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2016
Nonprofit Financial Literacy Program for AdultsLiving in Rural CommunitiesLisa CollazoWalden University
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Walden University
COLLEGE OF EDUCATION
This is to certify that the doctoral study by
Lisa Collazo
has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made.
Review Committee Dr. Michael Butcher, Committee Chairperson, Education Faculty
Dr. Jennifer McLean, Committee Member, Education Faculty Dr. Irene McAfee, University Reviewer, Education Faculty
Chief Academic Officer
Eric Riedel, Ph.D.
Walden University 2016
Abstract
Nonprofit Financial Literacy Program for Adults Living in Rural Communities
by
Lisa L. Collazo
MBA, South University, 2008
BA, South University, 2006
Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Education
Walden University
September 2016
Abstract
Consumer research has indicated that financially uneducated adults who live in rural
areas often make poor financial decisions that plague them for decades. As a result of
increased home foreclosures, student loan defaults, and bankruptcies, policymakers at the
state and federal level, business leaders, academic communities, and non-profit agencies
have identified a need for quality financial education programs. The purpose of this study
was to examine the effectiveness of a financial literacy program created for financially
uneducated adults living in a rural community, as measured by participants’ perceptions
of their financial concepts knowledge and financial management ability after program
completion. The conceptual framework was guided by the transtheoretical model of
change theory, which holds that an individual’s behavior and beliefs affect his or her
surroundings and self-perceptions. Data were collected from 36 former program
participants through a mailed 3-part survey developed by the Federal Deposit Insurance
Company. The data were analyzed using descriptive statistics and one-sample chi-square
tests to determine whether responses to 3 survey items measuring knowledge gain and
improved ability to manage finances were equally distributed. The tests were significant
and indicated that all participants (100%) agreed/strongly agreed that they were more
financially knowledgeable after the financial literacy program and could use what they
learned independently. Most participants (86%) also reported that, after completing the
financial literacy program, they were better able manage their finances on their own.
Implications for positive social change include providing research-based findings to the
program administrators, which may assist in promoting the program and improving the
financial literacy of the adults in this rural community.
Nonprofit Financial Literacy Program for Adults Living in Rural Communities
by
Lisa L. Collazo
MBA, South University, 2008
BA, South University, 2006
Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Education
Walden University
September 2016
Dedication
To the Lord for giving me the strength to complete this doctoral journey. To my
father who started this journey with me over five years ago. While you were not able to
see the finished project, I thank you for your love and support. To my family, especially
my husband, thank you for all of the love, support, and encouragement. To my friends
and co-workers, thank you for believing in me.
Acknowledgments
Over the past five years I have received unconditional support and inspiration
from my family, friends, and co-workers. My committee Chair, Dr. Michael Butcher has
been an inspiration during this doctoral journey. His guidance has made this a thoughtful
and rewarding experience. I would like to acknowledge my second committee Chair, Dr.
Jennifer McLean for all of her guidance and passion on this doctoral study. Her in-depth
reviews were instrumental in my completion of this project. To Dr. Irene McAfee, my
University Research Reviewer (URR), thank you for your vital feedback on this project.
To the Walden University Institutional Review Board (IRB), thank you for you valuable
input and assistance.
i
Table of Contents
List of Tables ....................................................................................................................... v
List of Figures ..................................................................................................................... vi
Section 1: The Problem ....................................................................................................... 1
The Local Problem ........................................................................................................ 1
Definition of the Problem .............................................................................................. 3
Rationale ........................................................................................................................ 5
Evidence of the Problem at the Local Level ........................................................... 5
Evidence of the Problem From the Professional Literature .................................. 13
Definition of Terms ..................................................................................................... 15
Significance of the Study ............................................................................................. 16
Research Questions and Hypotheses .......................................................................... 18
Review of the Literature .............................................................................................. 19
Implications ................................................................................................................. 42
Summary ...................................................................................................................... 43
Section 2: The Methodology ............................................................................................. 46
Research Design and Approach ................................................................................... 46
Evaluation Design and Description ....................................................................... 47
Justification of Design ........................................................................................... 48
Description of the Type of Evaluation Conducted ................................................ 49
Justification for Using the Logic Model in Program Evaluation .......................... 50
Logic Model in Program Evaluation ..................................................................... 51
Outcomes and Performance Measures .................................................................. 52
ii
Overall Evaluation Goals ...................................................................................... 53
Participants .................................................................................................................. 53
Criteria for Selecting Participants ......................................................................... 55
Justification for the Number of Participants .......................................................... 55
Procedures for Gaining Access to Participants ..................................................... 56
Methods for Establishing a Research-Participant Working Relationship ............. 57
Measures for Ethical Protection of Participants .................................................... 59
Data Collection ............................................................................................................ 61
Data Collection Choices and Justification ............................................................. 61
Specific Plan for the Survey .................................................................................. 63
Data Collection and Recording ............................................................................. 63
The System for Tracking Data and Emerging Understandings ............................. 64
The Role of the Researcher ................................................................................... 65
Data Analysis and Findings ......................................................................................... 65
Criteria for Selecting Participants ......................................................................... 65
Procedures for Gaining Access to Participants ..................................................... 66
Specific Plan for the Survey .................................................................................. 67
How and When Data Were Analyzed ................................................................... 67
Data Analysis Results .................................................................................................. 69
Evidence of Quality and Procedures to Assure Accuracy and Credibility ............ 86
Procedures for Determining Validity .................................................................... 86
Procedures for Dealing with Discrepant Cases ..................................................... 86
Limitations/Assumptions ............................................................................................. 87
iii
Research Questions and Outcomes ............................................................................. 88
Summary ...................................................................................................................... 90
Section 3: The Project ....................................................................................................... 91
Introduction ................................................................................................................. 91
Description and Goals ................................................................................................. 92
Description .................................................................................................................. 92
Project Goals ............................................................................................................... 94
Rationale ...................................................................................................................... 96
Review of the Literature .............................................................................................. 97
Project Description .................................................................................................... 103
Project Evaluation Plan ............................................................................................. 105
Implications Including Social Change ....................................................................... 108
Local Community ................................................................................................ 108
Far-Reaching ....................................................................................................... 109
Conclusion ................................................................................................................. 110
Section 4: Reflections and Conclusions .......................................................................... 112
Project Strengths and Limitations ............................................................................. 112
Introduction ............................................................................................................... 112
Project Strengths ........................................................................................................ 112
Project Limitations .................................................................................................... 113
Recommendations for Alternative Approaches ......................................................... 113
Scholarship, Project Development and Evaluation, and Leadership andChange ...... 114
Project Development and Evaluation ........................................................................ 116
iv
Leadership and Change ............................................................................................. 117
Reflection on Importance of the Work ...................................................................... 117
Analysis of Self as Scholar ........................................................................................ 118
Analysis of Self as Practitioner ................................................................................. 119
Analysis of Self as Project Developer ....................................................................... 120
The Project’s Potential Impact on Social Change ..................................................... 121
Local Community ................................................................................................ 121
Far-Reaching ....................................................................................................... 121
Implications, Applications, and Directions for Future Research .............................. 122
Conclusion ................................................................................................................. 123
References ....................................................................................................................... 125
Appendix A: Evaluation Report ...................................................................................... 133
Appendix B: Survey Instrument ...................................................................................... 187
v
List of Tables
Table 1. Census Bureau Poverty Level Comparison…………………………………….24
Table 2. Department of Corrections Inmate Population...………………………………54 Table 3. Returned Survey Demographics…….…………………………………………81 Table 4. Returned Survey Results: Part I.…….…………………………………………85 Table 5. Returned Survey Results: Part II.……………………………………………...89 Table 6. Returned Survey Outcomes……...…………..………………………………...94
vi
List of Figures
Figure 1. 2012 class attendance by quarter.……………………………………………19
Figure 2. 2012 class attendance by month ………………………………………….....19
Figure 3. Sample logic model...……………………………………………………….63
Figure 4. Survey respondents with and without savings accounts…………………..149
Figure 5. Survey respondents with and without checking accounts...……………….149
Figure 6. Where survey respondents cash their checks..…………………………….149
Figure 7. How much survey respondents pay to cash their checks...………………..150
Figure 8. Monthly checks written……………………………………………………150
Figure 9. Survey respondent monthly withdrawal activity..………………………....151
Figure 10. Survey respondent monthly deposit activity.......…………………………151
Figure 11. Survey respondents: no checking account bill pay methods……………...151
Figure 12. Survey respondents wire of money activity..……………………………..151
Figure 13. Borrowing money activity.………………………………………………..152
Figure 14. Who survey respondents borrow money from...………………………….152
Figure 15. What survey respondents use borrowed money for……………………….153
Figure 16. Survey respondent’s knowledge of interest rates.....………………………153
Figure 17. Knowledge of how to open up a bank account....…………………………154
Figure 18. Survey respondent knowledge of writing checks...……………………….154
Figure 19. Survey respondent knowledge of atm/debit card usage..…...…………….155
Figure 20. Survey knowledge of the cost of opening a bank account..………………155
Figure 21. Knowledge of the cost of borrowing money.……………………………..156
Figure 22. Survey respondent knowledge of apr rates…..……………………………156
vii
Figure 23. Financial literacy program knowledge levels...…………………………...157
Figure 24. Survey respondent ability to manage own finances….....………………....158
Figure 25. Can survey respondents use what they have learned...…..….…………….158
1
Section 1: The Problem
The Local Problem
Newspapers throughout the United States feature headlines dealing with home
foreclosures, student loan debt levels, unemployment, bankruptcy, and money-related
commission of crimes leading to incarceration. As of January 2013, the unemployment
rate in the United States is 7.9%, which translates into nearly 10.4 million U.S. adults out
of work (Bureau of Labor Statistics, 2012). As of December 2012, the home foreclosure
rate stood at 77% (Bureau of Labor, 2013). These numbers accompany historically low
savings rates, high consumer debt, and rising bankruptcy rates. Although these personal
financial difficulties might be due in part to the recent economic downturn, a survey of
1,001 Americans by Princeton Survey Research Associates International (2008) indicated
a lack of understanding of financial systems and the complexity of financial services and
products. Research indicated that many Americans believe recent economic struggles are
due, in large part, to U.S. citizens being underprepared to compete in a “knowledge
economy” that is global (Cochran-Smith & Power, 2010, p. 8).
The success of rural adult learners surviving future economic downturns is
critical, and existing financial literacy programs must be custom-made to meet the
literacy needs of these learners. Cochran-Smith and Power (2010) also highlighted that
students are not learning what they need to know to compete in a global society and that
teachers are not always prepared to teach all students effectively. Organizations such as
Financial Empowerment, local churches, and the federal government have introduced
programs to educate consumers on personal money management to assist minority
2
households with improving their credit histories and building savings for the future.
Financial education is needed among adults living in rural communities in Georgia;
however, adults living in these areas are not taking advantage of current financial literacy
programs offered. I explain the problem in this section and provide the reasoning for the
study in local and national educational settings. A list and explanation of key definitions,
significant terms, and concepts relevant to the study are also discussed in this section.
Much of this section involves background information about the problem and the
potential outcomes of minority families, along with a review of literature related to
theories about the research problem and overall success of the financial literacy program.
This program evaluation used quantitative descriptive data to capture the
perceptions of the program participants (Creswell, 2002, 2003; Creswell et al., 2003).
Quantitative data were collected using a Money Smart survey. The survey questions
helped analyze whether the program participants gained skills necessary to change their
current financial situations. I utilized the transtheoretical model of change (TTM) theory
because it is a theory that explained changing behavior in adult learners. The concept
focused on changing what people believe or their behavior in relation to dramatic life
events. It is learning that goes beyond obtaining content knowledge, learning equations,
or memorizing mathematical formulas. Content knowledge generally refers to the facts,
concepts, theories, and principles that are taught and learned, rather than to related skills.
Skills such as reading, writing, or researching that students also learn in academic
courses. It is a valuable process for adults to learn to think for themselves, through
redefining what they have to come to know through life experiences (Merriam,
3
Caffarella, & Baumgartner, 2007). In this case, participating in the financial literacy
program should assist the students in gaining new financial skills, thus changing overall
financial behaviors.
This study contributes the body of knowledge needed to address this local
problem of financial literacy among minority families living in rural communities. The
focus is on the effectiveness of current financial education programs and their ability to
generate increased participation, ultimately leading to changes their financial behaviors.
Definition of the Problem
According to 2008 U.S. Census data, more than 12 million adults in the United
States report they do not speak English well or at all. Proficiency in reading, writing,
speaking, and understanding the English language appears to be linked to multiple
limitations in adult life in the United States, including financial literacy—the ability to
make informed judgments and take effective actions regarding the current and future use
and management of money (U.S. Census Bureau, 2008). Having financial freedom is
about understanding financial choices and the implications of making those choices in
relationships and personal finances. Money affects almost every part of life. The
decisions made regarding how to earn, spend, and save money have never been more
critical. The Federal Deposit Insurance Company (FDIC) reported that households that
are unbanked (those households most likely not to have a checking or saving account) are
more likely to use alternative financial services, and approximately two-thirds of these
households used pawn shops, payday loans, rent-to-own agreements, nonbank money
orders, or check-cashing services (FDIC, 2009).
4
Many rural minority families experience financial challenges such as debt,
insufficient savings, and unemployment. Uninformed financial choices have led families
into debt and lower living standards because they cannot meet basic living needs. In
2003, recognizing the importance of teaching adults financial education, Congress passed
Title V of the Fair and Accurate Credit Transaction Act (FACT Act, 2003), which
established the Financial Literacy and Education Commission with the purpose of
improving the financial literacy and education of persons in the United States (U.S.
Department of Treasury, 2012). In 2004, the state of Georgia and the Georgia State Board
of Education approved new Georgia Performance Standards (GPS) social studies
curriculum intended to strengthen economics content across K–8 grades and includes
personal finance in all grades, including high school. In the fall of 2006, a required high
school economics course entitled, “Let’s Make It Personal” focused on five themes:
fundamental, microeconomics, macroeconomics, international, and personal finance were
instituted in public schools in Georgia.
During the past 10 years, my work as an accredited financial counselor and
planning educator (AFCPE) in rural communities allowed me the opportunity to advise
some of these families. A majority of the families were living paycheck to paycheck and
had damaged credit histories. Some clients expressed concerns of embarrassment and
criticism associated with turning to family or friends for help. This led to the frequent
utilization of payday lenders and check cashing facilities to help pay for basic everyday
living expenses. Because of these poor financial decisions, most paid a higher cost for
5
borrowing the money. These same poor decisions only made their financial dilemmas
worse (Caskey, 2005).
Tattnall County, Georgia, is the location of this study. The county has five
incorporated communities including Glennville, the most populated city in the county;
Reidsville, the county seat; Collins; Cobbtown; and Manasas. The county population in
July 2012 was 25,384, with 21% living in urban areas and 79% living in rural areas. The
population as of July 2012 was 58.8% White, non-Hispanic; 29.7% Black, non-Hispanic;
10.8% Hispanic or Latino; 0.5% Asian alone; and 0.9% two or more races (U.S. Census
Bureau, 2013). The city of Glennville is the location of the financial education class. The
local problem that prompted this study was the low participation level of rural minority
adults attending offered financial education classes in this community. This study
evaluated a current nonprofit financial education program and its ability to help
participants gain new financial literacy skills that lead to making more informed financial
decisions.
Rationale
This section examined the viewpoints presented in the literature and a description
of the significance of the problem in rural communities.
Evidence of the Problem at the Local Level
Financial Empowerment is a local faith-based nonprofit organization that
provides a wide range of personal financial education classes as part of its financial
literacy program. The goal of the course is to teach rural adults personal finance skills
that transform their current economic situations. The program offered is 5 weeks long and
6
consists of eight personal finance modules. Each module lasts for approximately 2 hours
once per week.
The organization implemented a new financial management course for adults
living in the rural community of Tattnall County in Georgia in 2011. Implementation has
been quite expensive, involving the purchase of instructional materials and computer
software, and faculty training. The organization would like to study the effectiveness of
the new financial management program, looking at issues such as the effect on student
participation rates, student academic progress, student satisfaction with the program, and
program implementation issues.
The local problem of whether the Financial Empowerment personal financial
literacy program effectively addressed rural students’ needs was the focus of this study.
Developing effective adult literacy programs in rural communities is a learning process
that takes time and requires resources. Trust among stakeholders must be earned, and the
trust deepens as people believe their interests are considered. Most collaborative
relationships take time to develop, and in Tattnall County, it took more than 3 years for
Financial Empowerment to establish a working relationship within this rural community.
At the same time, federal legislation has limited the ability of local adult basic education
programs to respond to local needs by imposing a national definition of basic skills and
standard measurement criteria, (i.e., one size fits all) (Ziegler & Bingman, 2007). Listed
below is the class attendance organized quarterly, which is broken down by each month.
7
Figure 1. 2012 class attendance by quarter.
Figure 2. 2012 class attendance by month.
Figures 1 and 2 indicated participation levels for the 2012 calendar year. There
were a total of 50 participants signed up for the financial literacy class. Each quarter
indicated the number of adults signed up for the class and the actual number of
participants. The second figure represents class participation on a monthly basis. Each
month indicated the number of adults signed up for the class and the actual number of
participants.
8
According to Cheung and Wong (2002), “The major premise of an academic
curriculum should aim at developing students’ intellectual abilities in subject areas that
are most worthy of study” (p. 225) or evaluation. Schwartz (2006) mentioned that a good
curriculum is not only designed for the students, but also for the teachers. In other words,
effective curriculum should not only educate students, but teachers should also teach
something of value to the students. In Tattnall County, rural adults do not take advantage
of offered financial literacy program classes. Some program participants indicated on
course evaluations that they were too busy to participate, leading the organization to
believe they did not perceive the overall value of the program.
Currently, Financial Empowerment is working on ways to increase student
satisfaction with the course and curriculum. Continuation of the problem could lead to
increased student dropout rates and the elimination of the classes. The problem affects
students, Financial Empowerment administration, community leaders, and Tattnall
County as a whole. Student dropout rates influence revenue for the organization, local
churches, and individual households. Financial Empowerment has invested a substantial
amount of money to implement new technology in the classroom. The funding would
also be used to establish professional development programs. These programs would
introduce alternative ways of teaching in efforts to encourage student learning. Many
possible factors contribute to this problem, such as (a) student boredom, (b) lack of
perceived value to the student, (c) lack of time to participate in the course, and (d) student
ability to comprehend the current curriculum.
9
Financial education is important; however, some rural adults believe they do not
need to participate in financial education classes. The study conducted by the National
Assessment of Adult Literacy (NALS, 2009) indicated there is a need. The most recent
National Adult Literacy Survey commissioned by the U.S. Department of Education
established that approximately 63% of those surveyed demonstrated low levels of literacy
(NALS, 2009). The survey was administered to approximately18, 500 adults (16 years
and older) living in households and in prisons across the country. The study demonstrated
that minorities scored much lower than Caucasians in reading and writing levels (NALS,
2009). In addition, the Department of Education’s National Adult Literacy Survey
indicated that 17% of the adult population in the State of Georgia demonstrated low
levels of literacy (NALS, 2009). Currently, state and local county high schools offer
economics classes aimed at preparing high school seniors for the State-mandated End of
Course Tested (EOCT) course worth 15% of the semester grade. The financial education
class is not mandated. The concern is some minority adults that have already graduated
from high school did not have access or take advantage of the financial education offered
in high school.
Several gaps have been identified in the current research on financial literacy
issues and data. Most of the financial literacy assessments began in the 1900s and, until
recently, emphasis on financial literacy was not a priority (Bamberger et al., 2006). With
rising consumer debt levels, bankruptcies, home foreclosures, and identity thefts,
increasing the financial literacy of consumers has become a primary focus (U.S.
Department of the Treasury, 2011, p. 1). More banks and consumer agencies are offering
10
financial education; however, low program participation rates indicated adult minorities
living in rural communities are not using the programs.
The adult basic financial education programs were distant. Although the program
staff had relationships with individuals from other agencies, no structure was in place that
promoted interaction. Like other programs that provided social services, they reported
directly to the state offices that provided funding. Accountability was at the state and
federal levels rather than at the local level. Educational program and social service
agency staff had little reason or incentive to interact with local business or industry. The
lack of communication or coordination among different stakeholder groups in the county
was not apparent in day-to-day activities. Industrial plant closings, lack of population
growth, an aging population, low educational levels, and diminishing financial resources
had combined with the county’s geographical remoteness to produce a decline in the
vigor of the area. There were fewer employers, jobs, and qualified applicants for the jobs
that were available (Dykes & Rupured, 2006).
Although military families stationed at Fort Stewart, Georgia are moving to the
community, other young families were leaving the county for opportunities elsewhere.
The University of Georgia cooperative extension is located in Statesboro, Georgia. The
university is currently the only organization that offers financial education classes to rural
communities at the local level (Dykes & Rupured, 2006). The University of Georgia’
consumer financial literacy program, “Making Every Dollar Count,” is aimed at
enhancing financial education practices among Georgia residents. According to Dykes
and Rupured (2006), “Ninety-one of Georgia’s 121 counties are classified as persistent
11
poverty counties or areas in, which a high proportion of the residents have lived in a
constant state of poverty since at least 1980” (p. 77). The literacy program also indicated
that these counties represent an estimated 1.2 million Georgians, or 22% of the state’s
population. Data from the 2010 Census Bureau indicated that income in rural Tattnall
County was approximately $15,900, whereas the rest of the 68 counties in Georgia had a
medium income of approximately $34,919 (U.S. Census Bureau, 2010). Because of the
poverty levels, it is critical that non-profit agencies such as Financial Empowerment
collaborate with other stakeholders in efforts to provide personal financial education to
rural adults living in Tattnall County.
Table 1 indicates current U.S. Census Bureau National income level comparisons
by regions and race. The comparison is based on 2010 and 2011 census bureau data
reported by U.S. households. There are some limitations to the data in the form of
individual household’s accountability. The problem of poverty is significant at the
national and local levels. These poverty statistics demonstrate little change in the overall
economic status of everyday households. Americans are dealing with an economy that is
slowing down, increase in consumer, and rising unemployment rates.
12
Table 1 U.S. Poverty People in poverty (numbers in thousands)
2010 2011 Change in poverty Count % Count % Count %
Region U.S. 46,343 15.1 46,247 15.0 -96 -0.1 Northeast 7,038 12.9 7,208 13.1 170 0.2 Midwest 9,216 14.0 9,221 14.0 5 -- South 19,123 16.8 18,380 16.0 *-743 *-0.8 West 10,966 15.3 11,437 15.8 471 0.5 Race and Hispanic origin White 31,083 13.0 30,849 12.8 -234 -0.2 White, not Hispanic 19,251 9.9 19,171 9.8 -80 --
Black 10,746 27.4 10,929 27.6 183 0.2 Asian 1,899 12.2 1,973 12.3 74 0.1 Hispanic origin (any race)
13,522 26.5 13,244 25.3 -278 *1.2
Nativity Native-born 38,485 14.4 38,661 14.4 176 -- Foreign-born 7,858 19.9 7,586 19.0 -272 *-1.0 Naturalized citizen 1,954 11.3 2,233 12.5 *279 *1.2 Not a citizen 5,904 26.8 5,353 24.3 *-
551 *-2.5
*Note: Information taken from the U.S. Census Bureau: http://www.census.gov/2010census. Reprinted with permission.
The ability to read and write is important for minority families in making smart
financial decisions. As minority households pursue employment, training, and higher
education, financial literacy can assist them in preparing for the future. Adults lacking the
13
basic financial literacy skills face barriers as they attempt to earn a living wage, support
their children financially, and participate in civic and community life.
Evidence of the Problem From the Professional Literature
The Department of the Treasury was selected to take the lead in efforts of
coordinating financial literacy within other branches of the federal government. Now,
average Americans have access to financial education resources relating to bank
accounts, consumer credit, mortgages, leasing vehicles, and personal finance. In addition,
Federal Reserve banks around the country sponsor education programs on a variety of
topics, including the Money Smart program, created by the Federal Deposit Insurance
Corporation (FDIC, 2012). Along with free resources, there are organizations that
provided fee based financial education. Visa and the American Bankers Association
(2012) offer financial education programs free to educators, consumers, and bankers. To
ensure the information reaches all demographics, the Jump$tart Coalition targets
students, while the National Community Reinvestment Coalition tries to reach low-to-
moderate income people (Jump$tart, 2009). Other financial education programs were
more focused on helping consumers build assets in the form of homeownership.
