1. Beginning of Chapter 2 completed with:
* Literature Review
* Titles Searches and Documentation
* Historical Content (Needs to be redone with sources past 5 years)
* Current Content
* Theoretical OR Conceptual Framework Literature
I included my current dissertation for you to add on to.
I included a template example for you to reference the proper layout
I included someone else’s dissertation so you have an example
Accurate timely
Assignment Content
1. Please see below for sections that need to be completed in chapter 2.
2. I am attaching my dissertation so far so you can add these to it.
3. I am attaching a dissertation template so you can see how the layout is.
4.
I am attaching a dissertation example from someone else that you can use for reference.
Top of Form
Chapter 2
Literature Review
Begin with an introduction with no section heading. Remind the reader of the study topics and the foundational theories that drove the review of the literature.
Title Searches and Documentation
Describe the approach that you used to search for relevant documentation including key words used to search for publications. You can opt to include a table in this section to describe the numbers of journals, books, or other sources used for your various topics.
Historical Content (needs to be redone with sources over 5 years)
Generally, historical content is defined as over 5 years old. Include subsections for each of the various topics related to your study. The topic subsections should be presented in order from the broadest topic to the narrowest topic. Include both germinal content and content that is considered historical based on its publication date. It is crucial that you do not develop your literature review as merely a series of annotated bibliographies that discuss one source after another. It is crucial to synthesize the sources by comparing and contrasting the various perspectives on each topic.
Current Content (attaching for you to use)
Generally, current content is less than 5 years old. Include the same subsections that you used in the historical content unless there is no current literature for a specific topic. Here again it is important to synthesize the sources—compare and contrast the various perspectives on each topic. It is important to describe all perspectives of each research topic including any controversial literature rather than presenting only literature that supports your own perspective in order to create credibility.
Theoretical or Conceptual Framework Literature
(As you develop the Theoretical or Conceptual Framework Literature section of the Concept Review (Chapter 2), begin with the broadest theoretical foundation, followed by narrower theories. Within the subsections for each theory, discuss the theory development in chronological order, beginning with the germinal theorists and continuing with the theory development and current theorist perspectives. Again, the discussion must be synthesized.)
One or the other; must reflect the type of framework used in Chapter 1)
The framework in chapter 1 should only have introduced readers to the relevant theories. This section should include subsections for each of the relevant theories and discuss supporting germinal and current literature on those theories.
*Bottom of Form
A PHENOMENOLOGICAL STUDY TO DISCOVER LOW-INCOME ADULTS’
PERCEPTIONS AND EXPECTATIONS REGARDING FINANCIAL LITERACY
by
Brigid Ann Schaffer
Copyright 2013
A Dissertation Presented in Partial Fulfillment
Of the Requirements for the Degree
Doctor of Business Administration
All rights reserved
INFORMATION TO ALL USERS
The quality of this reproduction is dependent upon the quality of the copy submitted.
In the unlikely event that the author did not send a complete manuscript
and there are missing pages, these will be noted. Also, if material had to be removed,
a note will indicate the deletion.
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UMI Number: 3574885
iii
ABSTRACT
This phenomenological study explored the perceptions and expectations of low income
adults regarding financial literacy to discover ways to increase attendance in financial
literacy programs designs for this cohort. The study utilized interviews with closed-ended
questions to establish the participants’ backgrounds, then opened-ended questions to obtain
in-depth descriptions of personal lived experiences about financial literacy concepts,
educational programs, and future expectations from the 20 study participants. The data
analysis resulted in three themes (1) participant’s characteristics, (2) presentation of financial
literacy programs, and (3) access to low income adults. The sub-themes from theme one
identify participants’ characteristics of belief in self and current time-frame orientation.
Theme two, presentation of financial literacy programs, sub-themes recognized three
attributes of presentation: information wanted, presentation style, and, environment of
financial literacy classes. The third theme, access to low income adults, presented sub-
themes of access through word of mouth, and advertisement. The first two themes gave rise
to recommendations of future development and presentation of financial literacy programs.
The third theme provided advertising ideas for financial literacy programs to incorporate
information reflecting the benefits to attendees, and sites for advertisement to include
locations where the cohort socialize or look for support. The study considered the low-
income adults’ perspectives regarding financial literacy reversed the existing top down
approach of financial program development from what low-income adults need to learn to
participate in the mainstream financial sector to what low-income adults want to learn to
secure a stable financial future. The research method can be replicated to determine the
financial literacy needs of community low income adults.
iv
DEDICATION
I dedicate this research study to my husband, Paul Schaffer, and our daughters Sarah and
Amber.
v
ACKNOWLEDGEMENTS
I acknowledge that without the help and support of many people during this long journey the
research would not have been completed. My first line of support came from the librarians
Joanne Elpern, Joanne White, Mary Loomis, and Xiaomei Gong, they provided guidance and
access to research materials essential during coursework and the research. My classmates;
Arlene McClurg, Wyndia Wortham, and Dr. Sheila Payne, provided the encouragement for
completion. Most importantly, my dissertation committee, Dr. Samuel Hardy, Dr. Clifford
Blizard, and Dr. Elaine Labach for their continuous input and support during the dissertation
process.
vi
Table of Contents
CHAPTER 1 ………………………………………………………………………………… i
INTRODUCTION ………………………………………………………………………………… i
Background of the Problem …………………………………………………….2
Statement of the Problem ………………………………………………………..4
Purpose of the Study ………………………………………………………………5
Significance of the Problem …………………………………………………….6
Significance of the study. ……………………………………………..6
Significance of the study to leadership. ………………………….7
Nature of the Study ………………………………………………………………..7
Overview of the research method. …………………………………7
Overview of the design appropriateness. ………………………..9
Research Questions ………………………………………………………………12
Theoretical Framework ……………………………………………………… 13
Definition of Terms………………………………………………………………16
Assumptions ………………………………………………………………………..17
Scope and Limitations…………………………………………………………..17
Delimitations ……………………………………………………………………….19
Summary …………………………………………………………………………….20
CHAPTER 2 ………………………………………………………………………………..22
REVIEW OF THE LITERATURE ………………………………………………………..22
Title Searches, Articles, Research Documents, Journals ……………22
Historical Overview of Financial Literacy Programs ………………..23
vii
Organisation of Economic Cooperation and Development ………..23
Financial Literacy Legislation in the United States …………………..25
Financial Literacy Studies Influences ……………………………………..30
Current Literature: Financial Literacy Development ………………..35
Financial Literacy Studies…………………………………………..36
Expections and Education ………………………………………….40
Accessing the Low Income Population…………………………49
Theoretical Framework for Interpretation of Data…………………….56
Maslow’s Hierarchy of Needs ……………………………………..57
Prochaska’s Transtheoretical Method for Change ………….58
Challenges of Financial Literacy Education …………………………….60
Further Research: Financial Literacy Initiatives ……………………….63
Conclusions …………………………………………………………………………64
Summary …………………………………………………………………………….65
CHAPTER 3 ………………………………………………………………………………..67
METHOD ………………………………………………………………………………..67
Research Method and Design Appropriateness ………………………..68
Research Method ………………………………………………………68
Design Appropriateness ……………………………………………..72
Research Questions ………………………………………………………………75
Population …………………………………………………………………………..76
Sampling Frame …………………………………………………………………..76
Informed Consent…………………………………………………………………77
viii
Confidentiality …………………………………………………………………….78
Institutional Review Board ……………………………………………………79
Geographic Location …………………………………………………………….79
Data Collection ……………………………………………………………………80
Instrumentation ……………………………………………………………………83
Interview Questions Development ………………………………………….84
Validity and Reliability …………………………………………………………87
Internal Validity ………………………………………………………..87
External Validity ……………………………………………………….88
Reliability …………………………………………………………………88
Data Analysis ………………………………………………………………………89
Summary …………………………………………………………………………….90
CHAPTER 4 ………………………………………………………………………………..92
RESULTS ………………………………………………………………………………..92
Population and Sampling ………………………………………………………92
Validity and Reliability …………………………………………………………93
External Experts ………………………………………………………..94
Pilot Study ………………………………………………………………..94
Member Checking ……………………………………………………..95
Data Collection Process ………………………………………………………..96
Demographic Information …………………………………………..96
Data Analysis Process …………………………………………………………..98
Results ………………………………………………………………………………100
ix
Theme 1- Participants’ Characteristics ………………………..100
Theme 2 – Presentation of Financial Literacy ……………..105
Theme 3 – Access to Low Income Adults ……………………111
Summary …………………………………………………………………………..116
CHAPTER 5 ………………………………………………………………………………118
CONCLUSIONS AND RECOMMENDATIONS …………………………….118
Limitations ………………………………………………………………………..119
Conclusions for Research Question ………………………………………121
Theme 1- Participants’ Characteristics ………………………..122
Theme 2 – Presentation of Financial Literacy ……………..127
Theme 3 – Access to Low Income Adults ……………………131
Significance of the Study …………………………………………………….132
Significance of the Study to Leadership ………………………………..133
Implications and Recommendations for Future Research ………..134
Recommendations to Increase Participation …………………………..135
Recommendations to National Leaders …………………………………136
Recommendations to Community Organizations ……………………136
Reflection ………………………………………………………………………….137
Summary …………………………………………………………………………..139
References …………………………………………………………………………141
Appendix A – Key Word Searches ………………………………………..154
Appendix B – Flyer to Solicit Participants ……………………………..155
Appendix C – Individual Informed Consent Form …………………..156
x
Appendix D – Non Disclosure Agreement ……………………………..157
Appendix E – Premise Consent Agreement ……………………………159
Appendix F1 – Interview Questions Prior to Validation …………..160
Appendix F2 – Interview Questions for Research Study ………….163
Appendix G – Participants’ Interview Transcripts ……………………167
xi
LIST OF TABLES
Table 1 – Sample………………………………………….……. …………………………..97
Table 2 – Household Population…………………….…… ……………………….…………97
Table 3 – Types of Bank Accounts…………………………………………… ………..98
Table 4 – Accessing Low Income Adults – Participant Suggestions..……… ………..112
Table 5 – Participant Self-Rating of Money Management………………… ………….128
1
Chapter 1
Introduction
Thirty percent of households in the United States are categorized as low-income, earning less
than $30,000 annually (Federal Deposit Insurance Corporation [FDIC], 2009). Financial
literacy programs for low-income adults in the United States are designed for basic financial
management to guide participants into mainstream financial services (Curley, Ssewamala, &
Sherraden, 2009; Lyons & Neelakantan, 2008; Lyons & Scherpf, 2004; Servon & Kaestner,
2008; Zhan, Anderson, & Scott, 2009) and to decrease their vulnerability to predatory lenders
and reliance on welfare programs (Chang & Lyons, 2008; Federal Deposit Insurance
Corporation [FDIC], 2009; Lim, DeJohn, & Murray, 2012; Wilson, 2012). The literacy
programs were developed without interaction with the low-income populations, and the
programs available through government agencies and financial institutions have low levels of
participation (Chang & Lyons, 2008; Servon & Kaestner, 2008; Spader, Ratliffe, Montoya, &
Skillern, 2009).
This phenomenological research study was designed to discover low-income adults’
perceptions and expectations of financial literacy to provide information for financial literacy
curriculum designs that could attract low-income participants (Buckland, 2011; Servon &
Kaestner, 2008). Financial literacy is defined for this research study as: “the ability to make
informed judgments and to take effective actions regarding the current and future use and
management of money” (FLEC, 2010a, p. 2). Chapter 1 provides a synopsis of the
phenomenological research study including a background of the problem, statement of the
problem, purpose of the study, significance of the problem, nature of the study, research
2
question, theoretical framework, definition of terms, assumptions, scope, limitations,
delimitations, and summary.
Background of the Problem
Financial literacy at the end of the 20th century emphasized one dimensional financial
knowledge (Huston, 2010; Remund, 2010). Financial literacy research undertaken during the
first decade of the 21st century determined that financial literacy encompasses two
dimensions: financial knowledge and financial behavior that creates financial capability (U.
S. Financial Literacy and Education Commission (FLEC), 2010a; Huston, 2010;
Organisation of Economic Cooperation and Development (OECD), 2008; Remund, 2010).
Financial literacy is defined by the United States Financial Literacy and Education
Commission (FLEC, 2010a) as “the ability to make informed judgments and to take effective
actions regarding the current and future use and management of money” (p. 2). Financial
education was defined by the Organisation of Economic Cooperation and Development
(2008) as follows:
Financial education is the process by which financial consumers/investors improve their
understanding of financial products and concepts and, through information, instruction and/or
objective advice, develop the skills and confidence to become aware of financial risks and
opportunities, to make informed choices, to know where to go for help, and to take other
effective actions to improve their financial well-being and protection. (p. 13)
Individual governments, the World Bank, and the OECD promote financial literacy because
the financial environment has changed for individuals from reliance on defined pensions and
social retirement funding to personal long-term financial responsibility (OECD, 2008; U. S.
Treasury Department, 2008).
3
Financial literacy behaviors in the United States as measured by an individual’s use of
mainstream financial institutions have three classifications: banked, unbanked, and
underbanked (FDIC, 2009). Research by the FDIC (2009) on the use of mainstream financial
depository institutions found that 7.7% of the United States population is unbanked and that
17.9% of the population is underbanked. A large subset comprising nearly 30% of the United
States population is classified as low-income. Approximately seven million low-income
families are unbanked and are reported to have limited financial literacy (Birkenmaier &
Curley, 2009; FDIC, 2009; Lusardi, Mitchell, & Curto, 2010; Mandell & Klein, 2009).
Traditionally, low-income adults had access to financial literacy programs that focused on
financial activities, such as savings and budgeting (Chang & Lyons, 2009; Servon &
Kaestner, 2008). A study conducted by Lusardi, Mitchell, and Curto (2010) pointed to the
benefits of financial literacy educational programs for individuals before they entered
financial contracts and also indicated that parents have a significant influence on their
children’s financial literacy. Other research and governmental policies have attempted to
increase low-income adults’ involvement in the financial mainstream environment of banks
and investment firms, hoping to decrease this population’s vulnerability to predatory lenders
while increasing the need for financial mainstream services (FDIC, 2009; Lenzner, 2012;
Lumpkin, 2010; Lim, DeJohn, & Murray, 2012; Wilson, 2012). Another statistic
highlighting the need for financial literacy is that the number of people living in poverty in
the United States has increased by 12.5 million people since 2000 and that 6.3 million of
these have crossed the poverty line since the beginning of the 2007 recession (DeNavas-
Walt, Proctor, & Smith, 2011).
4
The literature review on financial literacy studies found the studies involving low-
income adults show a lack of inquiry of low-income adults’ perceptions and expectations
regarding financial literacy (Allen & Miller, 2010; Birkenmaier & Curley, 2009; Buckland,
2010, 2011; Cho, Gutter, Kim, & Mauldin, 2012; De Sousa, 2010; Gutter et al., 2012; Lim,
DeJohn, & Murray, 2012; Servon & Kaestner, 2008; Sherraden & McBride, 2010; Soman &
Cheema, 2011; and Zhan et al., 2009). This study focused on exploring the life experiences
of low-income adults with respect to financial education to discover low-income adults’
expectations for their financial future, consequently increasing the knowledge base for
financial literacy educational development opportunities. The theoretical framework for the
research study was based on Maslow’s (1948) hierarchy of needs to establish motivation, and
to investigate participants’ attitudes toward change based on the theoretical model of change
developed by Prochaska (1979).
Statement of the Problem
The need for financial literacy in the 21st century on an individual basis grows with
increasing financial complexity, the shift of public policy toward individual fiscal
responsibility, and the expanding percentage of the United States population living in poverty
(Arthur, 2011; Buckland, 2011; Cory & Pickard, 2008; DeNavas-Walt et al., 2011; Gallery &
Gallery, 2010). Financial literacy programs in the United States directed toward low-income
populations have had limited success as measured by research on low-income adult financial
literacy and by the number of low-income adults unbanked or underbanked (FDIC, 2009;
2012). The general problem is a measured lack of financial literacy within the low-income
population of the United States (FDIC, 2009; Mandell & Klein, 2009; National Foundation
for Credit Counseling (NFCC), 2010). The emphasis of this study was to explored the low-
5
income adult population’s experiences in developing their financial knowledge, to discover
their perceptions and expectations of financial literacy programs and to increase participation
by this cohort in financial literacy programs.
The phenomenological qualitative study design was used to record and analyze the
life experiences and expectations of financial literacy for low-income adults through open-
ended questions during face-to-face interviews (Creswell, 2012; Buckland, 2011). The data
collection method allows participant confidentiality for members of a population not given to
trusting outsiders (Weiss & Bailar, 2002). Access to the low-income population in Danbury,
Connecticut, was gained through a local nonprofit community organization through the use
of a gatekeeper (Creswell, 2012). Exploring the underlying attitudes, environmental
conditions, and behaviors of low-income adults identified trends which led to
recommendations that could be beneficial to the future development of financial literacy
programs.
Purpose of the Study
This qualitative phenomenological study’s purpose was to explore the lived financial
literacy development experiences and the future financial expectations of low-income adults.
The analysis of the data uncovered trends and themes reflecting on the financial behaviors
before and after the research participants attended a financial literacy program (FDIC, 2010).
These trends and themes produced novel information to aid in the development of financial
literacy education materials and could increase participation in financial literacy programs to
support low-income adults to establish a stable financial future. The qualitative
phenomenological structure was appropriate for this study because this investigator
attempted to understand the experiences of the participants as well as their perceptions,
6
perspectives, and expectations of financial literacy (Leedy & Ormrod, 2010). The study
employed interviews with semi-structured open-ended questions to obtain personal life
experiences about financial literacy concepts, educational programs, and future expectations
from the study participants (Creswell, 2012; Leedy & Ormrod, 2010).
Voluntary interviews of 20 low-income adults provided the opportunity for data
saturation. Initial closed-ended questions confirmed criterion demographic data available in
the nonprofit organization’s documentation. The second section of the interview with
opened-ended questions uncovered themes that could influence the development of financial
literacy education. Themes that emerged from the study, therefore, could aid in determining
predictor variables affecting financial behaviors, and produce novel information to help
develop financial literacy education materials to increase the participation of low-income
adults.
Significance of the Problem
Significance of the study. Financial literacy within the United States has not
increased significantly during the first decade of the 21st century (Lusardi, Mitchell, &
Curto, 2010; Mandell & Klein, 2009; Yates & Ward, 2011; Yilmaz, 2011). An increase in
the size of the population, however, living below the poverty level, combined with the
complex financial environment of decreasing social security expectations, defined pension
plans, and changing welfare terms affirms the need for financial literacy education for low-
income adults in the United States (DeNavas-Walt et al., 2011; FDIC, 2009; Lenzner, 2012;
Lusardi, 2012). This phenomenological study of how low-income adults approach financial
literacy increased the understanding of how low-income adults manage their finances thereby
increasing the knowledge base to develop financial literacy programs that actively engage the
7
cohort under study. Considering low-income adults’ perspectives reversed the existing top
down approach of program development to what low-income adults need to learn to
participate in the mainstream financial sector and what low-income adults want to learn to
secure a stable financial future. The study results identified conceptual foundations on which
financial literacy programs that reach out to low-income adults could be further developed to
support the population cohort’s preparation for a sound financial future.
Significance of the study to leadership. The United States and countries around the
world support financial literacy at the individual level because of deficiencies in financial
literacy within the populations of many countries (OECD, 2010; Yilmaz, 2011). The United
States Treasury Department’s Financial Literacy Education Commission’s (FLEC, 2010a)
stated vision is: “Sustained financial well-being for all individuals and families in the United
States” (p. 6). Access to low-income adults, however, is difficult and participation in
programs directed toward low-income persons is low (Servon & Kaestner, 2008; Spader et
al., 2009; Weiss & Bailar, 2002; Zhan et al., 2009). The significance of a phenomenological
study of low-income adults’ perceptions and expectations of financial literacy to leadership is
that the information collected provides knowledge for program development. The
knowledge could increase access and participation by low-income adults; subsequently,
create a foundation of long-term financial success for individuals, and cause a positive ripple
effect on global economic stability.
Nature of the Study
Overview of the research method. Typically, qualitative, quantitative, or mixed
methods of research can be employed to answer social science questions (Creswell, 2012).
The research method deemed appropriate for this study has the characteristics of a qualitative
8
study. These characteristics include: (a) the researcher as the instrument, (b) data collection
at a field site (natural setting), and (c) interpretation of data to understand a complex issue
and identify factors that influence behaviors (Creswell, 2012). Qualitative research of soft
data follows a nonlinear path to relate authentic interpretations of a specific issue. The
nonlinear path provides focus and data richness, texture, and thoughts requiring the
researcher to use inductive reasoning to develop insights and generalizations from the data
collected. Qualitative research data collected from a small sample size allows the
examination of data for nuances that may help in understanding the issue in context (Leedy
& Ormrod, 2010).
Quantitative research applies deductive reasoning focusing on planning research
design, measurement, and sampling (Creswell, 2009). Data collections through large
statistical samples are reflective of frequency of actions and progress through linear research.
The data analysis based on predetermined variables and stated hypothesis tests the theory
(Leedy & Ormrod, 2010). The mechanical techniques used for statistical analysis in
quantitative research stress objectivity and statistical projection through standardized
procedures and principles of replication (Leedy & Ormrod, 2010). The data predominantly
collected through surveys for statistical analysis of the hypothesis will ultimately confirm or
refute the theory. Data collection can take place without researcher interpretation and does
not provide an opportunity to change methods as could happen in qualitative research.
A mixed method combines elements from both qualitative and quantitative methods
to allow the determination of more details than either method could provide alone (Leedy &
Ormrod, 2010). Qualitative research studies might quantify some answers and quantitative
interview questions might be incorporated into some open-ended questions to solicit insights.
9
Teddlie and Tashskkori (2009) suggested that the development of a mixed method research
design begins with a research question, which when broken down results in both quantitative
and qualitative sub-questions. The option of either quantitative or mixed method involves
confirming or disconfirming a hypothesis. The hypothesis represents the researcher’s
prediction as to the outcome of the research. This study intended to ascertain the financial
literacy perceptions and expectations of low-income adults without any preconceived
conjectures. There are, therefore, no developed hypotheses. The inquiry of low-income
adults’ perceptions and expectations of financial literacy fits the selected qualitative
phenomenological research method.
Overview of the design appropriateness. Creswell (2012) explained the
appropriateness of qualitative research when a problem needs to be explored. Leedy and
Ormrod (2010) explained, “The data dictate the research method” (p. 94). The research
question collected data to ascertain the participants’ perceptions and expectations regarding
financial literacy to increase participation in financial literacy programs. The
phenomenological method gave the low-income adult participants an opportunity to have
their voices heard (Creswell, 2012). The research question, therefore, revealed the necessity
for a qualitative phenomenological research method rather than other qualitative methods. A
review of the other qualitative research methods follows below acknowledge design
methodologies inconsistencies to stay within the boundaries of this phenomenological study.
Case study research involves studying a program or individuals to discover the paths
taken to understand the outcome of a particular issue (Creswell, 2012; Leedy & Ormrod,
2010). The emphasis of this study was to discover information to increase participation of
low income adults in financial literacy programs, which would be limited when considering
10
the perspective of these individual. Therefore, case study research was not selected to
support this study’s emphasis on understanding the perceptions and expectations of financial
literacy for program development.
Content analysis is a qualitative approach that merges quantitative aspects and
generally will become part of a mixed method study. This is done through a systematic
examination of characteristics of material to identify themes, bias, or patterns (Leedy &
Ormrod, 2009). The proposed study involved interviews to extract data with no preformed
expectations from the individuals, rather than analyzing for expected characteristics required
for content analysis. Content analysis was therefore inappropriate for this study.
Ethnography requires researchers to immerse themselves in the culture of the
population to become a trusted member of the society covering a lengthy period to discover
and understand the population. The grounded theory approach utilizes data to develop theory
when theories have not been developed (Creswell, 2012; Leedy & Ormrod, 2010). This
study’s data analysis applied Maslow’s (1948) hierarchy of needs and Proschaska’s (1979)
transtheoretical model of change theories to develop recommendations for financial literacy
programs to improve on curriculum and increase participation. Both the qualitative study
designs of ethnography and the grounded theory would not work for this study because of the
limited access to participants outside of the community organization because of the transitory
and suspicious nature of the low-income population (Weiss & Bailar, 2002).
The selection of the phenomenological approach, therefore, was deemed best suited
for the research question’s purpose and focus in comparison to the other qualitative
approaches. Phenomenology studies fall into either hermeneutic or transcendental modes
(Creswell, 2009). Hermeneutic phenomenology sanctions the researcher freely interacting
11
with the participants and interpreting the participants lived experiences (van Manen, 2007).
Transcendental phenomenology follows Moustakas’s (1994) protocol in which the researcher
focuses on the descriptions of the participants’ lived experiences and brackets out all
personal experiences of the phenomenon. Selecting participants with a common experience
increases the ability of the researcher to analyze the interview transcriptions both textually
and structurally through interpretative analysis reducing experiences to their essence.
This study’s topic of financial literacy explored a personal subject often considered
taboo for discussion (Atwood, 2012; Lowrance, 2011; Trachtman, 2008), but that underlies
many behaviors nonetheless. The low-income adult population for the study was challenging
to access. To overcome the barriers of the topic and population access, the study researcher
worked with a gatekeeper. The gatekeeper was a liaison between the study participants and
the researcher. The presence of a gatekeeper helped the researcher obtain lived experiences
and future expectations in a perceived nonjudgmental way (Creswell, 2012).
