College student financial capability: A framework for public policy, research and managerial action for financial exclusion prevention

Purpose - The reviewed literature emphasized that the student loan debt issues have a lot of connections to the economy. This conclusion is in support with broader evidence that high student debt levels are a drag on economic growth. Additionally, disadvantaged and other vulnerable groups, including students, are more likely to be excluded from the formal, regulated financial sector and not be able to take advantage of mainstream financial service providers (e.g. lack access to credit, insurance, and other formal financial services). Among the primary reasons cited for this financial exclusion has to do with a lack of understanding or familiarity with traditional financial services. The aim of this paper is to look at alternate approaches in promoting financial literacy to manage the huge private debt burden facing this important segment of the population. The purpose of this paper is to advance a model of college students' financial capabilities enhancement to partially alleviate some of the problems related to deficits in financial knowledge among this population. The integrative model provides a framework to be operationalized by institutional decision-makers and policymakers at all levels. The model can be adapted to fit unique institutional circumstances and culture. Successful implementation of the model has the potential to enhance the quality of financial health among college students and young adults. Design/methodology/approach - The manuscript's aim is to advance a model of college students' financial capabilities in an effort to prevent their financial exclusion. The proposed model provides a framework to be operationalized by institutional decision-making processes. The model offers six distinct, but inter-related components - antecedent variables, program design and implementation, delivery modalities, program content, behavioral outcomes, and measurement and assessment. Findings - The underlyingraison d'etre for the model is to offer a comprehensive, inclusive, across-the-board roadmap to guide universities, and other organizations in conceptualizing, planning, organizing, implementing, and assessing financial education-related systems and processes designed to enhance the long-term financial choices and behaviors of students. Through careful consideration of each of the phases of the model, decision-makers at all levels and all types of organizations should have a stronger grasp of the depth and breadth of actions required to effect the des