Literature Reviews





TheAfrican American males tend to be in a lower income bracket comparedto their white counterparts. Similarly, they have high job turnoverrates and a lower probability of joining higher educationinstitutions than the white students. Consequently, this studyintends to investigate whether financial education offered incolleges and education does contribute to the discrepancy. Theresearch will apply stratified sampling approach to analyze thetarget population (Yates, &amp Ward, 2011). Murphy (2005) attributesthe African American’s financial misery to the low rate of joiningand completing college education. Besides, numerous black Americanshave either low or no professional qualifications in their respectivejobs. Subsequently, they are more vulnerable to layoffs when businessare downsizing. Furthermore, black Americans tend to join affordableacademic institutions that offer low quality education compared tothe costly colleges and universities that many white students join.Finally, the students will use the information acquired to determinewhether advanced academic skills do affect the financial capabilityof black students in any way. Besides, the new findings will help toclose the uncertainty gap that exists regarding the role of educationtowards achieving equality.

Thischapter reviews previous studies conducted on the relationshipbetween job turnover and financial literacy among young adults drawnfrom the African-American population. The youths are undergraduatesselected through stratified sampling. The chapter will offer anddevelop the theoretical framework that will help in understanding thematter under study. In particular, the researcher seeks to identifywhether graduation rate, job turnover and financial literacy have anyconsiderable relationships. The review will use materials fromscholarly materials and journals that highlight the relationshipbetween graduation rates and financial literacy among the blackmales. The literature review provides the researcher with additionalsecondary data from government reports. Various research studies haveshown a great relationship between graduation rates and financialliteracy among the African-Americans.

FinancialLiteracy among Students

Accordingto LaBorde, Mottner, and Whalley (2014), many people, includingcollege students are lacking financial literacy. In their study, theauthors examined issues such as students’ perception and knowledgeon financial decisions. The researchers used the stratified samplingmethod to examine the student’s financial knowledge. It was foundthat students who have knowledge of financial management makesuitable decisions.

Thestudy recommends better strategies that will improve the curriculumon financial literacy. The recommendations provided will help inincreasing awareness about financial decisions and improve theability of graduates to meet their needs after graduation. Severalstudies show significant relationships between financial literacy andturnover rates. With the paper seeking to examine the relationshipbetween the financially educated and monetary illiterate AfricanAmerican black males, the review of previous literature will help ingenerating important findings to inform the study (Murphy,2005).

Youthswho lack education are likely to have poor literacy levels on smallissues such as financial management. Lack of skills and educationcompels young adults to remain unsettled and likely to shift from onejob to another looking for better opportunities. In American society,black Americans have for a long time experienced diverse challengesthat affect their socio-economic well-being. UndergradAfrican-American males find themselves unable to complete school withdata showing lower completion rate among the African-American.

Yatesand Ward (2011) observe that the policies in many American statesemphasize students to enhance their skills on both economic andfinancial literacy. The authors note that the many Americansexperience incidences of bankruptcy and mortgage foreclosure. Themain interest of the study is investigating the impact of thefinancial knowledge students acquire in higher education levels ontheir adult life

Usingthe stratified sampling method, information was collected from highschool and college students. Furthermore, the authors examined thecollege curriculums concerning the way they prepare students in termsof personal finance. The findings from the study indicate that thestudents were not adequately prepared on personal finance. It wasidentified that the financial knowledge offered to students has greatinfluence on their finance decisions during their adult life. Theauthors recommend that the colleges need to prepare students onpersonal finance (Yates &amp Ward, 2011).

Intheir study on financial literacy among young people, Lusardi,Mitchell, and Curto (2010) observe that financial knowledge amongthis group is low. The authors used the 1997National Longitudinal Survey of Youthto gain deeper understanding about the matter under study. Thefindings from the study indicate that the less that one-third ofyoung adults have basic financial knowledge. Socio-demographic andfamily characteristics were seen to influence the literacy levels.The study also indicated that young adults from wealthy backgroundshave more financial knowledge compared to those from poorbackgrounds.

GraduationRates among the African-Americans

Accessto financial literacy among the African-American males generatesgreat concern to the authorities. Data from the learning institutionsshow that these students have lower graduation rates (Harper,Patton, &amp Wooden, 2009).Further, the job turnover rates are high although there is a generallack of research studies that connects the financial literacy and jobturnover (De`Armond,2010). Policies on education for all have provided an opportunity tothe marginalized and minority groups to pursue careers, education andother engagements. There has been concentration on the quality andquantity of education required to shape the generation in thecontemporary world. With appropriate strategies, quality educationcan nurture children from early age and empower them to grow towardsbuilding a better society in future particularly in making financialdecisions. Participation of minority groups such as African-Americansin policymaking has led to increased demand for better educationamong the blacks. This has encouraged them reconcile socialinequality, work and family life. Additionally, black males are nowoperating and thus provide to the increase of the economy.

