Journal Article

Financial Advice Use and Saving for Children's College Education: A Propensity Score Matching Approach

Pearson, Blain, Salehi, Hossein, Korankye, Thomas

2023

Overview

This study examines the effects of financial advice on college-saving decisions using data sets from the 2009 and 2012 U.S. National Financial Capability Study. After controlling for self-selection bias through propensity score matching, the findings show that receiving financial advice is associated positively with the likelihood of saving for children's college education. Other findings reveal that seeking specific types of financial advice relating to savings/investment, insurance, and tax planning is positively associated with a household's decision to allocate money for their children's postsecondary education. The ensuing discussion highlights that policies incentivizing households to seek financial advice could promote college savings and contribute to reduction in student loan dependence.

• Publisher: Springer Publishing Company,Association for Financial Counseling and Planning Education
• Subject: Behavior / Behavioral Sciences / Behavioral Sciencse / Beliefs / Cash flow / College Attendance / Counseling / Debt (Financial) / Environment / Financial Education / Financial literacy / Financial planners / Financial planning / Financial Services / General Counseling / Goal Orientation / Goal setting / Higher education / Households / Illiteracy / Insurance / Investments / Life insurance / Literacy / Literature Reviews / Low Income / Low income groups / Marriage and Family Counselling / Money Management / Paying for College / Professionals / Resource Allocation / Retirement / Student debt / Student Loan Programs / Student loans / Tax planning