Parental Financial Socialization: Is Too Much Help Leading to Debt Ignorance among College Students?

Evidence suggests that college students are unaware of their debt obligations. This study utilized the National Student Financial Wellness Study to examine whether aspects of financial parenting contribute to debt ignorance among college students. Reliance on parents for advice, parental financial support, and credit card payment responsibility were positively associated with ignorance of debt. Financial knowledge and working while in college reduced the likelihood of debt ignorance. We discuss implications for how parents can help their children become financially responsible young adults.