of early education and experience through financial socialization.
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