Using the financial education curricula developed by Financial Links for Low-
Income People (FLLIP), several nonprofit organizations offered a free, 12-hour financial
education course for Illinois welfare recipients and adults with children under 18 and
incomes up to 2005 of the federal poverty level (Anderson, Scott, & Zhan, 2004). The
curriculum covered an array of topics, from spending choices and understanding credit,
debt, and taxes to using financial institutions, insurance, and job benefits (Anderson et al.,
14
2004). In addition, FLLIP sponsored an IDA program that included a 10-hour financial
education course and 6 hours of asset-specific training. A summary evaluation noted that
about one-third of participants did not “graduate” from the training program, and that
non-completion rates were nearly three times higher at the “education-only” sites than at
the IDA sites. Follow-up surveys indicated that participants improved their budgeting,
payment, credit card, and loan practices (Anderson et al., 2004, p. 61).
In September 2008, the Institute commissioned the National Research Council of
the National Academy of Sciences to conduct a 3-year all-inclusive review and synthesis
in the area of adult literacy (Welch-Ross, 2008). The purpose was to locate the themes
identified in the framework within the research text. The study was designed to look at
instructional contexts and settings, including the development and assessment of
instructional interventions, student and teacher distinctiveness, adult and adolescent
student learner and teacher quantitative and qualitative outcomes, instructional
approaches, and related student outcomes for adult learners. The study also examined the
motivational and engagement factors that directly or indirectly influence enrollment,
involvement, and retention in adult education programs. The desired outcome was to help
these adults gain meaningful employment after participating in adult literacy education.
Lynch (2009) discussed research on the literacy of low-income parents of students
and suggested ways that teaching methods in adult literacy programs can be improved.
The author “suggested literacy programs should incorporate everyday literacy practices,
interests, and life experiences of participants and comments on how parental literacy
affects children's literacy development” over their life time (Lynch, 2009, p. 509). The
15
research literature clearly suggests that the problem of financial education and how to
meet the needs of rural adults exists in a larger context.
Definition of Terms
In this study, financial literacy meant that one is literate in the issues of managing
money (including saving, budgeting, investing, credit, insurance, and taxes), and utilized
that knowledge to gain personal welfare through financial security.
Asset: All money, investments, and property owned by an individual, family, or
business (U.S. Census Bureau, 2012).
Consumer credit: Credit granted to an individual especially to finance the
purchase of consumer goods or to defray personal expenses (U.S. Census Bureau, 2012).
Credit score: A report containing detailed information on a person's credit history,
including identifying information, credit accounts and loans, bankruptcies, and late
payments, and recent inquiries. Prospective lenders with the borrower’s permission, to
determine his or her creditworthiness (U.S. Census Bureau, 2012), can obtain a credit
score.
Investment: In finance, the purchase of a financial product or other item of value
with an expectation of favorable future returns. In general, terms, investment means the
use money in the hope of making more money (U.S. Census Bureau, 2012).
Financial literacy: The ability to read, analyze, manage, and communicate about
the personal financial conditions that affect material well-being. Financial literacy
includes the ability to discern financial choices, discuss money and financial issues
16
without discomfort, plan for the future, and respond competently to life events that affect
every day financial decisions (Vitt, 2000).
Liability: An obligation that legally binds an individual or company to settle a
debt (U.S. Census Bureau, 2012).
Net worth: Total personal assets minus total personal liability (U.S. Census
Bureau, 2012).
Opportunity cost: The cost of passing up the next best choice when making a
decision. For example, if an asset such as capital is used for one purpose, the opportunity
cost is the value of the next best purpose the asset could have been used for (U.S. Census
Bureau, 2012).
Poverty: If a family’s total income is less than the family’s threshold, then the
family and every individual is considered in poverty (U.S. Census Bureau, 2012).
Poverty rate: The percentage of people (or families) who are below poverty (U.S.
Census Bureau, 2012).
Poverty thresholds: Dollar amounts that the Census Bureau uses to determine a
family or person’s poverty status (U.S. Census Bureau, 2012).
Significance of the Study
Program evaluations are important because they provide information to
stakeholders about program effectiveness, potential limitations, and strengths of the
program. This program evaluation centers on exploring whether the existing financial
literacy program has all the components needed to inspire rural adults to take advantage
of the program. Improving the program can assist these families with developing the
17
necessary skills and behavioral changes needed to become successful in this current
economic environment. The results of this study provided powerful insight from these
rural families on the challenges they face regarding community-based financial education
program participation and the effectiveness of these programs. The goal of this program
evaluation is to increase utilization of existing community based financial literacy
programs and better meets the needs of minority adults living in rural communities. This
information would then be integrated into the financial education program with the
ultimate outcome of empowering minority families. This study informed researchers,
policymakers, and educators about the beliefs and perceptions of the minority family
participation in community-based financial education programs. The assessment of the
financial literacy programs could possibly facilitate enhancements to existing financial
literacy program designs. In addition, evaluation of financial literacy programs can
provide sponsors with information needed to regulate and adjust these programs to better
accommodate those minority families utilizing the programs. The study could allow other
schools with low graduation rates and achievement gaps in financial literacy to apply the
findings to their environments.
Another goal of this program evaluation was to positively contribute to the
existing research on financial illiteracy and improve current financial education programs
offered to minority households in rural communities thus motivating these families to
take advantage of existing financial education programs. Positive social change
implications resulting from this study include increasing the knowledge levels of
educators, program developers, and other researchers who are seeking understanding into
18
effective ways of increasing utilization rates in financial education programs among rural
minority families. Social change could occur for those rural minority families as
organizations work to develop and implement evidence-based programs that interrupt the
cycle of non-utilization among rural minority families.
Research Questions and Hypotheses
Financial education programs nationwide are expected to improve student
financial learning outcomes or continue dealing with the consequences of increasing debt
loads and low standard of living among these adults. Underutilization of existing
financial education programs in rural communities is a problem that needs to be
addressed. Current delivery methods are in-person only classroom based instruction.
Rural communities must examine current financial education programs and delivery
methods in efforts to increase participation. This examination required an up-front
understanding of the challenges rural minority adults have so that an effective action plan
could be established. Therefore, the focal questions in relation to the effectiveness of the
financial program are.
Research Question 1: What are the perceptions of stakeholders and students
regarding the financial literacy program offered by Financial Empowerment and does the
program provide students with a realistic experience to prepare them to better manage
their finances in the future?
19
Research Question 2: What is the difference between actual responses for
knowledge gain and hypothesized (equally distributed) responses for knowledge gain as a
result of participating in the financial literacy program?
H01: There is no difference between the actual responses for knowledge gain and
hypothesized (equally distributed) responses for knowledge gain as a result of
participating in the financial literacy program.
H1: There is a difference between the actual responses for knowledge gain and
hypothesized (equally distributed) responses for knowledge gain as a result of
participating in the financial literacy program.
Research Question 3: Does the financial literacy program provide students with a
realistic experience to prepare them for future financial responsibilities and can they use
what they have learned in the program on their own?
To answer this question, I conducted a program evaluation in efforts to
understand how minority adults view the financial program, and if they perceive there is
an increase in their financial literacy levels. This evaluation was critical in identifying
and/or implementing changes to the existing financial education program that would
ultimately meet the financial literacy needs of those who participate in the program.
Review of the Literature
An exhaustive review of the literature between 2001 and 2016 in several specified
databases using the keywords revealed limited research on financial literacy for rural
adults. The database searches revealed limited scholarly articles on financial literacy.
Different points of view were presented to predict the relationship of the present study to
20
previous research on financial literacy. Considering the local level problems with adults
not participating in financial literacy education programs, and the local communities’
desire to increase training participation for rural minority adults to become more
financially literate, local financial education program’s most significant and relevant
flaws were reviewed.
In this section are quotations from education reform reports to provide a snapshot
of the little progress that has been made over several years of implementing legislations
focused on improvement. Subheadings have been used to organize the literature.
References have been made throughout to the local community, noting how the topic
pertains to the community. Also included in this literature review is some information on
the differences in minority adult demographic backgrounds, their literacy levels, and the
effects of financial program non-utilizations, recent legislations, reports on financial
education program effectiveness, traditional instruction, and minority challenges when
participating in existing financial programs.
The literature noted in this review was found through a search of the Educational
Index, Index of Doctoral Dissertations, current Index of Journals in Education, by search
of databases such as ProQuest, Business Source Complete, ERIC, and SAGE databases,
as well as by general online Boolean search methods. Search terms included financial
literacy, rural Americans, program effectiveness, program evaluation, traditional
instruction, adult poverty levels, and African Americans, finance, financial, education,
economics, business, debt, and literacy, which were used in many combinations. All
relevant articles were included to the point of saturation.
21
Conceptual Framework
The TTM was originally developed to explain how individuals progress from one
stage of behavior change to a higher stage when trying to prevent a negative health
behavior or forming a new positive health behavior (Burke, 2011; Prochaska,
DeClemente, & Norcross, 1992; Prochaska, & Velicer, 1997; Prochaska et al., 1994).
More recently, the TTM has been applied to other fields of study, including financial
behavior studies, and has also been used to help determine the effectiveness of financial
education programs. Lyons and Neelakantan (2008) argued that the TTM may not be an
appropriate measure of financial behaviors because standards for financial behaviors have
not been ascertained. Although it is easier to conclusively identify positive health-related
behaviors than positive financial behaviors, the TTM can still be a valuable framework
for financial educators regarding how to help consumers improve their financial
behaviors (Burke, 2011).
Xiao et al. (2008) used the TTM to develop specific strategies to help motivate
employees to make positive financial behavior changes based on their readiness to
change. For individuals in the precontemplation stage, increasing awareness or raising
consciousness about financial risks and the benefits of change are strategies that may help
to motivate them to progress to a higher stage. Similarly, one strategy for helping those in
the contemplation stage is to convince them that the benefits of changing outweigh the
costs. Strategies used in the preparation stage include empowering people to make an
action plan and encouraging them to take small steps to build confidence.
22
People in the action stage benefit from both behavioral and cognitive strategies,
such as reinforcement management and positive thinking. Finally, supportive strategies,
like having a plan to cope with setbacks, would be most beneficial for individuals who
have reached the maintenance stage (Xiao et al., 2008). The TTM categorization helped
to expand beyond merely savers and non-savers and provided more insight about
individuals’ saving intentions as well as behaviors. Gutter et al. (2007) found that marital
status, age, preference (e.g., time horizon and risk tolerance), and other financial sources
(e.g., net worth, job tenure, cash reserve, and employer match) were all significantly
related to participation in defined contribution plans as categorized by the TTM
framework.
To examine financial behavior change of Individual Development Account (IDA)
participants, Shockey and Seiling (2004) also used the TTM. Six money management
behaviors were identified that could enable participants to begin or increase their savings,
including: setting financial goals, using a spending plan, tracking spending, reducing
debt, setting aside money, and saving money. A readiness assessment for these six
behaviors was administered to participants to determine their stage of behavior change
before and after completing the four-week financial education classes. On average, they
found that all six of the money management behaviors improved. Participants were at the
preparation stage for all of the money management behaviors except for reducing debt;
participants were at the action stage on debt reduction. Shockey and Seiling (2004)
concluded that the TTM is applicable for evaluation of financial education programs.
23
Xiao et al. (2004) assessed the readiness of consumers to get out of credit card
debt when they were already having credit card problems. The TTM framework was used
to compare individuals’ readiness to change their debt habits. In addition to the stages of
change, other key constructs of the TTM were used, including decisional balance,
processes of change, and self-efficacy. Xiao et al. found that behavioral changes could
involve multiple stages. Consumers in the first three stages of change (e.g.,
precontemplation, contemplation, and preparation) were comparable to each other while
individuals in the last two stages (e.g., action and maintenance) were also similar. This
information can be beneficial for financial counselors and educators as they seek to tailor
their programs and resources to more appropriately suit the needs of consumers.
The TTM has been used in a number of studies related to participants’ change in
financial behavior. The TTM was implemented to better target individuals for financial
education based on their readiness for change (Xiao et al., 2008). The literature
demonstrated how the TTM has been used to classify individuals according to their stage
of behavior change (Burke 2011; Gutter et al., 2007; Lown, 2007; Xiao et al., 2004).
Overview of Program Evaluation
Effective program evaluation is a critical element of successful financial
education programs. This review of literature is comprised of three sections. The first
section explains the importance of program evaluation in financial education and reviews
program evaluation resources used by financial educators and researchers, including the
National Endowment for Financial Education (NEFE) evaluation toolkit and logic
models. The second section explores the overall impact of financial education, such as
24
increased financial knowledge and improved financial behaviors, by examining studies
related to financial program evaluation. The third section investigated the TTM as related
to financial behavior change.
Program Evaluation
Financial education programs have the potential to empower individuals with
knowledge and skills to make responsible consumer decisions. According to Consumer
Financial Protection Bureau’s 2013 Financial Literacy Annual Report, “As consumers act
upon their financial knowledge, they are more likely to reach financial goals and improve
their economic wellbeing” (CFPB, 2013, p. 22) in the future. For this reason, positive
financial behavior changes are often a desired outcome of financial education programs.
Program evaluation is necessary for financial practitioners to determine if a program is
successful in helping participants improve their financial behaviors (NEFE, 2011).
Evaluation is the process of determining the impact of a program. Through program
evaluation, researchers and educators are able to determine if a program is meeting the
needs of the participants and to document the outcomes. Program evaluations may also
provide insight as program coordinators seek to enhance efficiency of management and
delivery.
Program evaluation is most successful when it is incorporated at every phase of
the program design and implementation (Bamberger et al., 2006; Collins & O‘Rourke,
2010; Fox & Bartholomae, 2008). However, oftentimes evaluation is an after-thought for
program developers. This may be a result of the lack of time, money, data, and other
factors that often accompany new educational programs (Bamberger et al., 2006). It is
25
more difficult to accurately determine the effectiveness of a program when the evaluation
process is not planned from the initial design phase. In addition, if the program objectives
or desired outcomes are determined after the program has occurred, then program
coordinators may express bias by way of the results (Hathaway & Khatiwada, 2008).
Therefore, program goals and outcomes are an important part of program evaluation and
should be considered at the onset of program development.
Money Smart Versus NEFE Evaluation Toolkit
One useful resource for financial educators is the Financial Education Evaluation
Toolkit sponsored by the NEFE (2011). NEFE is a nonprofit organization that seeks to
help Americans gain the knowledge and skills necessary to be financially stable. The
evaluation toolkit was created to assist financial educators in assessing the outcomes and
success of financial education programs and provides information about the program
evaluation process and how to collect, analyze, and summarize evaluation data. The
toolkit includes an evaluation manual, which is a simple guide designed specifically for
financial practitioners to measure the extent to, which people change their attitudes or
behaviors because of participation in educational programs (Burke, 2011).
The five key elements of the NEFE manual include: (a) needs assessment, (b)
define objectives, (c) program development, (d) program delivery, and (e) evaluation
(NEFE, 2011). Evaluation is integrated into every step to help maximize the impact of
financial programs. The evaluation manual also provides step-by-step instructions about
how to identify appropriate impact indicators for different types of programs and explains
some of the advantages and disadvantages of various evaluation methods. The NEFE
26
manual focuses specifically on methods for evaluating one-time programs, long programs
(e.g., 2 hours or more), multi-session programs, and train-the-trainer programs. The
manual also includes an evaluation database to allow educators to design their financial
program evaluation measures (Burke, 2011).
The FDIC launched Money Smart as a nationwide initiative in September of
2001. The curriculum was designed to help adults enhance their money management
skills, understand basic financial services offered by the financial mainstream, and build
financial confidence to use banking services effectively. Money Smart was also designed
to provide financial institutions with a tool to assist in community outreach and economic
development. The Money Smart curriculum consists of ten modules: (a) Bank On It: an
introduction to bank services, (b) Borrowing Basics: an introduction to credit, (c) Check
It Out: how to choose and keep a checking account, (d) Money Matters: how to keep
track of your money, (e) Pay Yourself First: why you should save, save, save, (f) Keep It
Safe: your rights as a consumer, (g) To Your Credit: how your credit history will affect
your credit future, (h) Charge It Right: how to make a credit card work for you, (i) Loan
To Own: know what you’re borrowing before you buy, and (j) Your Own Home: what
home ownership is all about. The curriculum is available in both an instructor-led version
and a computer-based instruction (CBI) version. For this study, all sites used the
instructor-led version. The instructor-led curriculum is available in six languages
(English, Spanish, Chinese, Korean, Vietnamese, Russian), as well as Braille and large
print. Only the English and Spanish language versions were used to develop the survey
(FDIC, 2001).
27
For this program evaluation, a three-part financial education survey instrument
developed by the Federal Deposit Insurance Corporation (FDIC) to evaluate its Money
Smart Program was utilized (See Appendix A). The FDIC contracted the Gallop
Organization (GAO) in 2007 to conduct a longitudal evaluation of the program. Using a
three-part survey to determine the effectiveness of its Money Smart financial education
curriculum, the FDIC found that the program positively influenced how course
participants manage their finances as well as their financial confidence. The study also
found that these positive changes were sustained months after participants had completed
Money Smart training (GAO, 2007).
Evaluation of Financial Education Programs: Does Financial Education Work?
In 2003, the Office of Financial Education of the U.S. Department of the Treasury
(2004, 2006) suggested eight key elements regarding the content, delivery, impact, and
sustainability of successful financial education programs to guide financial education
developers. The eight elements state that a successful program:
• Is tailored to its target audience, taking into account its language, culture,
age and experience.
• Is focused on basic savings, credit management, home ownership, and/or
retirement planning.
• Is offered through a local distribution channel that makes effective use of
community resources and contacts.
• Follows up with participants to reinforce the message and ensure that
participants are able to apply the skills taught.
28
• Establishes specific program goals and uses performance measures to
track progress toward meeting those goals.
• Demonstrates a positive impact on participant’s attitudes, knowledge, or
behavior through testing, surveys, or other objective evaluation.
• Can be easily replicated on a local, regional, or national basis to have
broad impact and sustainability.
• Is built to last as evidenced by factors such as continuing financial
support, legislative backing, or integration into an established course of
instruction (2006).
According to several financial program evaluations, financial education appears to
be beneficial and has a positive impact on the lives of consumers; however, it is difficult
to measure and determine what kind of impact and to what degree (Hogarth, 2006). At
present, there is no clearly defined method for evaluating financial education programs
(McCormick, 2009). Considering that the number of financial education programs has
increased over the years, there has been relatively few program evaluations published that
assess the impacts of this education (Collins & O‘Rourke, 2010).
Despite these broad guidelines, the task of evaluating the content, delivery,
impact, or sustainability of financial programs can be difficult for researchers and
educators. For instance, individuals who take advantage of voluntary financial education
are assumed to be more motivated than those who choose not to participate. In addition,
future-oriented individuals are more likely to attend financial education programs
because they are more likely to manage their personal finances better than their
29
counterparts (Meier & Sprenger, 2007). These factors can confound the effectiveness of
education programs because participants are already likely to change their financial
behaviors regardless of the financial education delivery method.
Another important reason why it is difficult to evaluate financial programs is that
there is no widely accepted standard (McCormick, 2009). After reviewing 41 program
evaluation articles on financial education and counseling, Collins and O‘Rourke (2010)
found that existing evaluation research is not conclusive because it is prone to several
methodological problems. The problems they cited included selection bias, longitudinal
designs, measurement issues, and a general lack of theory. However, financial education
and counseling still hold promise as a strategy for consumers to enhance their financial
abilities and decisions (Collins & O‘Rourke, 2010).
A number of studies have evaluated various financial education and counseling
programs. Although there is a distinction between financial education and counseling,
they often overlap as counselors provide educational resources and educators address
personal questions for participants (Collins & O‘Rourke, 2010). Because of this
crossover, both financial education and counseling evaluations were reviewed. Financial
program evaluation topics that were reviewed in the following section included
workplace financial education, school-based financial education, general financial
management education, bankruptcy counseling and education, and housing counseling
and education.
30
The Need for Financial Literacy Educational Programs
Financial mistakes can simply be made in any area of spending if consumers are
not educated in common problems to avoid. Many of the problems described in this
section were some of the most common financial mistakes that are being made by
Americans today. Whether Americans dropout of high school, graduate from high school
and get a job, or decide to attend college for higher education, the one element that most
citizens seem to have in common is personal debt.
Joblessness can dramatically impact individuals’ finances (Economic Policy
Institute, 2011). Unemployment not only affects individual's short-term financial
situation, in terms of increased consumer debt and possible mortgage default, but can also
strain individual’s finances long-term. Unemployed workers forgo employer-sponsored
benefits, such as health insurance and retirement plan contributions, and often tap into
their retirement accounts to pay current expenses.
Credit illiteracy is a problem in the United States. The finance and credit skills of
high school students are unsatisfactory (Jump$tart, 2008). Poor credit scores contributed
to the eventual bursting of the housing bubble and the subprime loan crisis (Lewis, 2009).
Credit cards are instruments that allow consumers to borrow money and repay the debt at
a later date (Gross & Souleles, 2002; Soman & Cheema, 2002). As a result, credit cards
can lead to consumer overleveraging or debt buildup. Recently, consumer debt stemming
from credit cards has attracted the attention of legislative bodies, suppliers of credit, and
researchers (Huizinga, McEneney, Van De Weert, & Kaufmann, 2009).
31
It is believed that high levels of consumer debt can be a detriment to the financial
stability of the national economy because of the risks involved. Statman (2009) argued
that the transfer of systemic risk is observed in the recent recession, where overleveraged
consumers have been unable to service their monthly debt obligations, primarily
household mortgages. As a result, these overleveraged consumers end up in default.
Financial Literacy Research From a Consumer Perspective
Among earlier literature reviews, Braunstein and Welch (2002) focused on
financial literacy from the consumer’s perspective. The focus was to understand
consumer habits and create solutions that would help consumers. Most of the early
research on financial literacy merely provided a broad overview of financial literacy
research (Martin, 2007). This survey by Mandell and Klein (2008) discovered evidence
supporting the presence of student motivation as a factor in increasing the financial
literacy of respondents, indicating that motivated adults benefit from targeted financial
education.
On a large scale, biennial surveys of high school seniors carried out by the
Jump$tart Coalition for Personal Financial Literacy consistently found that students who
had taken a high school class in personal finance or money management are no more
financially literate than those who have not (Jump$tart, 2009). Specifically, a financial
literacy index was developed from student responses to basic age-relevant questions
relating to financial knowledge. The four key areas covered in the survey included
income, money management, savings and investing, and spending and credit.
32
Further search of the literature did not conclusively indicate that financial
education was effective as indicated in this study by Hathaway and Khatiwada (2008),
which presented a limited review of the effectiveness of prior financial education
initiatives. Kindell (2009) indicated that rural young adults would miss the mark when it
comes to retirement. However, Knoll (2010) provided an extensive review of retirement
saving in the context of behavioral economics, indicating that most Americans do not
have the necessary savings needed to sustain future living conditions.
Many of the issues related to poverty in rural communities are unique to those
communities, and do not mirror the issues associated with poverty in suburban and urban
areas. The present study addresses some of the issues facing individuals who come of age
in rural and persistently poor communities, which have received limited attention in the
existing rural poverty literature. The present study addresses the impact of these factors
on a variety of key outcomes influencing quality of life: education and cognitive skill,
geographic mobility, individual and household income, unemployment, poverty, and
family formation (marital status and childbearing). In addition, the effects of education
and geographic mobility on later outcomes are addressed in the context of rurality and
persistent poverty, and the effects of cognitive skill on selected outcomes are addressed in
the context of rurality and geographic mobility.
In his thesis, Calamato (2010) examined the relationship between parental
involvement and student level of financial literacy. He examined past studies that
indicated those parents that passed on financial values and beliefs helped shape their
children’s financial behavior and attitudes. Using a convenience sample of 108
33
undergraduate students at a local state university, Calamato (2010) tested whether
students with higher levels of financial literacy had parents who had taught them about
finances. The results of the test show that the student’s level of financial literacy is not
significantly related to parental involvement.
Financial education is commonly assumed to affect knowledge and behavior, yet
its impacts remain relatively untested. In 2010, very low-income families in a subsidized
housing program were randomly assigned to a mandatory financial education program
and tracked for 12 months. This study illustrated the methodological issues that arise in
social experiments with small samples, including attrition and self-report bias. The
findings suggested that information transfers alone could have at least modest effects on
behaviors requiring self-control, including savings (Collins, 2010).
Financial Literacy From a Cultural Perspective: Data and Statistics
According to Dykes and Rupured (2006), “ninety-one of Georgia’s 121 counties
are classified as persistent poverty counties or areas in, which a high proportion of the
residents have lived in a constant state of poverty since at least 1980” (p. 77) and these
levels continue to rise. The Literacy Program also indicated that these counties represent
an estimated 1.2 million Georgians, or 22% of the state’s population. Currently, these
poverty statistics are not symbolic of Georgian’s living in rural communities.
