Addressing Information Gaps: Disparities in Financial Awareness and Preparedness on the Road to College

The rising cost of higher education and questions of affordability are concerns for many families in the United States, particularly those from historically underrepresented backgrounds. This article examines what we know about financial awareness and preparedness through a review of 39 empirical articles on the topic published between 2000 and 2013 in 24 peer-reviewed publications. The literature review highlights existing disparities by race, ethnicity, and socioeconomic status. Specifically, it examines challenges faced by students and parents when considering and preparing for college costs, and explores how current research discusses policies and practices to alleviate disparities in pre-college financial awareness and preparedness. This literature review reveals an intricate link between pre-college financial awareness and preparedness, in that information and awareness are often precursors to behaviors and preparations involved with financing a college education. Conclusions present implications for programs and policies designed to address these inequities and include recommendations for future research on this important, but under-researched topic.