Accordingto Harper, Patton, and Wooden (2009), several steps have been takenby the authorities to promote access to education aomng theAfrican-American. Access and equity are important indicators that theauthors use to examine the policy efforts among this group. Thearticle examined historical policies such as improved enrolment amongthe minorities that have sought to improve the degree attainmentsrates. The authors use the critical race theory to ascertain how thewhite supremacy and black ideologies influenced the various educationpolicies. The findings from the study indicate that access toeducation among the blacks was negatively affected by the dominantpolicies formulated by the whites. The findings also indicate thatthe blacks used activism to advocate for their education rights.Their advocacy efforts helped in the creation of schools and funds topromote the educational competencies. Belgrave(2009) observes that the global competition and shifting nature ofthe community has prompted to new ways of learning.

Inhis study, Harper (2012) examined the completion rates and collegeenrollments among black males. The researcher undertook the study bysampling various institutions that admitted black citizens. Theresearch findings indicate that the number of black students in manylearning institutions is still low. According to Harper (2012), lowcollege enrolments and completion rates among the black males in theUS continues to generate great concern. Poor completion rates affectstudents’ competency on their basic wellbeing including financialmanagement. Educational administrators and policymakers have not doneenough to reverse the trend that has resultant effects on thewell-being of the said individuals (Belgrave, 2009). In examining theresponsibilities of the HBCUs, Belgrave (2009) notes thatinstitutions of higher learning are yet to promote policies that helpstudents in advancing their goals on personal finance. Belgrave(2009) observes that the HBCUs are not faring well in their missionto build capacity among the black population. HBCUs were created toenhance educational access to the black Americans. HistoricallyBlack Colleges and Universities(HBCUs) were created to empowerthe blacks with necessary socio-economic skills. Theinitial thinking was that the country would not have progressedwithout intellectual capacity. As such, the blackscould only gain equal social rights by demonstrating theirintelligence and capacities. Overthe years, these institutions have become financially deprived whileothers are losing their black majorities. The situation has negativeeffects on the educational empowerment of the blacks. In fact, amere 19 percent of the African-Americans aged between 22 and 29 yearspossess a college degree. Data from the authorities show that thecompletion rates of the blacks lag behind compared to the whites.Currently, the graduation rate stands at 61 percent and 39 percentfor the whites and blacks respectively. American society has greatregard for the educated individuals. In fact, the quality of life andstandard of living is highly associated with the educational level.Unfortunately, access to quality education among the blacks does notmatch the expected national standards. Education is the catalyst toprosperity and harmonious relations among diverse ethnic groups andraces.


Intheir book on career development, Brownand Lent(2005) observe that unemployment among the African-Americans islinked to discrimination. Residential segregation has alsocontributed significantly to high turnover rates. Over time, theAmerican authorities have embraced significant changes and policiesaimed at improving the graduation rates(Brown &amp Lent, 2005).African-Americans aged between 21 and 25 years have benefitted frommost of the empowerment programs. As such, Brownand Lent(2005) assert that access to financial literacy programs havebenefited these young adults. High turnover rates can be explained bypoor and skewed policies at the organizational levels that largelydiscriminate the African-Americans. Accordingto Cleveland (2004), a professor StocktonUniversity,the graduation rates among the African-American is lower compared tothe whites. The author observes that there is a long way to go inbridging the gap between the two groups. He notes that the graduationrates between the whites and African-Americans differ by almost 40percent. To improve the graduation rates, Cleveland (2004) believesthat the educational administrators need to embrace values andpolicies that promote access to education among the blacks.Apparently, learners need information either through experiences orclass work to improve their competence. It is through the informationacquired that the students acquire literacy on finances among otherthings. Joining college education has significantly openedopportunities for African-American students. As such, the trend hasimproved the graduation rates and enhanced their knowledge onfinancial information. It remains t be seen whether there exists anyrelationship between financial literacy and job turnover rates (Lucey&amp Laney, 2012). Poor education levels has resultant effects onthe financial literacy levels. Data from various studies indicatethat the white families are wealthier compared to theAfrican-American families. With low education levels, the black maleshave lower financial knowledge.


Theappropriate research design is generated upon defining the nature ofthe problem. Being a quantitative study, it would be appropriate toconsider the sampling method in the collection of data. According toMugenda and Mugenda (2013), quantitative research approach includes apredetermined approach where a large number of participants areinvolved in the exercise. From the studies reviewed above,researchers have greatly considered quantitative approach as anappropriate method to collect data for purposes of this study.Participants involved in the exercise are normally sampled from alarge population. The sample acts as a representative for thepopulation. The researcher has a responsibility of determiningappropriate sample size for his/her study exercise. The participantsfor the study exercise included 64 undergrad graduatedAfrican-American males.