Financial literacy educational programming has been designed to increase the low-
income population’s use of mainstream financial services (Curley et al., 2009; Lyons &
Neelakantan, 2008; Lyons & Scherpf, 2004; Servon & Kaestner, 2008; Zhan et al., 2009).
The study explored the participants’ reactions to a financial literacy program regarding
whether the financial literacy program provided the knowledge and skills to meet personal
financial literacy needs. The unique perspective of understanding the financial literacy
program participation of low-income adults from a community nonprofit organization in
Danbury, Connecticut, provided insights to develop financial literacy programs, discovered
new measurements of financial literacy education effectiveness, and uncovered possible
methods for increasing participation.
12
Research Question
The purpose of this phenomenological study was to ascertain the perceptions and
expectations of low-income adult participants regarding financial literacy in order to
understand their perspectives and to make recommendations that could help improve the
financial literacy programming curricula to increase participation by low-income adults.
Studies concerning low-income adults’ financial literacy have focused on adult learning
techniques (Birkenmaier & Curley, 2009; Lyons & Neelakantan, 2008) and the level of
aptitude in financial literacy to increase the likelihood that the low-income population would
use mainstream financial institutions (Chang & Lyons, 2008; Curley et al., 2009; Lusardi,
Mitchell, & Curto, 2010), leaving a gap of inquiry for what low-income adults want to know
about financial literacy to improve their financial futures. The results of the study could
benefit financial literacy program development and participation, and increase low-income
adults’ abilities to manage their money successfully. The timing of the study corresponds to
the United States’ national push to increase financial literacy for the individual. The study
explored the needs of low-income adults who comprise 30% of United States households
(DeNavas-Walt et al., 2011; FDIC, 2009) in an effort to support national economic stability.
The phenomenological research study design of Moustakas’ (1994) provided the basis
for investigating the phenomenon of financial literacy perceptions and expectations of low-
income adults through their lived experiences. Resulting with the central research question:
What are low-income adults’ perceptions and expectations concerning financial literacy? To
develop an answer to the central question, three sub-questions were developed: (1) “How do
the participants rate themselves in regard to personal financial literacy?” and (2) “Has the
participant’s attendance in a financial literacy program increased their financial
13
knowledge?”, and (3) “What suggestions from participants could increase participation in
financial literacy program by low-income adults?”
Theoretical Framework
Low-income populations’ needs for financial literacy to gain long-term financial
success might be superseded by their experiences and ability to change their current standard
of living (Allen & Miller, 2010; Goodman, 2012; Lyons & Scherpf, 2004; National
Endowment for Financial Education (NEFE), 2006; Sherraden & McBride, 2010; Servon &
Kaestner, 2008). This phenomenological research study made inquiries about the
participants’ experiences and expectations with financial literacy. The inquiries collected
data from three perspectives: (a) how they developed the financial knowledge that directs
their financial behavior, (b) what expectations do they have concerning their future financial
plans, and (c) whether or not financial literacy program modules help them toward realizing
their plans. The theoretical framework for this study included Maslow’s (1948) hierarchy of
needs and Proschaska’s (1979) transtheoretical model of change. These theories provided
information to help interpret the study populations’ perceptions and expectations of financial
literacy in the hope that the study’s results could lead to recommendations for modifications
in financial literacy programs that could increase participation and financial literacy of low-
income adults.
Maslow’s hierarchy of needs. Maslow’s (1948) motivation theory structure of
individual character growth stems from the fulfillment of lower-level needs before advancing
to the next higher level of need. Maslow’s prescribed hierarchy of needs progresses through
five need levels: physiological, security, social, ego or self-esteem, and self-actualization.
Devaney, Anong, and Whirl (2007) applied Maslow’s hierarchy of needs to encapsulate
14
seven levels of savings by expanding on Maslow’s five stages by adding one additional level
(no savings) and splitting Maslow’s security level into savings for possible short-term
financial setbacks and financial retirement security. The results revealed that movement
from lower savings levels were stagnant at the security level of safety needs because of a lack
of financial knowledge. Mandell and Klein study (2009) found that the inability to make
appropriate personal financial decisions has far-reaching negative effects on the nation’s
economy. Data collection included the motivational and environmental factors of low-
income adult behaviors in relation to his or her experiences with and expectations of financial
literacy.
Studying savings behavior continued in December 2010 (Gutter et al., 2012). The
researchers studied the psychology, sociology, and economics of 826 complete responses to a
web survey. They found correlations between age, personal planning horizon of long term
orientation, and positive personal experience increased saving behavior. This indicated that
saving behaviors links internal and external variables (Gutter et al., 2012).
Soman and Cheema (2011) researched savings for single income families in India.
The 146 participants held the same job and earned $15.50 per week. The participants were
divided into four groups. The savings requested were either 6% or 12% and the savings were
put in envelopes either left blank or with a picture of their children on the outside. The
savings could also be consolidated or left in the individual envelopes. The results showed
that the participants, who were able to save the most, were requested to save at 6%, did not
consolidate the saving envelopes, and the envelopes had pictures of their children. These
studies could link to Maslow’s hierarchy of needs of savings representing security.
15
Proschaska’s transtheoretical model of change. The transtheoretical model of
change first established to influence change in unhealthy behaviors includes five stages that
reflect the steps required for change and a sixth stage when a person relapses into previous
unhealthy behaviors (Proschaska, 1979; Xiao, et al., 2004). The first stage,
precontemplation, involves initial awareness but no decision yet to make any changes in the
coming six months. In the second stage, contemplation, an individual decides to make
changes over the next six months. Third, preparation plans are made for change in the next
30 days. The fourth stage is the period the individual has changed his or her behavior, but is
still within the first six months of change. The fifth stage, maintenance, occurs if the
individual has continued with the change for more than six months (NEFE, 2006;
Proschaska, 1979).
Xiao, O’Neill, Proschaska, Kerbel, Brennan, and Bristow (2004) applied
transtheoretical change to financial literacy education through the program Money 2000
because “research shows behavioral change is a process, not an event” (p. 56). The study
resulted in individuals successfully replacing the undesirable behaviors of impulse buying
and accumulating credit card debt with the development of the desirable behavior of saving.
Numerous studies concerning low-income populations have found the transtheoretical model
of change can be used effectively as a basis for evaluating a person’s stage of change with
regard to financial behavior (Loibl, Grinstein-Weiss, Zhan, & Bird, 2010; Lyons &
Neelakantan, 2008; Palmer, Bliss, Goetz, & Moorman, 2010; Shockey & Seiling, 2004;
Spader et al., 2009). The responses gathered in this study were reviewed for trends
associated with the transtheoretical model of change in the acceptance of financial behavior
change. The interview questions were evaluated to determine the transtheoretical stage of the
16
participant when they attended the financial literacy program. The transtheoretical stage
identified can help financial literacy program marketing to reach low-income adults at each
transtheoretical stage, thereby increasing low-income adults’ participation in financial
literacy programs therefore, increase participants’ long-term financial security.
Definition of Terms
The definitions listed reflect the meaning of operational terms utilized for the study.
Financial literacy. “Financial literacy can be described as the ability to make
informed judgments and to take effective actions regarding the current and future use and
management of money” (FLEC, 2010a, p. 2).
Gatekeeper. A gatekeeper is an individual who has insider status in the organization
in which the research study will occur and willingly assists the researcher in recruiting
participants for the study (Creswell, 2012).
Low-income. Taxable income does not exceed 150% of the federal poverty level
amount reflected by the number of people in the household (U.S. Department of Health and
Human Services, 2011). The development of poverty measures occurred in the 1960’s and
localized programs can measure low-income from 125% to 200% of the federal poverty
guidelines (Kolesnikova & Liu, 2012).
Underbanked. “Underbanked households are defined as those that have a checking
or savings account but rely on alternative financial services. Specifically, underbanked
households have used non-bank money orders, non-bank check-cashing services, payday
loans, rent-to-own agreements, or pawn shops at least once or twice a year or refund
anticipation loans at least once in the past five years” (FDIC, 2009, p. 10).
17
Assumptions
The assumptions for the study were based upon the researcher being the primary
research instrument. The assumptions focused on my development of interview questions,
my having access to study participants, and my interactions with study participants. The
interview questions I developed were evaluated by outside experts and deemed valid,
unbiased, and appropriate for a phenomenological study. My interactions with participants
took place in an atmosphere of unbiased acceptance on my part of participant responses, I
listened for responses, and I did not provide answers.
My assumptions regarding study participants included availability, low-income status,
and honest communication. The study’s population came from a nonprofit community
organization offering services and counseling to low-income families and single adults.
Volunteer adult participants were individuals who previously attended a financial literacy
program at the community site. Participants responded to me during member checking to
review the results of the data interpretation to ensure validity (van Manen, 2007; Moustakas,
1994). The participants were expected to communicate honestly about their financial history
and future expectations, supported by phenomenological research premises and research
requirements of participants’ confidentiality (Creswell, 2012; Leedy & Ormrod, 2010).
Scope and Limitations
The unique research approach herein investigated low-income adults’ perceptions and
expectations of financial literacy rather than measuring their level of financial literacy before
or after they attended a financial literacy educational program. The small sample size of 20
low-income adults is reflective of the phenomenological research design used to collect data
about personal experiences (Creswell, 2012; Leedy & Ormrod, 2010). The collected data
18
was analyzed for trends and patterns using NVivo 9 ®, qualitative research software
program, and recommendations were developed to modify financial literacy educational
programs and increase participation.
Limitations to the study reflected availability of participants, honesty of the
participants regarding their financial literacy perceptions and expectations, the attendance of
a single financial literacy program module, the use of a transcriptionist, and geographic
restrictions. Weiss and Bailar (2002) explained that low-income adults’ lack of participation
in research studies comes from various factors, such as no telephone service, frequent moves,
language barriers, and often suspicion of strangers. Participation in the study through
interviews was supported by the nonprofit organization’s gatekeeper and the use of the
snowballing technique. The gatekeeper maintained regular contact with low-income adults
(Creswell, 2012; Weiss & Bailar, 2002). The use of snowballing was required because of the
transitional nature of low income populations.
Interview participation was voluntary, and participation resulted in a $25 gift card for
a local grocery store to increase response rates (Creswell, 2012; Weiss & Bailar, 2002).
Participants’ were only required to attend a single financial literacy program module, because
attendance records from the site gatekeeper showed a lack of attendance in a five module
financial literacy program. The interview’s open- and closed-ended questions were reviewed
by local financial literacy experts and the questions were revised. The pilot study required
additional revisions to the interview questions which increased the study’s validity and
reliability. To encourage participation in member checking gathering to review the research
recommendations, a raffle of a $100 gift card was included.
19
The use of a transcriptionist to document the interviews could be perceived as a
decrease in time the researcher could be immersed in the data. The skill of the
transcriptionist confirmed by the researcher, however, provided the researcher with more
time to effectively immerse herself in the data by listening and reading the interviews
necessary for interpretation of data.
The recommended curriculum additions could be applied to the target population to
increase participation in financial literacy programs not generalized to low-income
populations because opportunities and barriers reflect local environments. The study could
be replicated by other local organizations concerned with understanding the needs of their
service population.
Delimitations
The sample of the study’s low-income adults was gathered voluntarily through a local
nonprofit community organization which supports low-income adults. The participants could
have volunteered as a result of their desire to support the gatekeeper and the $25 dollar gift
card incentive as suggested by Weiss and Bailar (2002) to increase the low-income
population to participate in research. The participant responses were analyzed through
multiple interpretative readings of the interview transcriptions to extract emerging patterns
and themes in relation to the research study’s central question of low-income adults’
perceptions and expectations of financial literacy. Outlier responses from research
participants were eliminated through the process of data analysis; therefore, single statements
could be left as solitary statements and not reflected in the final summation of the study
(Leedy & Ormrod, 2010). The possibility of the Hawthorne effect, in which participants give
20
the researcher expected responses (Leedy & Ormrod, 2010), was limited by the interview
questions’ structure and lack of expected responses.
The questions in the interview collection process were reviewed by local area
financial literacy experts to remove possible researcher unconscious bias in constructing
leading questions and to evaluate the questions for understandability by the population. The
resulting questions were pilot tested for reliability and construct validity (Creswell, 2012;
Leedy & Ormrod, 2010; Weiss & Bailar, 2002). The pilot test of the interview questions
occurred with interviewing two participants. The results from the pilot test provided
information to revise the interview questions before the formal interviews began. The formal
interviews started off with the collection of general demographic information and followed
with open-ended questions to gather in-depth experiences and expectations. Interviews are
considered effective in data collection for phenomenological qualitative research (Creswell,
2012).
Summary
The national motivation to increase financial literacy for low-income adults,
compromising 30% of the United States households (FDIC, 2009), and the lack of direct
access to this population was the impetus for this phenomenological study. Financial literacy
program design and presentation by government agencies and financial institutions have low
levels of participation by low-income adults (Servon & Kaestner, 2008; Spader et al., 2009;
Weiss & Bailar, 2002; Zhan et al., 2009). The study was designed, therefore, to discover
low-income adults’ perceptions and expectations for financial literacy and to discover unique
factors that could contribute to the modification of financial literacy programs and marketing
to increase low-income adult participation and hence his or her financial literacy.
21
Chapter 2 contains a literature review of the topic. The chapter begins with a
literature review of financial literacy programming development throughout the world and
nationally, then focuses on low-income financial literacy studies to highlight the research gap
in direct inquiry of low-income adults’ perceptions and expectations of financial literacy.
Chapter 2 continues with studies covering phenomenological research within the low-income
population, the theoretical framework of Maslow’s (1948) hierarchy of needs, and
Proschaska’s (1979) transtheoretical model of change as they relate to this study. The
literature review conclusion and summary supports the direction of this research.
22
Chapter 2
Review of the Literature
Financial literacy education for low-income adults promotes and develops behavioral
changes for family welfare that in turn cascade to the community at large (Schuchardt,
Hanna, Hira, Lyons, Palmer, & Xiao, 2009). Increasing positive financial behaviors,
therefore, support a sound economy (OECD, 2010). This phenomenological study
researched the perceptions and expectations of financial literacy for the study’s low-income
adult population to develop and recommend curriculum changes that may increase
participation in financial literacy programs offered to low-income adults (Leedy & Ormrod,
2010). Chapter 2 includes an examination of selected documents from the literature
referencing (a) historical overview, (b) financial literacy studies, (c) expectations for a
financially literate population, (d) accessing the low-income population, (e) Maslow’s (1948)
hierarchy of needs, (f) Proschaska’s (1979) transtheoretical model of change, and (g) studies
acknowledging the challenges of financial literacy education. The topical sections of the
literature review are followed by the chapter conclusion and summary providing key points
derived from the review.
Title Searches, Articles, Research Documents, and Journals
The literature review required comprehensive research of relevant primary sources
and secondary sources accessed through University of Phoenix Online library, a local college
library, and Internet search engines. The key word searches included: financial literacy,
financial illiteracy, financial literacy educational programs, unbanked, financial literacy low-
income, and expectations of financial literacy. The financial literacy research includes
articles and other documents necessary to ascertain information to create support for financial
23
literacy educational programs beyond educational curriculum initiatives and employers’
programs. Appendix A presents the key word searches and the resulting documents
referenced for this study.
The study elucidated the perceptions and expectations of low-income adults to
financial literacy, and ascertained what could increase participation by low-income adults in
financial literacy programs. The review of historical information and theoretical frameworks
included research on documents prior to 2008 and through 2012. Current literature review
has documents dated after 2007.
Historical Overview of Financial Literacy Programs
The historical overview begins with the financial literacy education initiative from the
Organisation of Economic Cooperation and Development’s (OECD) to promote financial
literacy in response to 21
st
century global economic conditions (OECD, 2005). The OECD
looks to coordinate successful financial literacy education initiatives from developed
countries around the world (OECD, 2008). Next in the historical overview describes aspects
of financial literacy program development from the United States, then financial literacy
studies outside the United States affirm the need to increase the individual’s financial
capabilities (Buckland, 2011; FLEC, 2010a; Gallery & Gallery, 2010; OECD, 2010; Oehler
& Werner, 2008; U. S. Treasury Department, 2008). The historical financial literacy
research review showed financial educational programs were developed from the perspective
of what governments and the global financial industry determined individual citizens needed
to learn.
Organisation of Economic Cooperation and Development [OECD]. OECD
established the Financial Education Project in 2003 in response to perceived financial literacy
24
needs across the global community. A report issued in 2005 established the baseline of
financial education benchmark data (OECD, 2005). The report first explained the
environmental factors that increased the need for financial education: (a) financial product
complexity, (b) an increasing number of financial products, (c) increasing life expectancy,
(d) changes in pension arrangements, and (e) the low-level of consumer financial literacy
(OECD, 2005). The report went on to describe the benefits of financial education through
the adult life cycle and how financial education can support higher levels of income and
improve economic growth and reduce poverty in the global economy. The OECD
recommended principles and practices for financial education and awareness, requesting that
OECD members and nonmembers promote financial education and share good practices. In
2008 the OECD (2008) reported on the need to educate consumers on annuities to
counterbalance the effect of pension changes. Pension changes worldwide have resulted in
decreasing defined benefit plans and continual decreasing benefits of established plans
because of increasing longevity (Brown, 2009; Lusardi, 2012). The OECD established the
International Network on Financial Education (INFE) in 2008 to provide a central location
for information to benchmark best practices worldwide that promoted financial literacy
(OECD, 2010). Expanding on the initial factors supporting the need for higher levels of
financial literacy included discussions of:
• aging populations, which threaten the viability of public pay-as-you-go pensions,
• increases in life expectancy that stretch people’s savings,
• the increased complexity of financial products,
• the proliferation of new financial products
• better educated consumers who want to know more
25
• a shifting of responsibilities and risks to individuals, such as student loans in New Zealand,
or in some countries a shift from defined benefit pension schemes to defined contribution
schemes.
• the erosion of trust in the financial services industry with such issues as the collapse of
finance companies (NZ), mortgage foreclosures (USA), and lending crises (UK)
• increasing consumer debt and higher rates of bankruptcies
• the ease and availability of credit products to an increasing proportion of the population.
(OECD, 2010, para. 3)
Responding to the global economic crisis in 2008, the OECD issued another report titled
“Financial Literacy and Consumer Protection: Overlooked Aspects of the Crisis” that made
additional recommendations on good practices to increase consumer credit education and
awareness (OECD, 2009). The global economic crisis recovery generates news headlines
from countries around the world as the countries contend with controlling government
spending associated with longevity and pension payments. The global financial environment
supports the direction of increasing financial literacy at the individual level to create
awareness and understanding of global financial restructuring throughout the world. Shifting
responsibility and empowerment back to individual consumers requires national
commitments to financial literacy education because research studies document the
deficiencies in individual levels of financial literacy in many countries (OECD, 2010).
Financial literacy legislation in the United States. The great depression of the
1930s brought about the first onslaught of financial regulation to control the banking industry
and spurred the creation of Social Security in 1935, providing governmental support and
funding for retirement (Social Security Administration, 2010). The advent of social security
26
phased in a behavioral change for individuals to stop working, as seen by average retirement
age: 74 years in 1910, 70 years in 1950, 65 years in 1970, and 62 years in 1985 (Cahill,
Giandrea, & Quinn, 2006) even as life expectancy increased. Life expectancy in the United
States for males was: 49 years in 1910, 67 years in 1950, 68 years in 1970, 71 years in 1980,
and 75 years in 2000. Life expectancy in the United States for females was: 52 years in
1910, 72 years in 1950, 76 years in 1970, 78 years in 1980, and 80 years in 2000. The
statistics show people did not stop working to enjoy retirement leisure time through the
1950s, but the leisure of retirement appears in the 1970s statistics as people stopped working
at 65 years while life expectancy for both males and females exceeded 65 years (Arias,
2011). Social security, pensions, and savings supported people during their retirement years,
minimizing the need for financial literacy education for the GI generation, representing the
veterans of World War II born between 1900 and 1924.
The economic shift in decreasing pension funding, lack of personal saving, and
increasing longevity has halted the descent in the retirement age (Cahill, Giandrea, & Quinn,
2006). The changes in social security benefits and access to social security benefits have
reversed the trend for the Baby Boomers’ generation, people born after World War II
between 1946 through 1963, retirements and beyond as people grapple with funding
retirement. Baby Boomers’ expectations of a secure retirement based on social security, has
Baby Boomers reevaluating retirement and requiring financial literacy education.
In 2003, recognizing the decreasing level of savings in the United States and social
security funding issues, Congress, through the Fair and Accurate Credit Transaction Act of
2003, established the Financial Literacy and Education Commission (FLEC) to coordinate
the activities of 19 federal agencies to support financial literacy and education. This
27
commission was created as a division of the United States Treasury Office (FLEC, 2010a).
The FLEC’s first report, issued in 2006, expounded on the need for individuals to take
ownership of their financial futures and identified the unbanked and underbanked
populations. The term unbanked refers to individuals without an established account in a
depository institution, such as a bank or credit union. Underbanked individuals have an
established depository account and pay for financial services outside the banking institutions.
The percentage of the United States’ population either unbanked or underbanked in 2009 was
25.4%; the percentage of the state of Connecticut’s population either unbanked or
underbanked totaled 19.1% (FDIC, 2009).
The FLEC created a website (mymoney.gov) as a go-to place for financial literacy
documentation and advise organizations outside the government, yet the Government
Accountability Office [GAO] issued audit reports in 2007 and 2009 indicating that the FLEC
has not accomplished the mission of supplying a national financial literacy education
strategy. The FLEC contended that the task of coordinating 19 agencies while possessing no
legal authority to compel action or available staff to devote to the task could not be
accomplished (GAO-09-638T, 2009).
The presidential advisory council on financial literacy also established in 2003, issued
a report in 2008 listing 15 recommendations, including promoting the availability of financial
education resources for parents, caregivers, and teachers of pre and early school-age children;
listing essentials for literacy programs; and the need to help unbanked and underbanked
individuals (U.S. Treasury Department, 2008). The presidential advisory council assigned
FLEC to follow up on the audit recommendations and worked in association with the
28
Financial Industry Regulatory Authority (FINRA) foundation to have a third party measure
financial literacy.
FINRA, a federal agency established in the 1920s to be an independent regulator for
the United States securities firms, commissioned a report on the United States financial
capability as of 2009. The results indicated a need for financial literacy education because
approximately half of the population surveyed had difficulty making ends meet; the majority
have not planned ahead with emergency savings, children’s education, or retirement; 20%
stated they use nonbank services and self-reported themselves as having financial knowledge
and decision-making skills (Applied Research & Consulting, 2009). A 2010 study by the
National Foundation for Credit Counseling (NFCC) indicated improvement since 2007 with
more people budgeting and controlling their spending. However, those lacking retirement
savings increased from 28% to 33% of the population (NFCC, 2010).
Jump$tart, a private foundation working in partnership with the FLEC, provides
information to improve financial literacy to high school students, and produces bi-annual
surveys measuring the financial literacy of high school students in the United (Cory &
Pickard, 2008). The 2008 report showed a drop in financial literacy at the high school level
from 57.3% in 2005 to 48.3% in 2007 and, measuring college students for the first time in
2007, 62% of college students were found to be considered financially literate. One
important financial behavioral action and attitude is the acceptability to Americans of
carrying huge amounts of debt that negatively affects long-term financial stability.
Bolton, Bloom, and Cohen (2011) concur that the American families in 2007 had debt
exceeding 40% of their income and marketing of debt and debt consolidation plans
emphasize short term benefits. Cory and Pickard (2008) results indicated that the financial
29
community should not wait for the government education system to design and implement
financial literacy curricula. The increasing change and complexity in the financial markets
makes creating and maintaining up-to-date financial literacy education curricula impossible.
The need for financial institutions and employers, therefore, to become involved in educating
their clients and employees, respectively, is essential.
Another governmental agency in FLEC’s domain, FDIC sponsored the Money Smart
financial literacy program designed to educate the low-income population about banking
services (Lyons & Scherpf, 2004). The program consists of 11 modules although usually
only the first five modules are presented These five modules were designed for individuals
first coming into financial education and in need of education on basic financial topics of
available banking services, budgeting, and savings (FDIC, 2010; Lyons & Scherpf, 2004).
The remaining modules cover more advanced topics and can be presented at a later time after
individuals have enacted the basic financial initiatives. Presentation of the Money Smart
program by financial institutions helps them achieve compliance with the Community
Reinvestment Act of 1977 (FDIC, 2010).
FLEC contending with its responsibilities of coordination of financial literacy among
government agencies, government task forces, and private sector organizations issued a
report in response to the 2009 audit. In 2010, the FLEC issued a report on the national
strategy for the promotion of financial literacy education programs stressing four goals: (a)
awareness and access, (b) determination and integration of core financial competencies, (c) to
strengthen the provisions of financial education, and (4) to identify and share effective
practices (FLEC, 2010a). At that time, the vision statement for the FLEC was: “Sustained
financial well-being for all individuals and families in the United States” (p. 6). The FLEC
30
has posted requests for feedback and discussion of the suggested core competencies of
earnings, spending, saving (includes investment), borrowing, and protecting for financial
literacy education to design measurement criteria for financial literacy programs (FLEC,
2010b). The continuous governmental efforts to increase financial literacy in the United
States since 2003 compiled with global economic crisis that began in 2008 are evident of the
need for research studies to investigate possible means to increase financial literacy.
Financial literacy studies influences. The global economic crisis that began in 2008
confirmed the lack of financial literacy and overconfidence of financial players across the
globe. Selected financial literacy studies undertaken outside of the United States direct
attention to the levels of financial literacy and other environmental factors underlying the
global financial crisis (Buckland, 2010; Gallery & Gallery, 2010; Oehler & Werner, 2008;
Umberto & Gianni, 2010; Williams, 2007). The studies presented illustrated various
financial literacy education programs to bring awareness, knowledge, and behavioral changes
that would enhance global economic recovery and thwart future economic meltdowns. These
studies support research to connect to citizens’ individual financial literacy needs.
