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

Thomas Korankye, Blain Pearson, Hossein Salehi

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

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.

Original languageEnglish (US)
Pages (from-to)96-111
Number of pages16
JournalJournal of Financial Counseling and Planning
Volume34
Issue number1
DOIs
StatePublished - Apr 1 2023

Keywords

  • college savings
  • education
  • financial advice
  • propensity score matching
  • student loan debt

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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