Cochran-Smith and Power (2010) recognized students’ abilities, cultures,
religions, ethnicities, and linguistic backgrounds are wide-ranging and disparities
continue to increase as time passes. When these groups of students are compared,
achievement is found to be disproportionate. For example, data indicated an achievement
34
gap between European American students and African American students on
standardized test scores and college graduation rates (Paige & Witty, 2010). Paige and
Witty (2010) also noted that African American students scored below 75% of European
American students on most standardized tests, and African American students make up a
higher percentage of dropouts compared with European American peers. Other groups of
students also have inequalities in their outcomes.
In this qualitative study by Sprow (2010), a case study design was used to explore
the teaching and learning that takes place in an adult Latino financial literacy education
that was aimed specifically at Latina single mothers. The study focused on the
experiences of the educators and learners within this program that targets these Latina
learners and attempted to understand the influence of sociocultural factors on their
education in financial matters.
Financial Literacy and Program Effectiveness
Angela, Palmer, Koralalage, and Scherpf (2006) noted “research indicated that
many financial education providers still do not have a basic level of evaluation capacity
and are unable to identify program outcomes and design effective evaluation
instruments” (p. 208) that can be used. It is difficult to propose a national evaluation
strategy without a basic understanding of current evaluation capacity and of the critical
gaps in program evaluation. In addition, there has been little discussion about the
challenges facing financial professionals and educators who are on the "front lines"
delivering and evaluating programs (Angela et al., 2006, p. 220). The study addressed
critical gaps in the literature and provided an overview of the current state of financial
35
education and program evaluation. Using qualitative and quantitative data collected from
financial professionals and educators nationwide, this study provided insight into what
can be done to build national evaluation capacity and conduct more effective program
evaluations.
This next study evaluated a 2-day financial education course taught to U.S. Army
soldiers stationed at Ft. Bliss in El Paso, Texas (Bell, Gorin, & Hogarth, 2009). A pretest
and two consecutive midterm observations with comparison groups were administered to
assess the changes in participants’ financial behaviors. The type of evaluation design
used, known as a comprehensive longitudinal design, is one of the strongest quantitative
evaluation designs (Bamberger et al., 2006). Bell et al. (2009) found that the financial
education did affect the financial management behaviors of the soldiers. Among the
observed behavior changes, the self-selected treatment group was more likely to save on
a regular basis, to have a longer planning time horizon, and to have retirement saving
plans than the comparison group. One challenge the researchers faced was attrition. Out
of the 3,324 participants who completed the pretest survey, only 3.7% were matched with
the posttest survey. In conclusion, Psychological Perspectives (2010) also noted some
thought-provoking opinions about adult literacy programs and learning:
Adults are unique group of people to teach and if proper attention is
paid, they can boost up economic development of the country. The
objectives of financial literacy programs can best be achieved by
keeping in mind the psychology of adults (p. 88).
36
Financial Literacy and Instructional Delivery Methods
The utilization of technology to teach students online has progressed in the field
of education. Collins (2007) evaluated the delivery of mortgage default counseling to
subprime borrowers. A posttest only design was used to analyze the effects of additional
hours of counseling and other aspects of counseling delivery to mortgage default clients.
Collins concluded that borrowers are more likely to continue meeting with a counselor
after a face-to-face counseling session compared to a telephone counseling session. In
addition, the probability of a client moving toward foreclosure diminished approximately
3.5% with each additional hour of counseling. Therefore, the mortgage default counseling
was found to be effective regardless of the type of delivery method.
The use of technology in universities and colleges has grown tremendously in the
last 10 years. This is evidenced by the number of online courses that can be found in all
areas of study and at many leading universities and colleges. Many traditional schools are
using technology to enhance classroom instruction using the Intranet, Internet,
PowerPoint, and other multimedia resources (Bekele & Menchaca, 2008; Jason,
Kennedy, & Taylor, 2001; O’Hanlon, 2008). One of the resources that the web has
provided to both classrooms and Internet courses is the availability of open source
materials, which provide educators and students with a wealth of instructional materials
(O'Hanlon, 2008).
Research indicated that there are alternative methods to teach financial literacy
courses to working adults. Having access to computers allows low-income adults to work
around cultural barriers and current work schedules (Voithofer & Winterwood, 2009). In
37
other research, Knight (2009) described the importance of teaching students using a
methodology that considered the student’s background and experiences. For example,
Knight’s new teaching method, called “othering,” required her to leave her comfort zone
(e.g., standard lessons based upon the standard curriculum) and engage students within
their comfort zones. According to Knight, she linked her curriculum more directly to the
students’ realities, “which involved a variety of media and drew on the experiences of all
students” (p. 112) nationally. Knight reconfigured lesson plans and formats to incorporate
student background knowledge and realities as a method to better engage the students in a
more relevant and connected process. Several researchers have evaluated the benefits of
using technology in the classroom to engage students (Eckstein, 2009; Feldon, 2010;
Guzzetti, 2009).
Eckstein (2009) described how students need a learning environment that is
contextual, relevant, and authentic. She described some of the many tools that are
available (e.g., blogs, social bookmarking, podcasts) to keep students engaged,
motivated, and achieving academically. Guzzetti (2009) engaged her students by relating
her classroom material to the events and interests occurring in her students’ lives. She
used popular television shows to build background knowledge and bring real life
experiences and relevance into the classroom. Amirell (2009) followed similar paths in
his research and allowed students to select their own study topics based upon their own
experiences, and involved them in history by using real-world events outside the
classroom. Research has suggested that evaluations of technology in the classroom have
38
provided some functional benefits for the development of academic knowledge in
students.
Feldon (2010) compared traditional lectures with the use of technology to
increase student achievement. He concluded that good lectures and traditional
methodologies promote learning. He also stated, “when games and other digital learning
environments are developed in accordance with principles of effective instruction, they
achieve positive results” (p. 17) overall. Guzzetti (2009) and Feldon both found positive
aspects for the use of technology in the classroom and concluded that the use of
technology promotes relevance and achievement in students. Feldon stated that
technology can provide valuable tools for student achievement but cautioned,
“technologies need to be designed in such a way that they are not confusing or
overwhelming for the students who would use them” (p. 17) in the present day. This
concern is especially relevant for some students in the CRP who have only limited access
to and knowledge of computers and the Internet.
Financial Literacy From a Legislative Perspective
In 2003, recognizing, the importance of teaching adults financial education, the
United States Congress passed Title V of the Fair and Accurate Credit Transaction Act
(FACT Act), which established the Financial Literacy and Education Commission with
the purpose of improving the financial literacy and education of persons in the United
States (U.S. Department of Treasury, 2012).
In 2004, Georgia's State Board of Education approved new Georgia Public School
(GPS) Social Studies Curriculum intended to strengthen economics content across K-8
39
grades and includes Personal Finance in all grades, including high school. In the fall of
2006 a required high school Economics course entitled, Let's Make It Personal focused
on five themes that were instituted in public schools: Fundamental, Microeconomics,
Macroeconomics, International, and Personal Finance.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
(BAPCPA) contained the largest federal mandate for adult financial literacy education in
American history. Section 727(a) (11) required that debtors seeking Chapter 7 protection
complete "an instructional course concerning personal financial management" prior to
receiving their discharge. Consumer debtors seeking protection under Chapter 13 or 11
must also meet this same requirement. This "instructional course concerning personal
financial management" is separate from the pre-filing credit counseling that debtors must
complete (Linfield, 2011, p. 71).
More recently, the President’s Advisory Council on Financial Capability was
established January 29, 2010 by President Barack Obama to assist the American people
in understanding financial matters and making informed financial decisions, and thereby
contribute to financial stability (U.S. Department of the Treasury, 2011, p. 1).
Alternative Forms of Consumer Borrowing
Financial literacy programs can only benefit those adults in debt. Research
indicated that a substantial segment of Americans engage in alternative forms of
borrowing, such as taking out an auto title loan, a “payday” loan, getting an advance on
tax refunds, using pawn shops, or using a rent-to-own store (Applied Research, 2009).
40
All of these borrowing methods usually charge high interest rates; much higher than are
charged by banks or by credit card companies
A refund anticipation loan (RAL) is money borrowed by a taxpayer from a lender
based on the taxpayer’s anticipated income tax refund. RALs are interest-bearing loans
that allow a taxpayer to receive his or her refund from a lender before receiving it from
the IRS. Nationally, 8% of people report receiving a RAL in the past five years (Applied
Research and Consulting, 2010). A payday loan is a small unsecured, short-term loan that
is usually repaid on the borrower’s next payday. Customers are required to supply a few
supporting documents, including proof of a regular income, a personal checking account,
and identification.
Using data from a nationally representative survey, Applied Research and
Consulting (2010) found that 5% of respondents reported using a payday loan in the past
five years. The rent-to-own (RTO) industry (also known as the rental-purchase industry)
consists of retailers that rent furniture, appliances, home electronics, and jewelry. RTO
transactions provide immediate access to such goods for a relatively low weekly (or
biweekly) or monthly payment without credit checks or a down payment. A nationally
representative survey found that 5% of respondents reported using an RTO store in the
past five years (Applied Research and Consulting 2010).
Most importantly, these alternative methods of borrowing are disproportionately,
though not exclusively used by those who are unbanked. Thus, lack of a bank account is
likely to result in the utilization of high-cost borrowing. Many of the users of these
alternative methods also do not have credit cards. Lack of formal ways of borrowing
41
often translates into heavier use of high cost borrowing. The most frequent users of these
methods are disproportionately the young, low-income families, high school education
level, African Americans, and Hispanics (Lusardi et al., 2010).
Summary
The answer to whether financial education is effective remains ambiguous based
on previous research. Key findings in the program evaluation literature suggest that,
overall, financial education produced positive changes in participant’s financial
knowledge, confidence, or behaviors (Bell et al., 2009; Carswell, 2009; Danes &
Haberman, 2007; Garman et al., 1999; Haynes-Bordas et al., 2008; Holland et al., 2008;
Kim, 2007; Lyons et al., 2008; Wiener et al., 2005). However, several limitations remain.
For instance, it may be less likely that negative program evaluation results would be
widely published and distributed. In addition, methodological problems make it difficult
to accurately estimate the magnitude of program impacts of many of the studies
reviewed.
Similar to previous findings (Collins & O‘Rourke, 2010), the majority of the
studies used a retrospective pretest (Carswell, 2009; Danes & Haberman, 2007), posttest
only (Collins, 2007; Garman et al., 1999; Haynes-Bordas et al., 2008; Peng et al., 2007),
or pretest-then-posttest design (Holland et al., 2008; Kim, 2007; Lyons et al., 2008).
According to Bamberger et al. (2006), these are considered the weakest quantitative
research designs because of their inability to account for external factors. Attrition was
another limitation experienced by evaluators as well as the primary use of self-report
data. Attrition can dramatically affect the statistical outcomes of a study, and self-reports
42
can result in response bias, which can positively bias the results. Another explanation of
why evidence in favor of financial education remains unclear is due to the lack of
effective program evaluation, as discussed previously (Hathaway & Khatiwada, 2008).
However, even though it may be premature to address the larger question of the
effectiveness of financial education programs due to these limitations, the literature did
suggest that financial education is essential and that many existing approaches appear to
be effective (Martin, 2007).
Implications
If minority families living in rural communities continue to mismanage their
money, credit, and debt, future generations could reap the consequences. Evaluations of
Adult Literacy Programs in Psychological Perspectives (2010) noted, “Adults are unique
group of people to teach and if proper attention is paid, they can boost up economic
development of the country. The objectives of financial literacy programs can best be
achieved by keeping in mind the psychology of adults” when it relates to learning
(Evaluations of Adult Literacy Programs in Psychological Perspectives, 2010, p. 88).
Table 2 represented the recent inmate populations of prisons located in three rural
Georgia counties. The data extracted was a short snapshot of the number of inmates
incarcerated and the fact that their offenses are money-related offenses. Some of these
offenses resulted in the commission of robberies, drug-related offenses, check forgeries,
frauds, and murder. The data only provided statistical data in relationship to the type of
crime committed and the total number of inmates in prison due the committing that
particular money-related crime. The Department of Corrections inmate population data
43
does not indicate that the numbers of inmates are decreasing. As a society, we must
invest in the future of financial literacy education and empowering people economically.
Data indicated that the Department of Corrections offered inmate rehabilitation by
providing the basic life skills for these offenders. However, the life skills encompassed
reading, writing, and math in efforts to obtain the General Education Diploma (GED). If
the problem of illiteracy as well as financial literacy is not addressed, most would face
the increased probability of becoming repeat offenders and returning to the Department
of Corrections.
Table 2 Georgia Department of Corrections Current Inmate Population Data Race Offender
Count % of Total
Active Population (54,236) Black 12,566 23.17% White 4,615 8.51% Asian 49 0.09% Other 20 0.04% Unknown 1,003 1.85% Total 18,253 33.65% Note: Data derived from the Georgia Department of Corrections website http://www.dcor.state.ga.us/GDC/OffenderStatistics/jsp/OffStatsSelect.jsp. Reprinted with permission.
Summary
The war on poverty has been ongoing since the 1900s. President Johnson declared
his "war on poverty" and greatly expanded the government services for the poor enacted
during the Great Depression (Hill, Hirschman, & Bauman 1996). The literature review
stated that financial literacy has been a subject of discussion for many years. In the
44
United States, literacy efforts on behalf of rural citizens most frequently addressed the
lack of social equity. Ferrell and Howely (19991) suggested,
Rural residents often do not value formal education. It is believed that these
prevailing attitudes originated at a time when the local economy required that
even relatively young children be available to work on farms, fisheries, and in the
mines (p. 369-370).
There was also the perception that the curriculum offered in schools was not a means of
attaining more desirable forms of work or a way to improve work skills during this time.
Even today, rural residents overlook the value of seeking higher education.
Programs that were enlarged or created during this period include revenue sources
including food stamps, and health insurance from Medicaid. Unfortunately, these services
were eroded or discontinued during the ensuing decades due to a variety of agendas from
both political parties, resulting in less coverage, lower benefit levels, and greater and
more diverse societal poverty (Hill & Macan, 1996). As a nation, we must look at our
current fundamental education programs to ensure they are reaching those populations in
need of them most. People only wanted to participate in events they felt meet their
current needs. In other words, the financial program must convince the adult learner there
is value in participating. We must also look at how motivation and education influence
rural minority participation levels.
According to Wlodkowski (2008), “Although there have been research studies of
adult motivation to participate in adult education program, no research studies thoroughly
examine the relationship between adult motivation and learning” thus, indicating there
45
was a need for further research (p. 5). Financial education is a key component in the
economic development and success of this country. If the programs do not meet the needs
of targeted audiences this nation could suffer in the future.
Section 1 discussed background information about the problem of financial
literacy among adults living in rural communities. The adults who are targeted for the
program are underutilizing existing financial education programs and the study focuses
on identifying the reasons of non-utilization, assessing the needs of these adult learners,
and implementing an action plan to enhance these programs. Section 1 also discussed
potential implications when rural adults do not receive the necessary financial education
needed to survive in today’s economy. Section 2 reviewed the methodological design for
the study. Section 3 described the project created with the intent to increase the use of
effective financial literacy instructional practices. Finally, section 4 summarized the study
and included final reflections and conclusions.
46
Section 2: The Methodology
Research Design and Approach
Lodico et al. (2010) described program evaluation as the “field of education filled
with programs designed to improve both learning and teaching” in adult learners (p. 41).
Program evaluation is designed to make decisions about such programs. Although
program evaluation uses quantitative and qualitative methods, its overall purpose is
different from most other types of research. Whereas quantitative and qualitative
researchers study programs, findings from such studies typically are slow to change or
improve the programs themselves. In program evaluation, however, findings are often
used for ongoing or short-term decision-making purposes, and programs can be changed
or “improved” based on the results of a single evaluation (Lodico et al., 2010, p. 41). The
intent of this program evaluation is to evaluate the financial literacy program offered by
Financial Empowerment and assess whether participants are gaining the necessary
financial literacy skills that result in future behavior changes for the rural adults who
participate in the program. For this program evaluation, the TTM theory suggests ways
in, which adults make meaning of their lives. It looks at “deep learning,” not only content
or process learning, as critical as those both are for many kinds of learning, and the
program examines how adults move from a limited knowledge of knowing to what they
know without questioning. This knowledge usually comes from their culture, families,
organizations, and society (Merriam et al., 2007).
Financial Empowerment is a nonprofit corporation offering minority adults living
in rural Tattnall County, Georgia, financial solutions to their current economic situation.
47
This program evaluation focused on their perceptions of the existing financial education
program offered by Financial Empowerment. The study of adult perception of education
can play an important role in adult literacy and financial education because it allows the
adult to be included in the outcome of developing an effective financial program. Adult
literacy skills are essential to the success of financial education program completion.
Financial literacy programs must also assess the needs of minority adults living in these
rural communities in relationship to their current reading and writing capabilities.
Evaluation Design and Description
This program evaluation used a quantitative descriptive research design,
consisting of one distinct phase of data collection (Creswell, 2002, 2003; Creswell et al.,
2003). A one-sample chi-square statistical test was also used to test whether a single
categorical variable followed a hypothesized population distribution among each of the
three research questions. The first method used a Money Smart survey/questionnaire to
collect demographic information and basic program feedback. The survey helped analyze
whether the program participants gained skills necessary to change their current financial
situations. I used the TTM theory because it is a theory that explains changing behavior
among adult learners. The concept focuses on changing beliefs or behaviors in relation to
dramatic life events. It is learning that goes beyond just getting hold of content
knowledge, learning equations, or memorizing mathematical formulas. It is a valuable
process for adults to learn to think for themselves, through redefining what they have to
come to know through life experiences (Merriam et al., 200 7). In this case, participating
48
in the financial literacy program should assist the students in gaining new financial skills,
thus changing overall financial behaviors.
This conceptual framework has been utilized to study religious or spiritual
transformation of adults later in life. This acceptance sometimes required a person to re-
evaluate what they accept as true. In the financial areas, adults had to evaluate what they
had been taught about money and how this information shaped their current behaviors in
relationship to money. According to Mezirow (1994), “The adult would go through three
steps comprised of receptiveness, recognition, and grieving” during this transformation
(p. 222). Mezirow considered using these steps or meaning structures to understand the
situations that adult learners would go through in life. He stated, “By understanding,
these meaning structures students and teachers would be able to understand what kind of
concepts and opportunities need to be worked on in order to make education successful”
in the lives of these adults (Mezirow, 1994, p. 224).
Justification of Design
A program evaluation design allowed the use of both qualitative and quantitative
forms. According to Cresswell and Plano Clark (2007), “The basic assumption for using
both quantitative and qualitative methods, in combination, provides a better
understanding of the research problem and questions than with method by itself” in
evaluations (p. 552). However, this program evaluation did not combine both quantitative
and qualitative data in the study of the Financial Empowerment financial course. For this
study, it was to better understand the research problem by using a quantitative approach
only to understand wide-ranging trends and detailed views of the program participants in
49
an effort to advocate change for the rural adults taking the financial literacy class.
Creswell (2008) indicated quantitative data and results provide a general picture of the
research problem (e.g., what internal and external factors contribute to and/or impeded
students’ persistence in the financial literacy program) whereas the quantitative data and
its analysis refine and explain those statistical results by exploring participants’ views in
more depth (Creswell & Plano Clark, 2007).
Description of the Type of Evaluation Conducted
Because this program evaluation is focused on the student outcomes after
participating in the financial course, a descriptive survey instrument was used to gain
insight from program participants. The stakeholders requesting this program evaluation
are interested in providing a financial program to rural adults to improve these adults
economic outcomes. They are interested in rural adults using the financial program and
how the program can motivate these adults to participate in and change their attitudes
toward personal finances (Spaulding, 2008, p. 12). An outcomes-based program
evaluation asks whether an organization is conducting the appropriate program activities
needed to bring about the verified outcomes for the program participants. Outcomes are
benefits that minority adults gain from participation in the financial literacy program.
Outcomes are usually in terms of enhanced learning, knowledge, perceptions/attitudes,
skills, and or conditions. The United Way of America’s website (2013) provides an
excellent overview of outcomes-based evaluation, including introduction to outcomes
measurement, a program outcome model, why to measure outcomes, use of program
outcome findings by agencies, eight steps to success for measuring outcomes, examples
50
of outcomes and outcome indicators for various programs, and the resources needed for
measuring outcomes (United Way, 2013).
An outcome-based survey program evaluation is one of many evaluation methods
that can identify whether a program has been successful. The outcome-survey-based
program evaluation also focuses on the results of services that were intended from the
outset of the program. It is different from other forms of evaluation that evaluate a
program after it is over and attempts to assess what happened during the course. These
evaluations assist with planning a project and helped, in a practical way, to identify
potential program outcomes. Summative or outcome-based evaluation occurs at the end
of the course or program. Program participants might not have much time to give
thorough evaluations after the program ends. According to Suskie (2009), “The key
drawback of outcomes program assessments is they occur at the end of the course or
program” (p. 23) and students may not receive any feedback other than possibly an
overall grade or certificate of completion.
Outcome-based evaluation is not formal research. However, the user of this
process in program evaluation can make the evaluation formal using reliable and valid
data instruments to collect outcomes information. Outcome-based evaluation should be
considered a management tool comparable to setting budgets and holding the
organization to a formal accounting system to see whether budgetary goals are being met.
Justification for Using the Logic Model in Program Evaluation
The TTM concept best explains why adults learn because it is a theory of changing
what we believe in relation to dramatic life events. It is learning that goes beyond just
51
getting hold of content knowledge, learning equations, or memorizing mathematical
formulas. It is a valuable process for adults to learn to think for themselves through re-
defining what we have to come to know through life experiences (Merriam et al., 2007).
The logic model is a good tool for this program evaluation because it provides a
detailed picture as to how the researcher expects to achieve the desired program
outcomes. The logic model also looks at what mechanisms are required for adults to
identify, assess, and evaluate other sources of information (Mertins, 2008). These sources
may look at how adults can identify, assess and evaluate new information, and in some
cases, reframe their world-view through the integration of new knowledge or information
into their belief system (Mertins, 2008). A person born into poverty may accept this as
factual, until learn that they do not have to remain poor.
Logic Model in Program Evaluation
The logic model served as an evaluation framework and make it possible to
identify appropriate evaluation questions and relevant data needed for this study. Logic
models also helped monitor progress by providing a plan against, which you can keep
track of changes. An effective logic model helped program planners to be more deliberate
about what they are doing and identifies assumptions that may need validating. It is
important to understand the potential and limits of a financial literacy program. Finally,
the logic model helps promote communications needed to market your financial literacy
program to the intended market or audience. Figure 3 is a sample outcome logic model
used by Financial Empowerment for its existing financial literacy program:
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Figure 3. Sample logic model: Developing a logic model: Teaching and Training guide 2/29/2008 Handout 4 © 2008 by the Board of Regents of the University of Wisconsin System. All rights reserved.
Outcome-based program evaluation is one of many evaluation methods that can
identify whether a program has been successful. Because outcome-based program
evaluation focuses on the results of services that were intended from the outset of the
program. It is different from other forms of evaluation that evaluate a program after it is
over. This type of evaluation attempts to assess “what happened” in the execution of the
financial literacy program.
Outcomes and Performance Measures
The overall objective is to evaluate a personal financial education program
specifically targeted to this segment of the population and address gaps related to
financial literacy as identified in our previous assessments. The performance measures
are listed below were generated from the specified Financial Empowerment program
outcomes:
53
1. To assess the financial literacy of rural Georgians age 17 and older living in
rural counties.
2. To determine their current level of consumer debt, including credit card,
installment loan, etc. as well as their attitudes and values regarding debt.
3. To understand consequences of debt pressures for individual and family well-
being.
4. To utilize findings to develop financial education curriculum that address
gaps in financial literacy as well as specific risks related to increased debt.
5. To disseminate the project outcomes to policy/program makers statewide and
nationally in an effort to promote financial resilience among older rural
adults.
Overall Evaluation Goals
The loss of jobs, loved ones, and physical injuries can be life-changing events that
transforms how we view the world. The emphasis is providing rural minorities’ financial
education that allows them to make better-informed decisions. The goal of the financial
literacy program is to motivate these adults to make a decision to accept the loss of
income or look at learning new skills so that he/she can move past the loss. The overall
objective is to provide a personal financial literacy program specifically targeted to this
segment of the population that addresses gaps related to financial literacy involvement.
Participants
During this study, I surveyed past financial literacy attendees from the rural
community of Tattnall County, Georgia. There were a total of 50 attendees that
54
completed the class. This population consisted of rural adults living in the Southeastern
region of Tattnall County Georgia in the United States. The program evaluation used
purposeful sampling to identify past financial literacy program participants. According to
Creswell (2008), the use of standardized sampling helps identify individuals or sites
based on membership in a subgroup that has defining characteristics. This study focused
on attendees living in a rural community who have attended the financial literacy class
offered by Financial Empowerment.