In a case study undertaken by Oehler and Werner (2008) a comparison was made
between the financial literacy campaigns in the United Kingdom and Germany. The case
study’s variables were the lack of retirement savings in conjunction with the decreasing value
of government sponsored pensions. The predisposed governmental neoclassical perspective
linked with utility theory expected individuals to be adaptable to changes in the funding for
retirement. The lack of savings and financial literacy, however, indicates that real-world
factors influence theories.
31
Oehler and Werner (2008) acknowledged that behaviors to create financial
contractual relationships were influenced by bounded rationality. Contractual relationships
established by individuals to save for retirement occurred at or close to retirement not leaving
enough time for changes in funding patterns that would result in the accumulation of wealth
prescribed by utility theory. Bounded rationality influenced the initiation of contractual
relationships because individual bounded rationality represented personal financial
knowledge. The United Kingdom’s national priority strategy focused on financial
capabilities and generic financial advice. The limited success of these programs has the
United Kingdom establishing new schemes for expanding financial educational programs to
vulnerable groups and establishing personal accounts.
Germany national strategy in 2008, of targeting adult financial education needed to
expand to the vulnerable groups not currently exposed to financial education programs
(Oehler & Werner, 2008). Germany planned to design financial education programs that
target life stages, and offered the programs to vulnerable groups free of charge. The United
Kingdom case study showed the movement by the government from recognition of the
neoclassical perspective and utility theory, toward awareness of individual influences.
Germany’s study resulted in awareness of individual influence, acknowledged lack of
financial education, institutional schemes, and recommended the creation of automatic
retirement accounts for vulnerable groups. The study did not report details on population and
sample sizes.
Buckland’s (2010) mixed method research study assessed the financial literacy of
low-income individuals in Canada. Buckland suspected that financial literacy needs differ
across socio-economic classes so financial literacy testing required target population testing.
32
Financial literacy programs, consequently, need specific development to reach target
populations. Surveys and interviews gathered evidence of financial literacy concerning
budgets, income, credit, banking services, and governmental programs. Surveys were
returned by 82 participants and the 15 people interviewed were selected through the
snowballing technique. The research findings indicated that low-income individuals have
different financial literacy needs influenced by external factors of income trends, banking
services, and social assistance policies. Two significant discoveries included: (a) the addition
of children caused low-income adults to focus more on the future rather than day-to-day
finances, and (b) social assistance policies did not provide enough for significant savings.
Another result was that low-income individuals could not maintain the minimum bank
account balances required by the banking industry to forego fees.
Buckland’s (2011) meta-analysis of 152 low-income research studies resulted in
numerous recommendations to support the low-income population’s need for financial
literacy. The categories for recommendations included measurement of financial literacy and
financial literacy programs, development, and evaluation. Buckland indicated that the
measurement of financial literacy must reflect the socio-economic levels of the population.
Buckland recommended qualitative research to inquire about the values and long-term life
and financial goals of low-income populations and supported the need for this research study.
A quantitative research study in Italy evaluated the connection between financial
capability and self-accounting (Umberto &Gianni, 2010). The research involved the creation
of a regression analysis model where individuals could select from income levels, savings
goals, and external influences to determine their exposure to risk if they took on an additional
loan. The study results indicated that the regression analysis model could be consulted if
33
individuals were contemplating additional debt, thereby lessening the need for financial
education and providing more financial counseling. The study’s website design and
programs could fill the gap in financial education for adults finished with formal education
that have Internet access, and are at ease with website technology. The program was not
been designed to provide financial education for less educated or lower income citizens.
Williams’ (2007) qualitative content analysis research on Canadian and United
Kingdom regulators responsible for the promotion of financial literacy as expected by the
OECD, showed governmental responsibilities conflicted. The conflicting responsibilities are
to educate citizens on the need to save for long term financial future and support consumer
spending to improve the country’s economic conditions. Both governments remarked on
their expectations that individual citizens could regulate their well-being for long-term
financing by becoming responsible and self-regulating; therefore, citizens should not look to
governmental financial provisions. The self-regulation perception permits a free market,
relieving regulators of responsibility for monitoring the financial market and requiring
individuals to protect themselves.
Williams’ (2007) research evaluated consumer selection processes for financial
products. The product selection was affected by how the product was framed. Products with
vivid presentations sold more than plain quality and accurate text materials (Williams, 2007).
To combat the selection process by presentation, the consumer should receive immediate
educational feedback to neutralize consumer bias. Immediate educational feedback is not
available through educational websites; therefore, expectations of consumer financial literacy
cannot replace regulations. Another finding is that the government has conflicting
34
responsibilities not only of encouraging financial literacy education and saving for
retirement, but supporting commerce and individual spending as well.
The global financial crisis that began in 2008 indicated that the complexity of the
financial market is difficult for professional regulators. The approach, therefore, in the
United Kingdom and Canada for individuals to understand the complex financial market
defies logic. The realization of the expectations of self-regulation and protection could
contribute to a future financial crisis (Arthur, 2011; Williams, 2007; Willis, 2008).
Reporting on financial literacy in Australia in the aftermath of the global crisis,
Gallery and Gallery (2010) stated that the crisis relates to three systematic problems: (a) a
decision maker’s behavioral bias, (b) the short term vision of corporate and financial
markets, and (c) the absence of acceptance of responsibility by individuals, corporations, and
financial institutions for their actions that led to the global financial crisis. Considering the
lack of financial aptitude among the Australian population, shifting personal responsibility
for financial management is unrealistic because individuals may not have the aptitude to
achieve an adequate financial literacy level or the desire to become financially literate.
Wilson’s (2012) report addressed financial exclusion of the Australian low-income
population. Financial exclusion means low-income adults do not have access to affordable
credit limiting them to obtaining credit from predatory lenders. Wilson recommends
governmental regulation much like the United States 1977 Community Reinvestment Act to
provide tax credits to mainstream financial institutions to provide small loans to low-income
Australians.
Financial literacy programs need to be designed to offer information relevant to
impending financial decisions, understanding that human behavioral tendencies include
35
inertia and procrastination when making complex decisions, and over-confidence developed
by self-attribution bias. The Australian government response to increase the country’s
financial literacy includes educational pathways, employers, unions, websites, and
community programs. A limitation on future financial programs is the possibility of market
sponsored funding of financial literacy programs that could undermine the development of
unbiased programs which presents a challenge for regulators. The need for financial literacy
education, however, to create global stability outweighs the limitations.
These studies show the conflicting responsibilities of government to support
individual citizens to prepare for long term financial futures and the need to support
consumer spending to improve the country’s economic conditions. The development of
financial literacy educational programs, however, can support the balancing of consumer
spending and savings. The FDIC’s Money Smart financial literacy program does involve
educating consumers to develop a balanced savings and spending plan. Participation in this
financial literacy program and other financial literacy programs available in the United States
is low (Chang & Lyons, 2008; Servon & Kaestner, 2008; Spader, Ratliffe, Montoya, &
Skillern, 2009; Weiss & Bailar, 2002; Zhan et al., 2009).
Current Literature: Financial Literacy Development
The topic of financial literacy generated numerous studies. The focal points of the
studies reviewed were to evaluate past studies measurability, consumer attitudes, and
availability to financial literacy programs to the low-income population. Studies on financial
attitudes have shown that Americans are overconfident in managing money when comparing
the savings and long-term plans of Americans to their statements on personal beliefs (Lusardi
& Mitchell, 2007).
36
Financial literacy education programs directed at different segments of the population
have not shown resounding positive financial behavioral changes. An evaluation of the
programs might determine why they are not successful (Lusardi, Mitchell, & Curto, 2010).
Studies which examined low-income populations have shown positive results from financial
educational programs when associated with this population’s needs, but motivating
participation has proven difficult (De Sousa, 2010; FDIC, 2010; Servon & Kaestner, 2008;
and Zhan et al., 2009).
The current literature section reports first on research studies reflecting on the
constructs under consideration for this research study. The remaining sections include the
expectations of programs and the accessibility of financial literacy programs to low income
adults. The integration of the research studies supports this research to possibly modify
financial literacy programs for low-income individuals and families.
Financial literacy studies. Meta-analyses of financial literacy research studies
revealed a lack of details for recreating the studies and inconsistency in research methods
with regard to content, terms, structure, and measurements to evaluate the studies (Huston,
2010; Remund, 2010). The financial literacy studies, however, reported on the need for
financial literacy education as a means for sustained economic recovery (OECD, 2008;
Remund, 2010). Research studies recommend increasing access to financial literacy
educational modules through social workers (Birkenmaier & Curley, 2009; Lim, DeJohn, &
Murray, 2012). Willis (2008) is a supporter that people should receive financial literacy
education related to their needs.
The financial literacy, however, of most individuals are not enough to navigate
through the financial market complexity and people should look for professional advice for
37
personal finances as they do for legal and medical advice (Williams, 2007; Willis, 2008).
Collins (2012) analyzed data from the 2009 FINRA Financial Capability Survey and found
that people who obtained professional financial advice were people with higher incomes,
education, and financial aptitude, rather than consumers with low income or education levels.
Meier and Sprenger (2007) studied the behavior and environmental influences of
participants who self-selected into offered financial literacy educational training. The study’s
location at a Volunteer Income Tax Assistance [VITA] site offered access to lower-income
individuals and families who accepted financial assistance with annual tax processing.
Clients coming to the VITA site were offered short credit counseling sessions to discuss their
credit report scores.
The research findings indicated personal time orientation preferences with respect to
long-term versus short-term focuses influenced the probability of individuals accepting the
credit counseling session (Meier & Sprenger, 2007). Individuals with long-term orientations
self-selected into the credit counseling sessions. Although clients with short-term focus did
not participate in the study, they might have benefited from the counseling session because
myopic behavior is related to higher debt levels and detrimental to long-term financial goals
(NEFE, 2006; Meier & Sprenger, 2007). Linking time orientation to financial literacy
education supports the need for further research and new educational programs that consider
the influences of time on motivation. Limitations to the study were primarily related to
population bias. The population at a VITA site presents a bias in attitude regarding
participation because the population is accepting a free service when other options are
available such as self-preparing or paying a tax preparer. Additionally, the self-selection
38
process presumably led to a biased population who overestimated positive results, so future
studies should acquire a randomized population (Meier & Sprenger, 2007).
Lusardi and Mitchell (2007) continued their studies of financial literacy by comparing
financial literacy education to economic concepts. Their meta-analysis report brought
together the results of various financial literacy studies and linked the results of these studies
to long-term influences to society, as changes in the economy are reflective of individuals’
financial behaviors. The studies of the financial literacy of high school level individuals
showed consistently low scores. Other study’s results included: (a) financial knowledge
overconfidence, (b) good intentions to change behaviors do not always result in change, (c)
people participating in a savings plan had an increased propensity to participate in other
savings plans, and (d) poorly informed consumers do not learn to save or invest for
retirement.
Lusardi and Mitchell (2007) found other characteristics correlated to a lack of
financial knowledge. A characteristic of low level of education connected to unbanked
individuals implying that this population had no involvement with financial institutions;
therefore, had no savings or investments. Another result that might significantly influence
long-term financial insolvency is overconfidence. Overconfidence further widens the
financial knowledge gap because obtaining professional advice or acquiring further financial
literacy education does not occur when individuals are confident in their abilities.
Nonetheless, the researchers were encouraged because governments and NGOs worldwide
have undertaken the task of offering financial literacy programs.
Cocheo (2007) reported on unbanked and underbanked citizen’s needs from the
bankers’ perspectives. The unbanked and underbanked population can represent a niche
39
market in need of financial services that includes people who do not trust banks, immigrants
who believe they are unwanted by financial institutions, and others who want to hide income
and assets. Reaching to the unbanked and underbanked population can create compliance
required through the Community Reinvestment Act of 1977 and supply an additional revenue
stream for financial institutions (Cocheo, 2007; FDIC, 2010).
A quantitative research study by Rosacker, Ragothaman, and Gillispie (2009)
confirmed that financial knowledge could be transferred at a teachable moment through a
financial literacy study. The study involved upper-level college accounting students teaching
101 freshmen about debt accumulation. A positive post-survey was collected from the
participants, and a request was made for the program to be made available to others on
campus. The study limitation of a convenient sample predisposed the interests and abilities
of the study’s population of college age business students engaging in financial literacy that
reflected a business college program. Future research, therefore, should use a randomized
population.
Fonseca, Mullen, Zamarro, and Zissimopoulos (2012) researched financial literacy
within the household’s financial decision making. The research occurred through Internet
interviews with 2,500 respondents over the age of 18. The esearch examined financial
decisions within United States households to determine if there was a cultural tradition that
the male gender would be making the financial decisions. The research found that the
decisions were influenced by the spouse with the higher level of education, rather than
deferring to the male.
These studies reviewed identified concepts related to financial literacy needs of
various socio-economic groups. The identified concepts of individual characteristics and
40
behaviors included long-term orientation, financial overconfidence, good intentions, and
savings begat savings (Cocheo, 2007; Collins, 2012; Lusardi & Mitchell, 2007; Meier &
Sprenger, 2007; Rosacker, Ragothaman, & Gillispie, 2009). Suggested venues for accessing
low-income adults to attend financial literacy programs included availability of programs
through social workers, identifying teachable moments to increase financial knowledge,
bankers develop niche marketing to provide financial services, and acknowledging people
can access financial advisors as they would physicians and lawyers (Cocheo, 2007;
Birkenmaier & Curley, 2009; Rosacker, Ragothaman, & Gillispie, 2009; Williams, 2007;
Willis, 2008). These concepts can be related to theories supporting behavioral changes such
as Maslow’s hierarchy of needs and Prochaska’s transtheoretical model of change.
Expectations and education. The second section in the current literature for
financial literacy development segues into research studies about the expectations and
education for a financially literate population. Expectations from the world financial arena
indicate that the result of individuals being financial literate include individuals being
personally responsible for their financial future, therefore, decreasing the possibility for a
future financial meltdown. Financial literacy education studies reviewed some financial
literacy programs and a few meta-analysis studies to evaluate the progress made in the level
of financial literacy in the United States.
Expectations. Financial literacy and capability at the individual level has become an
important aspect of world governmental agencies’ expectations as the global economic
recovery hinges on the financial market that in turn requires investors and consumers to be
confident in both developed and underdeveloped countries (OECD, 2010). New regulations
have been passed to help consumers, and the financial industry is investigating the potential
41
of markets in undeveloped countries (FLEC, 2010a). Developed countries are undergoing
financial restructuring to support the retirement of their citizens as longevity increases,
shifting the paradigm of financial knowledge and capability to individuals (Arthur, 2011;
Buckland, 2011; Cory & Pickard, 2008; DeNavas-Walt et al., 2011; Gallery & Gallery, 2010;
OECD, 2010).
The expectation for individual financial literacy and responsibility has started to
resemble that of the early 20th century when family financing for long-term expenditures
was the responsibility of the family (Rappaport & Siegel, 2009). Expectation of individuals
able to navigate the complex financial markets without support looks to be excessive after the
global financial meltdown (Arthur, 2011; Williams, 2007; Willis, 2008). Financial literacy
education, however, can support individuals as they prepare for long-term financial needs
and acknowledge that people should obtain financial advice from professionals as financial
planning becomes complex (Arthur, 2011; Williams, 2007; Willis, 2008).
Education. Financial literacy education research review begins with meta-analysis
studies outlining the challenges of compare and measuring financial literacy programs. Then
various financial literacy studies as they apply different socio-economic groupings, excluding
low-income adults. Finally, research studies on financial literacy education for low-income
adults are presented.
The research studies by Remund (2010) and Huston (2010), representing meta-
analyses of financial literacy studies, suggest the development of a consistent financial
literacy definition to design future studies for clearer measurement of financial literacy
programs. Remund’s (2010) research method compiled financial studies, gathered expert
insights, and evaluated invention programs established since 2000. The research resulted in
42
having information relevant for the development of future studies starting with the need for a
common ground for financial literacy and understanding that financial struggles do not
disappear but evolve and change through adulthood.
The purpose of the study defined closing the gap between the conceptual and
operational of the financial literacy definition in research and in practice (Remund, 2010).
To close the gap requires combining the five categories of the financial literacy conceptual
definition and the six parts of the operational definition to make a comprehensive financial
literacy definition. The conceptual definition includes: knowledge, ability to communicate,
aptitude, financial decision-making skills, and confidence in planning future needs with the
operational definition. The operational definition includes: empowerment, responsibility,
financial capability, credit literacy, financial knowledge, and economic literacy.
Remund (2010) proposed a conceptual financial literacy definition:
Financial literacy is a measure of the degree to which one understands key financial concepts
and possesses the ability and confidence to manage personal finances through appropriate,
short-term decision-making and sound, long-range financial planning, while mindful of life
events and changing economic conditions (p. 284).
Remund’s operational financial literacy definition includes four categories for measurement
and development: budgeting, saving, investing, and borrowing. The concluding statement
for the research study states that future research studies need to work from common
principles to develop and measure the success of financial literacy education.
Huston’s (2010) meta-analysis research included 71 financial literacy studies that
used 51 databases to develop conclusions. The research study was not to evaluate financial
literacy education but to assist researchers in establishing standard financial literacy
43
instruments by analyzing the constructs of previous financial literacy studies. The study
results compared four facets of construct validation (1) the definition of the financial literacy
construct to be operational and mutually exclusive from other constructs, (2) the instrument
content listed for each study, (3) the method of measure including structural concerns and
how data were collected, and (4) evaluating or scoring of procedures to provide consistency
in testing and interpreting results.
Huston’s (2010) results included 72% of the studies did not define financial literacy,
15% implied definition, 13% provided a definition and only two studies had the same
definition. Financial literacy and financial knowledge were used synonymously in 47% of
studies. The studies included four distinct content areas: money basics and the time value of
money, borrowing, investing, and protection of resources. Borrowing and investing
represent inter-temporal transfers of financial resources between time-frames. Only 25% of
the studies covered the four content areas important in obtaining comprehensive assessment
of financial literacy. Measurement structure included items from three to 68 questions with
the mean, median, and mode results between 10 and 16 correct. Data collection included
38% interviews with 95% over the phone and 62% of self-administered questionnaires with
38% from Internet responses versus mail. Nine out of 10 studies did not indicate whether or
not the respondent was financially literate, and studies with results used different scales to
determine failure. Sixty-eight percent of the studies had target audiences, and sample sizes
ranged from 42 to 12,140.
Huston’s research study results indicated three barriers to creating a standardized
approach for financial literacy. The lack of consistent conceptualization and definition limits
clear design, interpretation, and comparison to other studies. Content structure limits the
44
instrument acquisition of the respondent’s knowledge and can limit the respondent’s
financial rating. Lastly, the lack of a common and defined measurement interpretation limits
and creates a barrier to understanding financial literacy. Huston’s proposed approach to
research financial literacy includes acknowledging two dimensions of knowledge and uses it
in the financial literacy definition: Develop instruments that measure financial literacy
knowledge and application, understand how other influences effect financial decisions, and
create financial literacy education curricula designed for different demographic populations
(Huston, 2010).
Remund (2010) and Huston (2010) research studies support financial literacy
education. The fact that the meta-analyses found inconsistency in the presentation of
material, however, suggests that future financial literacy educational programs should clearly
define financial literacy and identify the areas of financial literacy that the programs cover.
The purposeful defining of programs provides information to measure the results of financial
literacy programs. Huston (2010) and Remund (2010) meta-analyses recommended future
research on financial literacy, requiring common principles, and measures to provide for
longitude studies to measure the ripple effects of financial literacy programs.
Estelami’s (2009) research correlates consumer financial literacy education with
behavior showing financial capability. Estelami identified five behavioral patterns that can
undermine financial literacy educational programs. The first, hyperbolic discounting, refers
to the time value of money and the distortion of interest rates in a positive manner whether
for payment or accumulation. Second, short-term memory overload explains that
understanding and actions for financial contracts requires more than just short-term memory
when processing financial documents. Third, attribute anchoring occurs in conjunction with
45
short-term memory overload; individuals can look for and attach too much significance to a
known attribute found in a financial contract. Fourth, poor knowledge of risk levels becomes
reflective of systematic bias when making decisions such as purchasing insurance and
deciding on disaster coverage. Fifth, mental accounting can define the treatment of income
based on source rather than as part of total income available for current or future purchases.
Study results referred to other influences on financial decisions and overconfidence of
financial knowledge.
Learning the negative patterns for financial behavior presented the platform for
education training for positive behavioral modification. The educational financial program
needs to link concepts and theories to financial documents and services and relate to
consumers’ cognitive biases toward financial transactions to reprogram instinctive responses
(Estelami, 2009).
The measurement of financial literacy within the United States continues by testing
the financial literacy of high school and college students to determine if educational
mandates for the kindergarten through 12 curriculum increases aptitude and awareness
(Lusardi, Mitchell, & Curto, 2010). The study expanded a biannual study to include
evaluating independent variables that could have affected individual scores, noting that
positive debt management skills result in building financial assets for retirement. Data
indicated that higher levels of financial knowledge were correlated to the mother’s education
level projecting parental influence for financial knowledge. The researchers theorize that
educational financial high school curricula can provide information to prevent detrimental
choices occurring with credit card debt and involving parents could be more effective than
involving only the young adults. The patterns noted during data evaluation supports the need
46
for the elimination of one-size-fits-all financial programs and to initiate financial educational
programs for specific financial knowledge and capability transfer.
Howlett, Kees, and Kemp’s (2008) quantitative research study evaluated the financial
literacy, self-regulation, and future orientation variables of 89 graduating college seniors age
20 to 36 to participate in a 401k plan offering. The research study involved college seniors
participating in the study to learn about 401k offerings with or without distraction and found
that learning about 401k plans could decrease their level of self-regulation. A questionnaire
collected data to evaluate the college students’ financial literacy regarding 401k programs,
and to determine personal orientation as either short or long-term.
Howlett, Kees, and Kemp’s (2008) study found a direct correlation to 401k
participation to people distracted thereby decreasing self-regulation and selecting not to
participate in the 401k option. Also participants with short-term orientation were less likely
to select participation in the 401k plan and long-term orientation participants were willing to
select the 401k option. The evaluation on the financial knowledge of the 401k showed
increased participation in the 401k plan. The study results present an opportunity for
employers and educators. Employers should present 401k information without other
distractions. Educators should support financial literacy education focused on long-term
financial success.
Cho, Gutter, Kim, and Mauldin (2012) collected data from a web-based survey
sponsored by twelve universities. The questionnaire was emailed to households with a likely
match of income less than $80,000 and 24-66 years of age, until 1,000 responses were
collected. The sample was then restricted to 826 participants after removing participants who
did not meet the predetermined criteria of income less than $80,000 and respondents 24-66
47
years of age. The study compared financial habits to parental influences. The study
collected information on four dependent variables of “spending less than income, making
financial plans, monitoring spending, and having spending goals” (p.417) to determine the
financial habits of the respondents; and asked about possible parental discussions or actions
regarding saving and to check off other sources of saving options.
The study’s results indicate: respondents younger than 45 and older than 54 were
monitoring their finances more frequently than the respondents 45 to 54; as family size
increased more planning and monitoring occurred; as income increased more savings
occurred; parental discussions about financial topics has a positive result, while parents seen
as just savers without discussion resulted with a negative financial savings results;
respondents with college degrees or more education than high school were more likely to be
spending more than their income in comparison to respondents with high school education or
less; and respondents sought out advice from financial planners or advisors (Cho, Gutter,
Kim, & Mauldin, 2012). The study recommended that employers partner with financial
professionals and have financial educational programs designed to include both adults and
children (p. 428).
Goetz, Cude, Nielsen, Chatterjee, and Mimura’s (2011) research evaluated three
financial education methods to increase participation of college students in financial literacy
programs. The three methods presented included an on campus financial counseling center,
online financial management resources, and in person educational workshops. The study was
conducted thru an email survey with 509 completed responses out of 3,261 sample
population (p. 31). The respondents were not representative of the student population.
Rather the population was skewed with more females and students with higher than average
48
grades. The study results showed that each method reached different spectrums of
participants, therefore the methods could be considered complimentary.
Providing financial literacy education to the low income, unbanked, and underbanked
population requires meeting them on their own terms and presenting financial education
materials and offering solutions that can affect them immediately (Allen & Miller, 2010;
Buckland, 2010, 2011; Birkenmaier & Curley, 2009; Servon & Kaestner, 2008; Weiss &
Bailar, 2002). Considering that low-income adults have aged out of K-12 educational
curricula and most do not work for employers offering retirement plans, (Friedman, 2005)
indicated a need exists for research to determine ways to educate low-income adults about
financial literacy. Therefore, researching the low income, unbanked, and underbanked
populations’ accessibility to financial literacy programs is aligned with Schuchardt,
Marlowe, Parker, and Smith’s (1991) three principles in reaching low income families (1)
understanding the community, (2) cooperating with local agencies, and (3) working with
volunteers to reach peers.
The Servon and Kaestner (2008) study supported by the banking industry in Chicago
provided benefits to unbanked individuals including a personal computer and free Internet
access for one year. The study failed to increase low-income participation in banking
services through the Internet. Low-income participants could not afford the Internet services
fees after the free period, therefore supporting previous studies stating that to reach the low-
income population, programs need to incorporate understanding the community.
