Annabi, A., González-Ramírez, J., & Müller, F. (2018). What determines financial knowledge among college students? Journal of Financial Education, 44(2), 344-366.
Summary
This article delves into examining the state of financial literacy among undergraduate college students and its implications for their financial decision-making. Undertaken at a private college in the Northeast, the study aims to discern the primary determinants influencing financial knowledge during students’ college years. The authors posit that, as students grapple with decisions about expenditure, savings, credit cards, and student loans, their deficient financial literacy may impede them from making judicious choices upon entering the workforce. The research employs a survey methodology, concentrating on fundamental financial concepts such as numeracy, compound interest, and money illusion. The findings, grounded in a sample size of 924 respondents, unveil several determinants affecting financial knowledge, including first-generation status, student loan or credit card possession, and demographic factors.
Assessment/Evaluation
The source substantiates its credibility through an empirical framework, leveraging a survey administered at a designated academic institution to furnish a focused assessment of the financial literacy of college students. The authors delineate a precise methodology, assimilating insights from antecedent investigations such as Chen and Volpe (1998, 2002) and Mandell (2008) to guide the formulation of their survey inquiries. Additionally, the pragmatic recommendations proffered in the article, including endorsing institution-wide personal finance courses and tailored workshops, augment its practical relevance.
Reflection
This source will greatly contribute to my research by offering detailed insights into the determinants influencing financial knowledge acquisition among college students. Its focus on particular financial concepts and identifying crucial factors align with my contention that a college degree’s financial return on investment is becoming progressively uncertain. By highlighting the potential repercussions of insufficient financial literacy on students’ enduring financial choices, this source reinforces my argument that escalating costs and unclear financial outcomes present substantial challenges for college graduates.
Blake, Suzanne. “Today’s Millionaires Are Young and Self-Made.” Newsweek, 30 Oct. 2023, www.newsweek.com/todays-millionaires-younger-self-made-growing-1839233.
Summary
The article explores the dynamic transformation observed in the demographic composition of millionaires in 2023, emphasizing a departure from conventional profiles toward a younger, self-made cohort. It notes a substantial elevation in the average net worth of American households, surpassing the $1 million threshold for the first time. The author underscores that this upswing is not exclusively propelled by a limited number of billionaires but rather signifies a broader trend wherein diverse factors, including investments and education, contribute to the attainment of millionaire status. Mary Eschelbach Hansen, an economics professor at American University, underscores the importance of a collegiate degree in accumulating wealth; she asserts, ” Even though tuition costs had been rising before the pandemic, college is a good investment.” The article also dispels the notion of the college dropout millionaire, asserting that a college education, combined with judicious financial practices, is a pivotal determinant of prospective millionaire status.
Assessment/Evaluation
The assessment of source reliability and credibility involves consideration of various factors. Using data derived from the Federal Reserve’s Survey of Consumer Finances primarily imparts a sense of authority to the article’s assertions, given the Federal Reserve’s standing as a reputable and impartial source. Including insights from Mary Eschelbach Hansen, an economics professor at American University, contributes an academic perspective, thereby bolstering informational credibility. Moreover, the incorporation of quotations from finance experts Ajay Singh and Michelle Delker lends real-world validation to the discussed trends. The article’s contemporaneity, published in 2023, is pivotal for maintaining relevance and reliability, ensuring the information’s alignment with current economic conditions.
Reflection
Incorporating insights from this source into my research paper will undoubtedly enhance the argument that, amidst the evolving landscape of wealth in 2023, a college degree’s financial return on investment remains a relevant consideration. The article underscores higher education’s enduring value, attributing the increase in millionaires to factors such as college degrees, investments, and career mobility. The author’s assertion that a college degree remains a sound investment, with estimated returns ranging from 13 to 36 percent, aligns seamlessly with my thesis. This source will play a crucial role in dispelling the notion that the financial benefits of a college degree are diminishing, offering a concrete and recent example of how educational attainment contributes to financial success significantly.
Burke, M. G., Cannonier, C., & Hughey, A. W. (2018). Is Higher Education Worth the Cost? Counterpoints, 517, 345-360.
Summary
This article delves into the enduring correlation between tertiary education and upward socio-economic mobility, positing that a collegiate degree is widely regarded as a conduit to heightened social and economic prospects, culminating in an improved quality of life, employment status, and remuneration. The pervasive acknowledgement of the significance of a bachelor’s degree in the 20th century engendered a societal dichotomy predicated on educational attainment. The accruing advantages associated with advanced education progressively manifested in escalated college enrollment and completion rates, with a conspicuous elevation in the proportion of Americans acquiring a bachelor’s degree or beyond by the year 2000. The historical context of the G.I. Bill is invoked to underscore governmental commitment to higher education as a strategic response to unemployment mitigation, labour market restructuring, and the facilitation of infrastructure development.
Assessment/Evaluation
The source’s reliability and credibility are rooted in its comprehensive examination of the historical correlation between higher education and economic mobility in the United States. The article substantiates its assertions by utilizing historical data and policy initiatives such as the G.I. Bill. Incorporating tangible historical examples enhances the overall dependability of the source by providing a contextual framework for comprehending the changing attitudes toward the value of a college degree. Furthermore, the article maintains an impartial tone, avoiding explicit bias and enabling readers to engage critically with the presented information. Scholars may find this source valuable for gaining insights into the historical transformations in perceptions of the value of a college education, particularly in the context of rising costs.