The Financial Empowerment financial literacy program is relatively new to the
Glennville, Georgia community. The financial literacy program was launched in 2010
and only has data for the previous three years. During the past three years, predicted
program participation goals were not reached. As a result, the Mt. Zion Outreach and
Financial Empowerment initiated this program evaluation with hopes of increasing
participation levels. Due to the small number of participants, the program evaluation had
to work with those documented past program participants. The goal was to obtain data
from all 50 program participants, with the anticipation of having at minimum 25 program
participants actually responding (this would represent 50% of the total program
participants) to this study. The participants of the study must live in a rural community
and have attended a financial literacy course within the past two years. The
characteristics of these participants was relevant to this study due to the roles and
responsibilities that were asked of them. Each of these roles played a vital part in decision
making for the Financial Empowerment organization.
55
Criteria for Selecting Participants
Comparable to other financial education programs, it is important to acknowledge
that individuals who chose to attend the financial literacy course were likely to already be
motivated to make positive financial behavior changes. It may be assumed that
participants desired to learn more about or to evaluate their plan for retirement more than
employees who chose not to participate; therefore, participants were likely to be at the
preparation, action, or maintenance stages of behavior change in the TTM. The
participants involved in this project study derived from mixed socioeconomic statuses,
races, and genders. Formerly, there were 50 participants with this background; however,
there were no guarantees that I would be able to reach all 50 participants for this study.
The participants also varied in their abilities to make financial decisions. They consisted
of participants between the ages of 18 and 55 years. The financial literacy class was
located in a rural community with 70% of the student body coming from lower income
families.
Justification for the Number of Participants
According to Suskie (2009), “the sample should be large enough and
representative enough that you can use the results with confidence to make decisions
about a course or program” (p. 47) during the assessment. I wanted to ensure that I had a
diversified representation of the entire organization to include current and former
participants that participated in the program. There was an attempt to obtain data from at
least 44 participants for this study. There were 50 participants who completed the
Financial Empowerment financial course. Keeping the sample size to 25-50 allowed an
56
error margin of 15% in the compiling of data (Suskie, 2009, p. 48). This rationale was
based upon the fact that the financial literacy program is a small program and there was
an assumption that a percentage of the class attendees would not participate in the survey.
The sample size was linked to the research site. In this study, the research site is a
local church in Glennville, Georgia that offers community based financial education
training. The sample size is appropriate for the number of participants historically
attending the financial literacy program training offered by Financial Empowerment.
Procedures for Gaining Access to Participants
Financial Empowerment was commissioned by the Mt. Zion Church, in
Glennville, GA to conduct on-site financial literacy training for church members. Access
to course participants was granted by the Pastor of Mt. Zion, identified as a primary
stakeholder. Financial Empowerment introduced the course to the Pastor and church
board members. A course sign-up sheet was later distributed among church members to
gather participant information for class registration. This basic information was utilized
to determine who would receive a cover letter describing the survey and the intent. The
Pastor and church board members also commissioned the study of the current financial
literacy class due to low participation rates.
The Pastor and each board member were given an evaluation packet that included
a cover sheet, a participant identification-confidential form, and a pre-addressed
envelope. The intent was to ask permission to attend the church board meeting and
present the evaluation packet at that time. The majority of the participants are church
members living in rural Georgia. A study consent form was provided to the past program
57
participants with a statement informing them that their participation in the survey is
voluntary. The survey would collect data that would be used to assess student perceptions
about the personal financial literacy program offered by Financial Empowerment since it
was implemented in 2010. The participants would be asked to provide some personal
information about their demographics, update participant records, and to ensure that a
correct sample of the entire organization was represented. All efforts were made to ensure
student and faculty confidentiality.
The method of sampling was purposeful, because the sample consisted of those
rural adults that have completed the financial literacy course offered by Financial
Empowerment. Using a purposeful sampling process allowed data to be collected in an
environment familiar to the participants. According to Creswell (2008), “in purposeful
sampling, researchers intentionally selected individuals and sites to understand the central
phenomenon” (p. 214) that occurred. The population intended for this study was minority
adults between the ages of 18 and 55 years of age living in rural Tattnall County,
Georgia. This critical sampling of rural minority adults assisted this study because these
participants attended a community-based financial education programs and could best
help the researcher understand the overall effectiveness of the financial program.
Methods for Establishing a Research-Participant Working Relationship
Objectivity in research has an important impact on the outcome of conducting and
presenting research. Lodico, Spaulding, and Voegtle (2010) suggested that the
investigator must play a “detached role where there is little opportunity for interaction
with the participant under study” (p. 7) to avoid bias. Since the investigator’s beliefs and
58
personal biases can influence research, I would not want that objectivity to manipulate
the outcome of the research. Ultimately, research should be based on the facts and not
assumptions. Researchers want their research to be based on facts that can be
substantiated. If researchers presented research that was prejudice and full of
preconceived notions, then the research could be discredited as well as the researcher.
(Lodico et al., 2010). As scholar-practitioners, objectivity is difficult to achieve because
of the human factor. Regardless of how hard we try to avoid bias, it could still spill over
into the research.
There is no single research method or approach that can be classified as more
“objective” (Lodico et al., 2010, p. 41) in program evaluation. As humans, there can be a
great deal of passion about the topics we are researching. This passion could lead to our
emotions playing a role in the research. The emotions lead to forming opinions and
eventually the research could become slanted. Knowledge-oriented approaches and
action-oriented approaches have two different roles in research. The knowledge-oriented
approach encourages the researcher to strive towards objectivity or detachment, while the
action-oriented approach encourages active participation. Basic research attempts to
modify theories, while applied research looks at whether or not the theory is useful. Both
approaches have room for the researcher to interject his/her biases or opinions (Lodico et.
al., 2010).
Confidentiality is of the utmost importance in collecting, analyzing, and reporting
data from the surveys. Each study participant was assigned a participation code that was
used to collect, store, and report data in reference to this program evaluation. As
59
mentioned earlier, I first sent out a cover letters describing the survey and interview
intent. The participants were aware that the survey and their participation in the survey
was voluntary based on signing the consent form. Past program participants had the
chance to provide their input about the program and its overall effectiveness.
The participants were asked to give some personal information about their
demographics to ensure that a correct sample of the entire organization was represented.
All efforts were made to ensure student and faculty confidentiality by using assigned 6-
digit participant codes. After compiling the results, the data was evaluated, recorded, and
shared with Walden University, the research site Pastor, Board of Directors, and or
designated representatives.
Measures for Ethical Protection of Participants
The primary concerns for this study was ensuring I had informed consent from the
participants. Confidentiality is of the utmost importance in collecting, analyzing, and
reporting data from the survey. Ethical issues were addressed at each phase in the study.
In compliance with the regulations of the Institutional Review Board (IRB), the
permission for conducting the research must be obtained (IRB, 2012). The Request for
Review Form was filed, providing information about the principal investigator, the
project title, and type, source of funding, type of review requested, number, and type of
subjects. Application for research permission contained the description of the project and
its significance, methods and procedures, participants, and research status.
A pre-established informed consent form developed by Walden University was
utilized for this study (See Appendix B). The form stated that the participants are
60
guaranteed certain rights, agreed to be involved in the study, and acknowledged that their
rights were protected. The confidentiality of participants was protected by numerically
coding each returned questionnaire and keeping the responses confidential. All study
data, including the survey electronic files, and transcripts, were kept in locked metal file
cabinets in the researcher’s office and are to be destroyed after a reasonable period of
time. Participants were informed that summary data was disseminated to the professional
community, but in no way would this information be traced back to them individually.
As mentioned earlier, I sent out cover letters describing the survey and the intent.
The participants knew that the survey was voluntary and would be utilized to assess
current student and faculty perceptions about the financial literacy program they had
participated in. A sample of potential survey questions can be found in Appendix B, and
C. The participants were asked to provide some personal information about their
demographics (See Appendix B) to ensure that a correct sample of the entire organization
is represented. All efforts were made to ensure participant confidentiality. The goal for
the data collection was to use a pre-established financial literacy survey (See Appendix
B) that has already been drafted and tested for validity. After compiling the results, the
data were evaluated, recorded and shared with research site director or designated
representatives.
The survey instrument that was used was an existing three-part financial
education survey developed by the Federal Deposit Insurance Corporation (FDIC) to
evaluate its Money Smart Program (See Appendix B). To further test the reliability and
validity of the survey, a pilot study survey (See Appendix B) was administered to five
61
financial readiness counselors currently employed with the Department of the Army.
These financial specialists were former colleagues and have substantive and diverse
financial backgrounds. The Association of Financial Counseling and Planning Education
(AFCPE) nationally accredited all five counselors.
Data Collection
Data Collection Choices and Justification
There would be 25 to 50 former students taking the Money Smart survey. Data
were collected once Walden University and the evaluation site received IRB approval.
Walden University’s approval number for this study is 11-14-14- 0164758. There was
only one primary data collection method used for this study. The method consisted of
using a survey instrument issued to 25 to 50 past program participants. This instrument
was a pre-established Money Smart survey (See Appendix B). The survey satisfied the
qualitative and qualitative data collection when conducting a program evaluation.
According to Lodico et al. (2010), “A survey or questionnaire is the main tool or
instrument used to collect data in a descriptive-survey research study” for that reason, I
decided to use a descriptive-survey to determine participant perceptions of the financial
literacy class (Lodico et al., 2010, p. 159). This design allowed maximum participation
from the participants, thus allowing them the opportunity to answer questions without
reprisal. A cover letter sent out to participants informed them of the important aspects of
the survey (See Appendix D). The cover letter consisted of a statement of purpose for the
survey and a confidentiality statement. I also included details on how the information
would be collected and reported. These participants were notified that their participation
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is voluntary. A unique and random six character, alphanumeric ID was assigned to each
survey only to ensure the surveys could be paired together if they became separated when
returned.
As stated in the previous section, the goal for the data collection was to use an
existing survey (See Appendix B), designed by the FDIC to evaluate its Money Smart
program. This survey has already been drafted and tested for validity. It was anticipated
that some issues may stream from the type of survey questions and how they are phrased.
This design allowed maximum participation of the students and faculty within the
organization, allowing them the opportunity to answer questions without reprisal. Some
of the sample survey questions were as follows:
1. Please describe your first memory about money (i.e., your first allowance,
wanting to buy something you wanted, your first gift of money for a special
occasion).
2. Please explain your experience at home as it relates to talking about money.
3. Please explain whether or not you feel learning about financial concepts has
changed your mind about the importance of improving your current financial
situation.
4. Please provide any additional information you would like to share about your
experience while participating in the financial literacy program offered by
Financial Empowerment.
5. Did you feel that this financial course has better prepared you for understanding
how to spend the money you earn?
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6. Please share any additional thoughts you had about your experiences during the
program.
7. Did you feel that you acquired/gained new financial literacy skills that helped you
with managing money after participating in this course?
Specific Plan for the Survey
The data collection was be in the form of survey questions (See Appendix B). The
rationale for using descriptive quantitative data is based on the premise that a useful
survey of participant experience could best be developed only after a preliminary
assessment of participant usage was conducted. An existing community-based financial
education program is the basis for this study. The goal is to ensure the program is
effective and meets the learning needs of rural adults. Using a concurrent embedded
strategy allowed broader perspectives within the study. The TTM theory also looks at
what mechanisms are required for adults to identify, assess, and evaluate other sources of
information. Often sources that may look at how adults can identify, assess, and evaluate
new information, and in some cases, reframe their world-view through the integration of
new knowledge or information into their belief system. A person born into poverty may
accept this as factual until learned they do not have to remain poor.
Data Collection and Recording
Given the sensitive nature of the data being collected, it was necessary to
construct a set of detailed data collection procedures to ensure the anonymity of the
financial literacy program participants. For this study, I utilized a pre-existing survey
instrument (See Appendix B) and end-of-course program evaluations received from past
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program participants. The instrument was developed to evaluate the FDIC’s Money
Smart Program in 2003 for evaluating the program’s effectiveness (Lyons & Scherpf,
2003). For this study, the primary means of collecting data was the use of a “paper and
pencil” survey/questionnaire (See Appendix B) mailed to individual participants. The
purpose for using survey was to generate facts, opinions, and insight from the financial
literacy program participants. The ultimate goal was to generate first-hand experience
from the program participants and to get their perceptions of the program.
The use of surveys as a data collection method began with the assumption that the
participants’ perspectives were meaningful, knowable, and could be made explicit, and
that their perspectives affected the success of the project. Two types of surveys used in
evaluation research are structured surveys, in which a carefully worded questionnaire is
administered, and in-depth surveys, in which the interviewer does not follow a rigid form.
Reporting the data depended upon the audience receiving the report. Since this report was
academic in nature, it would be reported using a combined reporting method using both
statistical and narrative information.
The System for Tracking Data and Emerging Understandings
Prior to the data collection, the survey would be given a value based on the
author’s instructions. The levels of rating were set prior to the start of data collection.
Each participant was assigned a numeric code. This code allowed this researcher to match
surveys returned by each participant. During the cataloging process, the surveys sheets
were processed and the information obtained from each survey was recorded using
Microsoft Excel as the primary tool for data analysis. After the data was processed, the
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data was then placed in an Excel spreadsheet and saved for later review by this
researcher. The data collected during this study would be retained for five years after the
study is completed. The data is stored on an external hard drive; a backup copy is on file
and saved as well. After the retention timeframe is complete, the data would be deleted
electronically and destroyed in order to protect the privacy of the participants involved.
The Role of the Researcher
As the current facilitator for the Financial Empowerment, I assumed a dual role as
facilitator and researcher for this study. The researcher’s involvement with data collection
in this study was limited to issuing a survey, collecting and reporting data, and reporting
these findings to stakeholders. The data analysis was performed using rigorous statistical
analysis techniques and the results were interpreted based on the established values for
the statistical significance of the functions. The researcher assumed a more participatory
role due to the “sustained and extensive experience with participants” (Creswell, 2009, p.
9) and personal involvement with the research topic. The role of this researcher in the
data collection process was to explain the process to each of the participants as well as to
monitor the participants. This researcher also ensured that the surveys were gathered in a
proper manner after the participants have finished completing them.
Data Analysis and Findings
Criteria for Selecting Participants
For this study, 50 former financial literacy attendees from the rural community of
Tattnall County, Georgia were selected to participate in this project by filling out a 3-part
Money Smart Survey. There were a total of 50 surveys mailed out, and participants were
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given the opportunity to fill out the survey and return it in the secure envelope provided
in the packet. The population consisted of rural adults living in the Southeastern region of
Tattnall County Georgia in the United States. These participants were purposefully
identified according to their past participation in the financial literacy program offered.
The participants involved in this project study were from mixed socioeconomic status,
race, age category, education levels, and gender. The participants also varied in their
abilities to make financial decisions. There were 50 participants with this background;
however, there are were no guarantees that all 50 participants would participate in this
study. After collecting the final surveys there were a total of 36 participants that
responded. The financial literacy class was located in a rural community with 70% of the
student body coming from lower income families, and the participants were linked to the
research site. For this project, the research site was a local church in Glennville, Georgia
that offered community based financial education and training.
Procedures for Gaining Access to Participants
Financial Empowerment was commissioned by the Mt. Zion Outreach Ministry,
in Glennville, GA to conduct on-site financial literacy training for church members.
Access to course participants was be granted by the Pastor of Mt. Zion, identified as a
primary stakeholder. A course sign-up sheet was used to gather participate information
for the purpose of mailing out the Money Smart survey. Contact information was
accessed to determine who received a cover letter describing the survey and the intent.
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Specific Plan for the Survey
There were 50 people selected to take the Money Smart survey for this project.
Data were not collected until I received IRB approval. The data collection method for this
project was narrowed down to just a survey for collection of data. The method consisted
of using a pre-established survey instrument issued developed by the Federal Deposit
Insurance Corporation (FDIC) called the Money Smart survey (See Appendix B). This
survey more than satisfied the requirement during this project. A cover letter was mailed
to all of the participants with full disclosure of the survey and required participation
requirements. Participants were informed of how their information would be collected
and reported. Due to the sensitivity of the survey, participants were issued a unique and
random six character alphanumeric ID for the purpose of ensuring the surveys were
paired together should they become separated when returned.
How and When Data Were Analyzed
The purpose of the program evaluation was to evaluate the Financial
Empowerment literacy program and measured participant outcomes based upon program
goals. Data were collected and analyzed separately for this program evaluation. The goal
was to combine the different categories of the survey using a process called triangulation.
This process of triangulation required me to list the findings from each component of the
project on the same page and consider where findings from each method agreed
(convergenced), offered complementary information on the same issue
(complementarity), or appeared to contradict each other (discrepancy or dissonance) in
the data.
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I then utilized the statistical analysis features in Microsoft Excel to compile and
then analyzed the Money Smart survey responses. The majority of the survey questions
focused on what the participants have learned from the program and if there were
behavior changes among program participants. The survey responses were measured
using frequency distribution. The scores were compiled and listed in a frequency table to
determine the common responses between participants. The table had two columns
labeled with the number of participants and the frequency of their responses to the survey
questions. The responses were further indicated by percentages. The use of figures and
tables helped present and clarify the results of descriptive and inferential statistics used to
analyze the data. This information was critical to measuring the success of a financial
literacy program that was implemented.
The data analyses began with descriptive statistics that identified the
characteristics of the participants. The frequencies and distributions of demographic
characteristics were summarized, as well as the percentages, means, and medians of the
independent and dependent variables. The use of one-sample chi-square analysis helped
to determine if the research questions were distributed evenly. The data were organized
according to research questions and themes identified from the survey. There were no
themes that stood out more than others. The data was relatively simple and focused on
behavior and perceptions to the financial literacy program. After the development of
potential themes, the findings were written in an evaluation report that incorporated the
use of tables and figures. The stakeholders will be presented with a complete overview of
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the project to include survey results after final approval of the project by Walden
University.
Data Analysis Results
The project study found that age and work experience were positively related to
financial literacy. Moreover, income levels positively correlated with survey respondent’s
satisfaction with the financial literacy program. The findings also indicated that survey
respondents with high level of education displayed higher financial literacy levels than
non-educated respondents. Survey results varied with age, education levels, marriage
status, gender, employment status, and income levels. Thus, the results were not strong
enough to definitely identify any potential changes needed to improve the financial
literacy program.
Program participants were asked to complete three parts of the Money Smart
survey (See Appendix B). There were 50 mailed surveys; 36 participants responded,
while 14 did not respond. Of the 36 returned surveys, 30 completed all sections of the
survey, while six left some questions blank. Most of the questions left blank pertained to
those questions about annual income and how many family members resided in the home.
The remaining survey findings were presented according to respondent demographic
characteristics. The next tables summarized the data findings of the Money Smart survey
mailed to participants.
Overall, there was a satisfactory return of the mailed surveys. After receiving the
returned surveys, there was a clear indication that some of the participants did not
complete the entire survey. After consolidating the results, there was not a clear
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indication of why some participants completed the survey while others did not. The only
indicator would be the fact that the survey was mailed out prior to a major holiday and
some participants either forgot or just did not have time to complete the survey. Data
were compiled into tables for a more detailed analysis beginning with Table 3, which
described the demographics. Tables 4, 5, and 6 respectively presented the responses from
Parts I, II, and III of the Money Smart survey dealing with participant savings,
borrowing, and program perceptions respectively.
Table 3
Part I: Demographics Surveys completed 36 72%
Surveys not completed 6 17%
Marital status Married 15 42%
Single 11 31% Divorced 7 19% Widowed 3 8% Gender
Male 16 44% Female 20 56% Education level
No high school 4 11% High school 28 78% Some college 9 25% College graduate 5 14% Graduate school 0 0% Note: Data derived from the Money Smart survey. See Appendix B.
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Part I: Demographics Employment status
Full-time 20 56%
Part-time 9 25%
Unemployed 7 19%
Income level
Under $4,999 3 8%
$5,000 to $9,999 10 28%
$10,000 to $19,999 12 33%
$20,000 to $29,999 4 11%
Over $30,000 7 19%
Note: Data derived from the Money Smart survey. See Appendix B. (N = 36)
As can be seen in Table 3, only 72% of the respondents returned completed
surveys, whereas only 17% did not return completed surveys. The surveys were mailed
out and the established return date coincided with the Thanksgiving holidays. It was
identified that the original deadline might have an impact on response rates. Because of
this fact, data collection did not end until after the holidays, thus giving participants more
time to return their surveys.
Table 3 also highlighted the data compiled based on surveys returned and whether
they were completed or not completed. The data were presented according to respondent
age category where (N = 36) represents total surveys returned and completed, while (N =
50) represents the total surveys mailed out to participants. Table 3 also noted that of the
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total surveys returned only 44% of the respondents were male and only 56% of the
respondents were female. The survey responses were broken down according to age
categories. Based on the surveys returned the age categories 25 to 34 and 35 to 44
accounted for 34% of total respondents separately.
Marital status identified that only 42% of the respondents were married, 31%
were single, 19% responded as being divorces, and only 8% of the respondents were
widowed. The survey responses were further broken down according to age categories.
Based on the surveys returned the age categories 25 to 34 accounted for 31% or the
majority of completed surveys returned. Education levels indicated that only 11% of the
respondents did not graduate high school, 78% graduated high school, 25% had some
college, 14% were college graduates, and 0% had a graduate degree. The survey
responses were further broken down according to age categories. Based on the surveys
returned the age category 25 to 34 accounted for 39% or the majority of completed
surveys returned.
Employment status indicated that 56% of the respondents worked full-time, 25%
worked part-time, and 19% did not currently work. The survey responses were further
broken down according to age categories. Based on the surveys returned the age category
25 to 34 accounted for 25% or the majority of completed surveys returned, with the 35 to
44 age category following with 14% of completed surveys returned. Income levels were
indicated, only 19% of the respondents earned approximately $30,000, 28% earned less
than $10,000, 33% earned less than $20,000, and 11% earned less than $30,000. The
survey responses were further broken down according to age categories. Based on the
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surveys returned the age category 25 to 34 accounted for 28% or the majority of
completed surveys returned earning the most.
The next set of data summarized respondent answers to questions asked in Part 1
and Part 2 of the Money Smart Survey. These sections assessed each respondent’s
financial profile, financial behavior, program view, and potential behavior outcomes as a
result of completing the program. Each question was outlined with a corresponding table
of results. The data were consolidated and reported according to total responses presented
in the returned surveys. The results were also consolidated according to age category;
however, written descriptions were utilized to further capture detailed data according to
age categories.
As can be seen in the Table 4, respondents indicating whether or not they had a
savings and checking account is significantly diverse. As can be seen, 58% had savings
accounts while 42% did not have a savings account. As can be seen, 72% of the
respondents had a checking account, versus 28% reporting they have not checking
account. The high number of checking accounts could be connected to the fact that more
people use debit/ATM cards versus writing paper checks.
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Table 4
Part I: Saving and Checking
Do you have a savings account? Yes 21 58%
No 15 42%
Do you have a checking account? Yes 26 72%
No 10 28%
Where do you cash your checks? Payday lender 2 6%
Grocery store 6 17% Bank/credit union 17 47% Convenience store 1 3% Employer 2 6% Other 8 22%
How much do you pay to cash your checks per month? $0 18 50%
$1.00–$4.99 4 11% $5.00−$9.99 3 8% $10.00−$19.00 0 0% $20.00−$29.00 2 6% More than $30.00 0 0%
Monthly checks written 0 27 75%
1−2 5 14% 3−5 2 6% 5+ 1 3%
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Monthly deposits
0 6 17%
1−2 23 64%
3−5 4 11%
5+ 3 8%
Monthly withdrawals
0 0 0%
1−2 3 8%
3−5 18 50%
5+ 15 42%
If you do not have a checking account how do you pay your bills?
Cash 8 22%
Money order 10 28%
Credit card 7 19%
Other 9 25%
Do you wire money?
Yes 12 33%
No 24 67%
Do you borrow money?
Yes 29 81%
No 7 19%
Note: Data derived from the Money Smart survey. See Appendix B. (N = 36)
As can be seen in Table 4, 3% of the respondents cashed their checks at convenience
stores, 17% at grocery stores, while 6% utilized their employers to cash their checks. This
is a rural area and many do not have access to vehicles so these results are not surprising.
The data also indicated that 47% utilize banks/credit unions while 6% utilized payday
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lenders. This is one of the behaviors that the Money Smart curriculum attempts to help
consumers change. The curriculum educates participants about the costs associated with
using a bank/credit union versus payday lenders. The remaining respondents 22%
indicated they use other sources the cash their checks. It is likely that these other sources
are friends or the participants have the funds placed on prepaid PayPal cards such as the
Walmart green dot MoneyPak and others.
When referring to paying to cash checks, 7% of the respondents indicated they
pay more than $20.00 to cash their checks per month. This is most likely due to lack of
transportation or bank accounts. Only 11% pay more than $5.00 to cash their checks
while 15% pay less than $5.00. The majority of the respondents, 67% indicated they pay
no fees to cash their checks. This most likely is contributed to having bank/credit union
accounts where they utilized direct deposit options to cash their checks. Also most public
assistance recipients are required to have a bank account to receive their benefits. No
respondents indicated they pay more than $30.00 per month to cash their checks.