Birkenmaier and Curley (2009) advocate for financial literacy training to be made
available through social workers who interact on a daily basis with low-income individuals
struggling with many issues including money matters. Social workers have long-term
49
relationships with low income, unbanked, and underbanked consumers and can follow up on
the success of financial training. Expanding the role of social workers to include financial
literacy might be difficult and require supplemental training or outsource training to be
available where the consumers meet with the social worker. Lim, DeJohn, and Murray’s
(2012) study concurs with expanding the responsibility of the social worker to include
financial literacy. The social worker’s ability to uncover the underlying personality traits and
behaviors creating financial issues puts low-income adults on a path of acknowledging the
need for change and receiving a referral to a financial counselor.
Allen and Miller (2010) reported on an initiative by the United Way in Tampa,
Florida to support family financial well-being by decreasing summer childcare costs. Low-
income parents were required to take financial literacy classes to qualify for free summer
care for their children. A common comment from participants was that some financial
material was too basic to meet their particular need and topics of child and stress
management would have been beneficial (p.96). The results indicate financial knowledge
alone will not create changes to improve the financial well-being of low-income families.
Accessing the low income population. Financial literacy studies with low-income
adults’ populations in the United States are sparse due to limited access to the population. A
symposium and research by Lyons and Scherpf (2004) explains that the low-income access
dilemma and studies after 2008 includes various attempts to access and sway the low-income
population into using mainstream financial services. This section begins with identifying the
government’s perspective on increasing the financial literacy of the United States population
as a whole through mandated educational curricula and employer retirement programs.
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United States financial literacy programs were directed at educational curricula,
created by financial institutions helping current customers, used by employers to explain
company-sponsored retirement packages, and employed by nongovernmental organizations
(NGOs) to educate defined populations. The National Endowment for Financial Education
(NEFE, 2006) symposium brought together academicians and practitioners to determine
better pathways to financial literacy. The resulting suggestions included studying how
people learn, how people react, behavioral environmental influences, and educator bias
concerning teaching methods in the attempt to improve financial literacy. Described next is
a study specific to low-income adults and the FDIC Money Smart program, then other
studies involving low-income adults.
Lyons and Scherpf (2004) research study participants included the unbanked and
underbanked population from Chicago, which represented approximately 25% of the United
States population in 2009 (FDIC, 2010). The unbanked and underbanked populations rely on
alternative financial services such as payday lenders, refund anticipatory loans (RALs), and
pawn shops to conduct basic financial institution services such as check cashing and small
loans. The population can fall prey, unfortunately, to predatory lenders and financial scams
(Lyons & Scherpf, 2004; Lim, DeJohn, & Murray, 2012; Wilson, 2012). The FDIC financial
literacy program offered through the banking institutions to the unbanked measures success
by the number of new accounts. The Lyons and Scherpf’s (2004) research collected
information on why the participants stayed unbanked and evaluated the effectiveness of the
FDIC Money Smart program.
Lyons and Scherpf’s (2004) study reported four reasons that kept the unbanked and
underbanked population from opening accounts. The reasons included not having enough
51
money to open an account, the fees incurred for having an account, limited access to retrieve
deposited money, and the lack of need to write checks. These reasons present a rational
financial decision for people to remain unbanked or underbanked and reveal that the program
was successful based on the individual’s behavior while making a financial decision that
might be right for the individual. Understanding the reasons provides an opportunity for
financial institutions to develop and market specific products to the unbanked and
underbanked. These results are not captured, however, when the program’s success is
measured by opened bank accounts.
The study’s post-training survey indication that 80% of the participants that
completed the course would be opening an account may have reported overly positive results
because no one verified that any accounts were opened (Lyons & Scherpf, 2004). The
evaluation of the Money Smart program based on the number of bank accounts opened by
participants may not measure the true value of the program.
Goodman’s (2012) research reconfirmed Lyons and Scherpf’s (2004) reasons for low-
income adults remaining unbanked. The research in Massachusetts included a survey of 173
low-income adults and continued with focus groups of low-income adults to delve into the
advantages and disadvantages of having a bank account. The results of the study indicated
that low-income adults were unaware of low-cost banking options, which were required to be
available by state sanctioned banks, and participants with short-term financial orientation
rationalized the lack of a need for a bank account. The study recommends financial
education directed at low-income individuals and households in an effort to eliminate
financial ignorance.
52
Servon and Kaestner’s (2008) research study, previously reported under expectations
and education for a financially literate population, failed to connect and influence the
unbanked and underbanked population. The study provided information on behavioral
patterns influencing future research. The program, designed to entice low-income
individuals to become online bank customers, failed. The training provided benefits
including a new computer and free Internet access for a year, but Internet access was not
affordable to the low-income population to continue after the free benefit period.
Zhan, Anderson, and Scott’s (2009) quantitative research reached out to the
immigrant unbanked and underbanked population in the Chicago area, because the United
States’ immigrant population increased 57% from 1990 to 2000. Barriers to mainstream
financial services identified for immigrants were language related, legal, and cultural. The
program offered through NGOs worked through the barriers and provided information to
immigrants. The program participants started with 61 immigrants; 33 completed the 12-hour
financial literacy program. The post survey documents resulted in self-reported positive
participant results for the program. Verification of the self-reported positive behavioral
change such as opening a depository account, however, did not occur.
The FDIC (2010) evaluated the access to financial services for the unbanked and
underbanked population and that found bank fees and minimum balances contributed to the
lack of participation. Reporting that 1.3 million households closed bank accounts in 2008,
the Governmental Accountability Office (Consumer Finance, 2010) audit report pointed to
additional barriers to financial literacy. English as a second language is affecting financial
literacy with some informational bulletins available only in English, or Spanish. The United
States, also, has had an influx of Muslim immigrants who have different language and
53
religious constraints that do not permit the earning or paying of interest. The awareness of
new barriers presents opportunities to develop programs to overcome the challenges of the
United States government to increase the low-income population’s financial literacy. The
United States Federal Government continues to develop programs for the low income,
unbanked, and underbanked population (Agency Group 01, 2010). The United States
Treasury Department unveiled a program to reach people who received tax refunds through
the mail last year to work with financial institution partners to open accounts to have the
2010 refunds deposited electronically. The Federal budget for 2011 included funding to
sponsor state and local initiatives to help low-income Americans obtain access to financial
services and products (Agency Group 01, 2010).
Sherraden and McBride’s (2010) longitude research study, the American Dream
Demonstration, occurred from 1997 through 2005 (p. 15). The in-depth study was designed
to study low income adults’ savings behaviors whether selected to participate in Individual
Development Accounts [IDAs] or not. Savings provide the opportunity to increase long term
asset building for long term security. The study maintained connection with 84 individuals,
59 people were selected to participate in IDAs and 25 were not selected. The results of the
study told stories about low-income adults striving to save and make a better life for
themselves and their families. The participants described that saving represented security
and hope for the future. Access to saving and constant financial needs, however, made
accumulating significant amounts difficult. The study conclusions include that human
behavior, habits, and banking institutions policies all affect the individual’s ability to save.
Two future research suggestions are (1) to study the relationship between low-income adults
and social institutions; and (2) to study households’ financial decisions matrix of who is
54
involved in the decision process, and do decision discussions extend to family members
living outside the household.
Lim, Livermore, and Davis’ (2011) telephone survey of volunteer income tax
assistance (VITA) tax filers resulted in 352 participants from a pool of 582 from Louisiana’s
Department of Social Services records. The study inquired of VITA tax filers eligible for the
earned income tax credit [EITC] to discuss whether their refunds were electronically
deposited into personal bank accounts or did they receive a refund check. If the participants
received checks did they use an alternative financial service to cash their checks or did they
cash the checks at a local bank. The unbanked population was 56% less likely to use
mainstream financial services to receive the cash from their tax filing. The cost of using
alternative financial services promotes the study’s conclusion of suggesting policy changes to
link VITA sites to mainstream financial services for depositing and cashing tax refund
checks and additional financial education. Lim with others continued studying VITA and
EITC.
Lim, DeJohn, and Murray (2012) reports on linking VITA with social workers.
Social workers develop long term connections with low-income families and suggestions
from trusted social workers could increase low-income family’s participation in VITA.
VITA participation could increase the number of tax filings for low-income persons and
taking advantage EITC and prior preparation could provide time for low-income families to
establish a bank account to receive their tax refund electronically, creating an opportunity for
asset building as previously advocated by Sherraden and McBride (2010). This study, also,
concurs with Birkermaier and Curley (2009) linking social workers as advocates for financial
literacy.
55
De Sousa (2010) reported on a qualitative study of the unbanked for Namibia, Africa.
The unbanked population represents the final frontier for financial institutions. However, the
initial profits for the financial industry working with the unbanked are small until the
unbanked population moves into the mainstream of financial banking, so banking institutions
do not market to the unbanked. The Namibia regulatory agency, therefore, shifted the
paradigm of banking the unbanked to the government creating payment services for the
population of the unbanked. Nambia’s unbanked population embraced the National
Payment System (NPS) and nonbanking institutions provide a payment plan through mobile
coverage at costs much less than the banking institutions.
The need to increase the financial literacy level of low-income individuals and
households is imperative. NEFE (2006) had suggested research to find better pathways to
increase financial literacy. The selected studies relevant to the low-income population above
have found aspects of the low-income population that influence their abilities to increase
financial literacy are summarized below.
Lyons and Scherpf’s (2004) research results concluded that financial literacy
awareness does not require people to change behavior, such as opening a bank account, but
provides information for individuals to make rational decisions based on their personal
environment. Servon and Kaestner’s (2008) research provided computers and Internet access
for a year to help low-income individuals have access to banking. The participants of the
study could not continue to afford the Internet connection and the computer was a luxury
item considering their income level. Zhan, Anderson, and Scott (2009) provided financial
literacy education to immigrants in Chicago. The post class survey indicated that those
completing the training felt they would open bank accounts. No follow-up occurred,
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however, to determine if accounts were opened. The FDIC sponsors financial literacy
education in the United States. DeSousa’s (2010) research conducted in Namibia, Africa,
reported that the Namibian government created a national payment system to support the
low-income population. Goodman’s (2012) research returned to the roots of Lyons and
Scherpf’s (2004). Goodman’s work confirmed the reasons for being unbanked as: not having
enough money to open an account, the fees incurred for having an account, limited access to
retrieve deposited money, and the lack of need to write checks. The focus group interviews
of low-income individuals found many had short-term orientation which prevented the
perceived need for savings.
No study, however, made inquiries into the perspectives and expectations of low-
income, unbanked, and underbanked populations regarding financial literacy, indicating a
gap in the research. This research study includes interviews of low-income individuals to
ascertain low-income adults’ perceptions and expectations for financial literacy. In doing so,
it uncovered unique factors that could contribute to the modification of financial literacy
programs and marketing in order to increase low-income adults’ participation levels and
hence their financial literacy.
Theoretical Framework for Interpretation of Data
The interpretation of the data is based on the concepts of financial literacy, Maslow’s
hierarchy of needs (1948), Proschaska’s (1979) transtheretical model of change, and the
research study’s population of low-income adults. The study’s definition of financial literacy
incorporated both financial literacy knowledge and behavior to establish financial capability
(Lusardi, Mitchell, & Curto, 2010; NEFE, 2006; Schuchardt et al., 2009). Enlisting the help
of a gatekeeper provided access to a population considered difficult to access (Buckland,
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2011; Creswell, 2012; Mandell & Klein, 2009; Schuchardt, Marlowe, Parker, & Smith, 1991;
Weiss & Bailar, 2002).
The interpretation of the interview used Maslow’s (1948) hierarchy of needs to
understand possible motivation and Proschaska’s (1979) transtheoretical model of change to
access research participants’ desire to increase positive financial behaviors. Maslow’s and
Proschaska’s theories were chosen as the theoretical research frameworks for this study’s
interpretation of the data to develop recommendations to financial literacy programs to
increase low-income adult participation; hence, low-income adult financial literacy.
Maslow’s hierarchy of needs. Maslow’s (1948) hierarchy of needs theory describes
individual motivation as it relates to the fulfillment of needs from the most basic level of
needs level one to level five of self-actualization. The five levels of Maslow’s hierarchy of
needs pyramid begins with basic life requirements of physical and emotional needs; the
second level is safety needs, the third level is belongingness and love needs, the fourth is
esteem needs, and the pinnacle to the pyramid is self-actualization. The theory explains how
people become occupied with attaining needs at each lower level before ascending to the next
level.
Devaney, Anong, and Whirl (2007) posit that savings motives could be correlated to
self-actualization similar to Maslow’s hierarchy of needs, referring to human stages of
development. Devaney et al. (2007) quantitative research obtained data from the 2001
survey of consumer finances sponsored by the Federal Reserve Board of Governors and the
United States Department of Treasury collected from 4,442 households. Devaney’s et al.
(2007) expanded Maslow’s hierarchy for the saving study to include a no savings level and
splitting Maslow’s second level of safety needs into both safety needs and the need for future
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financial security. The study’s seven levels of savings hierarchy included no savings, basic
need, safety needs, need for future security, love and societal need, luxury and esteem need,
and self-actualization. The main predictors of moving through the savings hierarchy
included the length of the planning horizon for the family unit, age of the head of the
household, and family size. The study’s conclusion suggested that financial literacy
education should focus on the need level of the population in connection with the program
objectives.
Transtheoretical model of change. Prochaska (1979) developed the
Transtheoretical Model of Change [TMC] for behavioral changes for mental health with six
stages for long-term behavioral change. The transtheoretical model of change, first
established to influence change in unhealthy behaviors, included five stages that reflect the
steps required for change and a sixth stage for when a person relapses into previous
unhealthy behaviors. The sixth stage could occur at any stage during a person’s quest for
change. The first stage, precontemplation, involves initial awareness but no decision yet to
make any changes in the coming six months. The second stage, contemplation, is where an
individual decides to make changes over the next six months. The third is where, preparation
plans are made for change in the next 30 days. The fourth stage is the period the individual
has changed his or her behavior, but is still within the first six months of change. The fifth
stage which is maintenance, occurs if the individual has continued with the change for more
than six months (Proschaska, 1979).
In 2004, the TMC was applied during a study to help consumers change their
behaviors to reduce and eliminate debt (Xaio, O’Neill, Prochaska, Kerbel, Brennan, &
Bristow, 2004). The mixed method research study was developed in two stages. The initial
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stage required interviews of five experts in credit card debt counseling to develop the survey
questionnaire to learn if a purposive sampling participant had reached the TMC stage two of
contemplation – intending to take action within the next six months. A pilot survey of 15
participants answered the initial questionnaire. The experts evaluated the question responses
and made some changes. For the second stage, 438 questionnaires were mailed with a
response rate of 60% [263 returned questionnaires].
To participate in the study (Xaio et al., 2004), consumers were required to be in at
least stage two, contemplation, and the purposive sample participants were selected from
debt counselors’ clients. The study was deemed successful in assessing the respondents’
TMC stages two, three, and four; the remaining stages five and six would have required
follow-up to determine if participants reverted back to negative financial behaviors. The
success of the study set the stage for credit counselors to design credit counseling around
client behaviors. Other researchers support the use of TMC in financial education (NEFE,
2006).
Schuchardt, Bagwell, Bailey, DeVaney, Grable, Leech, and et al. (2007) reported on a
professional conference that brought together researchers and practitioners to evaluate the
relationships that underlie financial literacy and found that family and friends influenced
financial behavior and suggested that the Association for Financial Counseling and Planning
Educators (AFCPE) employ TMC strategy to reach consumers. Williams (2007) and
Estelami (2009) supported TMC because to change their behaviors people needed to confront
old beliefs and habits.
Linking educational financial programs to behavior modification could provide the
basis to transfer financial literacy knowledge and financial capability. Financial program
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designs need to be varied to support the audience’s financial literacy level, eliminating a
single program approach for financial literacy success (Lusardi, Mitchell, & Curto, 2010;
NEFE, 2006; Schuchardt et al., 2009). Requirements for the program facilitators include
aligning participants and available training programs, competency in the ability to help
people manage change, and the ability to recognize and respond to teachable moments
(NEFE, 2006).
The theoretical framework of Maslow’s and Prochaska’s theories provides a valuable
background for understanding the participants in this study. The framework underlies the
interview questions’ development to obtain information from participants about their
personal mindset to learn financial literacy skills. Understanding the participants’ mindsets
can help during the interview with gathering information pertaining to needs and
expectations of the participants to increase participation in financial literacy classes.
Challenges of Financial Literacy Education
Financial literacy studies indicated financial literacy education participants have not
grasped the information at levels where external financial support would not be necessary
(Arnone, 2009; Arthur, 2011; Lumpkin, 2010; Willis, 2008). Curriculum changes requested
by the United States government for K12 educational programs have shown limited success
(Lusardi, Mitchell, & Curto, 2010, Yilmaz, 2011).
The complexity of financial markets cannot be bridged through financial literacy
education (Willis, 2008). Willis’ (2008) article titled Against Financial-Literacy Education
presented information about relegating the responsibility of the financial markets to the
consumer through advocating financial literacy. The research supported financial literacy
education in conjunction with governmental regulation, rather than having consumers being
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solely responsible for their financial future. The expectations that financial literacy
education can create empowered responsible consumers to control the financial markets
lacked empirical support.
Willis identified four barriers for financial literacy education to support the individual
consumers’ responsibilities: “(1) the complexity of the financial products and the speed at
which they change, (2) the low level of computational abilities possessed by most consumers,
(3) the widespread decision making bias that impairs consumer financial behavior, and (4)
the disparity in resources with which industry versus educators can reach consumers” (p.
211). The challenge for global financial sustainability requires responsibility to be shared
among governmental agencies and consumers. Government should establish policies and
legal rules to shape financial markets to become conducive to positive consumer outcomes.
Financial literacy education should reach out and deliver programs to teach about behavioral
bias in attitudes and perceptions, and link financial knowledge to financial capability.
Lumpkin (2010) from OECD concurs with Willis (2008) that financial consumer
protection is essential from the standpoint of both access and suitability for the consumer,
and that financial service providers develop internal controls that minimize inappropriate
consumer exposures.
Arnone (2009) reports from the practitioner perspective of consulting and advising
employer sponsored financial education, stating that individuals should not be expected to
manage personal financial planning on their own. Experience has shown that employer
sponsored financial educational programs must provide employees with information. The
information has not led employees to become their own financial planners. This has fostered
instead a realization of the need to obtain a financial planner. Arnone (2009) suggested
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implementing guidelines and aggressive management techniques to increase the personal
involvement in employer sponsored financial benefits and planning. The guidance
emphasizes that employer programs should include adequate protection against financial
risks, save more by living within one’s means, create investment goals, and not comingle
funds of investments linked to goals. Programs should aggressively advise employees,
support individual interventions to discuss personal finances, and include personal financial
reviews within the context of annual employee performance reviews.
Christman (2010) reported on employer sponsored plans to increase employees’
transition from retirement savings to managing retirement funds because of the shifting of
pension plans and changing social security benefits. Christman’s report supports Arnone’s
research conclusion that people need to start saving sooner and have professional support for
financial decisions. Professionals recognize that retirement plans are personal and there is no
single method for successful retirement funding.
Arthur (2011) discusses two financial literacy education challenges. First, financial
literacy is underminded prior to children entering school for the first time. Advertisements
and incessant messages to buy bolster the impression that people are valued by what they
consume. This is the framework that is absorbed by children. Secondly, the concept of
shifting financial responsibility from the government to the individual based on financial
literacy education alone is a simple solution to a complex problem. The development of
critical financial literacy education and collective government measures should be created to
protect the economy.
Willis (2008), Lumpkin (2010), Arnone (2009), Christman (2010), and Arthur (2011)
emphasized the need for financial literacy at a personal level while acknowledging the need
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for professional support. The challenges of financial literacy, therefore, suggested that the
financial literate individuals may not be ready to create or maintain a stable financial future
alone. Also, individual need for professional financial support should be recommended and
considered an acceptable part financial literacy programs. Financial literacy programs not
only should transfer knowledge and skills, but include a deeper understanding of the long-
term issues of developing a secure financial future. This requires governmental support and
the availability of financial advisors.
Further Research: Financial Literacy Initiatives
National financial literacy educational programs target children through curriculum in
K-12 schools and adults through secondary venues (FLEC, 2010a; FLEC, 2011; U. S.
Treasury, 2008; U. S. Treasury, 2013). Accessing working adults occurs through their
employers and financial institutions by spreading financial informational literature to their
customers, and some nonprofit organizations offer financial literacy programs for their
clients (U. S. Treasury, 2008; 2013). National surveys report, however, that the financial
literacy lowest levels occur with low-income adults, many of whom are unbanked or
underbanked (FDIC, 2009; 2012). The national financial literacy strategy council has not
identified programs that reach successfully to the low-income population because of this
population’s inaccessibility (U. S. Treasury, 2008). Accessing the low-income population
takes creative targeting and requires financial literacy educational training to match the
cohorts’ current need (Buckland, 2011; Goodman, 2012; Schuchardt, Marlowe, Parker, &
Smith, 1991; Weiss & Bailar, 2002).
This phenomenological research study of low-income adults’ perceptions and
expectations of financial literacy incorporated Prochaska’s transtheoretical model of change
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and Maslow’s hierarchy of needs. The theoretical frameworks were used as the basis of the
data collection, interpretation, and support recommendations to modify the FDIC’s financial
literacy program to increase low-income adult participation.
Conclusions
The literature review uncovered a gap in research. No inquiries were made from the
perspectives of low-income, unbanked, and underbanked populations regarding financial
literacy. Financial literacy education, however, represents a part of the solution to global
economic recovery and sustainability (OECD, 2010; U.S. Treasury Department, 2009).
Studies of financial literacy programs initiated in the first decade of the 21st century
measured limited success in increasing financial literacy and accessing the population most
in need of financial literacy education. The results of these studies indicated the need for
program changes to increase the availability of programs to people outside academia, and
especially to low-income adult populations.
The low-income population in the United States in 2009 was approximately 25% of
the population (FDIC, 2009) and access was limited (Weiss & Bailar, 2002). This research
study identified possible financial literacy educational program design changes that could
increase participation in financial literacy programs by the low-income population. The
research process included the direct inquiry of the perceptions and expectations of a financial
literacy program for low-income adults. The qualitative phenomenological research
ascertained the low-income population’s perceptions and expectations of financial literacy
programs. The emerging themes resulted in recommendations to financial literacy program
curricula and marketing to increase participation from low-income adult populations.
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Summary
Financial literacy education is an important facet of global and national financial
sustainability (FLEC, 2010a; OECD, 2010). Numerous studies and educational programs
available indicate the need to increase financial knowledge and capability of the individual
(Buckland, 2011; Huston, 2010; Remund, 2010; Lusardi, 2012). The rise of low-income
families in the United States illustrates the importance of reaching this population (FDIC,
2009).
Understanding that access and participation of the low-income population is difficult
to obtain, community-based programs might be successful in providing financial education
that establishes a basis for financial behavioral change (Buckland, 2011; Mandell & Klein,
2009; Schuchardt et al., 2009; Weiss & Bailar, 2002). Financial literacy programs can
increase the awareness of personal financial goals and the requirement of soliciting expert
advice, such as when basic health knowledge indicates someone should see a medical doctor
(Lusardi, Mitchell, & Curto, 2010; Willis, 2008). The shift of long-term financial
responsibility back to the individual requires financial literacy education to be made available
across socio-economic levels. This study ascertained, therefore, the perceptions and
expectations of low-income adults to identify financial literacy programming changes to
influence low-income adults’ participation in programs and, therefore, increase low-income
adults’ financial literacy.
Chapter 3 outlines the qualitative methodology to access low-income adults’
perceptions and expectations toward financial literacy. The data collection design outlined in
Chapter 3 will provide the information about the low-income populations to support the
development of financial literacy programs. Documentation within the chapter of ethical
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research includes premises consent, informed consent, confidentiality, population, sampling
frame, data collection, storage, and processing.
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Chapter 3
Method
This phenomenological research study was designed to discover low-income adults’
perceptions and expectations of financial literacy to provide information for financial literacy
curricula designs that could attract low-income participants (Buckland, 2011; Servon &
Kaestner, 2008). The qualitative phenomenological study was appropriate for this work as
the research method attempts to understand the experiences of the participants through their
perceptions, perspectives, and expectations (Creswell, 2012; Leedy & Ormrod, 2010). The
study utilized interviews with closed-ended questions to establish the participants’
backgrounds, then opened-ended questions to obtain in-depth descriptions of personal lived
experiences about financial literacy concepts, educational programs, and future expectations
from the sample participants (Creswell, 2012; Leedy & Ormrod, 2010; Moustakas, 1994).
The analysis of the data uncovered trends and themes that affected financial behaviors, and
produced novel information that could help in the development and improvement of financial
literacy educational programs for low-income adults.
Chapter 3 presents the method used in this phenomenological qualitative research
study. The method focused on the responsibility to the participants and supports the
reliability and validity of the final conclusions. The chapter sections include descriptions of
the research method, design appropriateness, central research question, population, sampling
frame, data collection process, reliability, validity, and data analysis techniques for this
phenomenological qualitative research study.
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Research Method and Design Appropriateness
Research method. The research methods of qualitative, quantitative, and mixed,
represent categories used for scientific research (Creswell, 2009). The characteristics of
qualitative research include the researcher as the instrument to conduct face-to-face
interviews, data collection that includes both visual and verbal information at a field site
(natural setting), and the interpreting of data to understand complex issues in the search for
factors that influence behaviors (Creswell, 2009). Qualitative research of soft data follows a
nonlinear path to relate authentic interpretations of a specific sensitive issue. The nonlinear
path provides focus of the data’s richness and texture from the recorded thoughts of the
participants. This required the researcher to use inductive reasoning to develop insights and
generalizations from the data collection. Qualitative research data collected from a small
sample size provides for the examination of data for nuances to understand the issue in
context; hence, it is impractical to equate to numerical values to create statistical projections
(Creswell, 2012; Leedy & Ormrod, 2010).
