Financial Knowledge and Basic Needs Insecurity Among Undergraduate Students: An Exploration Using Nationally Representative Data

Authors: Annie Hemphill, Sam Riggs, Sara Goldrick-Rab, and Taylor Burtch
April 2025

This study used nationally representative data from the most recent National Postsecondary Student Aid Survey (NPSAS:20) to examine whether increasing students’ financial knowledge has the potential to reduce basic needs insecurity and improve the odds of academic success. While we found that students most affected by basic needs insecurity also have less financial knowledge on the “Big Three” areas of inflation, interest, and risk diversification, we also found that an increase in financial knowledge does not cause a decrease in basic needs insecurity. Further, financial knowledge does not appear to be equity enhancing: It was less likely to reduce basic needs insecurity for historically marginalized students who experience the highest levels of basic needs insecurity. Rather than focusing on financial education on the “Big Three,” this study suggests improving financial well-being by helping students access public benefits and other material supports.


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