Whenusing this approach, the quantities applicable are required to beobjective and statistically applicable. It is for this reason thatfigures are required to support the research study. The variables touse in the study include financial literacy levels, job turnoverrates, and graduation rates. By examining the variables, theresearcher will be in a position to establish if there exists anyrelationship between these variables. Moreover, the method willinvolve testing of a hypothesis.

Usingsuch an approach, according to Kothari(2011), a researcher may have two scenarios that he or she wants toexamine. The study is thus expected to find out whether thehypothesis is correct or not. The method is classified as descriptivesince the information collected is analyzed using descriptivestatistics. The researcher will compute percentages, responses andvariations.


Fromthe review, it is evident that there exists relationship between jobturnover rates, graduation rates, and financial literacy. Some of thestudents who shift jobs appear to make poor financial decisions.Furthermore, the study shows that there are low graduation ratesamong the black males. With the low graduation rates theAfrican-American, the financial literacy among this group appear tobe low compared to the whites. It would be appropriate for theresearchers to examine specific factors such as discrimination,personal goals, and interests that can easily influence financialliteracy. In a socioeconomic setting, education plays a pivotal rolein harnessing the financial knowledge among the citizens.


Thestudy will prove that the financial literacy of black students in theUnited States influences graduation rates and job turnover rates. Theanalyzed data will show that many black employees who swap jobs tendto base their decisions on unreliable information since they lackadvanced understanding of financial information as well as thenecessary skills to reach high profiles positions such as businessexecutives (Murphy, 2005). The accuracy of the information achievedis likely to be high since the information was derived usingstratified sampling methods to enhance accuracy of the findings. Theresearch is different from previous studies because it investigatesthe relationship of lack of financial literacy towards enhancinginequality gap between the white and Black Americans. LaBorde,Mottner, and Whalley (2014) argue that the financial literacy isimportant to help the male African Americans overcome inequalitydiscrepancies such as socioeconomic background, personal goals anddiscrimination.


Belgrave,F. Z. (2009). AfricanAmerican girls: Reframing perceptions and changing experiences.Dordrecht: Springer.

Belgrave,F. Z., &amp Brevard, J. K. (2014). AfricanAmerican boys: Identity, culture, and development.New York: Springer.

Brown,S. D., &amp Lent, R. W. (2005). Careerdevelopment and counseling: Putting theory and research to work.Hoboken, N.J: John Wiley.

Cleveland,D. (2004). Along way to go: Conversations about race by African American facultyand graduate students.New York: P. Lang.

De`Armond,D. (2010). An empirical examination of financial literacy messagetheme effectiveness among college students: Debt or saving?Journal of Global Business Management, 6(2),1-6.

Harper,S. R. (2012). Black male student success in higher education: Areport from the national Black male college achievement study.Philadelphia: University of Pennsylvania.

Harper,S. R., Patton, L. D., &amp Wooden, O. S. (2009). Access and Equityfor African American Students in Higher Education: A Critical RaceHistorical Analysis of Policy Efforts. TheJournal of Higher Education, 389-414.

Kothari,C. R. (2011). ResearchMethodology: Methods and Techniques.New Delhi: New Age International Ltd.

LaBorde,P. M., Mottner, S., &amp Whalley, P. (2014). Personal financialliteracy: Perceptions of knowledge, actual knowledge and behavior ofcollege students.Journal of Financial Education, 39(3),1-30.

Lusardi,A., Mitchell, O. S., &amp Curto, V. (2010). Financial Literacy amongthe Young. Journalof Consumer Affairs,44(2), 358–380.

Lucey,T. A., &amp Laney, J. D. (2012). Reframingfinancial literacy : exploring the value of social currency.Charlotte, N.C.: Information Age Pub.

MugendaM. O. and Mugenda A. (2003),Research Methods:Qualitative and Quantitative Approaches, African Centre forTechnology Studies, Nairobi, Kenya.

Murphy,A. J. (2005). Money, Money, Money: An Exploratory Study On TheFinancial Literacy Of Black College Students. CollegeStudent Journal,39(3), 478-488.

Scott,L. L. (2011). AfricanAmerican male academic success.Boca Raton, Fla:

Treadwell,H. M., Xanthos, C., &amp Holden, K. B. (2013). Socialdeterminants of health among African American men.San Francisco: Jossey-Bass.

Yates,D., &amp Ward, C. (2011). Financial literacy: Examining theknowledge transfer of personal finance from high school to college toadulthood.American Journal of Business Education, 4(1),65-78.