Reflection
This source will serve as a foundational piece in establishing the historical context of the perceived value of a college degree. It aids in framing the argument that the societal belief in the unequivocal financial return on investment for a college degree has roots in the past. By understanding the historical evolution of this belief, the source strengthens the argument that the current uncertainties in the financial return on investment are a departure from historical trends rather than a continuation.
Carrns, Ann. “New Report Measures ‘Return on Investment’ of Various College Degrees.” The New York Times, 8 Oct. 2021, www.nytimes.com/2021/08/13/your-money/college-degree-investment-return.html.
Douglas-Gabriel, Danielle. “Tuition-free College Movement Gains Momentum, Despite Biden’s Stalled Plan.” Washington Post, 7 Mar. 2022, www.washingtonpost.com/education/2022/03/05/tuition-free-college-states.
Summary
Despite the federal government’s reluctance to adopt universal free community college, the article highlights the resilience of tuition-free initiatives at the state and municipal levels. It notes that seven such programs have been initiated since November, with Pennsylvania and Maine governors promoting new initiatives and the University of Texas System Board of Regents approving a significant endowment for expanded coverage. The piece underscores bipartisan support for these programs, revealing that 47 states and D.C. have embraced tuition-free initiatives. Critics are acknowledged, pointing out concerns about the perceived sustainability of universal public college due to low graduation rates at some institutions, where fewer than 40 per cent of students earn a degree within six years. Advocates counter this by proposing that increased institutional funding and financial aid could address these challenges. Notably, New Mexico’s approach differs, providing funding before other scholarships are applied, potentially easing financial burdens for eligible students.
Assessment/Evaluation
The source’s credibility is noteworthy as it draws on information from the well-established College Promise campaign, a recognized advocacy group dedicated to promoting tuition-free college initiatives. The article meticulously reports on the number of programs initiated since November, the participation of state governors, and the approval of substantial endowments by the University of Texas System Board of Regents, indicating a thorough reliance on reliable sources. Including perspectives from both proponents and critics contributes to a balanced viewpoint, enhancing the overall credibility of the article. Scholars can use this source to gain insights into the current landscape of tuition-free initiatives, understand bipartisan support, and analyze the interactions between federal and state-level actions in higher education.
Reflection
In my research paper, this source will serve as a pivotal illustration of the evolving landscape surrounding the financial return on investment for a college degree. Despite the federal setback, the article’s documentation of ongoing state and municipal efforts to implement tuition-free initiatives aligns with my argument that the conventional understanding of a college degree’s financial benefits is transforming. It will support my assertion that the financial return on investment is becoming less clear-cut as costs rise, emphasizing the decentralization of initiatives and the bipartisan support they enjoy. Additionally, the article’s inclusion of critics’ perspectives allows for a nuanced exploration of challenges associated with universal college plans, providing a balanced backdrop against which I can articulate the complexities of the current higher education landscape.
Douglas-Gabriel, Danielle. “Tuition-free College Movement Gains Momentum, Despite Biden’s Stalled Plan.” Washington Post, 7 Mar. 2022, www.washingtonpost.com/education/2022/03/05/tuition-free-college-states.
Summary
The investigation delves into the economic viability of four-year college degrees, examining data from the federal Education Department’s “College Scorecard” tool, encompassing 38,000 post-high school degree and certificate programs. Of the 26,000 bachelor’s degree programs scrutinized, nearly two-thirds facilitate the majority of graduates in recouping their education costs within a decade of graduation. This information holds significance in comprehending the economic benefits of pursuing a four-year degree. The analysis distinguishes between fields of study, highlighting that engineering or health care are more prone to yield a swifter economic return than fields like the arts or biology. The study suggests that although certain programs may not confer significant economic advantages over a high school diploma, it does not imply a lack of societal value. This comprehensive examination supports the contention that, despite rising costs, four-year degrees, particularly in specific fields, persist in offering a tangible and prompt financial return on investment.
Assessment/Evaluation
The article’s credibility is substantiated through its utilization of data derived from the federal Education Department’s “College Scorecard” tool, a widely acknowledged and dependable source of information about outcomes in higher education. Scholars, in a collaborative effort, may exploit this resource by relying on its data-driven insights to substantially contribute to broader dialogues concerning the fiscal ramifications of diverse college programs. This practice augments the ongoing discourse surrounding the economic worth of higher education.
Reflection
This source furnishes indispensable evidence buttressing the contention that four-year degrees typically manifest a favourable financial return on investment. The empirically supported analysis by Third Way underpins the claim that the economic advantages accruing from acquiring a college degree, especially a four-year one, are noteworthy. I intend to incorporate this information into my research paper to underscore the favorable facets of specific programs and challenge the proposition that a college degree’s financial return on investment is progressively becoming less unequivocal.
Works Cited
Annabi, A., González-Ramírez, J., & Müller, F. (2018). What determines financial knowledge among college students? Journal of Financial Education, 44(2), 344-366.
Burke, M. G., Cannonier, C., & Hughey, A. W. (2018). Is Higher Education Worth the Cost? Counterpoints, 517, 345-360.
Blake, Suzanne. “Today’s Millionaires Are Young and Self-Made.” Newsweek, 30 Oct. 2023, www.newsweek.com/todays-millionaires-younger-self-made-growing-1839233.
Carrns, Ann. “New Report Measures ‘Return on Investment’ of Various College Degrees.” The New York Times, 8 Oct. 2021, www.nytimes.com/2021/08/13/your-money/college-degree-investment-return.html.
Douglas-Gabriel, Danielle. “Tuition-free College Movement Gains Momentum, Despite Biden’s Stalled Plan.” Washington Post, 7 Mar. 2022, www.washingtonpost.com/education/2022/03/05/tuition-free-college-states.
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