For many low-income students in the United States, college remains inaccessible due to financial aid complexity, affordability and inadequate financial literacy (Dynarski and Scott-Clayton 2013, Goldrick-Rab 2016). As tuition costs rise, financial unpreparedness compounds structural inequalities in higher education (Ma et al. 2016). Research shows that limited financial literacy prevents students from effectively navigating scholarships, loans and aid programmes - critical components of college access (Boatman and Evans 2017, Lusardi 2019, Lusardi and Mitchell 2023). This study addresses the problem that limited financial knowledge and informational barriers act as a hidden barrier to college enrolment for low-income students (Perna 2006b, Hillman 2015). Specifically, it asks: How does financial literacy education affect the intention to enrol in college amongst low-income high school seniors?

The significance of this enquiry lies in its potential to bridge the college access gap by empowering students with financial knowledge as a tool for economic mobility (John et al. 2005, Johnson and Sherraden 2007). While prior research highlights general financial outcomes rather than educational access (Mandell 2008a, Lusardi and Mitchell 2014), few studies have examined financial literacy as a targeted mechanism for expanding college access (Hastings et al. 2013, Stoddard and Urban 2020). By integrating Social and Human Capital theories (Becker 1964, Coleman 1988), this study fills a crucial gap in understanding how financial literacy functions both as a skill and a social resource to enhance educational equity. As a research idea, this study outlines the study’s rationale, integrates recent and, at times, divergent empirical findings and presents a detailed methodological proposal in advance of any data collection.

Financial literacy has emerged as a vital determinant of educational access and socioeconomic mobility, particularly for low-income students navigating college affordability (Lusardi and Mitchell 2014, Ma et al. 2016, Lusardi and Mitchell 2023). Research consistently demonstrates that students with greater financial literacy are more likely to understand scholarships, manage debt and make informed college decisions (Shim et al. 2010, Boatman and Evans 2017). However, the empirical evidence is more mixed than is sometimes acknowledged. An influential meta-analysis by Fernandes et al. (2014), covering 168 papers and 201 prior studies, concluded that interventions designed to improve financial literacy explained only about 0.1% of the variance in financial behaviour and that effects decayed substantially within 20 months of instruction. This finding generated considerable scepticism about whether classroom-based financial literacy yields meaningful long-term effects. More recent work, however, has reached substantially more optimistic conclusions: a meta-analysis of 76 randomised experiments by Kaiser et al. (2022) found positive and economically meaningful causal effects of financial education on both knowledge and downstream behaviour, effects estimated to be at least three times larger than those reported in earlier reviews. Urban et al. (2020) similarly found that state-mandated high school financial education was associated with fewer loan defaults and higher credit scores amongst young adults, although they also documented substantial state-level heterogeneity that points to implementation quality (especially teacher preparation) as a key moderator. These divergent findings underscore the need for studies that disentangle programme characteristics, dosage and target populations, rather than treating “financial literacy education” as a single homogeneous treatment.

However, disparities persist: low-income students often lack exposure to financial guidance, reinforcing systemic inequities in higher education access (Perna 2006b, Hillman 2015). Studies show that financial education in high school positively correlates with savings behaviour and informed borrowing (Bernheim et al. 2001, Mandell 2008a), though earlier studies were often limited by short follow-up windows, modest sample sizes and reliance on self-reported behaviour rather than administrative outcomes (Hastings et al. 2013), yet its direct influence on college enrolment remains underexplored (Lusardi 2019). While information interventions, such as simplified aid materials, have improved application rates (Hoxby and Turner 2013), comprehensive financial literacy programmes may offer more enduring effects by cultivating confidence and long-term planning (Johnson and Sherraden 2007).

Two more recent strands of research provide additional motivation for this study. First, Stoddard and Urban (2020) found that state-mandated high school financial education shifted college financing decisions towards lower-cost borrowing options, an effect closely tied to college access for cost-sensitive students. Second, Goldrick-Rab et al. (2016) demonstrated experimentally that need-based grant aid increases Bachelor’s degree attainment for low-income students, suggesting that the affordability beliefs and financial decisions of these students are highly malleable. Yet despite these advances, the specific question of whether high school financial literacy education shapes college enrolment intentions amongst low-income students has rarely been examined directly. Most existing studies measure either: (a) the financial behaviour of students already in college or (b) the credit and savings outcomes of young adults after high school, not the upstream decision of whether to pursue college at all (Hastings et al. 2013, Kaiser et al. 2022).

This literature thus identifies a clear gap: despite widespread acknowledgement of financial literacy’s importance, little empirical evidence connects financial literacy education to college access outcomes for low-income students. The proposed study would address this gap by: (a) focusing specifically on the pre-enrolment decision stage rather than on later financial behaviour; (b) using a clearly defined low-income sample with explicit eligibility criteria and (c) measuring financial literacy education through both programme exposure and validated knowledge instruments rather than relying on a single proxy. Integrating Social Capital Theory (Coleman 1988) and Human Capital Theory (Becker 1964), this study contributes to bridging this gap by conceptualising financial literacy as both a skillset and a social resource that can mitigate structural barriers to higher education.

