Recipient Organization
TEXAS TECH UNIVERSITY
(N/A)
LUBBOCK,TX 79409
Performing Department
(N/A)
Non Technical Summary
The fields of agriculture and personal finance are highly complementary. Considerable personal finance research has examined financial literacy in general populations, but little has focused on financial literacy of agricultural populations. Similary, financial literacy of college students has been extensively studied, but little research exists relative to college students pursuing agricultural majors. Financial literacy is important for agriculture students, particularly post-graduation when many individuals engage in self-employed agricultural careers where personal finances are strongly influenced by business financial success. This project develops 1) a survey assessment to examine Texas Tech University agricultural majors' financial attitudes, knowledge, and behaviors and 2) utilizes these data to develop and deliver targeted financial literacy curricula specifically for Texas Tech University agricultural majors.Outcomes and impacts of this project include identification of financial attitudes, knowledge, and behaviors impacting financial literacy of agriculture college students, leading to new knowledge of how students' financial literacy skills are developed during college. Additionally, a new financial literacy course will be developed and delivered to Texas Tech University students majoring in an agricultural degree program. This new course will highlight the importance of basic financial literacy to agribusiness success as well as inform students how personal financial decision-making can be utilized for long-term financial life-cycle event planning.
Animal Health Component
50%
Research Effort Categories
Basic
40%
Applied
50%
Developmental
10%
Goals / Objectives
The major goal of this project is to 1) develop a cross-sectional survey assessment to examine the financial literacy of Texas Tech University, Davis College of Agricultural Sciences and Natural Resources cohorts and 2) subsequently utilize the data gathered to develop a targeted financial literacy course specific to agricultural majors at Texas Tech University.The specific objectives of this project include:1) Assessment of TTU Davis College agricultural majors' financial attitudes, knowledge, and behaviors. Our working hypothesis is that age, choice of agricultural major/minor, parental/familial influence, formal secondary-level financial education, social (peer) influence, agricultural youth organization involvement (4-H, FFA, etc.), involvement in collegiate clubs/leadership activities, study abroad participation, and internship/work experience (agricultural and non-agricultural) will predict financial attitudes, knowledge and behaviors. The approach we will use to test our working hypothesis is to develop a survey for dissemination to students enrolled in agricultural majors within the TTU Davis College. The rationale underlying this objective is that knowledge of these factors will aid development of a targeted financial literacy course to be subsequently offered to Davis College agricultural majors. Knowledge of these factors are expected to have a significant impact on college students majoring in agricultural programs, because knowledge of the specific factors driving these students' financial attitudes and knowledge will enable development of a financial literacy course addressing agricultural students' financial concerns.2) Develop and deliver a targeted financial literacy course to TTU Davis College agricultural majors. Utilizing data gathered during completion of objective #1, a targeted financial literacy course will be developed for face-to-face delivery to TTU Davis College agricultural majors. Our working hypothesis is that formal, targeted financial literacy education will lead to improvements in financial attitudes, knowledge, and behaviors during college and into post-graduation careers.The approach we will use to test our working hypothesis will be to jointly develop and deliver a new financial literacy course utilizing faculty from both TTU's Davis College, Department of Agricultural and Applied Economics, and TTU's College of Human Sciences, School of Financial Planning. This interdisciplinary collaboration is unique and differs from more traditional financial literacy education in that sound financial education is provided, while simultaneously customizing the content delivered to be most applicable to students studying agricultural businesses and industries. The rationale underlying this objective is that regardless of which agricultural major a student pursues, upon graduation, many of these students will be working within the agricultural industry, facing the unique challenges inherent to agricultural production. A sound financial literacy background will be essential to helping these new graduates succeed in their post-college financial decision-making, whether they work in traditional production agriculture, agricultural marketing, commodities or financial markets, agricultural lending, or other supporting agribusiness industries.