Qualitative designs include case study, content analysis, ethnography, grounded
theory, and phenomenology (Creswell, 2009, 2012; Leedy & Ormrod, 2010). Case study
research involves studying a program or individuals to discover the paths taken to understand
the outcome of a particular issue. It is not relevant to this study’s emphasis on understanding
the perceptions and expectations of financial literacy for program development.
Content analysis is a qualitative approach that merges quantitative aspects and
generally becomes part of a mixed method study. This is done through a systematic
examination of characteristics of material to identify themes, bias, or patterns (Leedy &
Ormrod, 2009). The proposed study involved interviews to extract data with no preformed
69
expectations from the individuals, rather than analyzing for expected characteristics required
for content analysis. Content analysis was therefore inappropriate for this study.
Ethnography requires researchers to immerse themselves in the culture of the
population to become a trusted member of the society covering a lengthy period to discover
and understand the population. The grounded theory approach utilizes data to develop theory
when theories have not been developed. This study’s data analysis applied Maslow’s (1948)
hierarchy of needs and Proschaska’s (1979) transtheoretical model of change theories to
develop recommendations for financial literacy programs to improve on curriculum and
increase participation. Both the qualitative study designs of ethnography and the grounded
theory would not work for this study because of the limited access to participants outside of
the community organization because of the transitory and suspicious nature of the low-
income population (Weiss & Bailar, 2002).
The phenomenological method fit this research study because of both the participant
characteristics and research topic. Low-income adults are characterized as underrepresented
in studies from noncontact attributable to the lack of telephone service, migration, language
barriers, and suspicion of strangers (Weiss & Bailar, 2002). Access to the participants
required the development of a relationship with a gatekeeper, who had developed a trust
connection to the study’s population, and who helped coordinate the interviews for the
collection of data.
The gatekeeper, as defined by Creswell (2012), is a person with insider status who
has an official or unofficial role at the organization and can become the liaison between the
participants and the researcher. The involvement at a site location through a gatekeeper
where low-income adults feel at ease will provide for better response rates (Weiss & Bailar,
70
2002). Beloucif, Lal, and Strachan (2010) discuss the need to initially connect with the
gatekeeper to access the organization. The gatekeeper is essential to developing a positive
atmosphere for this phenomenological study.
The research topic of financial literacy is traditionally a taboo subject in the American
culture (Atwood, 2012; Lowrance, 2011; Trachtman, 2008). The research topic along with
the study’s population posed challenges that were overcome by the phenomenological
method and the employment of confidentiality and anonymity to assure the participants of
limited personal risk. The phenomenological method gave the low-income adult participants
an opportunity to have their voices heard (Creswell, 2012). The phenomenological approach
to understanding the population’s perceptions and expectations required the researcher to
collect data from low-income adults in a safe and supportive environment.
Quantitative research applies deductive reasoning to plan research design,
measurement, and sampling (Leedy & Ormrod, 2009). The data collection occurs through
large statistical samples. The data analysis is a reflection of the frequency of actions which
progress through linear research. Quantitative research tests the study’s hypothesis through
controlling variables (Leedy & Ormrod, 2010). The mechanical techniques for statistical
analysis generated in quantitative research stress objectivity and statistical projection through
standardized procedures and the principle of replication (Leedy & Ormrod, 2010). The data
in quantitative research are dominantly collected through surveys for statistical analysis of
the hypothesis to confirm or disconfirm the hypothesis. The data collection can take place
without input from the researcher interpreting the data. Data collection, therefore, does not
provide for an opportunity to change the methodology which can occur during qualitative
research. This researcher collected data concerning participants’ perceptions and
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expectations of financial literacy which did not connect to predefined variables associated
with quantitative research (Leedy & Ormrod, 2010).
A mixed methodology combines elements from both qualitative and quantitative
methods to give more details than either could provide alone (Leedy & Ormrod, 2010).
Qualitative research studies might quantify some answers and quantitative interview
questions might incorporate some open-ended questions to solicit insights. Teddlie and
Tashskkori (2009) suggested that the development of a mixed method research begins with a
research question, which, when broken down results in both quantitative and qualitative sub-
questions. Lusardi, Mitchell, and Curto (2010) researched financial literacy programs
through testing financial literacy ability years after participating in financial programs
offered through the K-12 curriculum. The options for quantitative or mixed method, which
required accumulating data to confirm or disconfirm a prior study would fit if financial
literacy programs similar to Lusardi, Mitchell, and Curto’s program (2010) were evaluated.
The study’s research, however, to explore the unique gap toward low-income adults’
perceptions and expectations of financial literacy best fits the selected qualitative
phenomenological research design.
Research exists regarding financial literacy programs for low-income adults’ access
to mainstream financial institutions (Curley et al., 2009; Lyons & Neelakantan, 2008; Servon
& Kaestner, 2008; Zhan et al., 2009). The literature review, however, shows that financial
literacy program development has not inquired into low-income adults’ perceptions and
expectations for financial literacy, but instead only the barriers to mainstream financial
access. Following the Leedy and Ormrod (2010) statement “the data dictates the research
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method” (p. 94), a qualitative phenomenological research method was deemed appropriate
for this study.
Design appropriateness. The research question revealed the necessity of a
qualitative phenomenological research method. The research question encapsulated
understanding the research participants’ perceptions and expectations toward financial
literacy. The study emphasized the exploration of the low-income adult population’s
experiences in developing their financial knowledge and behavior. Uncovering what low-
income adult participants’ desired from financial literacy programs could increase
participation in financial literacy programs.
Influencing the low-income adult population to increase participation in financial
literacy programs could positively impact the general problem of a lack of financial literacy
within the low-income population of the United States. The concepts supporting the general
problem of financial literacy in the 21st century include increasing financial complexity, the
shift of public policy toward individual fiscal responsibility, and the expanding percentage of
the United States population living in poverty (Buckland, 2011; DeNavas-Walt et al., 2011;
Cory & Pickard, 2008; Gallery & Gallery, 2010; Lenzner, 2012).
Creswell (2012) explained the appropriateness of using qualitative research when the
problem needs to be explored. The problem is the lack of financial literacy within the United
States. The government instituted financial literacy curricula, but financial literacy has not
increased significantly during the first decade of the 21st century (Lusardi, Mitchell, &
Curto, 2010; Mandell & Klein, 2009; Yates & Ward, 2011). The size of the United States
population living below the poverty level has increased, combined with the complex
financial environment of decreasing social security expectations, defined pension plans, and
73
changing welfare terms affirms the need for financial literacy education for low-income
adults in the United States (DeNavas-Walt et al., 2011; FDIC, 2009).
This phenomenological study appropriately explored how low-income adults
approach financial literacy to increase the understanding of how low-income adults manage
financially; thereby, increasing the knowledge base required to develop financial literacy
programs that actively engage the cohort under study. Phenomenology studies fall into either
a hermeneutic or transcendental research method. Hermeneutic phenomenology follows the
development by van Manen (2007) where the researcher interprets the participants lived
experiences through interviews and observations. This would require emersion into the
population lifestyle to become an insider, this would be time consuming and would require a
commitment to a longitude study which could extend beyond the time-frame of the
dissertation process.
Transcendental phenomenology is a research methodology developed by Moustakas
(1994). This is a methodology in which the researcher focuses on the description of the
participants’ lived experiences and brackets out the researcher’s personal experiences of the
phenomenon. There are four steps in Moustakas’ transcendental phenomenology research
method: (1) epoche, which requires setting aside prejudgments to obtain information from
participants about their personal experiences and expectations; (2) reduction, which provides
the opportunity to acknowledge each experience ‘reducing’ the experience back to the source
of the meaning creating textual meaning; (3) imaginative variation, which describes the
researcher’s data analysis “to grasp the structural essences of the experience” (p. 35); and (4)
linking the textual and structural essences to the experiences to provide the foundation for
research conclusions. Moustakas’ (1994) transcendental phenomenological method was
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selected for this study because the transcendental method was expected to overcome the
financial literacy research barriers of topic taboo and low-income population access.
This study’s topic of financial literacy explored the personal subject of money which
is considered taboo (Atwood, 2012; Lowrance, 2011; Trachtman, 2008) and underlies many
behaviors. Trachtman (2008) explains that the challenge to money discussions stem from
internally and externally developed individual beliefs about money. The American culture of
money taboo by silencing discussion, provides for individuals to carry irrational attitudes
without an outlet for rational discussion (Atwood, 2012; Lowrance, 2011). The research
discussed money management at a personal level to evaluate a financial literacy program.
The participants were assured confidentiality to overcome the money taboo.
Participants’ selected pseudonyms for use during the interview provided for
confidentiality between the researcher and participant while obtaining lived experiences and
future expectations in a perceived nonjudgmental way (Creswell, 2012). Financial literacy
educational programming has been designed to increase the low-income population’s use of
mainstream financial services (Curley et al., 2009; Lyons & Neelakantan, 2008; Lyons &
Scherpf, 2004; Servon & Kaestner, 2008; Zhan et al., 2009). The study discovered the
participants’ reactions to a financial literacy program as to whether the financial literacy
program provided the knowledge and skill set to meet personal financial literacy needs. The
unique perspective of understanding the gap of financial literacy came from a low-income
adult population active in a community nonprofit organization in Danbury, Connecticut. The
data collection through interviews provided insights to further develop financial literacy
programs and create new measurements of financial literacy education effectiveness.
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Research Questions
The purpose of this phenomenological study was to ascertain the perceptions and
expectations of low-income adults regarding financial literacy. Understanding and learning
from their perspective provided the opportunity to make recommendations to modify
financial literacy programming curricula and increase participation. Studies concerning low-
income adults’ financial literacy have focused on adult learning techniques (Birkenmaier &
Curley, 2009) and the level of aptitude in financial literacy to increase the low-income
populations’ use of mainstream financial institutions (Chang & Lyons, 2008; Curley et al.,
2009; Lusardi, Mitchell, & Curto, 2010) leaving a gap of inquiry for what low-income adults
want to know about financial literacy to improve their financial future. The results of the
study could benefit financial literacy development and marketing, and possibly increase low-
income adults’ abilities to manage their money successfully. The timing of the study
corresponds to the United States’ national push to increase financial literacy of the individual
thereby supporting national economic stability by exploring the needs of low-income adults,
who comprise 30% of households in the United States (DeNavas-Walt et al., 2011; FDIC,
2009).
The phenomenological research study design from Moustakas (1994) provided the
basis for investigating the phenomenon of financial literacy perceptions and expectations of
low-income adults through their lived experiences. Interviews of low-income adults in a
community-based organization in Danbury, Connecticut occurred until data saturation in
response to the central research question, “What are your perceptions and expectations
concerning the financial literacy program?” Interviews organized through a gatekeeper
provided participants with the opportunity to divulge both their perceptions and expectations
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of financial literacy. The participants maintained anonymity during the interview
transcription process by selecting their own fictitious names. The sub-questions categories
for the central research question represent the construct variables of personal financial
literacy, financial literacy program results, and personal thoughts on how to increase
participation in financial literacy programs. The sub-questions supporting the central
research question included (1) “What do you feel is your financial literacy aptitude?”, (2)
“What are your reactions to the financial literacy program?”, and (3) “What should be done
to increase participation in the financial literacy program?”
Population
The general population for the study included 1,300 registered families with
approximately 30 percent representing low-income families from a nonprofit organization
located in Fairfield County, Connecticut. The specific population subset of approximately 20
people follows the parameters set for qualitative phenomenological studies to reach data
saturation (Creswell, 2012; Leedy & Ormrod, 2010). The participant selection criterion had
two conditions; (1) the adult’s income was under $30,000. Thirty thousand represents the
federal guidelines of low-income (FDIC, 2009), and (2) the adult attended a financial literacy
program offered at the nonprofit organization site.
Sampling Frame
The small sample size of 20 participants for this study is reflective of a
phenomenological research study method and fell into the typical range of five to twenty-five
participants for qualitative phenomenological studies to reach data saturation (Creswell,
2012; Leedy & Ormrod, 2010). The participants volunteered from a non-profit organization
that provided financial literacy education. An initial flyer was posted at the nonprofit
77
organization site, did not generate enough participants confirming the challenge of accessing
low-income adults for research (Weiss & Bailor, 2002). Therefore, the organization’s
gatekeeper contacted clients to discuss the research project and the initial volunteers recruited
friends and family members to participate in this research study. All the volunteer
participants did meet the selection criteria. The purposive sampling criteria include low-
income adults willing to volunteer to share their lived experiences and expectations about
their financial acumen requiring in-depth responses to the interview and clarifying questions
(Creswell, 2012; Leedy & Ormrod, 2010). The sample is homogenous because the low-
income adult participants came from a single community nonprofit organization where they
attended a financial literacy program. The results of the study cannot be projected to the
entire low-income adult population because of the non-random selection, but could provide
trends which can be further researched.
Informed Consent
The research design, additionally, requires researchers to be ethically responsible to
protect the participants’ rights of privacy (Creswell, 2012; Leedy & Ormrod, 2010). The
initial ethically responsibility comes during the assembly of study participants. The process
began with informing members of the population of the opportunity to volunteer to
participate and the right to withdraw from continuing with participation at any time without
recourse came from two documents distributed to possible volunteers an informational flyer
and an informed consent form.
A flyer explaining the research was distributed to inform possible participants about
how an individual can voluntarily sign up for an interview, and included a description of an
incentive for participation (see Appendix B). The incentive for participation was considered
78
important to increase participation from the low-income population (Weiss & Bailar, 2002).
If the number of respondents to the flyer did not result in enough volunteers, a secondary
method of snowballing was planned to be carried out until data saturation was met.
Individuals when inquiring about participation received an informed consent form to
review. Creswell (2009) explains that informed consent provides a document to participants
of a study which contains the reason for the study, expectations of the participants, and the
possible risks the participants may encounter. Participants were informed that there would
be no penalty for any unanswered questions; therefore, participants could make an informed
decision to participate voluntarily (Creswell, 2009; Leedy & Ormrod, 2010). Participants
could also determine later, before the results have been published, to withdraw their
interview statements. If that occurred, the information from said participant would have been
removed from the data analysis, and the interview transcriptions shredded and interview
taped erased and destroyed.
The informed consent form was given twice: first at the time of inquiring about
participation, then at the beginning of the interview to read and sign. Appendix C has the
consent form. The informed consent forms will be kept in a secured file maintained for
documentation to fulfill research requirements of holding source documents for three years,
after which all documents will be shredded.
Confidentiality
Confidentiality confers the right to privacy of each participant (Creswell, 2012; Leedy
& Ormrod, 2010). Creswell (2012) explains that qualitative research studies invade privacy
when probing personal backgrounds, behaviors, and beliefs. Ensuring participants’ privacy,
therefore, through confidentiality agreements with researchers and research assistants and
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protecting participants’ identities with pseudonyms supports ethical research. Participants in
this study selected a pseudonym at the beginning of the interview. The pseudonyms are on
the informed consent forms and locked away for the prescribed three years at which time all
documentation will be destroyed.
Institutional Review Board
To further ensure the protection of the study’s participants, the University of Phoenix
required the submission of an application for human subject research. The application was
submitted to the University of Phoenix Institutional Review Board to review the study’s
classification for participants, the purpose of the study, and the selection process of
participants. The evaluation of the application determined this research project’s design
acceptable in maintaining the rights of the participants.
Geographic Location
Weiss and Bailar (2002) documented that the challenge to engaging low-income
populations in research is access. To overcome the challenge required identifying and
accessing low-income populations in environments where low-income adult populations
were comfortable. This study overcame the challenge by connecting through a nonprofit
agency located in the community offering services that included a financial literacy program.
The program director volunteered to act as a gatekeeper. The nonprofit program staff’s care
and consideration has made the organization highly respected in the community. The
staffing support for the research study and the program director accepting the gatekeeper
position was reflected in some in-depth interview responses because the gatekeeper
suggested that clients with verbal skills voluntarily participate in the study.
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The interviews occurred between the researcher and participants at the nonprofit
community organization location or at the participant’s residence. Each interview was taped
with the consent of the interviewee to ensure all the data collected became available for
analysis. The use of the nonprofit community organization location required a signed
premises consent form (Creswell, 2009). A copy of the premises consent form is in
Appendix D. The data provided by the interviews, when analyzed, uncovered some unique
and novel approaches to increase financial literacy program participation for low-income
populations.
Data Collection
Qualitative research data collection follows five steps as outlined by Creswell (2012).
Researchers first identify participants who can provide the data for the research and sites that
can provide access to a population of participants. The second step is when the researcher
acquires the necessary site permissions to have access to a participant population. The third
step is when the researcher assesses the characteristics of the population, the resources of the
site, and the needs of the study to determine the type of data that can be collected. The fourth
step is when the researcher designs and develops the data collection forms for documentation
that eases the retrieval of data for analysis. The final step encompasses the entire data
collection process requiring the need to proceed in an ethical manner.
Moustakas’s (1994) method for collecting data ensures ethical responsibility.
Moustakas’s qualitative transcendental phenomenology approach requires the researcher to
engage in epoche, the setting aside of beliefs, prejudgments, and prior knowledge,
approaching the data collection with a naïve openness to be receptive to the participant’s
voice. Qualitative research data collected from a small purposive sample size provides the
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examination of data for nuances to understand the issue in context, giving the participants a
chance for their voices to be heard (Creswell, 2012; Leedy & Ormrod, 2010). This study
researched the perceptions and expectations of low-income adults toward financial literacy
by applying Creswell’s five steps for qualitative data collection procedures and applying
Moustakas’s (1994) transcendental phenomenology four step approach to the preparation of
the researcher mindset.
Following Creswell’s first step for data collection, this study identified the need for
low-income participants and the challenge became determining sites to access the low-
income population. Weiss and Bailar (2002) reported why access to low-income adult
populations is difficult to engage in research projects: the lack of telephones, it is hard to
engage them because they are suspicious of strangers, and they’re a transient population.
The topic of financial literacy created an additional problem; people feel discussions of
money and money behaviors are taboo (Atwood, 2012; Lowrance, 2011; Trachtman, 2008).
To overcome the lack of access to low-income adults and the financial literacy topic
required determining sites where low-income people felt comfortable to divulge financial
thoughts and behaviors. Low-income status therefore can be confirmed through site
documentation and can set the stage for the comfortable participation by the low-income
adults. The researcher contacted potential sites in order to determine the availability of a
financial literacy program and the need for premises consent. Once a nonprofit organization
willing to cooperate was located, the researcher arranged for premises consent [Appendix E]
to meet step two for data collection.
Step three began with developing a relationship with the program director and
determining the site resources. Creating a relationship with the program director, thereby
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enlisting a gatekeeper, presented the researcher with access to participants who were willing
to divulge sensitive personal information by maintaining participant privacy and
confidentiality from the initial interaction (Creswell, 2012). The data collected consisted of
the in-depth personal perceptions and expectations of financial literacy from low-income
adults through taped interviews and access to site information to confirm income levels of
participants. Participants selected the site of their interview to be at the nonprofit site or their
residence to provide an atmosphere where the participant would be comfortable discussing
their financial literacy perceptions and expectations.
Step four refers to preparing for data collection reflected both on the researcher as the
main instrument for the study and the researcher’s tool the interview. The researcher
prepared for the interviews using Moustakas’s (1994) transcendental phenomenology four
step approach and which also encompassed Creswell’s step five. Development of the
researcher’s tool follows.
The categories of qualitative data contain observations, interviews, questionnaires,
documents, and audiovisual materials were reviewed in relation to the study’s need and
participant’s desires for confidentiality enabled the researcher to determine that taped
interviews and documents would suffice (Creswell, 2012; Leedy & Ormrod, 2010). The
interviews were taped for transcription with the permission of the participant. The
transcriptionist had no information about the participant because the taping of the interview
only recorded the participant’s pseudonym. The transcriptionist also signed a non-disclosure
agreement [Appendix D]. The transcribed interviews were the basis for the research
analysis.
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Data saturation occurred with 20 participants (Creswell, 2012; Leedy & Ormrod,
2010). The interviews included using pseudonyms for the participants, which met the needs
of the participants for confidentiality, and fulfilled the data requirements of obtaining in-
depth personal responses. The interview question development included steps for construct
validity and ethical consideration, and the questions were pilot-tested (Creswell, 2012).
The data collection process of interviews, site documentation, along with the
qualitative research design and techniques achieved the purpose of the study. The study’s
purpose was to determine the perceptions and expectations of financial literacy for low-
income adults to increase the population’s participation in financial literacy programs.
Instrumentation
The primary instrumentation in a qualitative study is the researcher (Creswell, 2012;
Leech & Onwuegbuzie, 2011; Leedy & Ormrod, 2010). The tool employed by the researcher
was the interview. To validate the researcher’s tool of the interview required evaluating the
interview questions ability to gather the intended information. To measure the interview
questions’ validity comes through pilot testing the interview questions (Leedy & Ormrod,
2010).
The pilot test of the interview questions ensued with interviewing two possible
participants to answer the questions so the researcher could determine whether or not the
participants felt that the questions were clear and unambiguous. One pilot test of the
interview questions occurred at the nonprofit organization site and the other at the residence
of the participant. An interview at setting provided information about the participant’s
comfort and followed the same procedures planned for the formal interview including getting
a signed participant consent form and taping the interview for transcription. The results from
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the pilot test provided information to revise the interview questions or setting before the
formal interviews began (Etchegaray & Fischer, 2011). The interview question development
follows, including information about instrument construct, ethical responsibility to
participants, and pilot testing the questions to support the study’s validity and reliability.
Interview question development. The interview question development provided for
the basis of the study’s validity and reliability. The interviews provided the opportunity for
participants to give in-depth responses to questions developed and answer the study’s central
research question (Creswell, 2012). The questions initially requested demographic
information to confirm that the participants met the selection criteria, followed by open-
ended questions to answer the study’s central research question (see Appendix E). The open-
ended questions were developed through information obtained during the literature review to
connect to the question construct validity, and the questions were reviewed by external
experts and pilot tested for validity and reliability.
The interview questions in Appendix E mix the sub-questions categories of personal
financial literacy, financial literacy program results, and personal thoughts on how to
increase participation in financial literacy programs. The questions’ order mixes the
construct categories to provide interviewees the opportunity to divulge experiences from
different viewpoints, adding to the richness of the data. Some questions have follow-up
probing questions. The need for clarifying and elaborating questions depended on the
participants’ initial answers. The probing questions, therefore, were inserted by the
researcher when deemed necessary.
The questionnaire design prior to the expert review and the pilot study is outlined
below. The questions to ascertain the interviewee’s first sub-question category of self-
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reported personal financial literacy are questions two, three, four, five, eight, nine, and eleven
(Appendix E). The responses to the questions about the participants’ expectations from the
financial literacy program indicated what they wanted to learn and reflected personal
financial literacy aptitude. A listing of items about which they still want more information
provided information for increasing the scope of the financial literacy curricula and
enhancing personal financial aptitude.
Data collection on the financial literacy program expectation, the second of the three
sub-question categories, included probing questions for elaboration on personal financial
literacy, questions three, five, seven, and eleven (Appendix E). These responses could have
established expected financial literacy knowledge transfers. Question eight, “What new
concepts/information about financial matters was presented to you in the learning modules?”,
relates to both personal financial aptitude and knowledge transferred during the financial
literacy program. Questions six, ten, twelve, and thirteen asked the study participants to
evaluate the financial literacy program based on thoughts about missing information,
including; whether they practice what they learned, and what they liked best and least.
The third category of personal thoughts on how to increase participation in financial
literacy programs can be found in the first and last questions (Appendix E). The first
question links to the marketing of the financial literacy program to learn the how, when, and
where the low-income adult became aware of the program. The final question directly asks
the participant what they believe could increase participation in the program.
Together the various responses answered the central research question: What are
low-income adults’ perceptions and expectations concerning financial literacy?; and, the sub-
questions that support the central research question of (1) “What do you feel is your financial
86
literacy aptitude?”, (2) “What are your reactions to the financial literacy program?”, and (3)
“What should be done to increase participation in the financial literacy program?”
The researcher conducted a pilot study of the interview questions developed to
increase the validity and reliability of the questions (Creswell, 2012). Etchegaray and
Fischer (2011) outlined the steps for a pilot study. The steps required a review of the
questions by experts in the field of the study. The questions were reviewed by three local
experts one with research design experience and the other two experts with experience in
working with low-income adults. Once the questions were deemed acceptable, two
participants were chosen to answer the questions. This step is the pilot test or the cognitive
interview. The two chosen participants followed the initial interview protocol design. The
participants were formally interviewed starting with discussing the research, asking for their
consent, and answering each interview question. When answering the questions, they were
prompted to describe what they thought when answering the question and were asked to
identify anything confusing. Any questions that arose during the cognitive interview
required changing protocol for the interview, whether it was the setting or the questions. The
responses from the pilot participants were not used as part of the study results.
To increase the volunteer participation rate, an incentive was suggested (Creswell,
2012; Weiss & Bailar, 2002). Participants in the pilot study and the research study received
an incentive of a $25 gift card from a local store, when the interview was completed. The
results of the pilot test yielded information useful for revising the interview questions before
initiating the study, increasing the study’s validity and reliability. Participants of the research
study who attended the study’s results presentation had a chance in a drawing to win a $100
gift card.
