ABSTRACT
Low-income students generally have little knowledge about fi nances and lack fi nancial literacy. Studies have demonstrated that most students in college lack adequate skills about fi nances and that the low-income individuals’ scores and knowledge are signifi cantly behind those of middleand high-income (Chen & Volpe, 1998; Jump$tart, 2008; Lyons, 2004, 2007). hooks’ quotes express the stress and concern that lack of fi nancial knowledge creates in the lives of students. In high school, low-income students do not have an understanding of the fi nancial obligations to attend college-oft en choosing not to go to college because they are unable to navigate the fi nancial aid system. Th ose that choose to go to college oft en drop out because they misunderstand that they have to pay back loans, take out more loans or credit card debt than they can handle, or mismanage their fi nances. Finances are key to access and success of lowincome students as fi nances play an important role in whether or not they
remain in college (Lyons, 2004; Paulsen & St. John, 2002, Tinto, 1993). Th e cost to attend postsecondary institutions continues to rise, merit-based aid programs have replaced needs-based aid in many states, and loans are on the rise (Reed, 2008). A study by Paulsen and St. John (2002) also found that due to tuition increases fi nancial aid (loans and grants) was insuffi cient in helping low-income students persist. Th e authors also found that as unmet need increases, student persistence decreases.
