Personality Traits and Student Loan Holding for Self and for Children Among Baby Boomers

Abstract

This study investigates the relationship between baby boomers’ personality traits and their student loan indebtedness in the United States. This article utilizes the 2014 data set from the 1979 cohort of the U.S. National Longitudinal Survey of Youth, applies survey weights, estimates multiple probit models, and computes marginal effects. The results reveal that those with greater openness are more likely to have student loans for themselves, while those with greater neuroticism are less likely to have student loans for themselves and for their children. Additional analyses based on core/trailing boomer status, gender, and income subsamples show the differing roles of each personality trait on student loan indebtedness. The findings build upon the literature by providing evidence that personality is significantly associated with student loan indebtedness and that this relationship is robust to translate into student debt management behavior.

Examining U.S. Millennial Retirement Plan Participation Decisions: The Roles of Employer Contributions and Automatic Enrollment

“…They include age, gender, education, number of children, homeownership, ethnicity, race, marital status, household income, total debt, self-employment status, confidence with investing, risk tolerance, financial advisor use, and investable assets. These variables are also included in this study because previous studies (e.g., Yao and Cheng 2017;Korankye 2023;Korankye et al 2023;Liu et al 2023aLiu et al , 2023b show their relevance in determining financial behavior, including retirement saving decisions.…”

Student loan debt in retirement: identifying the correlates and implications for policy, practice and research

“…The dataset also lacks information on the amount of student debt owed in retirement, limiting the ability to perform detailed analysis. Variables such as personality traits that are known to influence financial behavior are unavailable for analysis (Liu et al ., 2023). Again, some of the factors (for instance, financial literacy and financial education) included in the model could be endogenous (Lusardi and Mitchell, 2014).…”

“…This is particularly true given that not many of these studies have examined the determinants of student loan indebtedness in retirement. Except for Liu et al (2023), a closely related study is Lusardi et al (2020a, b), wherein it is emphasized that debt heightens financial insecurity in retirement. Nonetheless, their article focuses primarily on debt in general and near-retiree older adults.…”

“…This is particularly true given that not many of these studies have examined the determinants of student loan indebtedness in retirement. Except for Liu et al. (2023), a closely related study is Lusardi et al .…”