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Validity and Reliability
Validity and reliability measurement tasks support the quality of research. Validity in
quantitative research differs from the measures of validity in qualitative research.
Quantitative research confirms or disconfirms prior research for validity. Qualitative validity
equates to truthfulness and authenticity of the measurement instrument (Leedy & Ormrod,
2010). Qualitative research conclusions attempt to generate new possibilities and create
dialogue concerning the phenomenon studied (Creswell, 2012). Creswell indicates the term
validity in quantitative research as measured in statistical language and validity is evaluated
by triangulation, member checking, and external audit in qualitative research (Creswell,
2012).
Reliability in research refers to consistency and dependability of the data. The nature
of qualitative research relies on data consistency and dependability to discover themes to
understand a phenomenon. The process of data analysis requires the reading and
interpretation of participants’ perceptions and behaviors recorded during the interview to
uncover trends and patterns that emerge (Leedy & Ormrod, 2010). These trends and patterns
can then answer the central research questions to develop recommendations to increase
participation of low-income adults in financial literacy programs. The following sections
outline the steps taken to ensure validity and reliability that provides a defensible and
meaningful conclusion for this study (Leedy & Ormrod, 2010).
Internal validity. The qualitative internal validation process includes credibility and
authenticity to eliminate other possible reasons for the results of the study (Creswell, 2012;
Leedy & Ormrod, 2010). Creswell’s (2012) methods for internal validation include
triangulation, negative confirmation, member checking, and prolonged engagement. The
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data collection took place in the Fall of 2012 with the researcher present onsite beginning in
the Spring of 2012. The researcher’s extended presence built trust among participants and
supported the concept of prolonged engagement. Interviews continued until data saturation
occurred. Triangulation of data obtained could not occur without further research, however,
because the study is making inquiries to discover themes which document why low-income
adults attended a financial literacy program. Negative confirmation and member checking
happened within a focus group debriefing of the study.
External validity. Aspects of qualitative external validity control the extent the
research finding can be generalized to other populations (Leedy & Ormrod, 2010).
Creswell’s (2012) methods for external validation include peer collaboration, researcher bias,
and a final report thick with details including participant’s selection characteristics, and
external audits. Peer collaboration took place, involving an evaluation of the interview
questions by an expert panel of financial literacy providers and the host community
organization directors familiar with the low-income community in Danbury, Connecticut.
Researcher bias relates to the expectation that financial literacy programs do not address the
needs of the low-income population, which was bracketed out from the participants during
the interview review process. The final report’s detailed description provided information
regarding the populations’ characteristics that enable one to infer transferability to similar
populations. The dissertation process provided for external auditing of the study, further
supporting external validity.
Reliability. Qualitative studies’ references to reliability assert consistency and
dependability (Leedy & Ormrod, 2010). During the interview question development, the
questions were reviewed by local financial literacy experts involved with the low-income
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adult population. To increase the reliability of this study’s developed questionnaire, a pilot
study was conducted whereby two individuals were interviewed. The participants in the pilot
study were not included as final study participants. The possibility of the Hawthorne effect,
where participants giving the researcher the expected response (Leedy & Ormrod, 2010), was
limited by the questions’ structure and lack of expected responses.
Data Analysis
The data analysis in qualitative research requires a systematic approach to the data
interpretation (Creswell, 2012; Leedy & Ormrod, 2010). Following Moustakas’ (1994)
transcendental phenomenological qualitative data analysis based on Van Kaam’s (1966)
method requires seven steps in the process of extracting textual, structural data analysis to
obtain emerging themes to generate recommendations to support low-income adults’
attainment of stable financial futures. Moustakas’ (1994) seven steps to evaluate the data
include: (a) data horizonalization begins with listing out every term for every experience; (b)
the quantity of term is reduced responses, which requires the evaluation of whether the term
is necessary for understanding the experience and of whether the term can be eliminated
while maintaining the horizonalization of the data analysis; (c) remaining terms are clustered
for themes; (d) themes which are developed are validated, which requires auditing the source
documentation for the inductive and deductive reasoning, and the deletion of unsupported
themes; (e) the written documentation supports the emerging themes through the creating of
textual description from each participant; (f) the creativity, insight, and intuition of the
researcher provide for the imaginative variation and the development of the structural
essence of the experience; and (g) the synthesizing of textual and structural essence of the
experience integrates theories and develops recommendations.
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The documentation available from the site confirmed the participants’ low-income
status. The data from the interviewee responses and was analyzed to answer the central
research question of what low-income adults’ perceptions and expectations are concerning
financial literacy. The information obtained from the participants was analyzed for emerging
themes and patterns to create recommendations for financial literacy programs to engage
low-income adults so they could increase their financial literacy, thereby stabilizing their
financial futures. The data saturation process occurred during data interpretation. Each
interview was read multiple times and processed through qualitative research software
NVivo 9 ® for new and recurring themes until no new information was uncovered.
To fulfill the requirements of the study, the data from each interview question was
transcribed in its entirety from the taped interview. Then through the use of NVivo 9 ® a
qualitative research computer software, the research process of recording, storing, indexing,
sorting, and coding occurred (Creswell, 2012). The data analysis using NVivo 9 ® helped
identify emerging themes and patterns to support recommendations to develop financial
literacy programs that could increase low-income adults’ financial literacy. Other data
analysis techniques in qualitative research pertaining to classical content, word count, and
domain analysis was supported through NVivo 9 ®. The final presentation of the data
analysis emerged with the results including written conclusions and visual presentations.
The transcribed taped interviews are provided in Appendix G.
Summary
Chapter 3 depicts the phenomenological qualitative research methodology for this
study. Transcendental phenomenology approach provided the opportunity to ascertain low-
income adults’ perceptions and expectations toward financial literacy. The research results
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led to novel recommendations to develop financial literacy program curricula to increase
participation, hence financial literacy. The small purposive sample size is reflective of a
phenomenological research study method to collect data limiting the projection of this
study’s conclusions (Creswell, 2012; Leedy & Ormrod, 2010). The final report’s detailed
description and use of NVivo 9 ®, however, provided information regarding the populations’
characteristics that could infer transferability to other populations and present information
necessary for replication.
Chapter 4 presents the participants’ in-depth experiences and expectations concerning
financial literacy. The analysis of the data collected includes the details of the interview pilot
study and interviews from the study’s participants as outlined in Chapter 3.
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Chapter 4
Results
The purpose of this phenomenological study was to ascertain the perceptions and
expectations of low income adults regarding financial literacy to increase participation in
financial literacy programs. The data collected by interviews of low income adults resulted
in making recommendations, found in chapter 5, to modify a financial literacy program’s
marketing and curriculum. The qualitative approach chosen followed Moustakas’ (1994)
transcendental phenomenological qualitative data analysis based on Van Kaam’s (1966)
method that required seven steps in data analysis to obtain emerging themes and generate
recommendations to support low-income adults’ attainment of stable financial futures. The
steps taken provided the systematic approach to the data interpretation and gave the
participants the opportunity to have their voices heard (Creswell, 2012; Leedy & Ormrod,
2010). Chapter 4 presents the results generated in this phenomenological qualitative research
study. The chapter sections include discussions on the (a) study’s population and sampling,
(b) validity and reliability procedures, (c) data collection process, (d) data analysis process,
and (e) results of the analysis.
Population and Sampling
The study’s population consisted of 1,300 registered families with approximately 30
percent representing low-income families from a nonprofit organization in southern, New
England. Participation was limited to adults in the population earning less than thirty
thousand dollars annually and who attended a financial literacy program module or modules
available at the nonprofit organization. The purposive sample selection of 20 voluntary
participants initially came from respondents to a flyer distributed at the nonprofit
93
organization’s site. Consistent with prior studies, access to attendees from prior financial
literacy classes offered at the nonprofit site proved difficult because contact information
available from mailing addresses and phone numbers were no longer valid (Servon &
Kaestner, 2008; Spader et al., 2009; Weiss & Bailar, 2002; Zhan et al., 2009). Therefore,
using the snowballing sampling technique (Creswell, 2012), the initial respondents referred
other candidates to attend additional financial literacy classes offered through the nonprofit
organization.
Validity and Reliability
Validity and reliability measurement tasks support the quality of research.
Qualitative validity equates to truthfulness and authenticity of the measurement instrument
(Leedy & Ormrod, 2010). Qualitative research conclusions attempt to generate new
possibilities and create dialogue concerning the phenomenon studied (Creswell, 2012).
Reliability in research refers to consistency and dependability of data. Procedures were
followed to assure participants that their responses would be kept confidential, which
enhanced the reliability of their responses. The procedures include the researcher reviewing
the confidentiality statement with the participant before the participant signed the document
and the participant also created a personal pseudonym to use during the interviews. The
pseudonym served as the moniker for the interview transcription and the reference to the
participant in the research report.
The processing of the data analysis required the interpretation of the participants’
perceptions and behaviors recorded during the interview through multiple readings and
listening to the taped interviews to uncover trends and patterns that emerged pertaining to the
phenomenon (Leedy & Ormrod, 2010). These trends and patterns addressed the central
94
research question which was, What are low-income adults’ perceptions and expectations
concerning financial literacy?, and identified the basic themes from which recommendations
were developed to increase the participation of low-income adults in financial literacy
programs. The use of external experts, a pilot study, and member checking for this study
were taken to enhance validity and reliability in order to yield creditable, defensible, and
meaningful recommendations for this investigation (Leedy & Ormrod, 2010).
External experts. Following the receipt of the research study’s approval, the
researcher contacted local experts to review the interview questionnaire. Three area external
experts working with low income adults in the Danbury, Connecticut area reviewed the
interview questionnaire in Appendix F for clarity, leading questions, and possible bias. The
interview questionnaire was given to each of the experts on September 24, 2012 with a
request to submit comments back to the researcher by October 10, 2012. The comments
from the local area experts provided face and external validity (Creswell, 2012). Changes to
the questionnaire occurred due to some clarity and sensitivity comments. The revised
questionnaire became the basis of the pilot study.
Pilot study. A pilot study increases validity and reliability by evaluating the
credibility of the research instrument which is the basis for the data collection (Creswell,
2009; 2012). The pilot study purposes include: (a) to determine the clarity and appropriateness
of the questions, (b) to determine whether the questions would result in meaningful responses,
and (c) to draw conclusions about the impact of the study from the perspective of the possible
research participants (Creswell, 2009). To increase the volunteer participation rate, an
incentive as suggested by Creswell (2012) and Weiss and Bailar (2002), was distributed to
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the participants in both the pilot study and the research study. The incentive, a $25 gift card
to a local store, was given at the completion of the interview.
The first pilot test participant was interviewed on October 15, 2012 and the second
participant was interviewed on October 19, 2012. The participants met the study criteria of
having an income of less than thirty thousand dollars per year and having attended a financial
literacy program module. The feedback from the pilot interview led the researcher to change the
order of the interview questions and led the researcher to conclude that a face-to-face request that
the participant provide his or her income level was not likely to be answered. The need to verify
income level required a change to confirm that the participants’ income levels were less than
thirty thousand annually. The results of the pilot test therefore yielded information which
increased the study’s validity and reliability.
The two pilot study participants’ responses were not included in the compilation of
the research study data. However, the pilot study results required the rearrangement of the
order of the interview questions. The rearrangement of the interview questions revised which
interview questions correlated to which of the three sub-question category constructs. Two
questions, six and nine, combined the constructs of both personal financial literacy and
financial literacy programs. The other interview questions related to the personal financial
literacy construct included three, four, five, seven, eight, and ten. In addition to questions six
and nine, questions one and eleven linked to the financial literacy programs construct. The
information for the third construct – increase participation in financial literacy programs
connected to questions two and twelve. Appendix F2 provides final revised interview
questionnaire employed during the formal interview.
Member checking. Member checking provided validation of the study’s findings
(Creswell, 2012). The researcher invited all twenty of the study’s participants to a gathering
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that presented and discussed the study’s findings. Fifteen percent (three) of the participants
attended the gathering: all agreed with the accuracy of the findings and considered the
recommendations realistic for reaching the target audience. Non-attendees received emails
inviting them to review the study’s findings. Twenty-four percent (four) of these participants
contacted the researcher by phone to discuss the findings and confirmed the accuracy of the
findings and the realistic approach with the recommendations.
Data Collection Process
Twenty interviews occurred for the study’s data collection and were conducted from
October 21 to December 3, 2012. The scheduling of the interviews indicated a solution to
one of the challenges of engaging low income adults identified by Weiss and Bailar (2002)
their suspicion of strangers. Two participants scheduled their interviews during their regular
attendance at the nonprofit site. The remaining participants scheduled their interviews when
other people they knew would be in attendance for interviews, even though they would need
to wait while the each person was interviewed. Attendance with other participants required
the participants to coordinate work schedules, thereby increasing the time-frame of the
interviews. The interviews occurred at either the nonprofit organization site or at the
residence of the participant, depending on the participant’s request.
Demographic information. The twenty participants met the initial requirements of
income under thirty thousand and attended a financial literacy program offered through the
nonprofit site involved in the research project. Additional demographic information collected
on the participants included gender, age, the number of people 18 and over in the household,
the number of people under 18 in the household, if the participant had any bank accounts,
and the type of bank accounts. Table 1 below identifies the sample’s gender and age cohorts.
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Table 2 provides household population information. Table 3 specifies the bank accounts of
the participants.
Six participants were male with five, 18 to 25 years in age and one, 36 to 50 years in age.
Fourteen participants were female with seven 18 to 25 years in age, five 26 to 35 in age, and
two 36 to 50 years in age.
Table 2
Household Population
# of participants
Children
With 10
Without 10
Adults
1 6
2 7
3 –
4 2
5 –
6 4
7 1
Table 1
Sample
Age Female Male
18 to 25 7 5
26 to 35 5 –
36 to 50 2 1
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Adults and children
1 2
2 5
3 4
4 2
5 –
6 5
7 2
Half of the participants (ten) have children in their households. Thirty percent (six of
the twenty participants) have a single adult and 35% (seven) have four or more adults in their
households. Ten percent (two) of the participants’ households have only an adult.
Table 3
Types of Bank
Accounts
# of
participants
None 4
Savings only 1
Checking and savings 15
Twenty percent (four) of the participants do not have a bank account, while the
remaining participants have established a savings account or savings and checking accounts.
Data Analysis Process
The participants’ interviews were taped and professionally transcribed. The
researcher cross checked the transcription to the interview tapes. The transcriptions of the
recordings created the data used in the analysis. The transcriptionist did not know the names
of the study’s participants, providing anonymity to the participants. The participants selected
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their own pseudonyms used during the interview sessions. The transcribed taped interviews
are provided in an Appendix G.
The data analysis followed Moustakas’ (1994) transcendental phenomenological
qualitative data analysis based on Van Kaam’s (1966) method of seven steps to evaluate the
data. The seven steps taken include: (a) the data horizonalization begins by listing out every
term for every experience; (b) the reduction of the quantity of terms requires the evaluation
of whether each term is necessary for understanding the experience and of whether the term
can be eliminated while maintaining the horizonalization of the data analysis; (c) the
remaining terms are clustered for themes; (d) the themes developed are validated, which
requires auditing source documentation for inductive and deductive reasoning, and the
deletion of unsupported themes; (e) the written documentation supports the emerging themes
through the creating of textual description from each participant; (f) the creativity, insight,
and intuition of the researcher provides for the imaginative variation and the development of
the structural essence of the experience; and (g) the synthesizing of the textual and structural
essence of the experience integrates the theories and develops recommendations (Moustakas,
1994). The research was completed with the use of NVivo 9 ®, a qualitative research
computer software, which provided a central location to record, store, index, sort, and code
the data. NVivo 9 ® helped identify themes and patterns in the data analysis.
The detailed description of the theme development follows in the results section and
employs the participants’ pseudonyms as the identifier to support the research ethical
boundaries for confidentiality. In Chapter Five, the themes are integrated to both Maslow’s
(1948) hierarchy of need and Prochaska’s (1979) transtheoretical model of change to develop
recommendations to complete the data analysis’ final step, the synthesizing of the textual and
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structural essence of the experience integrates the theories and develops recommendations
(Moustakas, 1994).
Results
The central research question of this study was What are low-income adults’ perceptions
and expectations concerning financial literacy? The initial analysis reviewed each interview
for three construct categories of personal financial literacy experiences, financial literacy
program expectations, and accessibility to financial literacy education. This horizontal
analysis followed the first step of Moustakas’s (1994) modified Van Kaam
phenomenological data analysis.
Multiple readings of the interviews with reductions and eliminations followed
Moustakas’ second step. The next step taken of clustering identified three themes (1)
Participant characteristics, (2) Presentation of financial literacy programs, and (3) Access to
low income adults. These themes reflect sub-themes to be considered to increase
participation in financial literacy programs by low income adults. The emergence of these
themes along with references to textual and structural support follows and is the basis for
Chapter Five.
Theme 1 – Participants’ characteristics. Participant characteristics theme emerged
from participants’ responses referring to personal descriptions of their expectations and
experiences regarding financial literacy. Inductive reasoning established two characteristics
the belief in self and current time-frame orientation. Belief in self theme reflected the
participants’ descriptions of themselves acknowledging their weaknesses and strengthens of
financial literacy, and their attempts to resolve a perceived weakness. Current time-frame
orientation derived from referrals by participants to deal with financial issues as they appear.
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Belief in self. Individual excerpts from Monster, Annastasia, and Margarita support
the belief in self by a description of personal money management habits perceived as good or
bad. Monster remarked that
I’ve never been too responsible with money and I’ve never really fallen into the negatives but
I’m always scraping by and I’m lucky enough to make my bills on time but it’s the money
that I need for myself for fun that I never have (Monster).
Annastasia responded that she hoped, “To get better knowledge on budgeting and see
where I am with my budgeting and see what can help me from this.” Margarita stated, “I
really need to fix my bills and I need to learn how to keep my money.”
Comments from John, Betty, and Paul present other references construed to a belief
in self by the identification of why the participant decided to attend a financial literacy
course. John stated, “I wanted to see what it was about and to learn more about the program
and to see how to save money better.” Betty responded, “It sounded like a good opportunity
to learn about budgeting.” Paul replied, “I didn’t see anything wrong with learning new
ideas and concepts with financial literacy and budgeting.”
All the participants answered a question asking to rate themselves regarding their
financial literacy without clearly defining financial literacy. The responses therefore, are
limited to the individuals’ perception of financial literacy. For instance, Monster
commented that
I don’t really follow the plan I set down but I don’t have the will power to go through with it.
This program has given me a little bit more of an understanding and before I was at a 7 and
now I am at about an 8 (Monster).
Wetgrass observed that,
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Before the program I would say a 5 and now I would probably say a 6 or 7. I feel like only a
5 because if it were higher than that I would have a lot of money saved up and I would not
need to take this class, but now I do have a better grasp on things I can do to save money
(Wetgrass).
Raptor explained his rating in this way
Before the program I had an educated guess on everything and now I know I have more of a
direction on steps that other people take to do things and that always helps, having a guide
behind everything. My rating of myself before would be a 4 but now would be a 7 or an 8
(Raptor).
The participants’ response about the clarity of the financial literacy program clearly
stated they understood the concepts being taught. Holly Berry responded “Yes, they were
clear.” Belle stated, “Absolutely.” Raptor replied, “Yes, to me it was very clear.”
Current time-frame orientation. Current time-frame orientation is captured by
responses that infer a time period of less than ninety days. The current time-frame
orientation impacted directly on the participation of financial literacy programs as noted by
the attendance records at the research site and participant responses to the question about
interest in other financial literacy modules. Ninety-five percent (19 of the 20) of the study
participants were interested in taking other modules, not all modules, and not in the order
presented by the financial literacy program offered at research site.
The participants’ responses generally indicated the modules for future attendance
centered on financial knowledge wanted at the present time. Belle explained that, “I wanted
to look into the Your Credit module because there are some issues with my credit and I
would like to rebuild it.” Chester stated, “…the two that I would be most interested in are
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Loan to Own and Your Own Home because for myself the next big investment that I want to
make is owning my own home.” Sarah replied that “Pay Yourself First sounds really
interesting because I run my money like crazy and I need to constantly save more money for
myself.” One participant Oil Man referenced wanting to learn about savings to support his
daughter’s college education and the child’s due date is in January 2013, “The money
building so that I could try to put money aside for a college education for my daughter before
she gets here and by the time she turns 18.”
After responding to which other financial literacy modules they would be interested
in attending, the participants were then asked why they did not want to attend the other
modules. The participant responses support a current time-frame orientation theme. Lee
replied, “Not now… but maybe I would take them at a later time.” Wetgrass stated, “I know
stuff about banks and information on banking and understanding credit cards and how to use
them, so I feel that the one I chose are the ones that I would need help with.” Betty said,
Well the Charge it Right I don’t really use credit cards so that would not be one I would
attend. The Loan to Own I don’t know if I would need that at this time because I don’t know
that I would be taking out any loans at this time or in the near future (Betty).
The request on current money management style resulted with 75% of the
respondents divulging information that correlates to the current time-frame orientation sub-
theme. The money management style descriptions were grouped into sub-sections within the
sub-theme of current time-frame orientation that included; here and now, self-sabotage, and
savers. The Here and Now sub-section within the sub-theme of current time-frame
orientation can be identified through Chester, Jane, and Snow White. Chester described
himself as “…a paycheck by paycheck person.” Jane’s commented that “I never actually
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stop to think about how I spent my money I just spent it as I went.” Snow White replied, “I
am one of those frequent spenders. I go into the stores and if I see something, even if it is not
on my list I buy it.”
The Self-Sabotage characteristic sub-section was derived from participants’
comments that budgeting can be difficult. Annastasia remarked that “I get unnecessary
things with my savings stash that I dig into. I have a good budget plan but I still dip into that
money that I want to save.” Paul commented that “I try to budget but I could definitely steer
out of temptations here and there.” Juliet explained her bad habit
Pretty much at this point I just have all of my money going into one bank account and I
forget it until I need to make a payment and then I take it out but then as soon as I see how
much I have. I say I have a lot of money in there. I spend a little more because I saved a little
more, which in turn makes all my savings go away (Juliet).
The remaining 25% of the participants were labeled as savers within in the sub-theme of
current time-frame orientation. One respondent indicated that she was not always low
income by her story on savings. Angelina spoke about how her savings have helped her
since she became unemployed.
I do save but then there are times when I have to go into it for a reason but I have had savings
where I have been able to live off of it for a whole year …My financial situation or bills etc.,
is more than my income at this time, so me it is hard to budget. I have always been a saver, I
have a savings to buy what I want and then I have a long term savings where I know I am
going to need this in the long run (Angelina).
Specific characteristics of belief in self and current time-frame orientation represent
sub-themes of the first theme, participant characteristics. Participant characteristics identify
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personality traits of low income adults. These sub-themes are the components of theme one
interpretation in chapter five.
Theme 2 – Presentation of financial literacy programs. The second theme, the
presentation of financial literacy programs, uncovered the participants’ expectations and
perceptions for taking a financial literacy class. The presentation of financial literacy theme
contains three sub-themes. The first sub-theme titled, information wanted gathered what
information participants found relevant. The second sub-theme, presentation style pulled
together the participants’ preferences on how the information was delivered. The third sub-
theme, environment of financial literacy classes assembled class environment details favored
by the participants, which they considered helpful with their learning. Learning the
participants’ expectations provided information to modify financial literacy program
curricula and locations to meet the wants and needs of the program’s intended audience.
Information Wanted. What information for a financial literacy programs comprises
of the general consensus noted from the participants regarding wants, needs, and expectations
for attending a financial literacy program. The details underlying the concept of what should
be presented in financial literacy modules reflect the attitudes of participants who attended a
single financial literacy module on budgeting. Specific sub-sections included money
management and available support. The sub-section of money management was found in
selected responses from Chester, Jane, John, and Betty. Chester’s response was that,
The biggest thing I expected to learn obviously was management of money and how to
divide up spending and also the idea of how to be able to compromise what you don’t need
all the time versus what you do need, in terms of you don’t need to eat out twice a week, or
go out to buy new toys or new video, or sports equipment etc. (Chester).
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Jane replied that “I was just hoping to learn different ways to keep track of money.”
John stated his expectation “I expected that I would learn more banking and financial and
more about saving money.” Betty said,
I liked learning about the different ways to budget your money more for things that you want
versus the things that you need and how you can eliminate the wants if your needs are more
important and putting those above the wants (Betty).
Expectations to receive information on methods to managed money are supported by
5 selected participants’ responses. Belle responded that “How to organize my money issues.
Maybe an example of the spreadsheets…” Raptor said,
I just wanted to learn more of a guideline on how to save…The models for savings and
writing down expenses and everything, I had considered that in the past but I never realized
how practical it would be until it was written on paper until now so that was something that is
new to me now and I like that idea a lot (Raptor).
Margarita stated, “I wanted to learn how to better distribute my money for my bills
and pay my bills on time.” Betty answered,
Just talking about different systems of saving money, like putting it in envelopes, or you have
the option of putting it in the bank so that you do not see it, or different ways of organizing
on a calendar, or spreadsheet however you want to. I would like to start writing down more
daily of my spending habits so that I can see on paper what I am doing wrong or right
(Betty).
Jane response spoke of a budgeting technique, “The Spending Diary, so that I can see day to
day what I spend money on. I think I am going to take this page.”
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Available Support sub-section of the information wanted sub-theme emerged from
participants, who were pleased to learn of available support. Margarita happily responded,
“That there are places that can help me.” Paul stated, “Some tax credit, other information
about taxes and certain agencies that can help you out.” Annastasia expressed, “Yes, the tax
filing section, discussed who can file your taxes for free and who can file your taxes for free,
I did not know that and it was something new to me.”