Project Methods
Objective 1: Assessment of TTU Davis College agricultural majors' financial attitudes, knowledge, and behaviors.A variety of factors may impact students' financial attitudes, knowledge, and behaviors during college. Many students have had minimal fiscal responsibilities up to this point, as parental or familial support are often strong during the youth years. While strong familial influences may be responsible for a majority of college students' financial literacy, other factors such as formal financial education, social influence, work experience, and others likely have additional effects. Currently, little is known regarding Davis College students' financial literacy and prior financial literacy/planning educational background, thus the goal of objective #1 is to initially assess the factors influencing agriculture students' financial attitudes, knowledge, and behaviors during college.Our efforts will be to develop a survey for completion by undergraduate students in Davis College. Following Potrich, Vieira, and Mendes-Da-Silva (2015), the survey will examine financial literacy via three avenues including financial attitude, financial knowledge, and financial behaviors. Three models will be used to evaluate responses. The first model will assess how financial attitude and knowledge influence financial behavior. The second model will evaluate financial literacy with respect to financial attitudes, knowledge, and behaviors. The final model will enable measurement of financial literacy based upon financial attitudes, knowledge and behaviors (Potrich, Vieira, and Mendes-Da-Silva 2015). Econometric analyses will be performed to statistically evaluate respondent data.Financial behavior will be measured by surveying students on how they generally manage cash spending, credit transactions, and saving activities. Financial knowledge will be measured by asking students to answer questions related to time value of money, inflation, interest and tax rates, financial markets, and principles of diversification. Financial attitude will be measured by surveying students on their perceptions of financial management actions including topics such as the importance of consistent savings practices, controlling spending and credit usage, and development of and working toward future financial goals.Study participants will be identified via TTU Davis College undergraduate records and recruited via communication through official TTU email. Data will be collected for each student classification including first-year students, sophomores, juniors, and seniors. A minimum target for responses will be 400 (approximately 100 responses for each student classification). Additionally, students will be recruited in order to obtain responses from majors in each of Davis College's departments offering undergraduate degrees. This study will be initiated and completed in year one of the project to allow time for data collection, analysis, and utilization of information gained to be applied to subsequent financial literacy course development (objective #2).This objective will be formatively evaluated via external and faculty review of survey materials. For each project objective, new skills and knowledge developed by PI's and students will be assessed. Summative evaluation of objective 1 will document development and administration, including the number of survey responses by students. Evaluation results will assist with modifications and refinements of subsequent project activities.Objective 2: Develop and deliver a targeted financial literacy course to TTU Davis College agricultural majors.Financial literacy and financial decision-making skills have the potential to make tremendous short- and long-term impacts. Often, individuals do not realize their lack of financial literacy and/or tend to be overconfident in their ability to make good financial decisions. For individuals preparing to work in the agribusiness industry, additional financial troubleshooting knowledge must be gained. Many agribusinesses are family operations, with family finances being heavily dependent on business performance.For objective 2, our efforts will be to utilize data from objective 1 to develop a financial literacy course for delivery to TTU Davis College agricultural majors. The course will include faculty collaboration from TTU's Davis College, Department of Agricultural and Applied Economics, and TTU's College of Human Sciences, School of Financial Planning. This interdisciplinary collaboration is unique and differs from more traditional financial literacy education in that sound financial education is provided, while simultaneously customizing the content delivered to be most applicable to students studying agricultural businesses and industries.Our efforts focus on modifying a section of TTU's currently offered financial literacy to incorport the following specific learning objectives:• Financial issues and concerns for family-owned and managed agribusinesses• Basic budgeting techniques for agribusiness• Tax planning concerns for agribusinesses and agricultural households• Farm and family cash and credit management• Consumer, agribusiness, and real estate credit and lending• Personal risk management, including life, health, property, and liability insurance• Basics of non-farm investment, including securities markets, stocks, bonds, and mutual funds• Retirement, succession, and estate planning for agribusinessesPre- and post-test evaluations will be integrated into the course at the beginning and end of the semester to evaluate student financial literacy improvements during the course offering. Additional supplemental learning evaluations will also be conducted throughout the course utilizing various classroom assessment techniques (CATS).