This study is grounded in Social Capital Theory (Bourdieu 1986, Coleman 1988) and Human Capital Theory (Schultz 1961, Becker 1964), which together in this study explain how financial literacy education can enhance college access amongst low-income students. Social Capital Theory posits that individuals benefit from networks and shared knowledge within communities where relationships provide access to information and support (Coleman 1988). For low-income students, financial literacy serves as a form of social capital by enabling them to engage meaningfully with peers, educators and mentors who can guide financial decisions related to college (Perna 2006b). Human Capital Theory complements this perspective by viewing financial literacy as an investment in skills that increase one’s economic and educational opportunities (Becker 1964). By developing financial management abilities, students are better equipped to assess costs and returns of higher education, reducing psychological and informational barriers to college enrolment (Lusardi and Mitchell 2014). Together, these theories explain how financial literacy functions simultaneously as knowledge (human capital) and as a conduit for empowerment through relationships (social capital).

To address the concern that the study at times treats financial literacy as an individual competence, a social resource and an educational intervention without distinguishing amongst them, the framework adopted here separates these three layers explicitly: (a) Financial literacy as an individual competence refers to the measurable knowledge and skills students hold; this is the human-capital component; (b) Financial literacy as a social resource refers to how that knowledge enables access to networks of information and support, including counsellors, peers and family members, who can guide college-related decisions; this is the social-capital component; (c) Financial literacy education, in turn, refers to the structured curricular intervention, hypothesised to build individual competence and, through that competence, expand the social resource. In the proposed study, the educational intervention is the independent variable; the individual competence is the proximal outcome (and, in mediation analyses, a mediator); and the social-resource dimension is captured indirectly through items measuring perceived support and information-seeking behaviour. Distinguishing these three layers clarifies what is being intervened on, what is being measured and what is being theorised.

Hypotheses: Drawing from the theoretical framework above, the proposed study would test the following hypotheses:

H1: Financial literacy education is positively associated with intention to enrol in college amongst low-income students.

H2: Students receiving financial literacy education demonstrate higher awareness of scholarships and aid programmes.

H3: Financial literacy increases students’ perceived affordability of college.

This study employs a quantitative, non-experimental, cross-sectional survey design to examine the relationship between financial literacy education and college access amongst low-income high school students. Quantitative research enables the measurement of relationships between variables and the use of statistical analysis to test hypotheses (Creswell and Creswell 2018). The non-experimental design is appropriate because the study does not manipulate variables, but observes existing differences amongst participants (Field 2013). As this study is a research idea, the descriptions below outline how the study would be conducted; data have not yet been collected or analysed. The target population comprises low-income high school seniors in the United States (from different States), as they are at a critical stage of making college enrolment decisions (Perna 2006a).

Operational definition of “low-income.” In line with conventions used by the U.S. Department of Education and prior college-access research (Goldrick-Rab et al. 2016), “low-income” status would be implemented using any of the following indicators: (a) Pell Grant eligibility or expected eligibility, based on the Free Application for Federal Student Aid (FAFSA); (b) qualification for free or reduced-price school meals under the National School Lunch Programme; or (c) family income at or below 200% of the federal poverty line. Students would need to meet at least one of these criteria for inclusion. Self-reported eligibility would be cross-validated, where data-sharing agreements permit, with school-district administrative records. A sample size of approximately 500 - 1,000 students will be selected using stratified random sampling to ensure representation across regions and school types.

Recruitment plan: recruitment would proceed through partnerships with school districts in States with and without high school financial education mandates, leveraging the natural variation in mandate timing documented by Urban and Schmeiser (2015) and Urban et al. (2020). Strata would include census region (Northeast, Midwest, South, West), school type (urban, suburban, rural) and presence or absence of a State financial-education graduation requirement. Within each stratum, schools would be randomly selected and contacted through the principal and the school counsellor; eligible seniors would be invited to participate with active parental consent and student assent. To reduce non-response bias amongst rural and under-resourced participants, the survey would be administered both online and in paper-based form during scheduled school sessions.

Measurement of the independent variable: financial literacy education would be measured along two dimensions: (a) programme exposure - a binary indicator of whether the student took a stand-alone personal-finance course or a course with embedded personal-finance content prior to twelfth grade, supplemented by reported instructional hours; and (b) financial knowledge - measured using the “Big Three” and expanded “Big Five” financial literacy questions developed and validated by Lusardi and Mitchell (Lusardi and Mitchell 2014) and used in the National Financial Capability Study, complemented by adolescent items from the Jump$tart Coalition Survey (Mandell 2008b). Treating exposure and knowledge separately allows the analysis to distinguish receipt of instruction from actual learning outcomes - a distinction that has shaped much of the recent debate in this literature (Fernandes et al. 2014, Kaiser et al. 2022). Dependent variable: consistent with the cross-sectional design, the primary outcome is intention to enrol in a two- or four-year college within twelve months of high school graduation, measured on a multi-item scale. The study and analyses use the term “intention to enrol” rather than “actual enrolment” throughout, since actual enrolment cannot be observed within the cross-sectional timeframe. Future longitudinal extensions could link these intentions to administrative enrolment records via the National Student Clearinghouse. For confounding and control variables, recognising that many factors beyond financial literacy education shape college enrolment decisions, the analysis would control for parental educational attainment, household income, race and ethnicity, gender, prior academic achievement (self-reported GPA and standardised test scores where available), first-generation status, school-counsellor caseload, urbanicity and State-level financial-aid generosity. These co-variates are drawn from prior college-access models (Perna 2006b, Goldrick-Rab et al. 2016) and would be entered hierarchically in the regression analyses.