Presentation style. The presentation style sub-theme falls under the presentation of
financial literacy programs theme, related to the delivery of the information when a
participant attended a financial literacy program. The participants remarked on what they
learned and what they liked best of the program and focused on simple ideas presented
clearly. The following comments textual support the key presentation items of simple ideas
and clear presentation appreciated by the study’s participants.
Participants spoke of learning new savings tips. Juliet’s, John’s, Foxy’s, and Snow
White’s responses follow. Juliet stated, “I did like the concept of using the separate account
with having and extra savings it’s a smart idea.” John replied,
Yes definitely, some of the new ones presented to me were about how I can save money with
the coupons and all the different ways to save money and financially be able to do other
things with your money and not spend it all (John).
Foxy answered, “The thing about paying yourself first, just simply before you get the
money in your hand. Just send $20 in an account and letting it build over a period of time.”
Snow White expressed, “Yes, the spreadsheets, the taxes, tax numbers and a couple of the
ideas for savings such as the list and not getting anything that is not on the list.”
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Organizing ideas were well received by the participants who expected to learn how to
organize money issues. Comments supporting organizing ideas included below are from Oil
Man, Angelina, Clint, Wetgrass, and Monster. Oil Man said, “They talked about the finance
expense and bill that you have to put away, and how you put the bill to come in at the same
time.” Angelina responded, “Yes the one where I can reschedule my bills so that they all
come in at one time.” Clint stated, “the Lemon Log”, referred an iphone application
mentioned by one of the other attendees who used Lemon Log to manage their expenses.
Wetgrass replied,
I think so, I like the expense envelop system it is a good way to not spend your money and
put them in different places and keep them separate, label them for things that you need them
for and know that you cannot take from there and then you have that money set aside and you
know what you can take from and what you can’t (Wetgrass).
Monster stated,
I would say the monthly payment calendar, although I would never really consider the
monthly aspect like daily and break it down, that was the most informative to me. It opens
the door for a yearly plan and it makes me looks towards the future rather than daily
(Monster).
Interesting financial literacy tips using technology came from participants not from
the material in the financial literacy program. The lemon log mentioned by Clint in the
organizing ideas sections was a suggestion by someone in his class. Juliet mentioned, “My
credit card limit is only up to $400 and I have an e-mail notification once I hit $200.” Raptor
explained, “…my bank every time I use my debit card it puts $1 dollar into my savings
account…”
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Another aspect of how to present the financial literacy program includes comments
from 40% (eight) of the participants about the clarity and helpfulness of the presentation
material. Textual support for clarity and helpfulness came from selected responses by Raptor,
Sarah, and Wetgrass. Raptor declared, “That it was written in a way that was easy to
understand and you don’t have to be super smart to understand money and it was simplified
so it was easy to comprehend.” Sarah commented,
What I liked the most is that it targeted me personally, because I knew exactly what was
going on and that everything that was being taught I had to take seriously and it was to help
me with my spending problem (Sarah).
Wetgrass remarked that
I liked all the different tools that I have, all the different sheets that were given to me to help
me manage my money, different worksheets like the monthly expense worksheets and the
monthly payment schedule and the monthly payment calendar. I think that will be useful in
the future (Wetgrass)
Environment of financial literacy classes. Environmental needs of a financial
literacy information session derived from comments describing class atmosphere liked by
participants. The participants’ commented on the class environment centered on small
groups which provided an atmosphere where the participants felt comfortable expressing
their thoughts. Chester’s spoke of class size begins the textual support for the environment
of financial literacy class sub-theme.
I think smaller groups work best; a big open group might make people more hesitant to ask
more questions because you don’t want to feel like you are so dumb in front of so many
people. When things are conducted in smaller groups or even a one on one session you feel
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you get a much stronger learning experience because you are directly in contact with the
person as compared to being in a big open atmosphere where there is plenty of who may
have the same question but are afraid to ask and by being a one on one you can say wait I
don’t understand or I have a question about this, can you explain that better. You will have
more clientele with larger classes but the learning experience I think will diminish (Chester).
Annastasia, Belle, Jane, and Juliet agreed about small groups,
Hearing everybody’s thoughts on what they do to save and to keep track of their money, like
the apps that they talked about, everyone had a different app as to how they saved for their
phone, on what they do and what could be helpful (Annastasia).
Belle declared, “Smaller groups are better. I would say 10 max, after that it starts to
get too loud and too many side conversations and you cannot really focus.” Jane responded,
I liked the people that I took it with because they asked questions that I couldn’t form so it
gave me more answers to questions that I couldn’t think of right away and more insight to
other things and it was described in a way that was also easy to understand (Jane).
Juliet expressed,
I liked that it wasn’t very dry course, it was fun, and I was able to understand things a little
bit better instead of just of being told to just do this, this and this, it was presented in a more
personal manner. I definitely would say a small group of people would be fine.
The presentation of financial literacy programs is the second theme and contains three
sub-themes that reflect on the participants’ wants, needs, and expectations concerning
financial literacy. The first sub-theme, information wanted, detailed information wanted
about money management and available support. The second sub-theme, presentation style,
provided guidance from participants about how to deliver the financial information with
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simple ideas clearly presented. The third sub-theme, environment of the financial literacy
class, participants requested the classes should be small.
Theme 3 – Accessing low income adults. The third theme, accessing low income
adults, extracted through the data analysis reflects the primary challenge of accessing low
income adult populations to increase participation in financial literacy programs. Questions
answered by the study participants provided possible solutions to increase participation by
low income adults in financial literacy programs. In order to increase participation of low
income adults in financial literacy programs participants’ responses were weighted toward
verbal communication (word of mouth) and focused advertisement targeting this population
group.
One hundred percent of participants attended the financial literacy program by verbal
referrals from either a family member (30%, six participants) or friend (70%, fourteen
participants). Some textual support follows. Clint said, “My friend told me about the
program.” John replied, “I learn about it from my neighbor.” Raptor commented, “I learned
about it through my roommate.” Holly explained, “I learned about it from my sister.” Lee
stated, “Through a family member.” Oil Man mentioned, “I heard about if from my cousin.”
Suggestions by participants to increase participation focused on advertising. Table 4
compiled the suggestions.
Table 4
Accessing low income adults – Participant Suggestions
Sub-themes
Sub-
sections Detail % of Respondents
Advertising
Flyers 65%
Community Centers
15%
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Schools 15%
Mall Kiosks 10%
Churches 5%
Coffee Shops 5%
In Utility Bills 5%
Tax Centers 5%
Where People Look for
Jobs 5%
Inclusions 40%
Food 10%
Interesting and
Beneficial
10%
Small Groups 10%
Child Care 5%
Weeknights 5%
Social
Media 30%
Word of
Mouth 40%
The interviewees were requested to think about marketing the financial literacy
program to attract people, like themselves, or people they perceived needed to learn financial
literacy skills. Each participant made multiple suggestions. The total percentage of
respondents therefore shown in Table 4 is greater than 100%. The results displayed in Table
4 were aggregated into two broad sub-themes from the study’s third theme: access to low
income adults. The sub-theme, Advertising generated sub-sections such as the location to
place flyers, suggested advertisement copy, and use of social media. The second sub-theme,
Word of Mouth is backed 100% by how the study participants came to attend financial
literacy program.
The subsequent quotes recorded from participants’ interviews provided textual
support of advertising. Snow White described,
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To get more people to come it depends because everyone is motivated by different courses
but if someone is going to be taking the budgeting class or something of that nature it is
because they are have money issues so the one thing that would stimulate people that are
having budgeting issues is money… post the signs in the stores and maybe even in the
papers, a lot of people flip through the paper, so that would be a good advertisement but not
where you have to spend a lot of money because obviously there are people who are
financially strapped who would benefit from taking a budgeting class. So as far as a
marketing strategy maybe you can talk to CL&P and see if you would be able to send a letter
out with the monthly electric bill and tie into some of the companies that bill people (Snow
White).
Juliet suggested,
After hearing it I’m going to put it into effect for myself and I can say look I’ve taken these
tips and use them to save money and you can do the same. If they ask how did I learn how to
do that, I can tell them that I went to these classes and they were easy, well spoken, easily
understood and you can learn a lot. I would say for something along this line I see people at
tables at certain events {mall kiosks} you can do that you can do that and do small
advertisement. Say hey, check out these modules they can help you save money or work on
your finances (Juliet).
The advertisement sub-section of inclusions listed different participant advertisement
ideas to increase participation rates. Wetgrass proposed that advertisements should mention
how individuals could benefit from a financial literacy course and that the module titles
should be revised to focus on benefits on the modules’ information
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I feel like if it is explained that this is to help people budget…I feel that they will be more
likely to take the course if they realize it is solely to benefit them and if they are going to get
tricks out of it and it will be useful so maybe explain to them how much debt people are in
and let them know that it is for their benefit. I feel like word of mouth is one of the best
advertising techniques. I’m not sure of any ways you can make it seem like it is a fun thing
but I feel like people are very into like benefiting themselves and helping themselves and if
they hear that they can get heal to save money they might be more inclined to go take the
course. Maybe make different titles for each module and make them sound more exciting and
more like they are going to benefit people (Wetgrass).
Chester impressed the need to include in financial literacy program advertisements
that classes are small and recommended that advertisements be made through social media
sites.
I think smaller groups work best; a big open group might make people more hesitant to ask
more questions because you don’t want to feel like you are so dumb in front of so many
people. When things are conducted in smaller groups or even a one on one session you feel
you get a much stronger learning experience because you are directly in contact with the
person as compared to being in a big open atmosphere where there is plenty of who may
have the same question but are afraid to ask and by being a one on one you can say wait I
don’t understand or I have a question about this, can you explain that better. You will have
more clientele with larger classes but the learning experience I think will diminish…Well of
course the one thing that probably in most age do is browse the net, so there is the basic
things of social media networking sites is always the best way to go (Chester).
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Sarah advised that word of mouth and social network advertising, explicitly Facebook
should be used. She added,
I will tell more people to come myself as well as my friends, because it has been really
beneficial to me. They might be skeptical at first but hopefully after l listening to it they will
have a better understanding. Possibly post something on the website as everyone is on the
web now-a-days. Maybe try to go on Facebook. Yes because everyone is always on it even if
it is for 5 minutes, they check updates and such. You can get many people to read it and
understand it especially all ages (Sarah).
The second sub-theme, Word of Mouth, came from 40% (eight) of the participants
but never as the only option. Lee remarked, “I guess by word of mouth. Oh, well maybe you
can visit like a church setting and hand out flyers to church members or a community center
and hand out flyers there as well”. Betty simply stated, “Word of mouth, maybe people
could tell their friends, and you can put up flyers in schools, banks or community centers”.
Raptor suggested both word of mouth and to advertise where people look for jobs.
Well, I think word of mouth couldn’t hurt and obviously advertising is big and maybe
placing ads in papers or maybe on job websites that is one thing I realize that when I am
looking for a job I am always worried about my finances as well, so perhaps something like
that may help some more people that are working or are not working but they are looking for
a new job so they can see that they can come take a class like this (Raptor).
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The results showed verbal communication from either friend or family made the
participants’ attend of the program. Participants’ suggestions included verbal
communication (word of mouth), place advertisement in locations where low income adult
population congregates, and that advertisement should focus on benefits to audience.
Summary
Chapter 4 began with the documentation of the data collection process to ensure the
occurrence of ethical procedures throughout the research, which included the validation of
the research instrument through external experts and a pilot study. The objective of chapter 4
included the presentation of themes generated from analyzing the responses from the
research participants. The themes represent categories to base curricula and marketing
platform changes to increase participation in financial literacy programs.
Theme one, participants’ characteristics identified two sub-themes of low income
adults’ personality traits: belief in self and current time-frame orientation. Theme two
reflects on the presentation of financial literacy programs acknowledging the participants’
wants, needs, and expectations. Sub-themes within the presentation of financial literacy
programs include information wanted, presentation style, and environment of the financial
literacy class. The third theme, access to low income adults, resulted in two sub-themes:
advertisement and word of mouth. The multiple suggestions by participants’ to increase
participation in financial literacy classes are outlined in table 4 listed under the sub-themes of
word of mouth and advertisement.
The three themes are connected to the research theoretical framework in chapter 5
and support the recommendations listed in chapter 5 in response to the central research
question of, What are low-income adults’ perceptions and expectations concerning financial
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literacy?, to increase participation of low income adult financial literacy programs. Chapter
5 contains the findings, limitations, and the recommendations derived from this study.
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Chapter 5
Conclusions and Recommendations
The purpose of this qualitative phenomenological study was to ascertain and interpret the
experiences and future financial expectations of low-income adults in Danbury, Connecticut
to increase attendance in financial literacy programs. Financial literacy programs for low-
income adults in the United States are designed for basic financial management to guide
participants into mainstream financial services (Curley, Ssewamala, & Sherraden, 2009;
Lyons & Neelakantan, 2008; Lyons & Scherpf, 2004; Servon & Kaestner, 2008; Zhan,
Anderson, & Scott, 2009) and to decrease their vulnerability to predatory lenders and
reliance on welfare programs (Chang & Lyons, 2008; Federal Deposit Insurance Corporation
[FDIC], 2009; Lim, DeJohn, & Murray, 2012; Wilson, 2012). Financial literacy programs
available through government agencies and financial institutions, however, have low levels
of participation (Chang & Lyons, 2008; Servon & Kaestner, 2008; Spader, Ratliffe,
Montoya, & Skillern, 2009).
This study explored the participants’ reactions to a financial literacy program
regarding whether the financial literacy program provided them with the knowledge and
skills to meet their personal financial literacy needs. The unique perspective of
understanding the financial literacy program participation of low-income adults from a
community nonprofit organization provided insights to develop financial literacy programs,
discovered new measurements of financial literacy education effectiveness, and uncovered
possible methods for increasing participation.
The research method of this study involved a small sample size of 20 interviews of
low-income adults and is reflective of the phenomenological research design used to collect
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data about personal experiences (Creswell, 2012; Leedy & Ormrod, 2010). The data
collection occurred between October 20, 2012 and December 4, 2012. The data analysis
followed Moustakas’ s (1994) modified Van Kaam’s seven steps for phenomenological
research studies.
Chapter 5 presents the results of the study’s themes in conjunction with Maslow’s
(1948) hierarchy of needs and Proschaska’s (1979) transtheoretical model of change to
understand human behaviors that affect personal behavioral change in relation to personal
financial knowledge development. The intent of this chapter is to present and interpret
findings drawn from the analysis of data. The chapter includes limitations and delimitations,
a discussion on the findings overarching themes; the significance of the study’s conclusions
and resulting implications, and recommendations for future research and financial literacy
program marketing and curricula changes to increase low-income adults’ participation in
financial literacy programs.
Limitations
Limitations to the study reflected availability of participants, honesty of the
participants regarding their financial literacy perceptions and expectations, the attendance of
a single financial literacy program module, the use of a transcriptionist, and geographic
restrictions. Weiss and Bailar (2002) explained that low-income adults’ lack of participation
in research studies comes from various factors, such as no telephone service, frequent moves,
language barriers, transitory nature, and often suspicion of strangers.
Participation in the study through interviews was supported by the nonprofit
organization’s gatekeeper and the use of the snowballing technique. The gatekeeper
maintained regular contact with low-income adults (Creswell, 2012; Weiss & Bailar, 2002).
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The use of snowballing was required because of the transitional nature of low income
populations and makes it difficult to follow up with the low-income participant population to
determine whether or not the participants made changes in their behaviors as assumed by
Proschaska’s (1979) second stage of contemplation.
Interview participation was voluntary, and participation resulted in a $25 gift card for
a local grocery store to increase response rates (Creswell, 2012; Weiss & Bailar, 2002).
Participants’ were only required to attend a single financial literacy program module, because
attendance records from the site gatekeeper showed a lack of attendance in a five module
financial literacy program. The interview’s open- and closed-ended questions were reviewed
by local financial literacy experts and the questions were revised. The pilot study required
additional revisions to the interview questions which increased the study’s validity and
reliability. To encourage participation in member checking gathering to review the research
recommendations, a raffle of a $100 gift card was included.
The use of a transcriptionist to document the interviews could be perceived as a
decrease in time the researcher could be immersed in the data. The skill of the
transcriptionist confirmed by the researcher, however, provided the researcher’s with more
time to effectively immerse herself in the data by listening and reading the interviews
necessary for interpretation of data.
The recommended curriculum additions could be applied to the target population to
increase participation in financial literacy programs not generalized to low-income
populations because opportunities and barriers reflect local environments. The study could
be replicated by other local organizations concerned with understanding the needs of their
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service population. The study provided new strategies, however, to increase attendance in
financial literacy programs.
Conclusions for Research Question
The central research question of, What are low-income adults’ perceptions and
expectations concerning financial literacy?, led the current study. The interpretation of the
data resulted in finding behavioral attitudes of low-income adults regarding attendance in
financial literacy programs. The findings revealed the study’s low-income adults’
perceptions of financial literacy and marketing ideas of financial literacy programs through
three interview constructs: of personal financial literacy, financial literacy programs, and
increase participation in financial literacy program. The data collected from the constructs
resulted in three themes.
Theme one, participants’ characteristics, provides information about two attributes:
sub-themes (1) the belief in self, and (2) current time-frame orientation. Theme two,
presentation of financial literacy program, reflects the participants’ described wants, needs,
and expectations from financial literacy programs. The three sub-themes resulted (1)
information wanted, (2) presentation style, and (3) environment of financial literacy classes.
Theme three, access to low income adults, resulted in two sub-themes (1) word of mouth and
(2) advertisement.
The themes were evaluated using both Maslow’s (1948) hierarchy of needs and
Proschaska’s (1979) transtheoretical model of change. Maslow’s motivation theory,
hierarchy of needs, describes an individual’s character growth. Character growth develops
from the fulfillment of lower-level needs before advancing to the next higher level of need.
The levels of needs, or stages, are physiological, security (safety), social (belongingness),
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ego or self-esteem, and self-actualization (Maslow, 1948). Proschaska’s transtheoretical
model of change developed to influence behavioral changes from unhealthy habits to healthy
habits. The model refers to six possible stages of change. The first stage, pre-contemplation,
involves initial awareness but no decision yet to make any changes in the coming six months.
In the second stage, contemplation, an individual decides to make changes over the next six
months. During the third stage, preparation, plans are made for change in the next 30 days.
The fourth stage is the period in which the individual has changed his or her behavior, but is
still within the first six months of change. The fifth stage, maintenance, occurs if the
individual has continued with the change for more than six months. The sixth stage can
happen at any time, and it is when a person relapses into their previous unhealthy behavior
(Proschaska, 1979). The themes evaluated using the theoretical framework from Maslow and
Proschaska, and the researcher inductive reasoning follows.
Theme 1 – Participants’ characteristics. Theme one participants’ characteristics
evolved from two constructs. The personal financial literacy construct questions investigated
the study’s participants’ perceived personal financial literacy aptitude and requested a self-
assessment of financial knowledge. The financial literacy construct requested specific details
about the financial literacy program design and results from the participants. The responses
provided the basis for both the first and second theme. The resulting sub-themes under
participants’ characteristics include belief in self and current time-frame orientation.
Belief in self sub-theme describes the lack of participant responses placing blame for
their financial low income status on others and the sense of self-confidence of the
participants. Current time-frame orientation sub-theme was identified by the lack of
financial goals or experiences that carried beyond a year time-frame. These sub-themes
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support theme two – presentation of financial literacy programs. Evaluating theme one in
relation to Maslow and Proschaska theoretical framework created information to design
financial literacy programs to possibly keep low-income populations engaged during the
program presentation and to expand the financial literacy program curricula.
The interpretation of the responses for the participants’ characteristics sub-themes
using Maslow’s (1948) and Proschaska’s (1979) personal motivation theories revealed that
85% of the participants were in Maslow’s second level of security and safety, and 15% of
the participants were at the third level of need, social (belongingness), when participants
mentioned their financial issues in reference to family. The participants were rated to be
either in Proschaska’s first or second stage of contemplating change and changed based on
individual question responses. A solitary participant appeared to be in Maslow’s second
stage of security (safety) need and Proschaska’s sixth stage of contemplation, which
represents a relapse into a detrimental money habit regarding the lack of the use of bank
accounts. This assessment was the result of the interpretation of a participant’s response to
question 1 about whether or not the participant has or would be willing to open a bank
account. In response to having or opening a bank account Jane said, “No, they are closed.
[Do you think you will be opening any bank accounts?] No, I think I will continue to keep
the cash with me and do the envelope idea.” A response later to what is missing in the
module explained the participant’s answer to question one. Jane stated, “As for myself
checkbooks never worked for me because I always balanced it out wrong. I need something
better than the checkbook and the envelope [system] that would work better.”
A question from the personal financial literacy construct asked the reason(s) the
participants attend the financial literacy program. The sub-theme belief in self correlates to
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Maslow’s second level of need for security, that is, of participant’s want to fill a gap of
knowledge to improve his or her financial security. Reference to Proschaska’s
transtheoretical model of change for the question revealed from the responses the second
stage of contemplation, that is, to make changes over the next six months (Proschaska, 1979).
Fifty percent (ten) of the respondents indicated their need to learn. A selected sample of the
participants’ responses confirming Maslow’s second level and Proschaska’s second stage of
contemplation follow. Chester’s response elaborated on his situation and his perceived need
to learn more about money management in his statement,
I was informed by a friend of mine who had told me about the program and told me that she
was going to be participating in the program as well. And she knows that I have financial
struggles and she knows it has been hard for me to manage money in certain situations and
thought the program would be helpful and that I would not have to feel uncomfortable
because the person that teaches the course is very nice, open minded and will listen to what I
have to say, so I wanted to give it a full effort and try and learn more so that I can also be
better at handling my finances (Chester).
Monster explained his reason for attending,
I’ve never been too responsible with money and I’ve never really fallen into the negatives but
I’m always scraping by and I’m lucky enough to make my bills on time but it’s the money
that I need for myself for fun that I never have (Monster).
Participants’ responses revealed a desire to improve their financial skills by
acknowledging poor money choices and infer that the participants are capable of learning
support the belief in self sub-theme of participant’s characteristic theme. Other participants’
remarks indicated why they need to learn, therefore a belief in self. These same remarks
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however can be related to participants’ current time-frame orientation. Juliet and Annastasia
reported on their self-sabotaging behavior. Juliet explained,
Pretty much at this point I just have all of my money going into one bank account and I
forget it until I need to make a payment. And then I take it out but, then as soon as I see how
much I have. I say I have a lot of money in there I spend a little more because I save a little
more, which in turn makes all my savings go away (Juliet).
Annastasia stated, “Well, because I get unnecessary things with my savings stash that
I dig into. I have a good budget plan but I still dip into that money that I want to save. I’m
pretty good otherwise.”
Further support to the sub-theme of the belief in self is the participants rated
themselves for money management on a scale of 1 – 10 (1 being the worst and 10 the best).
Table 5 presents the results of 80% of the participants rated themselves a 7 or better.
Table 5
Participant Self-Rating of Money Management
Rating 1 to 10 % of Respondents
1 –
2 –
3 –
4 –
5 10%
6 10%
7 25%
8 45%
9 10%
10 –
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An inquiry of whether or not the information presented was clearly understood by the
participants, resulted with all the participants in agreement that the material presented was
completely understood. Ninety-five percent (19) of the participants indicated that they
learned new financial concepts therefore, a transfer of knowledge occurred. Whether or not
the transfer of knowledge occurred because of the intelligence factor of the participants, the
presentation by the instructor, the material outlined by the program or a combination of all
three would require further research.
Many participant responses have an undercurrent reference to a short term time
orientation, hence the current time-frame orientation. The concept of the need to learn
reflects participants’ belief in self, yet what they need to learn represents current financial
issues. The participants were asked why they lacked interest in other available modules and
the resounding 100% of the responses were that the other modules were not of interest at this
time, therefore, the participants did not rule out taking the modules at a later date. The
participants were asked if they would be interested in taking other available modules.
Showed that 80% of the participants would be interested in taking one or two additional
modules demonstrating the participants’ willingness to learn based on their perceived needs
and a current time-frame orientation to financial literacy programs. One participant,
however, referenced wanting to learn about savings to support his daughter’s college
education and his daughter was due in January 2013, indicated a definite shift in current
orientation to long term orientation. His comment confirms a study by Sano, Manoogian,
and Ontai (2012) that a shift to long term orientation can occur for low income adults when
they have children.
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Theme one, participants’ characteristics, with both sub-themes, belief in self and
current time-frame orientation, should be considered in the modification of financial literacy
program development. The sub-themes indicated the participants’ readily fluctuate between
Maslow’s (1948) hierarchy of need levels two (security and safety) and three (social and
belongingness) as they develop their financial literacy knowledge. The participants’
responses indicated that their placement in Proschaska’s (1979) theory is either stage one,
pre-contemplation, that is, initial awareness but no decision on the making any change in the
next six months, or stage two, contemplation, that is, plans to make changes over the next six
months.
Theme 2 – Presentation of financial literacy programs. The financial literacy
programs construct expanded on the personal financial literacy construct to obtain specific
details about the financial literacy program design and results from the study’s population
perspective. The information obtained provided details about what was perceived as missing
and what course materials were effective. The responses generated from these two constructs
established the second theme of the presentation of financial literacy programs and sub-
themes. The sub-themes contained in the presentation of financial literacy program theme
comprise of information wanted, presentation style, and the presentation environment.