As can be seen in Table 4, 3% of the respondents still write less than 5 checks per
month, 6% indicated they write less than three checks per month, 14% indicated they
only write 1 to 2 checks per month. The writing of checks is most likely due to those
respondents not having a bank/credit union checking account. A high number of
respondents, 75% indicated they write no checks per month. This could possibly be
linked to the high number of consumers utilizing debit/ATM cards versus writing paper
checks to pay their bills on a monthly basis.
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As can be seen in Table 4, 42% of the respondents indicated they make greater
than five monthly withdrawals per month, 50% indicated they make greater than 3
monthly withdrawals, 8% indicated they make at least 1 monthly withdrawal, and no
respondents indicated they do not make monthly withdrawals. The results are likely due
to recipients having their paychecks, benefits checks, and other monetary gifts deposited
by others. After the deposits are made the income is immediately utilized to pay bills and
purchase other necessities on a monthly 8% of the respondents indicated they make
greater than five monthly deposits per month, 11% indicated they make greater than 3
monthly deposits, 64% indicated they make at least one monthly deposit per month, and
17% indicated they do not make monthly deposits per month. Survey response indicate
this is likely due to recipients having their paychecks, benefits checks, and other
monetary gifts deposited by others.
The next set of data in Table 5 summarized respondent answers to questions
asked in Part I and Part II of the Money Smart Survey. These sections assessed each
respondent’s financial profile, financial behavior, program view, and potential behavior
outcomes as a result of completing the program. Each question was be outlined with a
corresponding table of results. The data were consolidated and reported according to total
responses presented in the returned surveys. The results are also consolidated according
to age category; however, the written descriptions further captured detailed data
according to age category.
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Table 5 Part II: Borrowing Money Who do you borrow money from?
Family and Friends 21 58% Payday Lenders or Title Loan Company 7 19% Rent-to-Own Center 6 17% Credit Cards 7 19% Bank 10 28% Other 9 25% I Do Not Borrow Money 2 6%
What are you borrowing money for? To Pay Bills (groceries, rent, utilities) 26 72%
For Furniture, Appliances, TV, VCR, stereo 10 28% For an Education 15 42% For a House 6 17% Other 16 44% I Do Not Borrow Money 2 6%
Do you know the interest rate on your loans? Yes 19 53%
No 7 19% I'm Not Sure 10 28%
I know how to open up a checking account Yes 23 64%
No 6 17% I'm Not Sure 5 14% Note: Data derived from the Money Smart survey. See Appendix B. (N = 36)
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Part II: Borrowing Money I know how to write a check
Yes 20 56% No 7 19% I'm Not Sure 3 8%
I know how to use an ATM/Debit card Yes 33 92%
No 3 8% I know the cost of having a bank account
Yes 10 28% No 22 61% I'm Not Sure 3 8%
I know how much it costs to borrow money from a bank
44% Yes 21 58% No 7 19% I'm Not Sure 6 17%
I know what an APR (annual percentage rate) is Yes 14 39%
No 19 53% I'm Not Sure 3 8% Yes 23 64% No 6 17% I'm Not Sure 5 14% Note: Data derived from the Money Smart survey. See Appendix B. (N = 36)
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The question of borrowing money and respondent borrowing behaviors/habits
was discussed in subsequent figures. When responding to the subject of borrowing
money, 3% of the respondents indicated they do not borrow money, 16% indicated they
borrow from credit cards, 11% indicated they borrow from payday lenders, 10%
indicated they borrow from rent-to-own centers, 15% indicated they borrow from other
sources, 16% indicated they borrow from banks/credit unions, and the majority, 34% of
respondents, indicated they borrow money from family and friends.
There are factors that may explain the survey responses to this question. Some
respondents may not have access to traditional lending institutions such as banks and
credit unions to borrow money. Some respondents may have poor credit and are unable to
borrow money. Some respondents may have filed bankruptcy in the past and are unable
to borrow money. These are only assumptions based on respondent indicators and my
past experience as Financial Counselor. One of the ultimate goals of the Money Smart
financial program is to help respondents change behaviors in regards to their borrowing
habits. If the respondents choose not to change behavior, they at least know the potential
outcomes associated with their borrowing choices.
As can be seen in Table 5, the majority, 35% of respondents, indicated they
borrow money to pay bills, purchase groceries, pay rent, and utilities, 20% indicated they
borrow money for educational purposes, 8% indicated they borrow money to purchase a
home or pay initial rent and deposits, 13% indicated they borrow money to purchase
appliances, furniture, TVs, VCRs, and stereo equipment, and 21% indicated they borrow
money for other reasons. Survey responses are most likely due to the respondent’s
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economic situation, coupled with whether or not they have experienced a job loss or
layoff. With the loss of jobs, some consumers are increasingly finding themselves unable
to paying bills and may opt to borrow money to pay for day-to-day living expenses. Only
3% of the respondents indicated they do not borrow money.
On the questions regarding interest rates, 53% of the respondents indicated they
knew the interest rates on their loans, 39% of the respondents indicated they do not know
the interest rates on their loan accounts while 8% indicated they are not sure of the loan
rates. Responses are most likely due to consumers being more focused on how month
monthly payments are versus how much it would cost them to borrow money. These
responses influenced the Money Smart financial literacy program to educate respondents
on knowing how much it cost to borrow money over time. It is not known if knowing the
costs would actually change consumer behavior in all respondents; however, it could help
them make more informed choices when borrowing money.
As can be seen in Table 5, 67% of the respondents know how to open up a
checking account, 18% of the respondents indicated they do not know how to open up a
checking account, and 15% of the respondents indicated they were not sure how to open
up a checking account. Survey responses are most likely due to the fact most consumers
do not associate the use of a debit/ATM cards with checking accounts. Usually the
debit/ATM process is marketed to consumers as separate banking products and can be
confusing to those consumers not having financial knowledge about banking activities.
When it came to writing checks, the majority, 67% of the respondents, indicated they
know how to write checks, 23% indicated they do not know how to write checks, while
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10% of the respondents indicated they are not sure how to write checks. These responses
are most likely due to the increased use of debit/ATM cards by consumers to pay bills
and make everyday purchases. Lending institution are changing every day due to the
increased use of technology and most are encouraging consumers to pay bills online
using bill pay services or by debit/ATM.
The questions regarding ATM/Debit card uses indicated only 8% of the
respondents indicated they do not know how to use an ATM/Debit card, while the
majority, 92% of respondents, indicated they do know how to use an ATM/Debit card.
Survey responses indicated that increases in banking technology most likely has had an
impact on consumer banking activities. Most consumers have an ATM/Debit card and are
familiar with using them to pay bills and make purchases. Only 29% of the respondents
indicated they know the cost of having a bank account, 8% indicated they are not sure of
the costs of having a bank account, while the majority, 63% of respondents, indicated
they do not know the cost of having a bank account. These results indicated that some
consumers fail to ask the necessary questions when opening a savings or checking
account. It is also likely that consumers do not compare banks and fees when opening up
a bank account.
As can be seen in Table 5, the majority of respondents, 62% know how much it
costs to borrow money from a bank, 20% of the respondents indicated they do not know
how much it costs to borrow money from a bank, while 18% of respondents indicated
they are not sure of how much it costs to borrow money from a bank. The survey
responses strongly indicated some consumers lack the financial knowledge of how
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banking institutions work. When it came to interest rates, 39% of respondents do know
what an APR (annual percentage rate) is, however the majority, 53% of respondents,
indicated they do not know what an APR (annual percentage rate) is, while 8% of
respondents indicated they do not know what an APR (annual percentage rate) is. The
survey responses indicated that some consumers may get confused and think the APR
(annual percentage rate) is the same as the interest rate (cost of borrowing money) on a
loan.
As can be seen in Table 5, 19% of the respondents indicated they do not borrow
money while 81% of the respondents indicated they do borrow money. As can be seen in
Table 5, 33% of the respondents indicated they utilize wiring services while 67% of the
respondents indicated they did not use these services. It is most likely that these
respondents did not want to pay the fees associated with sending money quickly. These
fees can range from $9.00 to $49.00 depending upon the amount of funds being wired. It
is likely that those respondents who were willing to pay the additional fees for the wiring
services deemed that sending the funds was of urgency. Most companies have quick
collect polices that allow the utilization of Western Union/MoneyGram to pay mortgages,
car payments, utilities, send money to other bank accounts, and pay other bills. As can be
seen in Table 5, 29% of the respondents indicated they use money orders, 24% indicated
they use cash, 21% indicated they use credit cards, while 26% of the respondents
indicated other. These responses are most likely contributed to those respondents and
their access to transportation. Most neighborhoods have places that sell money orders and
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provide access to Western Union/MoneyGram services. The next set of data summarized
respondent answers to questions asked in Part II of the Money Smart Survey.
Table 6
Program Outcomes
Strongly Agree Agree
Not sure Disagree
Strongly Disagree
Because of the financial literacy program I am more financially knowledgeable
43% 57% 0% 0% 0%
Because of the financial literacy program, I feel I can manage my finances better
64% 22% 11% 3% 0%
I feel that I can use what I learned in this program on my own
57% 43% 0% 0% 0%
Note: Data derived from the Money Smart survey. See Appendix B. (N = 36)
As seen in Table 6, analysis of nonparametric statistics were calculated using a
chi-square test with a 95% confidence level (p < 0.05). Chi-square was calculated with
the use of the Excel statistical software based on 4 degrees of freedom and a 5- column
Likert scale (1 = strongly agree, 2 = agree, 3 = not sure, 4 = disagree, and 5 = strongly
disagree). Chi square test results for each of the three survey items above yielded the
following results:
Q1: Because of the financial literacy program, I feel I can manage my finances
better indicated results were significant, χ2 (4, N = 36) = 56.50, p < .05. The chi-square
test rejects the null hypothesis.
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Q2: Because of the financial literacy program I am more financially
knowledgeable indicated the results were significant, χ2 (4, N = 36) = 48.72, p < .05. The
chi-square test rejects the null hypothesis.
Q3: I feel that I can use what I learned in this program on my own indicated
results were significant, χ2 (4, N = 36) = 56.50, p < .05. The chi-square test rejects the
null hypothesis.
In response to RQ2: What is the difference between actual responses for
knowledge gain and hypothesized (equally distributed) responses for knowledge gain as a
result of participating in the financial literacy program?, it is therefore concluded that
there is a difference between the actual responses for knowledge gain and hypothesized
(equally distributed) responses for knowledge gain as a result of participating in the
financial literacy program.
As can be seen in Table 6, respondents demonstrated a favorable perception of
the financial literacy program with a 43% strongly agree and 57% agree response rate.
The responses indicated that respondents strongly agree that the program increased their
financial knowledge levels with 57% strongly agreeing and 43% agree respectively.
Respondents also responded favorably to the possibility of using their new found
financial literacy skills to manage their finances. As can be seen in Table 6, respondents
had mixed responses in reference to their ability to use the information on their own.
These responses indicated 64% strongly agreed while 22% agreed, 11% not sure, and 3%
disagreeing with the question. These responses are likely due to respondent perceptions
of being in a position to actually apply the information to their current situations.
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Evidence of Quality and Procedures to Assure Accuracy and Credibility
As soon as data from the surveys was received from the survey participants, it
was screened for accuracy. During my initial screening, I asked the following questions:
1. Are the responses legible/readable?
2. Are all important questions answered?
3. Are the responses complete?
4. Is all relevant contextual information including the data, time, place, and
researcher information correct?
Although assuring that the data collection process does not guarantee accuracy, it
did help assure the overall quality of subsequent analyses. This occurred because the
researcher was able to receive feedback about his/her own biases.
Procedures for Determining Validity
A consent form was mailed with the initial survey packet to all participants. The
participants were instructed on the study requirements and informed to sign and kept the
consent form for their records. The participants were also informed that the Money Smart
survey was a pre-established survey validated by the Federal Deposit Insurance
Corporation (FDIC) in their 2003 financial literacy study. Additional validity testing
occurred prior to the survey being mail. The survey was piloted by financial literacy
counselors working in the field.
Procedures for Dealing with Discrepant Cases
During research, there is always the potential to deal with discrepant cases. If
discrepant data were discovered, I would have examined all of the supporting and
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discrepant data to make an assessment on whether or not to make changes to the
conclusion of the study. For this study, all potential personal biases of the researcher were
identified and those discrepant findings were reported. This allowed the reader to
evaluate and draw his/her own conclusion.
Limitations/Assumptions
A potential limitation to this program evaluation was that the rural minority adults
participating in the survey may have difficulty understanding the survey. Due to these
limitations the survey asked targeted questions at to the participant’s education levels and
whether or not they completed high school. If the participants did not understand the
questions on the survey, they may not have indicated the right response to the
corresponding questions and this would skew the data and final results of the project
study. It may also be difficult for these adults to understand the financial topics they are
not familiar with, but need to know in order to successfully navigate their financial lives.
The participants had to have a basic understanding of financial matters in order to
comment on the survey questions. If the participants lacked this basic understanding or
knowledge they would again cause the data and final results to be skewed. Members of
this population group may be considered vulnerable consumers. Vulnerable consumers
have difficulty in obtaining or assimilating information needed to make decisions
regarding those goods or services, if any, to buy. They may also suffer a greater loss of
welfare than other consumers from making an in-appropriate buying decision. Some rural
minorities may also have more financial knowledge than they realize, but they may not
be able to articulate it in a way that is comprehensible to outside observers.
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There are a few assumptions made in regards to this study. Although this study is
limited to past program participants, there was an assumption as to whether or not the
participants could fully comprehend the survey and the language it was written in.
Additional assumptions included whether or not the financial literacy program
participants could read and did they fully comprehend the questions in the survey.
Because of these assumption, as the researcher I offered the participants the opportunity
to have the survey questions read aloud to those participants. The survey was also
available in additional languages and was made available based on program information
about the participant’s language preferences.
Research Questions and Outcomes
All of the project research questions were formatted to be answered as a result of
the data collected from the Money Smart Survey. Financial education is universally
assumed to affect knowledge and behavior, yet its impacts remain relatively untested.
Research Question 1: What are the perceptions of stakeholders and students
regarding the financial literacy program offered by Financial Empowerment? According
to the survey results, 43% of the program participants strongly agreed the program was
effective; while, 57% agreed that the program was effective. Out of the all participants
surveyed none indicated the program was not effective. These results indicated the
perceptions of the stakeholders and program participants was favorable; however,
literature supports the fact that research on the effectiveness of financial education was
relatively new, and thus limited.
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Research Question 2: What is the difference between actual responses for
knowledge gain and hypothesized (equally distributed) responses for knowledge gain as a
result of participating in the financial literacy program?
H01: There is no difference between the actual responses for knowledge gain and
hypothesized (equally distributed) responses for knowledge gain as a result of
participating in the financial literacy program.
H1: There is a difference between the actual responses for knowledge gain and
hypothesized (equally distributed) responses for knowledge gain as a result of
participating in the financial literacy program.
According to the statistical chi square tests, the null hypotheses H01 can be
accepted and it is therefore concluded that there is no difference between the actual
responses for knowledge gain and hypothesized (equally distributed) responses for
knowledge gain as a result of participating in the financial literacy program.
Research Question 3: Does the program provide students with a realistic
experience to prepare them for future financial responsibilities? The findings in this
project study suggest that information transferred during this course had a modest effect
on behaviors requiring self-control, including savings and borrowing money. This was
according to the 57% of participants strongly agreeing they gained more knowledge as a
result of taking this course. Another 43% stated they agreed that they also gained more
knowledge as a result of participating in the program. Although savings potentially
comes at the expense of greater borrowing, there was no evidence that participants took
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on additional debt. There was however, some evidence that participants engaged in
stronger budgeting practices following their participation in the program.
Summary
Community organizations have made great efforts to establish financial education
programs within the local community to help minority adult men and women acquire
essential consumer financial skills to improve their overall quality of life. However, these
adults may not take advantage of the services offered. Scholars suggested that improving
quality of life is connected to offering financial education to those families who
otherwise would not have access. Financial Education Programs (FEP) were established
to help families gain the financial skills needed to improve their current economic state.
The TTM theory best explains why adults learn because it was a theory of changing what
we believe in relation to dramatic life events. It is learning that goes beyond just getting
hold of content knowledge, or learning equations, memorizing mathematical formulas. It
is a valuable process for adults to learn to think for themselves, through re-defining what
we have to come to know through life experiences (Merriam et al., 2007). The things that
our culture, religions, and personalities may prompt us towards, without engaging or
questioning how we know what we know. This concludes Section 2 and leads into
section three and a discussion of the project.
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Section 3: The Project
Introduction
I conducted a program evaluation of the Financial Empowerment literacy course
offered at a local church in Tattnall County, Georgia. Evaluating the Money Smart
program, gaining program insight, and professional development were the focus of this
project to assist stakeholders and instructors who provided instruction to financial literacy
students. The project also examined the elements of the program that could assist
stakeholders with understanding the low participation rates for the course. The
curriculum used for this evaluation was part of the Money Smart program and could not
be changed; however, suggestions for improvement were submitted to the FDIC after the
project completion. The professional-development presentation training for this project
study utilized technology so stakeholders and instructors could learn, apply, and
implement their training within their classroom. This project also assessed the financial
literacy course by measuring participants’ financial knowledge, financial confidence, and
financial behavior changes after participating in the course.
A Money Smart Survey was the data collection tool I used to gather data for this
study. I categorized the findings of this quantitative project study according to the three
guiding questions explored during this program evaluation. The first question addressed
student and stakeholder perceptions of the financial literacy course. The second question
addressed whether the program provided students with a realistic experience and
prepared them for future financial responsibilities. The third question addressed whether
these minority adult learners, with limited or no financial literacy skills, gained financial
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knowledge and understanding as a result of taking this course. The initial question
showed that the students believed the course was did prepare them for future financial
responsibilities and the second questions showed students gain knowledge and
understanding as a result of taking the financial course.
These results were demonstrated throughout the results of the Money Smart
survey taken by the participants. Section 3 of this paper contains the final project
discussion and review of the literature addressing this study. The goals of the proposed
project, rationale of why the project was chosen, implementation, project evaluation, and
implications for social change are also included in Section 3.
Description and Goals
Description
The loss of jobs, loved ones, and physical injuries can be life-changing events that
transforms how the world is viewed. The emphasis of this program was on providing
rural minority’s financial education that helped them to make better-informed decisions.
The goal of the financial literacy program was to motivate these adults to make a decision
to accept the loss of income or look at learning new skills so that he/she could move past
the loss. The overall objective was to provide a personal financial literacy program
specifically targeted to this segment of the population that addressed gaps in education
related to financial literacy involvement.
This project centered on whether the existing financial literacy program possessed
all of the components needed to inspire rural adults to take advantage of the program.
Improving the program would only assist these families with developing the necessary
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skills and behavioral changes needed to become successful in this current economic
environment. The desired results of this project were to provide powerful insight from
these rural families on the challenges they face regarding community-based financial
education program participation and the effectiveness of these programs. If the results
lean toward the curriculum influencing program participation and behaviors, the
appropriate changes will be suggested. Because the Money Smart curriculum cannot be
changed at the local level all changes and recommendations have to be forwarded to the
FDIC on a suggestion form. After this form is received, the FDIC will respond based on
the project results and recommendations. If the FDIC does not accept the changes or
recommendations, the local organization will have to seek other alternative ways to
improve the curriculum. If the FDIC accepts the changes, this information would then be
integrated into the locally offered financial education program with the ultimate outcome
of empowering minority families.
Program participants expressed on the survey that the program did provide them
with the skills needed to do better in their everyday financial endeavors. This information
assisted with the desired outcome of this project in that it would inform the FDIC,
researchers, policymakers, stakeholders, and educators about the beliefs and perceptions
of the minority family participating in community-based financial education programs.
The FDIC and community stakeholders would be the targeted audience for all
recommendation and suggestions to program improvement. The information from the
project would assist researchers with making decisions as to, which aspects of financial
education they would need to further study. The policymakers would benefit from this
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project because they would then have more definitive study information to help with
making future financial policies that benefit rural adults. The stakeholders benefit from
this study because they would be able to offer financial education that specifically targets
the needs of rural adults within their communities. The educators would benefit from this
study because they would have greater insight into the connections between the
curriculum and the outcomes of the rural adult student after participating in the program.
The assessment of the financial literacy programs could possibly facilitate enhancements
to other existing financial literacy program designs. In addition, evaluation of financial
literacy programs can provide sponsors with information needed to regulate and adjust
these programs to better accommodate those minority families that utilized the programs.
The project could possibly assist other schools with low graduation rates and
achievement gaps in financial literacy improve their current learning environments.
Project Goals
The primary goal of the Money Smart program was to provide individuals with
the necessary information to evaluate and make their own financial decisions. The project
data supported the fact that the Money Smart program was effective and meet the needs
of those rural adults who participated in the course. The only change recommended was
changing the delivery format and time frame in, which the program was offered. The
Money Smart program consisted of a set of 10 instructor-led training modules that cover
a number of key financial topics including: general banking services, how to choose and
maintain a checking and savings account, how to budget your money, the importance of
saving, and how to obtain and use credit effectively. The program takes approximately 2
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weeks to complete. Most modules last approximately 60 minutes, and a few topics
require more time. To date, program participants have included welfare-to-work
participants, Spanish-speaking immigrants, Chinese immigrants, public housing residents
in Chicago, and community college students. Between May 2002 and February 2003,
data were collected from 408 program participants. It will be recommended to the local
stakeholder invest in a pilot study and offer the course through an online format that
would be aligned with stated program goals. If the pilot is a success, then offering the
course through online format could possibly strengthen the participation rates for the
program.
Another goal of this program evaluation was to increase use of existing
community-based financial literacy programs and better meet the needs of minority
adults living in rural communities. As stated earlier, recommendations from this project
would benefit policymakers because they would then have more definitive study
information to help with making future financial policies that benefit rural adults. The
stakeholders would benefit from this study because they would be able to offer financial
education that specifically targeted the needs of rural adults within their communities.
The educators would benefit from this study because they would have greater insight into
the connections between the curriculum and the outcomes of the rural adult student after
participating in the program. In addition, researchers would benefit from this project
because they would have solid study information to add to existing data and this would
save them time and money by eliminating the need to study data that were already
studied.
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Rationale
Project Genre Rationale
The motivation for this project was stakeholder and student perceptions and
interactions while participating in the Financial Empowerment financial literacy course.
Stakeholders were concerned because the students were not participating in the course as
they had desired when they decided to offer the course. They were also concerned the
participants needed to gain the necessary financial skills that would change current
behaviors when dealing with money. The data-collection results indicated that the
participants believed they acquired the necessary financial literacy skills to help them in
everyday life and that they were satisfied with the program and its presentation. The
outcome of this project would allow stakeholders an opportunity to teach and remediate
until students are successful in gaining the skills needed to change financial behavior.
Project Content Rationale
The purpose of this study and project was to assess a financial literacy program
that specifically addressed the modifications needed to increase student participation and
ensure the program assisted with gaining the needed financial literacy skills needed to
function in everyday life. The study and project also would be a guide that provided
instructors and stakeholders with more remediation time, as well as to provide teachers
with technical resources they can implement and provide better financial instruction to
their students. The study and project also wanted to assess the behavioral outcomes of
those that participated in the financial literacy course. Any suggested improvements to
the FDIC regarding the Money Smart curriculum would target these areas within the
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Money Smart course to assist instructors so they would be confident in modifying the
current pacing guide, provide experiences to instructors to suit the current learning levels
of their students, and provide instructors with the current knowledge so they can make
correct instructional choices.
Review of the Literature
I accomplished saturation for this literature review by inserting important
keywords into Internet search sites. The keywords I used to complete this task were:
remediation, financial literacy, Money Smart, professional development, and future
trends. I also used the electronic databases through the Walden University Library
website, such as EBSCOhost, Education Research Complete, ERIC, and ProQuest. I
utilized all of these resources to locate current research related to my project study.
Financial education was commonly assumed to affect knowledge and behavior,
yet its effects remain relatively untested. In 2010, very low-income families in a
subsidized housing program were randomly assigned to a mandatory financial education
program and tracked for 12 months. This project study illustrated the methodological
issues that aroused in social experiments with small samples, including attrition and self-
report bias. The findings suggested that information transfers alone could have at least
modest effects on behaviors requiring self-control, including savings (Collins, 2010).
The project addressed critical gaps in the literature and provided an overview of
the current state of financial education and program evaluation. Using quantitative data
collected from financial literacy program participants in Tattnall County, this project
provided insight into what can be done to conduct more effective program evaluations.