The independent variables are exposure to financial literacy education and measured financial knowledge, while the dependent variables include college enrolment intention, financial knowledge and perceived affordability of college. Data will be collected using a self-administered online (or paper-based, where needed) survey, incorporating validated instruments, such as the Jump$tart Coalition Financial Literacy Survey (Mandell 2008b) and the Big Three / Big Five financial literacy questions (Lusardi and Mitchell 2014). Data analysis will include descriptive statistics to summarise demographic data and inferential analyses, including logistic regression to examine enrolment likelihood of enrolment intention, t-tests to compare literacy levels and multiple regression to assess how literacy and perceived affordability jointly predict intention to enrol. Ethical safeguards such as informed consent, confidentiality and voluntary participation will be maintained in line with educational research standards.

This study adheres to the ethical principles of educational research, emphasising respect for participants, informed consent and data confidentiality (American Educational Research Association 2011). As this study is presented as a research idea, ethical approval has not yet been obtained. Prior to any data collection, a full institutional review board (IRB) review would be sought from the principal investigator’s home institution and data-use or research agreements would be established with each participating school district. Participants and their guardians will receive detailed information about the study’s purpose, procedures and voluntary nature, with the option to withdraw at any time. Given the inclusion of minors, active parental consent will be obtained in compliance with institutional review board (IRB) standards. All survey responses will be anonymised and data will be securely stored on password-protected systems, with access restricted to named members of the research team and retained no longer than required by the approved IRB protocol.

Despite rigorous design, several limitations may affect the study’s validity and generalisability. First, reliance on self-reported survey data may introduce response bias, as participants could overestimate their financial knowledge or intentions. Second, the cross-sectional nature of the study limits causal inference, as it measures associations rather than longitudinal effects; observed relationships should, therefore, be interpreted as correlational rather than causal. Third, potential disparities in access to financial literacy programmes across school districts could skew results. Additionally, obtaining participation from under-represented or rural students may be challenging due to limited internet access, a limitation that the proposed paper-based administration is designed to mitigate, but cannot fully eliminate. Finally, measuring intentions to enrol rather than actual enrolment constrains predictive accuracy, a constraint the study acknowledges consistently and which future longitudinal extensions could address by linking the survey sample to National Student Clearinghouse records. These limitations underscore the need for future longitudinal and mixed-method studies.

The anticipated findings of this study are expected to advance understanding of how financial literacy education influences college access amongst low-income students. If results confirm that financial literacy education enhances enrolment intentions, they will provide empirical support for the Social Capital Theory and Human Capital Theory, demonstrating that financial knowledge not only strengthens students’ economic decision-making, but also expands their access to supportive networks that facilitate college entry (Becker 1964, Coleman 1988). Conversely, if financial literacy shows limited influence, the findings may prompt re-examination of the interaction between financial knowledge, institutional barriers and socio-cultural capital, a possibility consistent with the more findings of the study done by Fernandes et al. (2014).

The study’s implications extend to educational leadership and policy. Evidence linking financial literacy education to increased college access could justify the integration of mandatory financial literacy curricula in K–12 education, especially in underserved districts, building on the policy momentum documented by Urban et al. (2020) and Stoddard and Urban (2020). For practitioners, the results may provide information for targeted interventions that combine financial education with mentorship programmes, fostering confidence and informed financial planning amongst low-income students. Policy-makers could use these findings to design equitable funding models that prioritise early financial education as a pathway to college readiness and socioeconomic mobility. Ultimately, this research supports the argument that financial literacy is an essential equity tool in higher education access.

This study highlights the critical role of financial literacy education in enhancing college access for low-income students by equipping them with the financial knowledge, confidence and networks necessary for informed decision-making. Drawing on the literature reviewed above, including Hastings et al. 2013, Urban et al. 2020, Stoddard and Urban 2020, Kaiser et al. 2022 and Lusardi and Mitchell 2023, the proposed study hypothesises that students exposed to structured financial literacy programmes will demonstrate stronger intentions to enrol in college and have a greater understanding of financial aid opportunities. This hypothesis, grounded in both Human Capital Theory and Social Capital Theory, motivates the methodological design described above; it is presented here as a proposition for future empirical testing rather than as a finding from data already collected. Although no primary data have yet been gathered, the literature reviewed in this study points to the transformative potential of financial literacy as a tool for reducing systemic barriers to higher education and underscores the value of carrying out the proposed study. These analyses and implications underscore the importance of embedding financial education into secondary curricula, especially in under-resourced schools. Ultimately, this work contributes to the broader conversation on educational equity by positioning financial literacy not merely as a life skill, but as a strategic intervention for college readiness and social mobility.