Undergraduate Honors Theses

Thesis Defended

Spring 2018

Document Type

Thesis

Type of Thesis

Departmental Honors

Department

Economics

First Advisor

Jeffrey Zax

Abstract

This paper examines the relationship between an individual’s education and their financial savings behavior. Ordinary least squares (OLS) regressions are used to estimate the effects of educational attainment on an individual’s portfolio diversity and their propensity to invest in specific financial asset classes. The results indicate individuals with greater educational attainment are more likely to have a diverse portfolio and invest in various asset classes such as stocks, mutual funds, and retirement accounts. The results also suggest that educational attainment has a greater positive effect on saving behavior for Whites than for Black or Hispanic individuals.

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