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Angela, Palmer, Koralalage, and Scherpf (2006) noted “research indicated that
many financial education providers still do not have a basic level of evaluation capacity
and are unable to identify program outcomes and design effective evaluation
instruments” (p. 208). It was difficult to propose a national evaluation strategy without a
basic understanding of current evaluation capacity and of the critical gaps in program
evaluation. In addition, there has been little discussion about the challenges facing
financial professionals and educators who are on the "front lines" delivering and
evaluating programs (Angela et al., 2006, p. 220).
In 2003, the Office of Financial Education of the U.S. Department of the Treasury
(2004, 2006) suggested eight key elements regarding the content, delivery, impact, and
sustainability of successful financial education programs to guide financial education
developers. The eight elements state that a successful program:
• Is tailored to its target audience, taking into account its language, culture,
age and experience.
• Is focused on basic savings, credit management, home ownership, and/or
retirement planning.
• Is offered through a local distribution channel that makes effective use of
community resources and contacts.
• Follows up with participants to reinforce the message and ensure that
participants are able to apply the skills taught.
• Establishes specific program goals and uses performance measures to
track progress toward meeting those goals.
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• Demonstrates a positive impact on participant’s attitudes, knowledge, or
behavior through testing, surveys, or other objective evaluation.
• Can be easily replicated on a local, regional, or national basis to have
broad impact and sustainability.
• Is built to last as evidenced by factors such as continuing financial
support, legislative backing, or integration into an established course of
instruction (2006).
The above eight key elements regarding the content, delivery, impact, and
sustainability of successful financial education programs to guide financial education
developers were utilized to guide the development of this project.
One of the elements of a successful program is that the program should be tailored
to its target audience, taking into account its language, culture, age and experience
(2006). This is the reason Financial Empowerment used the FDIC Money Smart program
as a model when offering the financial literacy program. The FDIC launched Money
Smart as a nationwide initiative in September of 2001. The curriculum was designed to
help adults enhance their money management skills, understand basic financial services
offered by the financial mainstream, and build financial confidence to use banking
services effectively. Money Smart was also designed to provide financial institutions with
a tool to assist in community outreach and economic development. The Money Smart
curriculum consisted of 10 modules: (a) Bank On It: an introduction to bank services, (b)
Borrowing Basics: an introduction to credit, (c) Check It Out: how to choose and keep a
checking account, (d) Money Matters: how to keep track of your money, (e) Pay Yourself
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First: why you should save, save, save, (f) Keep It Safe: your rights as a consumer, (g) To
Your Credit: how your credit history will affect your credit future, (h) Charge It Right:
how to make a credit card work for you, (i) Loan To Own: know what you’re borrowing
before you buy, and (j) Your Own Home: what home ownership is all about. The
curriculum was available in both an instructor-led version and a computer-based
instruction (CBI) version. For this project, all sites used the instructor-led version. The
instructor-led curriculum was available in six languages (English, Spanish, Chinese,
Korean, Vietnamese, Russian), as well as Braille and large print. Only the English and
Spanish language versions were used to develop the survey (FDIC, 2001).
Another aspect of an effective program was the program ddemonstrated a positive
impact on participant’s attitudes, knowledge, or behavior through testing, surveys, or
other objective evaluation (2006). The transtheoretical model of change (TTM) was
originally developed to explain how individuals progress from one stage of behavior
change to a higher stage when trying to prevent a negative health behavior or forming a
new positive health behavior (Burke, 2011; Prochaska, DeClemente, & Norcross, 1992;
Prochaska, & Velicer, 1997; Prochaska et al., 1994). More recently, the TTM has been
applied to other fields of study, including financial behavior studies, and has also been
used to help determine the effectiveness of financial education programs. Lyons and
Neelakantan (2008) argued that the TTM may not be an appropriate measure of financial
behaviors because standards for financial behaviors have not been ascertained. Although
it was easier to conclusively identify positive health-related behaviors than positive
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financial behaviors, the TTM can still be a valuable framework for financial educators
regarding how to help consumers improve their financial behaviors (Burke, 2011).
Xiao et al. (2008) used the TTM to develop specific strategies to help motivate
employees to make positive financial behavior changes based on their readiness to
change. For individuals in the precontemplation stage, increasing awareness or raising
consciousness about financial risks and the benefits of change are strategies that may help
to motivate them to progress to a higher stage. Similarly, one strategy for helping those in
the contemplation stage was to convince them that the benefits of changing outweigh the
costs. Strategies used in the preparation stage include empowering people to make an
action plan and encouraging them to take small steps to build confidence.
People in the action stage benefit from both behavioral and cognitive strategies,
such as reinforcement management and positive thinking. Finally, supportive strategies,
like having a plan to cope with setbacks, would be most beneficial for individuals who
have reached the maintenance stage (Xiao et al., 2008). The TTM categorization helped
to expand beyond merely savers and non-savers and provided more insight about
individuals’ saving intentions as well as behaviors. Gutter et al. (2007) found that marital
status, age, preference (e.g., time horizon and risk tolerance), and other financial sources
(e.g., net worth, job tenure, cash reserve, and employer match) were all significantly
related to participation in defined contribution plans as categorized by the TTM
framework.
Another aspect of an effective program is that it can be easily replicated on a
local, regional, or national basis to have broad impact and sustainability (2006). To
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examine financial behavior change of Individual Development Account (IDA)
participants, Shockey and Seiling (2004) also used the TTM. Six money management
behaviors were identified that could enable participants to begin or increase their savings,
including: setting financial goals, using a spending plan, tracking spending, reducing
debt, setting aside money, and saving money. A readiness assessment for these six
behaviors was administered to participants to determine their stage of behavior change
before and after completing the four-week financial education classes. On average, they
found that all six of the money management behaviors improved. Participants were at the
preparation stage for all of the money management behaviors except for reducing debt;
participants were at the action stage on debt reduction. Shockey and Seiling (2004)
concluded that the TTM was applicable for evaluation of financial education programs.
The eight steps of an effective program also stated that a good program is built to
last as evidenced by factors such as continuing financial support, legislative backing, or
integration into an established course of instruction (2006). Xiao et al. (2004) assessed
the readiness of consumers to get out of credit card debt when they were already having
credit card problems. The TTM framework was used to compare individuals’ readiness to
change their debt habits. In addition to the stages of change, other key constructs of the
TTM were used, including decisional balance, processes of change, and self-efficacy.
Xiao et al. found that behavioral changes could involve multiple stages. Consumers in the
first three stages of change (e.g., precontemplation, contemplation, and preparation) were
comparable to each other while individuals in the last two stages (e.g., action and
maintenance) were also similar. This information can be beneficial for financial
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counselors and educators as they seek to tailor their programs and resources to more
appropriately suit the needs of consumers. The TTM has been used in a number of
projects related to participants’ change in financial behavior. The TTM was implemented
to better target individuals for financial education based on their readiness for change
(Xiao et al., 2008). The literature demonstrated how the TTM has been used to classify
individuals according to their stage of behavior change (Burke 2011; Gutter et al., 2007;
Lown, 2007; Xiao et al., 2004).
Project Description
Program evaluation, gaining program insight, and professional development was
the focus of this project with the intent of assisting stakeholders and instructors who
provided instruction to financial literacy students. The professional-development
presentation training for this project study utilized technology so stakeholders and
instructors could learn, apply, and implement their training within their classroom. The
resources necessary to complete this training would consist of locations that are computer
accessible, iPads, wireless capability, and a projector. To present the information, I
utilized a PowerPoint presentation, group activities, and discussions.
Needed Resources, Existing Supports, and Potential Barriers
To accomplish this program evaluation brief, I needed to schedule time during the
quarter when the stakeholders were holding their board meeting. The 3-hour presentation
occurred during the 3rd quarter board meeting for the 2015 year. Permission to complete
this presentation was requested and granted from the pastor of the church, and the
presentation date was added to the calendar. In the event that the board meeting did not
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occur, the presentation and training would be scheduled for the next quarter board
meeting. The potential barriers for this project were scheduling a 3- hour session to talk
about project outcomes in addition to holding the regular scheduled board meeting,
reserving the computer lab facilities, and the additional responsibilities of requesting that
all board members be present for the presentation and training. If the stakeholders/board
members do not deem this training as important or beneficial to improving academic
achievement, they would not put forth their best effort because they may have considered
it to be a waste of their time. Another potential barriers for the professional-development
presentation and training might have been that regularly scheduled board meeting might
take precedence, the computer lab might not have been available, and participating
stakeholders/board members could have lacked motivation.
Proposal for Implementation
The professional development presentation/ training was planned to occur during
the 3rd quarter board meeting, which was the first week of October. Because the regular
board meeting lasts for 2 hours, I requested that this training be placed on the agenda for
6 p.m. that evening. I presented the evaluation presentation during a 3-hour session. I
utilized a PowerPoint presentation and handed each stakeholder/board member a PDF
copy of the presentation that encouraged them to participate and interact in the
discussion. The first hour of the discussion helped the stakeholders/board members to
understand the need for financial training based on current records of the program
attendance rosters. The second hour of the discussion focused on presenting the findings
of the survey and helping the stakeholders/board members understand the data results. It
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was during this discussion that tools and strategies that specifically targeted the areas of
student weakness indicated during the data analysis.
In addition, stakeholders/board members indicated they gained understanding into
the program and the potential outcomes for the program. It was also during this time
period the stakeholders/board members started to review the current Money Smart
Program and determined, which modules of the program needed remediation. The third
hour of the presentation focused on discussing the potential need of conducting a
community needs assessment to determine the best days to offer the financial literacy
program. This was one of the areas survey participants pointed out as a potential reason
for the low participation rates. Overall, the presentation went well and the
stakeholders/board members agreed to enter the presentation into the minutes, schedule
an additional meeting to focus on implementation of the findings, and work on a course
delivery plan that would be implemented later that year.
Project Evaluation Plan
The evaluation strategy involved effectively communicating negative and or
sensitive information and or findings. It was critical that the findings be reported in a
manner promoted problem-solving so that stakeholders would not take a defensive
position. The strategy was to present the positive findings and then list any negative
findings. As part of the professional development plan I asked several questions to
determine how to report the findings. The first question was who needed to be informed
about the evaluation findings and for what reason. It was determined that the stakeholders
needed this evaluation to build awareness of the financial literacy program and to
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determine if the program was effective in changing the behaviors of rural adults taking
the course. The next question asked what outside entities would need to see the results
and recommendations of the project. It was determined that any recommendation or
suggestions regarding the curriculum would be directed towards the FDIC Money Smart
program. This would allow the agency to review the project findings and evaluate
potential changes to the curriculum. The next question focused on who would be
involved in the decision-making and for what reason. The evaluation strategy targeted the
church and program stakeholders at the local level because this was their program and
their request for the program evaluation.
Because this project focused on a financial literacy program that was already
implemented I conducted this program evaluation that focused on student outcomes after
participating in the financial course. The stakeholders requesting this program evaluation
were interested in providing a financial program to rural adults in efforts of improving
these adults’ economic outcomes. They are interested in those rural adults using the
financial program and how the program can motivate these adults to participate in and
change their attitudes towards personal finances (Spaulding, 2008, p. 12). An outcomes-
based program evaluation asks if an organization was conducting the appropriate
program activities needed to bring about the verified outcomes for the program
participants. Outcomes are benefits that minority adults gain from participation in the
financial literacy program. Outcomes are usually in terms of enhanced learning,
knowledge, perceptions/attitudes, skills, and or conditions.
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Because I implemented a goals-based project, I utilized a summative performance
indicator to determine whether the participants’ knowledge and skills acquired during the
course demonstrated proficiency. The United Way of America’s website (2013) provides
an excellent overview of outcomes-based evaluation, including introduction to outcomes
measurement, a program outcome model, why to measure outcomes, use of program
outcome findings by agencies, eight steps to success for measuring outcomes, examples
of outcomes and outcome indicators for various programs and the resources needed for
measuring outcomes (United Way, 2013).
An outcome-based survey program evaluation was one of many evaluation
methods that can identify whether or not a program has been successful. The outcome-
survey based program evaluation also focuses on the results of services that were
intended from the outset of the program. It was different from other forms of evaluation
that evaluate a program after it was over and attempts to assess what happened during the
course. These evaluations are and assisted with planning a project, and a practical way to
identify what the results of the program would be. Summative or outcome-based
evaluation occurs at the end of the course or program. Program participants might not
have much time give thorough evaluations after the program ends. According to Suskie
(2009), “the key drawback of outcomes program assessments was that they occurred at
the end of the course or program, students may not receive any feedback other than
possibly and overall grade or certificate of completion” (p. 23). I discovered that during
this program evaluation I was not able to discuss the findings with the actual course
participants to gain additional insight as to their perceptions.
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Implications Including Social Change
Local Community
The overall consequences of this project study were to raise student participation
rates and to gain valuable insight into the Money Smart financial literacy program from
the perspective of stakeholders and students. The program evaluation project increased
stakeholder/board members’ awareness and understanding of how to teach the Money
Smart curriculum and what to do to increase student perceptions of value in regards to the
program. The short-term change for this project was stakeholder/board members
receiving the resources to make changes to the financial literacy program. Additionally, it
provided insight into the participant’s knowledge levels and perceptions of the program
and its effectiveness. This project provided an understanding of whether or not the
students increased the skills and knowledge needed to change behavior and what changes
were needed to make the program more effective.
The implications for positive social change included assisting the community with
research data that helped improve financial assistance and education programs within the
community. By participating in this project and completing the survey, the responses
helped evaluate whether or not existing financial literacy programs are helping
participants gain the necessary financial literacy skills needed to change their long-term
financial behaviors. The community would ultimately benefit from this financial data, as
there was limited data on whether or not financial literacy programs are effective. The
implications for positive social change also included program participants gaining the
necessary financial literacy skills needed thus empowering these adults and their families
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to change their long-term financial behaviors. Positive social change implications
resulting from this project also included increasing the knowledge levels of educators,
program developers, and other researchers who are seeking understanding into effective
ways of increasing utilization rates in financial education programs among rural minority
families.
Far-Reaching
Currently, there are gaps in the study of financial literacy program evaluation and
this study could help fill current gaps. This project informed researchers, policymakers,
and educators about the beliefs and perceptions of the minority family participation in
community-based financial education programs. The assessment of the financial literacy
programs facilitated enhancements to the existing financial literacy program designs and
other financial services offered to this rural community.
This project has three primary implications. First, offering financial education can
have positive effects on savings and credit outcomes among very minorities living in
rural communities. Financial education can also lead to improvements in program
participant’s own understanding of financial issues. If increasing savings levels and
improving credit outcomes are public goals, then financial literacy programs can only
enhance public programs and policy. However, it was hoped that the information gained
from this project would help the greater community by providing insight into the
financial literacy program and determining if the program helped participants gain the
necessary financial literacy skills needed to change long-term financial outcomes.
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Conclusion
A personal goal for this project study was to provide stakeholders/board members
with the necessary resources so those students participating in the financial literacy
program could be successful. The minority adults that participate in the financial literacy
program come to the program with numerous financial issues—they often lack basic
needs, have behavioral and emotional issues, and are lacking necessary prerequisite
money skills to be successful. These issues affect how students learn and the pace at,
which they learn the concepts of the program.
This study was an attempt to provide stakeholders/board members and instructors
with the tools necessary to help close the achievement gap for this subgroup of rural
minority students. This project provided stakeholders/board members with multiple
resources that targeted those with deficits in their money skills. Specifically, these
resources assisted the stakeholders/board members and instructors in providing
instruction to students and also engaging students so they will become empowered to take
control of their learning and succeed in money matters.
It was important to point out that while this project provided considerable insight
into the effectiveness of the Money Smart program, it was also limited in the following
respects. First, attrition from the program and missing information on several surveys
considerably reduced the sample size. In the end, only 36 of the participants completed
both parts of the survey. The problems associated with the use of small sample sizes in
this project was particularly acute in its inability to collect enough data to effectively
evaluate the program.
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As a consequence, the results of the project data are in some cases driven by the
responses of only a few individuals. Thus, while the findings provide some evidence that
the Money Smart program succeeded in increasing participant financial literacy levels,
one needs to be cautious and not regard these findings as conclusive. This study will,
however, hopefully provide the inspiration that will motivate other communities to
explore different strategies when offering financial education. We have concluded
Section 3 of this project and now transition on to Section 4, which provides a reflection
of the research and the project deliverable, as well as my own experiences as a
researcher.
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Section 4: Reflections and Conclusions
Project Strengths and Limitations
Introduction
In Section 1 of this project study, I identified a problem with rural adults not
participating in a financial literacy program offered in the community. The problem
indicated a clear need for financial education among this population of rural adults;
however, they would not participate in the program. The next step was to conduct a
program evaluation of the existing financial literacy program to determine whether these
adults were obtaining the necessary financial literacy skills needed to be successful.
As I reviewed the data, different trends started to emerge. In some areas, the
program participants gained high levels of financial skills, whereas in other areas, they
did not gain any new skills. The data trends showed that the financial literacy program
was successful and that participants gained new financial knowledge according to those
skills closely associated with their current financial environment.
After the data were collected and analyzed, I shared the results with the
stakeholders of Mt. Zion Outreach. To solve the problem, a modification was made in
relationship to the frequency and times when the program was offered to these adults.
These adjustments to the frequency and delivery of the financial program was accepted
and implemented as a result of this project study.
Project Strengths
The foremost strength of this project study was directly related to the Money
Smart financial literacy curriculum offered by the Federal Deposit Insurance Corporation
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(FDIC) and the stakeholders who desired to offer financial education to the community.
The church stakeholders have an established relationship with the community and those
rural adults living there. They have a great desire to see these adults’ live full and
successful lives. They are conscious of each program participant’s strengths, weaknesses,
and perceived potential.
These stakeholders are constantly offering life skill courses to empower these
rural adults. The church leaders were willing to assess the current financial program in
efforts to make it better for those participating adults. The changes to the program have
been implemented; however, it would take time to assess if the changes are successful
and has an impact on participation rates and overall effectiveness.
Project Limitations
The most significant limitation of this project was the perceptions of participating
adults, their perceived importance, and their perceived value of needing financial literacy
education. Another potential limitation was getting these program participants to answer
the questions truthfully because members of this population group may be considered
vulnerable consumers. The final potential limitation was that some rural minorities may
also have more financial knowledge than they realize, but they may not be able to
articulate it in a way that was comprehensible to outside observers.
Recommendations for Alternative Approaches
A limitation of this project was it specifically targeted the perceptions of those
participating adults about the perceived importance of financial literacy skills. A potential
limitation to this program evaluation was the potential that the rural minority adults
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participating in the survey may have difficulty understanding the survey. Another
potential limitation was getting these program participants to answer the questions
truthfully because members of this population group may be considered vulnerable
consumers. Vulnerable consumers have difficulty in obtaining or assimilating
information needed to make decisions regarding, which goods or services, if any, to buy.
They may also suffer a greater loss of welfare than other consumers from making an in-
appropriate buying decision and do not want to share this information with other.
The final potential limitation was that some rural minorities may also have more
financial knowledge than they realize, but they may not be able to articulate it in a way
that was comprehensible to outside observers. The potential remediation for this
limitation was to demonstrate to these minorities, through the use of pretests that they
have more financial knowledge than previously thought.
The data analysis I collected for this project also identified and supported the
identification of the problem. I designed this study to evaluate the financial literacy
program and to offer suggestions as to how to make the program more desirable to
minority adults in rural communities. This program evaluation looked at the current
financial literacy skills of program participants and compared these levels to program
participant financial literacy levels after completing of the program. The program was
adjusted to meet the needs of future students that may participate in the training.
Scholarship, Project Development and Evaluation, and Leadership and Change
I learned that scholarship was a constant process of learning that comes from
understanding as a result of research. This was amazing because at the beginning of the
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project I did not have a comprehensive understanding of the concept of scholarship. This
project study embodied the concept of scholarship by the identification of a problem,
researching current research-based, peer-reviewed articles on this issue, and
implementing a research project to solve the problem. Sometimes stakeholders do not
have the full understanding of programs they desire to implement. Most identify a
potential program and made attempts to solve the program. There was no prior research
involved other than examining the existing program and identifying potential needs that
should be addressed. Stakeholders needed to see the importance of financial training and
how it directly related to improving the overall quality of life for those living in their
communities.
To begin my project study, I examined materials from the Walden library website
and read all articles relevant to this project and took comprehensive notes. During this
process, I kept reflective notes in a journal. Reviewing the journal periodically allowed
me an opportunity to review and make connections to the current research. In addition to
using the Walden library site, I completed course readings from the research of Lodico,
Spaulding, Voegtle (2006), Creswell (2008), and others. After completion of the
literature review and asking multiple questions to my chairperson, I made the decision to
conduct a program evaluation for my project. After examining current research,
identification of the problem, and the formation of a hypothesis, I determined that
doctoral students need to consistently seek help and guidance in order to become
academically successful.
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Project Development and Evaluation
The most important characteristic of completing a project study was to narrow the
focus and identify a specific problem occurring. During the process of the project
development and evaluation, I realized that during this process I possessed more skills in
the area of project development and evaluation that previously thought. I realized that I
used this process in my training environment almost every day. I had to review the
standards that needed to be trained, planned an interactive learning activity to teach that
standard, and then assessed the students to determine whether they become skilled at the
desired standard. I then used that same data to determination my future training.
Likewise, I implemented the same steps for the development and implementation
of my project. Once I determined the student’s greatest issues was how they perceived
the value of financial education, I formulated a plan to provide support to church
stakeholder offering suggestions, as a result of this project, to correct this problem. My
next consideration was how to go about solving the identified problem. I started to
explore different avenues of how to accomplish this task. During the process, I continued
to read current research-based literature regarding different professional-development
project designs.
From that point emerged the research questions, which had to correlate to and
correct the specific problem. Using this information, I started to plan the structure,
keeping in mind the backward design of what I wanted to achieve. The solution, which
was a result of the data collection and analysis, had to be practical, effective, and useful
to the financial literacy program. I created a professional development project with an
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evaluation survey instrument. Throughout this process, I realized that each step of this
project required a great deal of planning and attention to detail.
Leadership and Change
Having been a leader for almost 25 years, while serving in the military and
working for the federal government, I have learned that leadership and change sometimes
conflict. I know that as a leader you have to lead from the front and know when to
motivate those you lead when it comes to change. To enact positive change, leaders must
experience and share a common goal with their peers. Because I have provided financial
education in the classroom, I have developed a wealth of information about how students
learn and what motivates them to want to learn. I worked with a team of financial
counselor and educators and we all shared a common passion for our students and their
overall financial well-being. This association allowed me the opportunity to create an
educational learning philosophy within my work and classroom environments that
accepted, identified, and worked as a team to implement change.
Reflection on Importance of the Work
The project I decided to take on was a program evaluation that would identify
potential issues with the current program and offer suggestions to church stakeholder that
would inspire change within rural adults. Since the Money Smart curriculum could not be
changed, this project focused on how to assess student learning and motivate them to
want to change their views regarding the importance of financial management. This task
was easy for me, because I had to take the financial literacy class prior to teaching the
course. This was the initial step to work out any potential issues with the curriculum.
118
The next step was to sit in the place of an adult learner and anticipate any issues
these adults might have while taking the course. Having this perspective made it easy to
suggest changes to the financial literacy program with the intent of motivating adults to
learn and take control of their financial outcomes. For many of the students this would be
a big step, especially for those adults that do not like to make changes to how they view
money and the importance of financial literacy.
After I had planned potential changes to the program, multiple revisions of
PowerPoint slides and notes were prepared to ensure I did not miss any critical steps to
implementing change within the program. This process also helped me get to know the
inner working of the project and help convey project outcomes to church stakeholders.
The process of completing this program evaluation gave me the opportunity to become
more proficient in the process of research and data analysis.
As an individual, I have grown because I pushed myself and independently
accomplished this task. As an educational leader, I have demonstrated that I am capable
of completing long-term, multifaceted tasks to solve educational problems. This project
has empowered me to continue to review, study, and become a member of the leadership
team within my community that would continue to seek new ways of enacting positive
social change.
Analysis of Self as Scholar
I learned that I had a lot to learn about becoming a scholar. Now that I have
completed the project, I am confident in doing a self-analysis of my abilities as a Scholar.
As a Walden scholar, I have learned that prior planning, research and past coursework
119
interconnect. This foundational support has led up to and includes the completion of this
project study. My early courses forced me to become an online student, manage time
effectively, and learn how to ask specific questions. In addition, I have learned how to
locate, access, and utilize the Walden library website. I have also learned how to identify
an educational problem, locate current peer-reviewed literature, formulate a hypothesis,
and write research questions that specifically target an educational problem. I have also
learned how to conduct research, interact with and learn from participants, and analyze
data.
