Presentation Title

Motivation, knowledge, and confidence in stock market investing among a diverse college student population

Faculty Mentor

Benjamin Joseph Becerra

Start Date

23-11-2019 9:45 AM

End Date

23-11-2019 10:00 AM

Location

Markstein 301

Session

oral 1

Type of Presentation

Oral Talk

Subject Area

business_economics_public_administration

Abstract

Background: College students are less likely to engage in healthy financial behaviors, and more likely to suggest participating in risky decision making. Such behaviors include increased credit card debt, aversion to long-term financial planning, etc. Moreover, studies suggest that improvements in early financial literacy among college students are linked to less risky decisions and behaviors regarding personal finance later in life. There is a need to improve further engagement of college students in the fundamentals of long-term financial planning, such as investing in the stock market. Therefore, the goal of this study was to understand motivation, knowledge, and confidence in stock market investing in a diverse college student population.

Methods: A survey was created using the Qualtrics survey platform to obtain a convenience sample from all college majors at California State University, San Bernardino. Participants’ demographic information and beliefs regarding personal finance and investing in the stock market was collected. Excel software was used to organize and analyze the obtained data. Qualitative questions were coded for relevant themes.

Results: Data from a total of n=42 participants was obtained. When asked the open ended question, “what 3 words or hashtags would you use to describe the stock market,” individuals primarily associated the stock market with a “Business” or as “unpredictable/volatile.” A moderate positive linear relationship was found between students’ knowledge and confidence (r=0.688, p<0.05). No significant relationship was found between students’ knowledge and willingness to take risk, or students’ average age and how much students are putting their income towards into paying off their debts.

Conclusion: Students were risk averse and did not personally resonate with the stock market. This provides us insight into students’ financial views. The goal is to identify ways to help students invest responsibly through increased knowledge, motivation, and confidence.

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Nov 23rd, 9:45 AM Nov 23rd, 10:00 AM

Motivation, knowledge, and confidence in stock market investing among a diverse college student population

Markstein 301

Background: College students are less likely to engage in healthy financial behaviors, and more likely to suggest participating in risky decision making. Such behaviors include increased credit card debt, aversion to long-term financial planning, etc. Moreover, studies suggest that improvements in early financial literacy among college students are linked to less risky decisions and behaviors regarding personal finance later in life. There is a need to improve further engagement of college students in the fundamentals of long-term financial planning, such as investing in the stock market. Therefore, the goal of this study was to understand motivation, knowledge, and confidence in stock market investing in a diverse college student population.

Methods: A survey was created using the Qualtrics survey platform to obtain a convenience sample from all college majors at California State University, San Bernardino. Participants’ demographic information and beliefs regarding personal finance and investing in the stock market was collected. Excel software was used to organize and analyze the obtained data. Qualitative questions were coded for relevant themes.

Results: Data from a total of n=42 participants was obtained. When asked the open ended question, “what 3 words or hashtags would you use to describe the stock market,” individuals primarily associated the stock market with a “Business” or as “unpredictable/volatile.” A moderate positive linear relationship was found between students’ knowledge and confidence (r=0.688, p<0.05). No significant relationship was found between students’ knowledge and willingness to take risk, or students’ average age and how much students are putting their income towards into paying off their debts.

Conclusion: Students were risk averse and did not personally resonate with the stock market. This provides us insight into students’ financial views. The goal is to identify ways to help students invest responsibly through increased knowledge, motivation, and confidence.