A prominent theme emerged during the analysis of the data. I learned that I had a
great deal to learn about myself and being a scholar. I learned that I did not have a firm
grasp of the concept until I completed this project study. This program evaluation led to
an even more effective financial literacy program that encourages rural adults to change
negative financial behaviors and acquire more positive financial behaviors. This process
allowed me to become more confident in my ability to be a scholar, someone that has a
passion for positive social change in the lives of rural adult learners.
Analysis of Self as Practitioner
During this process, I have learned much about myself as a practitioner. I have
been leading, teaching, and training for over 25 years. During the past three years, I have
become actively engaged in learning about and solving educational problems that are
evident within my community. Throughout this doctoral journey, I have learned how to
research and provide strategies to solve educational issues that were present within those
adults that lived and worked in my community. I have also learned that the role of
120
practitioner if very vital to positive social change within my community. I now discuss
educational issues with church and community leaders on a regular basis. I have learned
that there was a need to help stimulate change, especially in the financial lives of rural
communities. This journey has allowed me the opportunity and has encouraged me to
become a leader within my community.
Analysis of Self as Project Developer
Throughout this process, I have grown socially and professionally. When I started
the Walden Higher Education and Adult Learning program, I saw an opportunity for me
to fulfill a lifelong dream. I have always wanted to teach at an institution of higher
learning and thought this program would help me achieve that dream. Obtaining this
degree was a personal goal and would be a major accomplishment for me and my family.
There are no educators in my family and I would be the first. In today’s educational
culture, the foremost task that most communities face was educating those adults that
might have the means to seek higher learning.
As an educator, I learned how to review the latest findings of educational research
and future trends, which related to increased expectations for student learning. I have also
learned how to solve educational problems within my community by implementing
strategies that I have learned about through this process. Learning all these aspects has
allowed me the opportunity to become a better person in the area of teaching and
program evaluation. I learned that project developers are instrumental in aiding change
for adult learners.
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The Project’s Potential Impact on Social Change
Local Community
The implications for positive social change include assisting the community with
research data that would help improve financial assistance and education programs within
the community. By participating in this project and completing the survey, the responses
helped evaluate whether or not existing financial literacy programs are helping
participants gain the necessary financial literacy skills needed to change their long-term
financial behaviors. The community will ultimately benefit from this financial data, as
there is limited data on whether or not financial literacy programs are effective.
The implications for positive social change include program participants gaining
the necessary financial literacy skills needed thus empowering these adults and their
families to change their long-term financial behaviors. Positive social change
implications resulting from this project include increasing the knowledge levels of
educators, program developers, and other researchers who are seeking understanding into
effective ways of increasing utilization rates in financial education programs among rural
minority families. Social change could occur for those rural minority families as
organizations working to develop and implement evidence-based programs that interrupt
the cycle of non-utilization among rural minority families.
Far-Reaching
Currently, there are gaps in the study of financial literacy program evaluation and
this study could help fill current gaps. This project would inform researchers,
policymakers, and educators about the beliefs and perceptions of the minority family
122
participation in community-based financial education programs. The assessment of the
financial literacy programs could possibly facilitate enhancements to existing financial
literacy program designs and other financial services offered to rural communities.
This project has three primary implications. First, offering financial education can
have positive effects on savings and credit outcomes among very minorities living in
rural communities. Financial education can also lead to improvements in program
participant’s own understanding of financial issues. If increasing savings levels and
improving credit outcomes are public goals, then financial literacy programs can only
enhance public programs and policy. However, it was hoped that the information gained
from this project would help the greater community by providing insight into the
financial literacy program and determining if the program helped participants gain the
necessary financial literacy skills needed to change long-term financial outcomes.
Implications, Applications, and Directions for Future Research
The purpose of this project was to evaluate an existing financial literacy program
and evaluate its effectiveness. This process has educated me in how to conduct, and
analyze research data to identify a problem. In addition, I also conducted a data analysis
that led to the necessary changes in the current program delivery that would hopefully
motivate rural adults to participate in the program. The goal of this project was to reach a
community of rural adults and ultimately enhance their financial literacy skills. The hope
was that this project study would provide an opportunity and incentive for rural adults to
take full advantage of community financial literacy programs. Doing so would not only
123
change their current financial outcomes but give them the skills necessary to change their
current economic situations. My expectation was that all communities begin to take an
active role in offering financial literacy programs that produce positive social outcomes.
Additional future research in the form of program evaluations can be useful in
financial literacy because of the gaps in research. This program evaluation has the ability
to contribute to future research in efforts to demonstrate that effective financial literacy
programs have the potential to positively impact the lives of rural adults. The direction of
future research depends on what goal we are seeking. If the goal was to improve financial
literacy in rural minorities, the direction of that research would have to focus on
improving financial education programs. Financial education would have to be look upon
as a critical life skill that was needed just like reading and writing skills to function in
society.
Finally, existing research on financial literacy was not consistent when drawing
conclusions about the effectiveness of financial literacy programs. It was hoped that this
project study would help fill the gap in existing financial literacy effectiveness research
by documenting the perceptions of rural minority adults and their perceptions on the
value of financial literacy programs. Current policy focuses on increasing financial
education, however: there was no consistent research to prove the existing programs are
even making an impact with minorities in rural communities.
Conclusion
In Section 4, I have discussed my project’s strengths, limitations, and
recommendations for the financial literacy program offered by Money Smart. This
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section also included an examination of scholarship, project development and evaluation,
and my reflections of myself as a scholar, practitioner, and project developer. In addition
to my growth as a scholar, the second most important aspect of this study was its effect
on social change. Both of these facets are a part of me as an individual, teacher, lifelong
learner, and educational problem solver.
125
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http://www.personalfinancefoundation.org/questions/Strategies-on-Website-Oct-
08.pdf
Ziegler, M., & Davis, D. (2008). Rural adult literacy in a community context: From the
margin to the mainstream. New Directions for Adult & Continuing Education,
(117), 25−35.
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Appendix A: The Program Evaluation Report
Nonprofit Financial Literacy Program for Adults Living in Rural
Communities Evaluation Report
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Table of Contents
List of Tables .......................................................................................................................v
List of Figures .................................................................................................................... vi
Executive Summary .............................................................................................................1
Purpose of the Study ......................................................................................................2
Review of the Literature ................................................................................................2
Methodology ........................................................................................................................3
Research Design and Approach .....................................................................................3
Conceptual Framework ........................................................................................... 3
Evaluation Methodology ......................................................................................... 3
Participants .....................................................................................................................4
Measures for Ethical Protection of Participants...................................................... 4
Data Collection ..............................................................................................................5
Data Analysis .................................................................................................................5
Criteria for Selecting Participants ................................................................................. 5
Data Analysis Results ..................................................................................................69
Research Questions and Outcomes ..........................................................................7
Conclusion ...................................................................................................................27
References ..........................................................................................................................28
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List of Tables
Table 1. Descriptive Statistics …………………………………………………………….8
Table 2. Chi-Square Frequencies.………………………...………………………………8 Table 3. Chi- Square Test Results ……….…….…………………………………………8
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Executive Summary
Introduction of Problem
The local problem of whether the Financial Empowerment personal financial
literacy program effectively addressed rural students’ needs was the focus of this study.
Consumer research has indicated that financially uneducated adults who live in rural
areas often make poor financial decisions that plague them for decades. As a result of
increased home foreclosures, student loan defaults, and bankruptcies, policymakers at the
state and federal level, business leaders, academic communities, and non-profit agencies
identified a need for quality financial education programs. This program evaluation used
quantitative descriptive data to capture the perceptions of the program participants
(Creswell, 2002, 2003; Creswell et al., 2003). The success of rural adult learners
surviving future economic downturns is critical, and existing financial literacy programs
must be custom-made to meet the literacy needs of these learners.
Financial Empowerment is a local faith-based nonprofit organization that
provides a wide range of personal financial education classes as part of its financial
literacy program. The goal of the course is to teach rural adults personal finance skills
that transform their current economic situations. The program offered is 5 weeks long and
consists of eight personal finance modules. Each module lasts for approximately 2 hours
once per week. The Money Smart curriculum consists of ten modules: (a) Bank On It: an
introduction to bank services, (b) Borrowing Basics: an introduction to credit, (c) Check
It Out: how to choose and keep a checking account, (d) Money Matters: how to keep
track of your money, (e) Pay Yourself First: why you should save, save, save, (f) Keep It
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Safe: your rights as a consumer, (g) To Your Credit: how your credit history will affect
your credit future, (h) Charge It Right: how to make a credit card work for you, (i) Loan
To Own: know what you’re borrowing before you buy, and (j) Your Own Home: what
home ownership is all about. The curriculum is available in both an instructor-led version
and a computer-based instruction (CBI) version. For this study, all sites used the
instructor-led version. The instructor-led curriculum is available in six languages
(English, Spanish, Chinese, Korean, Vietnamese, Russian), as well as Braille and large
print. Only the English and Spanish language versions were used to develop the survey
(FDIC, 2001).
Purpose
The purpose of this study was to examine the effectiveness of one financial
literacy program created for financially uneducated adults living in a rural community, as
measured by participants’ perceptions, understanding of financial concepts, and financial
behavior changes after program completion. The organization implemented a new
financial management course for adults living in the rural community of Tattnall County
in Georgia in 2011. Implementation has been quite expensive, involving the purchase of
instructional materials and computer software, and faculty training. The organization
would like to study the effectiveness of the new financial management program, looking
at issues such as the effect on student participation rates, student academic progress,
student satisfaction with the program, and program implementation issues.
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Review of Literature
An exhaustive review of the literature between 2001 and 2016 in several specified
databases using the keywords revealed limited research on financial literacy for rural
adults. The database searches revealed limited scholarly articles on financial literacy.
Different points of view were presented to predict the relationship of the present study to
previous research on financial literacy. Considering the local level problems with adults
not participating in financial literacy education programs, and the local communities’
desire to increase training participation for rural minority adults to become more
financially literate, local financial education program’s most significant and relevant
flaws were reviewed.
Evaluation Design and Conceptual Framework
This program evaluation used a quantitative descriptive research design,
consisting of one distinct phase of data collection (Creswell, 2002, 2003; Creswell et al.,
2003). A one-sample chi-square statistical test was also used to test whether a single
categorical variable followed a hypothesized population distribution among each of the
three research questions. The first method used a Money Smart survey/questionnaire to
collect demographic information and basic program feedback. The survey helped analyze
whether the program participants gained skills necessary to change their current financial
situations. I used the TTM theory because it is a theory that explains changing behavior
among adult learners. The concept focuses on changing beliefs or behaviors in relation to
dramatic life events. It is learning that goes beyond just getting hold of content
knowledge, learning equations, or memorizing mathematical formulas. It is a valuable
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process for adults to learn to think for themselves, through redefining what they have to
come to know through life experiences (Merriam et al., 200 7). In this case, participating
in the financial literacy program should assist the students in gaining new financial skills,
thus changing overall financial behaviors.
Evaluation Methodology
This program evaluation used a quantitative descriptive research design,
consisting of one distinct phase of data collection (Creswell, 2002, 2003; Creswell et al.,
2003). A one-sample chi-square statistical test was also used to test whether a single
categorical variable followed a hypothesized population distribution among each of the
three research questions. The first method used a Money Smart survey/questionnaire to
collect demographic information and basic program feedback. The survey helped analyze
whether the program participants gained skills necessary to change their current financial
situations. I used the TTM theory because it is a theory that explains changing behavior
among adult learners. The concept focuses on changing beliefs or behaviors in relation to
dramatic life events. It is learning that goes beyond just getting hold of content
knowledge, learning equations, or memorizing mathematical formulas.
Participants
Data were collected once Walden University and the evaluation site received IRB
approval. Walden University’s approval number for this study is 11-14-14- 0164758.
During this study, I surveyed past financial literacy attendees from the rural community
of Tattnall County, Georgia. There were a total of 50 attendees that completed the class.
This population consisted of rural adults living in the Southeastern region of Tattnall
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County Georgia in the United States. The program evaluation used purposeful sampling
to identify past financial literacy program participants. According to Creswell (2008), the
use of standardized sampling helps identify individuals or sites based on membership in a
subgroup that has defining characteristics. This study focused on attendees living in a
rural community who have attended the financial literacy class offered by Financial
Empowerment.
A pre-established informed consent form developed by Walden University was
utilized for this study (See Appendix B). The form stated that the participants are
guaranteed certain rights, agreed to be involved in the study, and acknowledged that their
rights were protected. The confidentiality of participants was protected by numerically
coding each returned questionnaire and keeping the responses confidential. During the
cataloging process, the surveys sheets were processed and the information obtained from
each survey was recorded using Microsoft Excel as the primary tool for data analysis.
After the data was processed, the data was then placed in an Excel spreadsheet and saved
for later review by this researcher.
Research Questions
All of the project research questions were formatted to be answered as a result of
the data collected from the Money Smart Survey. Financial education is universally
assumed to affect knowledge and behavior, yet its impacts remain relatively untested.
Research Question 1: What are the perceptions of stakeholders and students
regarding the financial literacy program offered by Financial Empowerment?
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Research Question 2: What is the difference between actual responses for
knowledge gain and hypothesized (equally distributed) responses for knowledge gain as a
result of participating in the financial literacy program?
H01: There is no difference between the actual responses for knowledge gain and
hypothesized (equally distributed) responses for knowledge gain as a result of
participating in the financial literacy program.
H1: There is a difference between the actual responses for knowledge gain and
hypothesized (equally distributed) responses for knowledge gain as a result of
participating in the financial literacy program.
Research Question 3: Does the program provide students with a realistic
experience to prepare them for future financial responsibilities
Data Analysis and Research Question Outcomes
Analysis of nonparametric statistics were calculated using a chi-square test with a
95% confidence level (p < 0.05). Chi-square was calculated with the use of the Excel
statistical software based on 4 degrees of freedom and a 5- column Likert scale (1 =
strongly agree, 2 = agree, 3 = not sure, 4 = disagree, and 5 = strongly disagree). Chi
square test results for each of the three survey items above yielded the following results:
Q1: Because of the financial literacy program, I feel I can manage my finances
better indicated results were significant, χ2 (4, N = 36) = 56.50, p < .05. The chi-square
test rejects the null hypothesis.
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Q2: Because of the financial literacy program I am more financially
knowledgeable indicated the results were significant, χ2 (4, N = 36) = 48.72, p < .05. The
chi-square test rejects the null hypothesis.
Q3: I feel that I can use what I learned in this program on my own indicated
results were significant, χ2 (4, N = 36) = 56.50, p < .05. The chi-square test rejects the
null hypothesis.
In response to RQ2: What is the difference between actual responses for
knowledge gain and hypothesized (equally distributed) responses for knowledge gain as a
result of participating in the financial literacy program?, it is therefore concluded that
there is a difference between the actual responses for knowledge gain and hypothesized
(equally distributed) responses for knowledge gain as a result of participating in the
financial literacy program.
The remaining survey results have been placed into a PowerPoint slides for
further review. The initial slides describe the demographic findings, while remaining
slides are in chart form to illustrate the descriptive data findings.
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Data Analysis and Research Question Outcomes Table 1 Descriptive Statistics N Mean Std. Deviation Minimum Maximum RQ1 36 7.20 9.654 1 23 RQ2 36 7.20 10.826 1 26 RQ3 36 7.20 12.256 1 29 Table 2 Chi-Square Test Frequencies
a. 3 cells (100.0%) have expected frequencies less than 5. The minimum expected cell frequency is 7.2. b. Based on 1 sampled tables with starting seed 2000000. Table 3 Chi-Square Test Results Knowledge Test Results Data RQ1 RQ2 RQ3 Chi-square (Χ2) value 56.50 48.72 56.50 Critical Value 9.49 9.49 9.49 Reject Null Hypothesis Yes Yes Yes Sig. 0.05 df 4
Satisfaction Observed
NExpected
N ResidualObserved
NExpected
N ResidualObserved
NExpected
N ResidualStrongly agree 15 7.2 7.8 23 7.2 15.8 21 7.2 13.8Agree 21 7.2 13.8 8 7.2 0.8 15 7.2 7.8Not sure 0 7.2 -7.2 4 7.2 -3.2 0 7.2 -7.2Disagree 0 7.2 -7.2 1 7.2 -6.2 0 7.2 -7.2Strongly disagree 0 7.2 -7.2 0 7.2 -7.2 0 7.2 -7.2Total 36 36 36 36 36 36
RQ1 RQ2 RQ3
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Program Outcomes
This project centered on whether the existing financial literacy program possessed
all of the components needed to inspire rural adults to take advantage of the program.
Improving the program would only assist these families with developing the necessary
skills and behavioral changes needed to become successful in this current economic
environment. The desired results of this project were to provide powerful insight from
these rural families on the challenges they face regarding community-based financial
education program participation and the effectiveness of these programs. If the results
lean toward the curriculum influencing program participation and behaviors, the
appropriate changes will be suggested. Because the Money Smart curriculum cannot be
changed at the local level all changes and recommendations have to be forwarded to the
FDIC on a suggestion form. After this form is received, the FDIC will respond based on
the project results and recommendations. If the FDIC does not accept the changes or
recommendations, the local organization will have to seek other alternative ways to
improve the curriculum. If the FDIC accepts the changes, this information would then be
integrated into the locally offered financial education program with the ultimate outcome
of empowering minority families.
Program participants expressed on the survey that the program did provide them
with the skills needed to do better in their everyday financial endeavors. This information
assisted with the desired outcome of this project in that it would inform the FDIC,
researchers, policymakers, stakeholders, and educators about the beliefs and perceptions
of the minority family participating in community-based financial education programs.
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The FDIC and community stakeholders would be the targeted audience for all
recommendation and suggestions to program improvement. The information from the
project would assist researchers with making decisions as to, which aspects of financial
education they would need to further study. The policymakers would benefit from this
project because they would then have more definitive study information to help with
making future financial policies that benefit rural adults. The stakeholders benefit from
this study because they would be able to offer financial education that specifically targets
the needs of rural adults within their communities. The educators would benefit from this
study because they would have greater insight into the connections between the
curriculum and the outcomes of the rural adult student after participating in the program.
The assessment of the financial literacy programs could possibly facilitate enhancements
to other existing financial literacy program designs. In addition, evaluation of financial
literacy programs can provide sponsors with information needed to regulate and adjust
these programs to better accommodate those minority families that utilized the programs.
The project could possibly assist other schools with low graduation rates and
achievement gaps in financial literacy improve their current learning environments.
Conclusion
The primary goal of the Money Smart program was to provide individuals with
the necessary information to evaluate and make their own financial decisions. The project
data supported the fact that the Money Smart program was effective and meet the needs
of those rural adults who participated in the course. The only change recommended was
changing the delivery format and time frame in, which the program was offered. The
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Money Smart program consisted of a set of 10 instructor-led training modules that cover
a number of key financial topics including: general banking services, how to choose and
maintain a checking and savings account, how to budget your money, the importance of
saving, and how to obtain and use credit effectively. The program takes approximately 2
weeks to complete. Most modules last approximately 60 minutes, and a few topics
require more time. To date, program participants have included welfare-to-work
participants, Spanish-speaking immigrants, Chinese immigrants, public housing residents
in Chicago, and community college students. Between May 2002 and February 2003,
data were collected from 408 program participants. It will be recommended to the local
stakeholder invest in a pilot study and offer the course through an online format that
would be aligned with stated program goals. If the pilot is a success, then offering the
course through online format could possibly strengthen the participation rates for the
program.
Another goal of this program evaluation was to increase use of existing
community-based financial literacy programs and better meet the needs of minority
adults living in rural communities. As stated earlier, recommendations from this project
would benefit policymakers because they would then have more definitive study
information to help with making future financial policies that benefit rural adults. The
stakeholders would benefit from this study because they would be able to offer financial
education that specifically targeted the needs of rural adults within their communities.
The educators would benefit from this study because they would have greater insight into
the connections between the curriculum and the outcomes of the rural adult student after
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participating in the program. In addition, researchers would benefit from this project
because they would have solid study information to add to existing data and this would
save them time and money by eliminating the need to study data that were already
studied. The project study found that age and work experience were positively related to
financial literacy. Moreover, income levels positively correlated with survey respondent’s
satisfaction with the financial literacy program. The findings also indicated that survey
respondents with high level of education displayed higher financial literacy levels than
non-educated respondents. Survey results varied with age, education levels, marriage
status, gender, employment status, and income levels. Thus, the results were not strong
enough to definitely identify any potential changes needed to improve the financial
literacy program.
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Slide 1: Appendix A: The Project
Slide 2 Introduction This project assessed the Financial Empowerment Literacy Course by measuring participants’ financial knowledge, financial confidence, and financial behavior changes after participating in the course. Overall participant satisfaction with the course was also examined. The three guiding research questions that explored the effectiveness of the financial program were “What are the perceptions of stakeholders and students regarding the financial literacy program offered by Financial Empowerment and does the program provide students with a realistic experience to prepare them for future financial responsibilities?” and “Are minority adult learners, with limited or no financial literacy skills, gaining financial knowledge and understanding skills as a result of participating in the program?” The project findings are conveyed in the next section. Slide 3 Project Description The loss of jobs, loved ones, and physical injuries can be life-changing events that transforms how we view the world. The emphasis is providing rural minorities’ financial education that allows them to make better-informed decisions. The goal of the financial literacy program is to motivate these adults to make a decision to accept the loss of income or look at learning new skills so that he/she can move past the loss. The overall objective is to provide a personal financial literacy program specifically targeted to this segment of the population that addresses gaps related to financial literacy involvement. This project centered on whether the existing financial literacy program has all the components needed to inspire rural adults to take advantage of the program. Improving the program can assist these families with developing the necessary skills and behavioral changes needed to become successful in this current economic environment. The results of this project will hopefully provide powerful insight from these rural families on the challenges they face regarding community-based financial education program participation and the effectiveness of these programs. Program participants were asked to complete three two parts of the Money Smart survey. Of the 50 mailed surveys, 36 responded while 14 did not respond. Of the 36 returned surveys, 30 completed all sections of the survey while 6 left some questions blank. Most of the questions left blank pertained to those questions about annual income and how many family members resided in the home. The remaining survey findings will be presented according to respondent demographic characteristics. Slide 4 Project Goals The goal of this program evaluation is to increase utilization of existing community based financial literacy programs and better meets the needs of minority adults living in rural communities. This information will then be integrated into the financial education program with the ultimate outcome of empowering minority families. This project will inform researchers, policymakers, and educators about the feelings and perceptions of the minority family participating in community-based financial education programs. The assessment of the financial literacy programs could possibly facilitate enhancements to other existing financial literacy program designs. In addition, evaluation of financial literacy programs can provide sponsors with information needed to regulate and adjust these programs to better accommodate those minority families utilizing the programs.
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The project could possibly assist other schools with low graduation rates and achievement gaps in financial literacy improve their current learning environments. Slide 5 Project Implementation Because this project focused on a financial literacy program that was already implemented the program evaluation focused on student outcomes after participating in the financial course. The stakeholders requesting this program evaluation are interested in providing a financial program to rural adults in efforts of improving these adults’ economic outcomes. They are interested in those rural adults using the financial program and how the program can motivate these adults to participate in and change their attitudes towards personal finances (Spaulding, 2008, p. 12). An outcomes-based program evaluation asks if an organization is conducting the appropriate program activities needed to bring about the verified outcomes for the program participants. Outcomes are benefits that minority adults gain from participation in the financial literacy program. Outcomes are usually in terms of enhanced learning, knowledge, perceptions/attitudes, skills, and or conditions. The United Way of America’s website (2013) provides an excellent overview of outcomes-based evaluation, including introduction to outcomes measurement, a program outcome model, why to measure outcomes, use of program outcome findings by agencies, eight steps to success for measuring outcomes, examples of outcomes and outcome indicators for various programs and the resources needed for measuring outcomes (United Way, 2013). Slide 6 Project Outcomes Project Outcomes will be further discussed in conjunction with the Project Analysis
Slide 7 Data Analysis Results Program participants were asked to complete three two parts of the Money Smart survey. Of the 50 mailed surveys, 36 responded while 14 did not respond. Of the 36 returned surveys, 30 completed all sections of the survey while 6 left some questions blank. Most of the questions left blank pertained to those questions about annual income and how many family members resided in the home. The remaining survey findings will be presented according to respondent demographic characteristics.
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Slide 8 Project Results Slide 9 Table 1 Returned Surveys
Respondent Age Category Returned Completed % Returned Surveys (Not Completed) %
18-24 7 14% 0 0%
25-34 14 28% 1 3%
35-44 9 18% 3 8%
45-54 5 10% 1 3%
55-64 1 2% 1 3%
36 72% 6 17%
As can be seen in Table 3, only 72% of the respondents returned completed surveys while only 17% did not return completed surveys.
Slide 10 Table 2 Returned Surveys by Gender Male % Female %
18-24 3 8% 4 11%
25-34 6 17% 8 22%
35-44 6 17% 3 8%
45-54 1 3% 4 11%
55-64 0 0% 1 3%
16 44% 20 56%
As can be seen in table 4, of the total surveys returned only 44% of the respondents were male and only 56% of the respondents were female. The survey responses were broken down according to age categories. Based on the surveys returned the age categories 25-34 and 35-44 accounted for 34% of total respondents separately.
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Slide 11 Table 3 Returned Surveys by Marital Status Married % Single % Divorced % Widowed %
18-24 3 8% 2 6% 2 6% 0 0%
25-34 5 14% 6 17% 3 8% 0 0%
35-44 3 8% 3 8% 2 6% 1 3%
45-54 4 11% 0 0% 0 0% 1 3%
55-64 0 0% 0 0% 0 0% 1 3%
15 42% 11 31% 7 19% 3 8%
As can be seen in table 5, of the total surveys returned, only 42% of the respondents were married, 31% were single, 19% responded as being divorces, and only 8% of the respondents were widowed. The survey responses were further broken down according to age categories. Based on the surveys returned the age categories 25-34 accounted for 31% or the majority of completed surveys returned. Slide 12 Table 4 Returned Surveys by Education Levels No High
School % High
School % Some
College % College
Graduate % Graduate
School %
18-24 1 3% 6 17% 1 3% 0 0% 0 0%
25-34 0 0% 14 39% 6 17% 3 8% 0 0%
35-44 1 3% 5 14% 2 6% 1 3% 0 0%
45-54 1 3% 3 8% 0 0% 1 3% 0 0%
55-64 1 3% 0 0% 0 0% 0 0% 0 0%
4 11% 28 78% 9 25% 5 14% 0 0%
As can be seen in table 6, of the total surveys returned, only 11% of the respondents did not graduate high school, 78% graduated high school, 25% had some college, 14% were college graduates, and 0% had a graduate degree. The survey responses were further broken down according to age categories. Based on the surveys returned the age category 25-34 accounted for 39% or the majority of completed surveys returned.
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Slide 13 Table 5 Returned Surveys by Employment Status
Full-Time % Part-time % Currently Not Working %
18-24 3 8% 4 11% 0 0%
25-34 9 25% 2 6% 3 8%
35-44 5 14% 3 8% 1 3%
45-54 3 8% 0 0% 2 6%
55-64 0 0% 0 0% 1 3%
20 56% 9 25% 7 19%
As can be seen in table 7, of the total surveys returned, 56% of the respondents worked full-time, 25% worked part-time, and 19% did not currently work. The survey responses were further broken down according to age categories. Based on the surveys returned the age category 25-34 accounted for 25% or the majority of completed surveys returned, with the 35-44 age category following with 14% of completed surveys returned. Slide 14 Table 6 Returned Surveys by Income Levels Under
$4,999 % $5,000 to
$9,999 % $10,000 to
$19,999 % $20,000 to
$29,999 % Over
$30,000 %
18-24 0 0% 4 11% 3 8% 0 0% 0 0%
25-34 2 6% 3 8% 5 14% 0 0% 4 11%
35-44 1 3% 2 6% 2 6% 1 3% 3 8%
45-54 0 0% 1 3% 1 3% 3 8% 0 0%
55-64 0 0% 0 0% 1 3% 0 0% 0 0%
3 8% 10 28% 12 33% 4 11% 7 19%
As can be seen in table 8, of the total surveys returned, only 19% of the respondents earned over $30,000, 28% earned under $10,000, 33% earned under $20,000, and 11% earned under $30,000. The survey responses were further broken down according to age categories. Based on the surveys returned the age category 25-34 accounted for 28% or the majority of completed surveys returned earning the most. Slide 15 Survey Results Parts I & II • The next set of data will summarize respondent answers to questions asked in Part I and Part II of
the Smart Money Survey. These sections will assess each respondent’s financial profile, financial behavior, program view, and potential behavior outcomes as a result of completing the program.
• Each survey question will be outlined with a corresponding chart of results.
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Slide 16 • As can be seen in Figures 4 and 5 respectively, respondents indicating whether or not they had a
savings and checking account is significantly diverse. As can be seen, only 58% had savings accounts while only 42% did not have a savings account. As can be seen, only 72% of the respondents had a checking account versus 28% reporting they have not checking account. The high number of checking accounts could be connected to the fact that more people use debit/ATM cards versus writing paper check.
Figure 4: Percentage of those respondents Figure 5: Percentage of those respondents with and without saving accounts (N = 36) with and without checking accounts (N = 36).
Slide 17 • As can be seen in Figure 6, only 3% of the respondents cashed their checks at convenience stores,
17% at grocery stores, while 6% utilized their employers to cash their checks. This is a rural area and many do not have access to vehicles so these results are not surprising.
• The data also indicated that only 47% utilize banks/credit unions while 5% utilized payday lenders. This is one of the behaviors that the Money Smart curriculum attempts to help consumers change. The curriculum educates participants about the costs associated with using a bank/credit union versus payday lenders.
• The remaining respondents 22% indicated they use other sources the cash their checks. It is likely that these other sources are friends or the participants have the funds placed on prepaid PayPal cards such as the Walmart green dot MoneyPak and others.
Figure 6: Where respondents cash their checks (N = 36).
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Slide 18
• As can be seen in Figure 7, only 7% of the respondents indicated they pay more than $20.00 to cash their checks per month. This is most likely due to lack of transportation or bank accounts. Only 11% pay more than $5.00 to cash their checks while 15% pay less than $5.00.
• The majority of the respondents indicated they pay no fees to cash their checks. This most likely is contributed to having bank/credit union accounts where they utilized direct deposit options to cash their checks.
• Also most public assistance recipients are required to have a bank account to receive their benefits. No respondents indicated they pay more than $30.00 per month to cash their checks.
Figure 7: How much respondents pay to cash their checks, (N = 36). Slide 19 • As can be seen in Figure 8, only 3% of the respondents still write less than 5 checks per month, 6%
indicated they write less than 3 checks per month, 14% indicated they only write 1 to 2 checks per month.
• The writing of checks is most likely due to those respondents not having a bank/credit union checking account.
• The high number of respondents that indicated they write no checks per month can be linked to the high number of consumers utilizing debit/ATM cards versus writing paper checks to pay their bills on a monthly basis.
Figure 8: Monthly written checks (N = 36).
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Slide 20 • As can be seen in Figures 9 and 10 respectively, Only 42% of the respondents indicated they make
greater than 5 monthly withdrawals per month, 50% indicated they make greater than 3 monthly withdrawals, 8% indicated they make at least 1 monthly withdrawal, and no respondents indicated they do not make monthly withdrawals. The results are likely due to recipients having their paychecks, benefits checks, and other monetary gifts deposited by others.
• After the deposits are made the income is immediately utilized to pay bills and purchase other necessities on a monthly only 8% of the respondents indicated they make greater than 5 monthly deposits per month, 11% indicated they make greater than 3 monthly deposits, 64% indicated they make at least 1 monthly deposit per month, and 17% indicated they do not make monthly deposits per month. Survey response indicate this is likely due to recipients having their paychecks, benefits checks, and other monetary gifts deposited by others.
Figure 9: Percentage of those respondent Figure 10: Percentage of respondent monthly withdrawal activity (N = 36) monthly deposit activity (N = 36)
Slide 21
• As can be seen in Figures 11 and 12 respectively, as can be seen only 29% of the respondents
indicated they use money orders, 24% indicated they use cash, 21% indicated they use credit cards, while 26% of the respondents indicated other. These responses are most likely contributed to those respondents and their access to transportation.
• Most neighborhoods have places that sell money orders and provide access to Western Union/MoneyGram services.
• As can be seen only 33% of the respondents indicated they utilize wiring services while 67% of the respondents indicated they did not use these services. It is most likely that these respondents did not want to pay the fees associated with sending money quickly. These fees can range from $9.00 to $49.00 depending upon the amount of funds being wired.
• It is likely that those respondents that were willing to pay the additional fees for the wiring services deemed that sending the funds was of urgency. Most companies have quick collect polices that allow the utilization of Western Union/MoneyGram to pay mortgages, car payments, utilities, send money to other bank accounts, and pay other bills.
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Figure 11: Percentage of respondents without Figure 12: Percentage of respondents that wire checking accounts and their payment methods (N = 36) money (N =36).
Slide 22 • As can be seen in Figure 13, only 19% of the respondents indicated they do not borrow money while
81% of the respondents indicated they do borrow money.
• The question of borrowing money and respondent borrowing behaviors/habits will be discussed in subsequent charts.
Figure 13: Borrowing Money (N =36). Slide 23
• As can be seen in Figure 14, only 3% of the respondents indicated they do not borrow money, 11%
indicated they borrow from credit cards, 11% indicated they borrow from payday lenders, 10% indicated they borrow from rent-to-own centers, 15% indicated they borrow from other sources, 16% indicated they borrow from banks/credit unions, and the majority, 34% of respondents, indicated they borrow money from family and friends.
• There are assumptions that may explain the survey responses to this question: Some respondents may not have access to traditional lending institutions such as banks and credit unions to borrow money. Some respondents may have poor credit and are unable to borrow money. Some respondents may have filed bankruptcy in the past and are unable to borrow money.
• These are only assumptions based on respondent indicators and my past experience as Financial Counselor. One of the ultimate goals of the Money Smart financial program is to help respondents change behaviors in regards to their borrowing habits. If the respondents choose not to change behavior, they at least know the potential outcomes associated with their borrowing choices.
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Figure 14: Who respondents borrow money from (N =36).
Slide 24 • As can be seen in Figure 15, the majority, 35% of respondents, indicated they borrow money to pay
bills, purchase groceries, pay rent, and utilities, 20% indicated they borrow money for educational purposes, 8% indicated they borrow money to purchase a home or pay initial rent and deposits, 13% indicated they borrow money to purchase appliances, furniture, TVs, VCRs, and stereo equipment, and 21% indicated they borrow money for other reasons.
• Survey responses are most likely due to the respondent’s economic situation, coupled with whether or not they have experienced a job loss or layoff. With the loss of jobs, some consumers are increasingly finding themselves unable to paying bills and may opt to borrow money to pay for day-to-day living expenses. Only 3% of the respondents indicated they do not borrow money.
Figure 15: What respondents borrow money for (N =36).
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Slide 25
• As can be seen in Figure 16, 53% of the respondents indicated they knew the interest rates on their loans, only 19% of the respondents indicated they do not know the interest rates on their loan accounts while 28% indicated they are not sure of the loan rates. Responses are most likely due to consumers being more focused on how month monthly payments are versus how much it will cost them to borrow money.
• These responses influenced the Money Smart financial literacy program to educate respondents on knowing how much it cost to borrow money over time. It is not known if knowing the costs will actually change consumer behavior in all respondents; however, it could help them make more informed choices when borrowing money.
Figure 16: Monthly written checks. Slide 26 • As can be seen in Figure 17, only 67% of the respondents know how to open up a checking account,
18% of the respondents indicated they do not know how to open up a checking account, and 15% of the respondents indicated they were not sure how to open up a checking account.
• Survey responses are most likely due to the fact most consumers do not associate the use of a debit/ATM cards with checking accounts.
• Usually the debit/ATM process is marketed to consumers as separate banking products and can be confusing to those consumers not having financial knowledge about banking activities.
Figure 17: Respondent knowledge on how to open up a checking account (N = 36).
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Slide 27 • As can be seen in Figure 18, the majority, 67% of the respondents, indicated they know how to
write checks, only 23% indicated they do not know how to write checks, while only 10% of the respondents indicated they are not sure how to write checks.
• These responses are most likely due to the increased use of debit/ATM cards by consumers to pay bills and make everyday purchases.
• Lending institution are changing every day due to the increased use of technology and most are encouraging consumers to pay bills online using bill pay services or by debit/ATM.
Figure 18: Respondent knowledge of how to write checks (N = 36). Slide 28 • As can be seen in Figure 19, only 8% of the respondents indicated they do not know how to use an
ATM/Debit card, while the majority, 92% of respondents, indicated they do know how to use an ATM/Debit card.
• Survey responses indicated that increases in banking technology most likely has had an impact on consumer banking activities.
• Most consumers have an ATM/Debit card and are familiar with using them to pay bills and make purchases.
Figure 19: Respondent knowledge of how to use an ATM/Debit card (N = 36).
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Slide 29 • As can be seen in Figure 20, only 29% of the respondents indicated they know the cost of having a
bank account, only 8% indicated they are not sure of the costs of having a bank account, while the majority, 63% of respondents, indicated they do not know the cost of having a bank account.
• These results indicated that some consumers fail to ask the necessary questions when opening a savings or checking account.
• It is also likely that consumers do not compare banks and fees when opening up a bank account.
Figure 20: Respondent Knowledge of the cost of having a bank account (N = 36). Slide 30 • As can be seen in Figure 21, the majority of respondents, 62% know how much it costs to borrow
money from a bank, only 20% of the respondents indicated they do not know how much it costs to borrow money from a bank, while only 18% of respondents indicated they are not sure of how much it costs to borrow money from a bank.
• The survey responses strongly indicate some consumers lack the financial knowledge of how banking institutions work.
Figure 21: Respondent knowledge of the cost of borrowing money from banks (N =36).
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Slide 31 • As can be seen in Figure 22, 39% of respondents do know what an APR (annual percentage rate) is,
however the majority, 53% of respondents, indicated they do not know what an APR (annual percentage rate) is, while only 8% of respondents indicated they do not know what an APR (annual percentage rate) is.
• The survey responses indicate that some consumers may get confused and think the APR (annual percentage rate) is the same as the interest rate (cost of borrowing money) on a loan.
Figure 22: APR (annual percentage rate) Knowledge (N = 36).
Slide 32 • The next set of data will summarize respondent answers to questions asked in Part II of the Smart
Money Survey. These sections will assess each respondent’s perspective of whether or not they experienced changes in their financial behaviors as a result of taking the financial literacy course. Each question will be outlined with a corresponding chart of results.
• The results are organized according to respondent age categories listed on the survey. Responses for these results are based on the total number of program participants that responded to the Money Smart survey (N = 36).
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Slide 33 Overall Program Evaluation Perceptions • As can be seen in Figure 23, 24, and 25 respectively, respondents demonstrated a favorable
perception of the financial literacy program.
• The responses indicated that respondents strongly agree that the program increased their financial knowledge levels.
• Respondents also responded favorably to the possibility of using their new found financial literacy skills to manage their finances.
Figure 23: Are respondents more financially knowledgeable as a result of the program? (N =36). Slide 34 • As can be seen in figure 24, respondents had mixed responses in reference to their ability to use the
information on their own.
Figure 24: Are respondents comfortable they can manage their finances better? (N = 36).
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Slide 35 • These responses are likely due to respondent perceptions of being in a position to actually apply the
information to their current situations.
Figure 25: Are respondents comfortable using what they have learned on their own? (N = 36). Slide 36 Project Implementation
Financial Empowerment is a non-profit corporation offering minority adults living in rural Tattnall County, Georgia financial solutions to their current economic situation. This program evaluation focused on their perceptions of the existing financial education program facilitated by Financial Empowerment. Over 50 percent of all survey respondents agreed that, as a result of participating in the program, they were more financially knowledgeable, were able to manage their finances better, and were able to use what they learned on their own. To measure overall program impact, Money Smart participants were asked to check the response that best indicated how much they agreed with the following three statements: 1. “Because of this program, I am more financially knowledgeable.” 2. “Because of this program, I feel I can manage my finances better.” 3. “I feel that I can use what I learned in this program on my own.” In addition, over half reported that they strongly agreed with all three impact statements, with the highest proportion of respondents strongly agreed that they could use what they learned on their own. It is important to acknowledge that these findings may be due to the fact that those who were the most satisfied with the program were those who did not drop out of the program. Changes will be implemented in phases over the next year because the current program schedules have already been published. These changes will then be integrated into the financial education program with the ultimate outcome of improving the financial literacy program with the ultimate outcome of improving participation and satisfaction rates of those rural adults wanting to take future financial literary courses.
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Slide 37
Conclusion
The study of adult perception of education can play an important role in adult literacy and financial education because it allows the adult to play a vital role in the development and improvement financial programs. Because this project evaluated an existing financial literacy program, the data analysis was utilized to update and change some of the program objectives. The major implementation to this program involved the changes that focused structuring the program to meet the needs of those participating in it. It is important to point out that while this project provided considerable insight into the effectiveness of the Money Smart program, it is was also limited in the following respects. First, attrition from the program and missing information on several surveys considerably reduced the sample size. In the end, only 36 of the participants completed both parts of the survey. The problems associated with the use of small sample sizes in this project was particularly acute in its inability to collect enough data to effectively evaluate the program. As a consequence, the results of the project data are in some cases driven by the responses of only a few individuals. Thus, while the findings provide some evidence that the Money Smart program succeeded in increasing participant financial literacy levels, one needs to be cautious and not regard these findings as conclusive.
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PowerPoint Presentation
• Evaluated the Money Smart Program from the perspective of the program participant.
• Disseminated a survey to former program participants with the intent of gauging how much information participants learned.
• Assessed survey participant responses to see if they found the financial literacy training beneficial.
• Assessed survey participant responses in correlation to their perception of the financial literacy program.
Assessment and Evaluation
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• Evaluated the Money Smart Program from the perspective of the program participant.
• Disseminated a survey to former program participants with the intent of gauging how much information participants learned.
• Assessed survey participant responses to see if they found the financial literacy training beneficial.
• Assessed survey participant responses in correlation to their perception of the financial literacy program.
Conclusion: Recap of Project Assessment and Evaluation
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Appendix B: Survey Instrument
Money Smart Survey ID Number ___________ Thank you for taking the time to respond to this survey for my study on financial literacy in rural communities. This survey will take approximately 13 minutes of your time to complete. Your answers are very important, because they will help to better meet the financial needs of the community and improve financial assistance programs within the community. Should you choose to respond to this survey, your information and responses will be kept confidential. Your responses will be used only for evaluation purposes for this study and will be safeguarded in a tamper-proof safe. Please do not put your name or any identifying information on this survey. Survey Evaluation Form – Part I Information on Your Current Banking Activities: 1. Do you currently have a checking account? ____ yes ____no How many checks do you usually write in a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not have a checking account How many deposits do you usually make in a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not have a checking account 2. Do you have a savings account? ____ yes ____no How many accounts do you have? ____ 1 ____ 2 ____ 3 or more ____ I do not have a savings account
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How many deposits do you usually make in a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not have a savings account How many withdrawals do you usually make in a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not have a savings account 3. If you do not have a checking or savings account, why not? (Check all that apply) ____ Don’t have enough money ____ Don’t trust banks ____ Poor credit history and banks won’t let me open an account ____ Banks don’t have convenient hours or locations ____ Don’t like dealing with banks, prefer currency exchanges ____ Don’t write enough checks ____ Don’t have a social security number ____ Don’t have a ITIN number ____ Don’t have a photo ID (example, driver’s license) ____ Bank fees/costs are too high ____ Don’t want the government to know how much money I have ____ other Where do you cash your checks? (Check all that apply) ____ currency exchange or payday lender ____ grocery store ____ bank or credit union ____ convenience store (example, liquor store or gas station) ____ employer ____ other How much do you pay to cash your checks per month? ____ $0 ____ $1.00 - $4.99
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____ $5.00 - $9.99 ____ $10.00 - $19.99 ____ $20.00 - $29.99 ____ more than $30.00 4. If you do not have a checking account, how do you pay your bills? (Check all that apply) ____ cash ____ money order ____ credit card ____ other 5. Do you wire money? ____ yes ____no How often do you wire money per month? ____ 1-2 times ____ 3-5 times ____ more than 5 times ____ I do not wire money 6. Do you borrow money? ____ yes ____no Who do you borrow money from? (Check all that apply) ____ family and friends ____ payday lender or title loan company ____ rent-to-own center ____ credit cards ____ bank ____ other ____ I do not borrow money What are you borrowing money for? (Check all that apply) ____ to pay the bills (groceries, rent, utilities) ____ for furniture, appliances, TV, VCR, stereo ____ for a car ____ for an education ____ for a house ____ other ____ I do not borrow money Do you know the interest rate on your loans?
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____ yes ____ no ____ I’m not sure Please check the best response for each statement: 7. I know how to open a checking account. ____ yes ____ no ____ I’m not sure 8. I know how to write a check. ____ yes ____ no ____ I’m not sure 9. I know how to use an ATM/debit card. ____ yes ____ no ____ I’m not sure 10. I know the cost of having a bank account. ____ yes ____ no ____ I’m not sure 11. I have compared the costs of using a bank versus a currency exchange. ____ yes ____ no ____ I’m not sure 12. I know how much it costs to borrow money from a bank. ____ yes ____ no ____ I’m not sure
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13. I know what an APR (annual percentage rate) is. ____ yes ____ no ____ I’m not sure ID Number ___________ Survey Evaluation Form – Part II Information about the Financial Empowerment Literacy Program: Please check the response that best indicates how much you agree with each statement: 1. Because of this program, I am more financially knowledgeable. ____ strongly agree ____ agree ____ I am not sure ____ disagree ____ strongly disagree 2. Because of this program, I feel I can manage my finances better. ____ strongly agree ____ agree ____ I am not sure ____ disagree ____ strongly disagree 3. I feel that I can use what I learned in this program on my own. ____ strongly agree ____ agree ____ I am not sure ____ disagree ____ strongly disagree Information on Your Future Banking Activities: 4. After participating in this program, do you plan to open a bank account? ____ yes, because ____no, because ____no, because I already have an account
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5. If so, what type of account do you plan to open? (Check all the apply) ____ savings account ____ checking account ____ other ____ I do not plan on opening an account ____ I already have an account 6. If you open a bank account, how many deposits do you plan to make a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not plan on opening an account ____ I already have an account 7. How many checks do you think you will write a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not plan on opening a checking account ____ I already have a checking account 8. Do you plan to borrow money from a bank? ____ yes, because ____no, because Some Information About You: 9. What is your age? ____ under 25 ____ 25 to 34 ____ 35 to 44 ____ 45 to 54 ____ 55 to 64 ____ 65 or over 10. How much schooling have you finished?
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____ less than high school graduate ____ high school ____ some college ____ college (B.A. or B.S. degree) ____ graduate school 11. What is your gender? ____ male ____ female 12. What is your marital status? ____ single ____ divorced/separated ____ widowed ____ married 13. How many people live in your household? ____ 14. How many of these are children under age 18? ____ 15. What is your current work status? ____ working part-time ____ working full-time ____ not currently working 16. What is your annual household income from work, aid, and all other sources? ____ under $4,999 ____ $5,000 to $9,999 ____ $10,000 to $19,999 ____ $20,000 to $29,999 ____ over $30,000
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Appendix C: Cover Letter Date: Subject: Money Smart Survey/Questionnaire My name is Lisa Collazo and I am a doctoral student conducting a study entitled, " Financial Literacy and Minorities Living in Rural Communities: Evaluation of a Non-Profit Financial Literacy Program." Based upon your past participation in a financial literacy program, I am inviting you to provide feedback on your participation experiences. Enclosed in this mailing you will find a Money Smart Survey/Questionnaire requesting your feedback. The purpose of this study is to evaluate a financial literacy program facilitated by Financial Empowerment at the Mt. Zion Outreach Ministry in Glennville, Georgia. Although Financial Empowerment offered the financial program, they are not the organization that is conducting this study. This study will ask for your opinion on the importance of the program and whether or not it was helpful in changing your long-term financial behavior. The survey will also ask your opinion as to whether or not your financial literacy skills improved as a result of participating in the program. This feedback will greatly assist the Community in offering effective financial education and services. It takes approximately 13 minutes to complete the survey/questionnaire. It is important for you to understand that there are no direct personal benefits for your participation in this study. However, the community in, which you reside may benefit from your participating. Your input is valuable because it will help the community improve financial literacy programs and offer better financial support. Your contribution will also help provide meaningful information to increase understanding of how you perceived the program and to better coordinate future financial literacy education programs within the community as a whole. The risks associated with this study are minimal. The survey will ask some sensitive questions regarding income levels and this may have the potential to cause some discomfort or embarrassment. The survey will be anonymous and there will be no way to link your responses back to you. At any time during your participation in the survey you can choose to not respond to those questions that may cause you any discomfort. Please note that by filling out this survey and returning the questionnaire in the enclosed stamped envelope, you are certifying that you are at least 18 years old, and you are giving your free and voluntary consent to be a participant in this study. You are, of course, free to choose not to participate, and you have the right to refuse to answer any particular question for whatever reason without prejudice. However, I ask that you carefully answer as many of the questions as possible. All your responses will remain anonymous. All research reports will only contain data in forms that do not permit individual responses to be identified. If you choose not to participate in this study, please discard the enclosed materials. Let me thank you in advance for the time and effort required to fill out the questionnaire and to assure you that your participation will be kept confidential and will be greatly appreciated. Sincerely, Lisa L. Collazo