The information wanted sub-theme reflected back to the module title and the
participants’ expectations for money management and available support. The sub-theme,
presentation style, defined the participants’ request to present simple ideas clearly describes
the delivery of the material and combines to the participants’ characteristics of belief in self
and current time-frame orientation from theme one. The presentation environment refers to
the class environment of location and class size. The interpretation of the sub-themes using
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Maslow’s (1948) and Proschaska’s (1979) personal motivation theories revealed that the
participants were in Maslow’s second or third level of need and either Proschaska’s first, or
second stage of contemplating change.
The sub-theme information wanted comprises of the general consensus noted from
the participants regarding wants, needs, and expectations for attending a financial literacy
program. The details for underlying the concept information wanted represented the
financial literacy module on budgeting taken by the study’s participants and identify specific
sub-sections of money management and available support.
The sub-theme of presentation style evolved through various questions with answers
about simple ideas and budget examples. The financial literacy program construct requested
information regarding what participants liked best about the program, comments that the
presentation of materials was clear and helpful, which promotes the presentation style theme.
Paul’s, Sarah’s, and Wetgrass’ selected answers present the support for the current
presentation set up for the financial literacy program module. Paul described the presentation
style, “The clarity, it was very clear, straight forward and down to the point.” Sarah voiced
her opinion,
What I liked the most is that it targeted me personally because I knew exactly what was
going on and that everything that was being taught I had to take seriously and it was to help
me with my spending problem (Sarah).
Wetgrass expressed that the material offered was helpful,
I liked all the different tools that I have [received], all the different sheets that were given to
me to help me manage my money, different worksheets like the monthly expense worksheets
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and the monthly payment schedule and the monthly payment calendar I think that will be
useful in the future (Wetgrass).
Presentation environment sub-theme emerged details about the participants’ class
attendance of small groups. Clint remarked that, “The module on Money Matters, well, I just
like the environment of it…small group seems good because then you would get to actually
engage the reader I would say 10 people max, that would seem like a good number.” Juliet
revealed that,
I was able to understand things a little bit better instead of just of being told to just do this
and that. It was presented in a more personal manner. I definitely would say a small group of
people would be fine. A room full of 40-50 people would be too much but if you had a room
of 20 to maybe 30 that would be ok (Juliet).
The environmental theme was also supported by extracting comments from questions
in the increase participation in financial literacy programs construct. For example,
Annastasia explained how to market the financial literacy program environment,
I think group sessions are more fun and you hear everyone’s opinions on everything. You
offer people free appetizers and child care and designate one person to watch the children to
get the people going, because they may see it posted somewhere but it may be for a date
where they cannot find a babysitter or it’s going to be one on one and it’s not going to be
worth my time. A lot of people have children and they cannot take their children because
they hear financial and they think money just so grown up and they cannot bring the child
(Annastasia).
Chester elucidated on the size of class that he feels creates the best learning environment,
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I think smaller groups work best; a big open group might make people more hesitant to ask
more questions because you don’t want to feel like you are so dumb in front of so many
people. When things are conducted in smaller groups or even a one on one session you feel
you get a much stronger learning experience because you are directly in contact with the
person as compared to being in a big open atmosphere where there is plenty of who may
have the same question but are afraid to ask and by being a one on one you can say wait I
don’t understand or I have a question about this, can you explain that better. You will have
more clientele with larger classes but the learning experience I think will diminish (Chester).
Jane confirmed Chester’s opinion about how other attendees may have a question but are
afraid to ask,
I liked the people that I took it [the class] with because they asked questions that I couldn’t
form so it gave me more answers to questions that I couldn’t think of right away and more
insight to other things (Jane).
The environmental theme equates to small groups, ease of access, and program site
support of child care.
Presentation of financial literacy programs, theme two, confirms the theoretical
concepts from Maslow and Proschaska. Acknowledgement of the Maslow’s (1948) second
level in the hierarchy of needs, safety and security, and Proschaska’s (1979) transtheoretical
model of change, stage two contemplation, provides a basis of financial literacy program
development to meet the needs of low income adult audience. The three sub-themes offer
areas of financial literacy program development of financial literacy curriculum, financial
literacy presentation, and suggestions to engage low income adults audience in financial
literacy program.
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Theme 3 – Accessing low income adults. The third theme of accessing low income
adults resulted from direct questions of the participants under the third construct increasing
participation in financial literacy programs. The questions compiled data about (1) how the
participants’ learned of the financial literacy program and (2) the participants’ suggestions to
increase participation in financial literacy programs. The results of the compilation produced
two sub-themes of word of mouth and advertisement.
One question inquired about how the participant learned about the financial literacy
program. The responses referred completely to word of mouth from either friends or family.
This confirms the results of Schuchardt et al, (2007), who found that family and friends
influence the financial behaviors of the low-income population. The second question, which
asked for the participants’ opinions about how to market financial literacy programs,
produced the varied responses found in Table 4, which were clustered into two sub-themes,
advertising and word of mouth (Table 4).
Advertising suggestions came from 65% of the participants and 40% of the
participants stated the second theme of word of mouth. These responses were not mutually
exclusive because the participants offered multiple suggestions. One hundred percent of the
twenty participants attended, however, a financial literacy program because they were
influenced by either a friend or family member to attend. Participation was influence,
therefore, by referrals from trusted family or friends, not by advertisement.
This phenomenological study’s unique research method of soliciting the opinions of
low-income adults’ perceptions and expectations of financial literacy programs confirmed the
results of Weiss’ and Bailar’s (2002) study identifying why there is a lack of low-income
adults in research studies. The findings provided insight to the perceptions and expectations
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of low-income adults related to financial literacy program curricula. The program
development should be focused, therefore on; (1) participants’ characteristics to modify
financial literacy curriculum, (2) identify opportunities to transfer financial literacy
knowledge, (3) the marketing of the program encompassed by the low-income population’s
needs and that the program is trustworthy, and (4) the presence of the financial literacy
program by trusted people through community organizations. The findings to improve
participation came from participant suggestions and provide concrete marketing ideas. Only
through word of mouth, however, did the participants acknowledge the financial literacy
program and were influenced to attend.
Lachance and Tang’s (2012) research of trust and financial advisors found that there
is a U-shape curve regarding trust and financial advisors. Higher levels of distrust of
financial advisors occurred from people of both low and high levels of financial literacy. A
researcher from the University of Wisconsin-Madison, Collins (2012), reported that financial
advisors should complement rather than substitute for personal financial capabilities. Robb,
Babiarz, and Woodyard (2012) researched when people seek professional financial advice
and found that 40% of the participants earning less than $35,000 located debt counseling.
These studies confirm that trust is a factor in financial literacy program attendance and set
the framework for further research on the aspect of trust in financial literacy programs.
Significance of the Study
Financial literacy within the United States has not increased significantly during the
first decade of the 21st century (Lusardi, Mitchell, & Curto, 2010; Mandell & Klein, 2009;
Yates & Ward, 2011; Yilmaz, 2011). An increase in the size of the population living below
the poverty level, however, combined with the complex financial environment of decreasing
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social security expectations, defined pension plans, and changing welfare terms, affirms the
need for financial literacy education for low-income adults in the United States (DeNavas-
Walt et al., 2011; FDIC, 2009; Lenzner, 2012; Lusardi, 2012).
This phenomenological study of how low-income adults approached financial literacy
increased the understanding of how low-income adults manage their finances. This study
increased the knowledge base to develop financial literacy programs that actively engage the
cohort under study, and provided recommendations that could increase participation in
financial literacy programs. Considering low-income adults’ perspectives reversed the
existing top-down approach of program development for what low-income adults need to
learn to participate in the mainstream financial sector, and what low-income adults want to
learn to secure a stable financial future.
The results of the study contributed to identifying conceptual foundations about
understanding how low-income adults perceived financial literacy and how organizations
intent on increasing financial literacy among the low-income population may recruit
participation into their programs. The findings revealed new strategies to attract low-income
adults with minimal changes in curricula and increased community organization
advertisement with an emphasis on trust. These new strategies can support the United States
national push to increase financial literacy and support the population cohort’s preparation
for a sound financial future.
Significance of Study to Leadership
The United States and countries around the world support financial literacy at the
individual level because of deficiencies in financial literacy within the populations of many
countries (OECD, 2010; Yilmaz, 2011). The United States Treasury Department’s Financial
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Literacy Education Commission’s (FLEC, 2010a) stated vision is: “Sustained financial well-
being for all individuals and families in the United States” (p. 6). Access to low-income
adults, however, is difficult and participation in programs directed toward low-income
persons is low (Servon & Kaestner, 2008; Spader et al., 2009; Weiss & Bailar, 2002; Zhan et
al., 2009). The significance of a phenomenological study of low-income adults’ perceptions
and expectations of financial literacy to leadership is that the information collected provides
knowledge for program development.
The results of this study expanded the body of knowledge concerning low-income
adults’ perceptions and expectations of financial literacy in an effort to increase the
population’s participation in financial literacy programs. The extraction of information
regarding the study population’s preferences provided insights for curriculum design to
correspond to participant characteristics of current time-frame orientation and belief in self,
the presentation of financial literacy programs to deliver needed information timely, and
identified possible access points to engage the low income adult cohort.
Implications and Recommendations for Future Research
The findings of the study present opportunities for future research to determine
possible causal relationships between financial literacy program attendance using variables of
program duration and trust factors such as the class site location and instructor. The
phenomenological research study’s conclusions presented options to national and local
leaders to revise the financial literacy programs’ designs and presentation to increase access
to low-income adults. The study’s implications for future studies revolve around the research
study’s three constructs and resulting themes: (1) participants’ characteristics; (a) the belief
in self, (b) current time-frame orientation; (2) presentation of financial literacy program; (a)
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wanted information, (b) presentation style, (c) environment of financial literacy classes; and
(3) access to low income adults; (a) how the participants’ learned of the financial literacy
program – word of mouth, and (b) the participants’ advertisement suggestions to increase
participation in financial literacy programs.
Two implications for future studies consolidate the themes and focus on increasing
participation in financial literacy programs. First, increasing access to the low-income
population can come through building a trusting relationship with local organizations while
decreasing financial literacy class time commitments. The second implication involves
understanding that the low-income adult attributes of current time-frame orientation in
dealing with situations and wanting quick results requires modifying financial literacy
program curricula. Futures studies recommendations combine the hypotheses proposed and
measure the outcome by attendance numbers and referrals.
Recommendations to Increase Participation
The purpose of this qualitative phenomenological research study was to ascertain and
interpret the experiences and future financial expectations of low-income adults to increase
attendance in financial literacy programs. Understanding that financial literacy levels are the
lowest nationally for low-income adults, and that the population represents 30% of
households in the United States (FDIC, 2009), requires increasing this population’s financial
literacy. This is paramount in increasing national financial stability.
This study’s recommendations represent ideas to increase this populations’ financial
literacy. The first recommendation involves revising financial literacy curricula to meet the
needs of the population by recognizing the populations’ attributes, especially their current
time-frame orientation. The second recommendation follows the first, because without
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smaller modules of information and the removal of long term commitments an increase in
participation cannot occur. The second recommendation is to offer the financial literacy
program modules in familiar and trusted sites in the community at regularly scheduled
intervals. The sites can provide other necessary support for attendance based their local
resident’s needs. This recommendation is consistent with Maloney’s (2010) research
findings that financial literacy education needs support from organizations on a state by state
basis. These recommendations attempt to break the barriers of connecting with the low-
income adult population because of their current time-frame orientation and transitory living
situations.
Recommendations to National Leaders
National leaders and organizations designing financial literacy programs should
design modules in the framework of instant gratification, such that the participants leave a
class with a useable benefit. Funding of financial literacy programs should not require
lengthy commitments from attendees. Increase financial literacy program advertisement
funding for local communities to access their low income population.
Recommendations to Community Organizations
Community leaders providing financial literacy classes to low-income adult
populations should understand that lengthy commitments to financial literacy programs that
extend over multiple sessions are not of interest. Information should be provided as single
sessions and calendars of other available sessions handed out at the end of classes to provide
(1) opportunities for further personal development and (2) information on classes for
participants to refer friends and family. The offering and presentation of financial literacy
programs with a better understanding of low-income adult audience attributes can increase
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participation and, subsequently, create a foundation of long-term financial success for
individuals. This provides an opportunity to causes a positive ripple effect on global
economic stability.
Reflection
The dissertation topic, financial literacy, connected my skills and my desire to help
others. The dissertation process presented challenges, provided opportunities to meet people,
confirmed my desire to help, and developed options to continue my quest to help others.
First, of many challenges came through researching the significance of my dissertation to
understand what could happen with the research results.
Researching the significance of the study prepared me to be able to speak intelligently
on the topic of financial literacy. This knowledge provided the ground work to reach out to
people and organizations involved in financial literacy education. I found many organizations
working to increase financial literacy of low income adults were interested in my study, but
would not allow its clients to become part of the study. The interest but lack of access
became the biggest challenge of dissertation. The lack of access outweighed research
barriers outlined by Weiss and Bailar (2002) for having low income adults participate in
research studies. Weiss and Bailar (2002) explained that low-income adults’ lack of
participation in research studies comes from various factors, such as no telephone service,
frequent moves, language barriers, and often suspicion of strangers.
To overcome the biggest challenge required the evaluation of established contacts,
thereby, finding connections into the low income communities to establish a location for the
research study. The site I initially step up to use participants would speak English as a
second language if at all. Accepting that the researcher is the qualitative research instrument,
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I deemed the language different would impede data collection. My participation in other
nonprofit locations then provided a site location for the research and external local experts to
review the interview questions for clarity, leading questions, and possible bias.
The long standing relationship with the selected site coordinator provided access to
documentation on the financial literacy program offered at the site. The records showed very
few individuals actually attended every financial literacy program module presentation. The
lack of participation for a financial literacy program over an extended period was consistent
with my literature review results. Therefore, the flyer about the research project was posted
at the site and mailed to the addresses retrieved from the site documentation. The response
rate of five individuals from previous attendees was the basis for the snowballing of
additional participants. To initiate snowballing, the original participants told friends or
family members could attend a single financial literacy module offered at the site and qualify
to participate in the study. Three participants gathered four to six friends or family members
to attend what they felt was the most useful financial literacy module of budgeting. These
additional participants then scheduled interviews.
The results of the research confirm some characteristics of low income adults of
suspicious of strangers and current time-frame orientation. A method found to cajole
attendance from low income adults into a financial literacy module combined word of mouth
advertising and financial literacy education program modification to a single module. This
method and information accumulated in data collection provide the basis for further research
and began my continued involved in financial literacy education.
As I go beyond the dissertation, I am making use of new contacts in the community.
I have expanded my activities to include tax preparation for VITA, as a board member for
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Fairfield County United Way Financial Resources, became a volunteer budget counselor, and
plan to expand my drop in roll at the local high school to provide financial literacy education.
I understand now the dissertation process reflects the process of change.
Summary
Chapter 5 developed the study’s themes and connected the themes to the environment of
financial literacy education through sections on conclusions, implications, and recommendations.
The study’s conclusion confirmed previous studies findings of low participation rates by low
income adult cohorts (Chang & Lyons, 2008; Servon & Kaestner, 2008; Spader, Ratliffe,
Montoya, & Skillern, 2009) and documented possible modifications to financial literacy
programs and advertisement to increase participation. The recommendations included
acknowledgement of low income adults current time-frame orientation and belief in self to
modify financial literacy programs to be single topic sessions with information available at the
close of each sessions of other available sessions. The information made available at the close of
each session links to possible changes in advertisement. Suggested access points came from
participants requesting advertisement at local trusted sites, however, all the participants of this
study became involved through word of mouth signifying advertisement should be boosted
through trusted site spokespersons. Future studies could validate if these changes increase low
income adult participation in financial literacy, therefore increasing individual’s financial
stability and rippling results increase the nation’s financial stability.
This phenomenological research study to discover low-income adults’ perceptions
and expectations regarding financial literacy was documented through five chapters. Chapter
1 recorded the (a) background of the problem, (b) problem, (c) purpose, (d) research method and
design, (e) research questions, (f) scope and limitations, and (g) delimitations. Chapter 2 included
the literature review to present information on the topics related to financial literacy, low-income
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population characteristics, and theoretical synopsis on Maslow (1948) and Proschaska (1979) in
relation to human behavior to access financial literacy knowledge. Chapter 3 presented the
methodology and the rationale for the use of a phenomenological, qualitative research study
design to investigate low-income adults’ perceptions and expectations regarding financial
literacy. Chapter 4 outlined the results and themes generated by the analyses of this research
study data. Chapter 5 contained a discussion on the themes, implications, conclusions, and
recommendations.
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Appendix A
Key Word Searches
Key Words Peer-
reviewed
articles
Journal
articles
Books Websites
government
reports
Financial literacy 17 2 2 5
Financial
illiteracy
3
1
3
Prochaska’s
Transtheoretical
Method
Maslow’s
Hierarchy of
Needs
7
3
1
1
Financial literacy
educational
programs
12
2
2
Low Income and
Unbanked
15 3 1 3
Expectations of
financial literacy
Research Design
2
2
2
2
6
1
5
Total 61 12 11 19
155
Appendix B
Flyer to Solicit Participants
156
Appendix C
Individual Informed Consent Form
INFORMED CONSENT: PARTICIPANTS 18 YEARS OF AGE AND OLDER
Hello,
My name is Brigid Schaffer and I am a student at the University of Phoenix working on a doctorate of business administration [DBA]
degree. I am doing a research study entitled: A phenomenological study to discover low-income adults’ perceptions and expectations
regarding financial literacy. The purpose of the research study is to identify recommendations to improve the Money Smart program
and increase participation in the Money Smart program.
Your participation will involve one hour of your time answering questions about personal demographic information, your personal
thoughts and experiences in money management and the Money Smart program. The interview will be taped to ensure accurate
transcription. A validation check of the researcher’s interpretation of your comments will occur at the interview site in November
2012, where a drawing of a $100 store gift card will be drawn from the twenty volunteer participants of this study. You can decide to
be a part of this study or not. Once you start, you can withdraw from the study at any time without any penalty or loss of benefits.
The results of the research study may be published but your identity will remain confidential and your name and any family names
divulged during the interview will not be made known to any outside party.
In this research, there are no foreseeable risks to you.
Although there may be no direct benefit to you, a possible benefit from your being part of this study is your comments
could influence a change in the Money Smart program improving the program and increasing participation. If you have any questions
about the research study, please call me at (203) 241-5121 and bschaffer08@email.phoenix.edu. For questions about your rights as a
study participant, or any concerns or complaints, please contact the University of Phoenix Institutional Review Board via email at
IRB@phoenix.edu.
As a participant in this study, you should understand the following:
1. You may decide not to be part of this study or you may want to withdraw from the study at any time. If you want to withdraw, you can
do so without any problems. If you decide to withdraw during the interview because you no longer want to participate, please feel free
to tell the researcher then leave to go about your day. If you decide after the interview, to withdraw your interview comments, you
can call (203) 241-5121 or email the researcher Brigid Schaffer at bschaffer08@email.phoenix.edu or contact nonprofit organization’s
director at (203) 788-1920.
2. Your identity will be kept confidential.
3. Brigid Schaffer, the researcher, has fully explained the nature of the research study and has answered all of your questions and
concerns.
4. The interview will be recorded. Your signature of this document gives permission for the researcher, Brigid Schaffer, to record the
interview. You understand that the information from the recorded interviews will be transcribed. Your selection of a pseudonym
provides a code for the researcher to assure that your name is protected.
5. Data will be kept in a secure and locked area. The data will be kept for three years, and then destroyed.
6. The results of this study may be published.
“By signing this form, you agree that you understand the nature of the study, the possible risks to you as a participant, and
how your identity will be kept confidential. When you sign this form, this means that you are 18 years old or older and that you give
your permission to volunteer as a participant in the study that is described here.”
I agree to take part in this study, A Phenomenological Study to Discover Low-income Adults’ Perceptions and Expectations
Regarding Financial Literacy. I understand that my name or the name of anyone else in my family will not appear in any publications
or reports given to anyone else.
( ) I accept the above terms. ( ) I do not accept the above terms. (CHECK ONE)
Signature of the interviewee ____________________________________ Date _____________
Signature of the researcher _____________________________________ Date _____________
157
Appendix D
Non-Disclosure Agreement
Non-Disclosure Agreement
XXXXXXX acknowledges that in order to provide the services to Brigid Schaffer (hereinafter
“Researcher”) who is a researcher in a confidential study with the University of Phoenix, Inc.,
XXXXXXX must agree to keep the information obtained as part of its services (as more fully
described below) confidential. Therefore the parties agree as follows:
1. The information to be disclosed under this Non-disclosure Agreement (“Agreement”) is
described as follows and shall be considered “Confidential Information”: The taped interviews for
the phenomenological research study entitled “A Phenomenological Study to Discover Low-
income Adults’ Perceptions and Expectations Regarding Financial Literacy will be transcribed by
XXXXXXX. The interview tapes and resulting computer file with the transcription will be given
to the Researcher and no copies of said documents will be retained by XXXXXXX. All
information shall remain the property of Researcher.
2. XXXXXXXX agrees to keep in confidence and to use the Confidential Information for
transcription only and for no other purposes.
3. XXXXXXXX further agrees to keep in confidence and not disclose any Confidential
Information to a third party or parties for a period of five (5) years from the date of such
disclosure. All oral disclosures of Confidential Information as well as written disclosures of the
Confidential Information are covered by this Agreement.
4. XXXXXXXXX shall upon Researcher’s request either destroy or return the Confidential
Information upon termination of this Agreement.
5. Any obligation of XXXXXXXX under this Agreement shall not apply to Confidential
Information that:
a) Is or becomes a part of the public knowledge through no fault of XXXXXXXXXX;
b) XXXXXXXX can demonstrate was rightfully in its possession before disclosure by Researcher/
research subjects; or
c) XXXXXXXXXX can demonstrate was rightfully received from a third party who was not
Researcher/research subjects and was not under confidentiality restriction on disclosure and
without breach of any nondisclosure obligation.
6. XXXXXXXXXX agrees to obligate its employees or agents, if any, who have access to any
portion of Confidential Information to protect the confidential nature of the Confidential
Information as set forth herein.
158
7. XXXXXXXXX shall defend, indemnify and hold the Researcher and the University of Phoenix
harmless against any third party claims of damage or injury of any kind resulting from
XXXXXXXXX use of the Confidential Information, or any violation of by XXXXXXX of the
terms of this Agreement.
8. In the event XXXXXXXXX receives a subpoena and believes it has a legal obligation to disclose
Confidential Information, then XXXXXXXX will notify Researcher as soon as possible, and in
any event at least five (5) business days prior to the proposed release. If Researcher objects to the
release of such Confidential Information, XXXXXXXX will allow Researcher to exercise any
legal rights or remedies regarding the release and protection of the Confidential Information.
9. XXXXXXXX expressly acknowledges and agrees that the breach, or threatened breach, by it
through a disclosure of Confidential Information may cause irreparable harm and that Researcher
may not have an adequate remedy at law. Therefore, XXXXXXXX agrees that upon such
breach, or threatened breach, Researcher will be entitled to seek injunctive relief to prevent
XXXXXXXXXX from commencing or continuing any action constituting such breach without
showing or providing evidence of actual damage.
10. The interpretation and validity of this Agreement and the rights of the parties shall be governed
by the laws of the State of Connecticut.
11. The parties to this Agreement agree that a copy of the original signature (including an electronic
copy) may be used for any and all purposes for which the original signature may have been used.
The parties further waive any right to challenge the admissibility or authenticity of this document
in a court of law based solely on the absence of an original signature.
IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly
executed in its name and on its behalf:
Printed Name of Third Party/Vendor: ____XXXXXXXXXX_________________
Signature: _/s/__XXXXXXXXXX________________________________________
Address: ______XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX_______
Date: __8/8/2012____________________________________________________
Printed Name of Researcher: ____Brigid Schaffer______________________
Signature: ____/s/ Brigid Schaffer_____________________________________
Address: _____XXXXXXXXXXXXXXXXXXXXX______________________
Date:_____8/8/2012______________________________________________
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Appendix E
Premise Consent Agreement
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Appendix F1
Interview Research Questions Prior to Validation
Research Project Introduction: The research project wants to evaluate the Money
Smart Financial Literacy program to determine what can be done to improve the program
and increase participation. Also, to organize the data collected the interview begins with
demographic questions. Participants such as yourself have been asked to participate in an
interview because you have attended the Money Smart program.
The interview will be taped to offset my lack of ability to take shorthand and
ensure accurate documentation of the interview. The interviews will be analyzed to
develop recommendations to improve the Money Smart program. The interview should
take about one hour. If you feel comfortable to continue, I have a consent form which
explains the research project and your rights to end the interview at any time.
Your signature on the form provides me with your consent to use the information
collecting during the interview for the research study. Also, to protect your rights to
confidentiality after you sign the consent please give yourself a fictitious name which
will identify you in the research report.
[Collect signed consent form turn on microphone to record interview.]
Questions:
A Gender ___________ Female __________ Male
B Age when you attended the Money Smart program ___ 18 to 25 ___ 26 to 35 ___ 36
to 50
___ 51 to 60 ___ 61 to 70 ___ 71+
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C Number of people in your household _______ 18 and over ________ under 18
D Annual household income ____ 0 to $20,000 ____ $20,001 to $30,000
____ $30,001 to $40,000 ____ $40,001 to $50,000 ____ $50,001 to $60,000 ___ over
$60,000
E Do you have a bank account(s) ____ Never _____ Closed _____ Savings _____
Checking ____ Other
1. How did you learn of the financial literacy program?
2. Why did you enroll/take part in the financial literacy program?
3. What banking/financial information would you like to learn more about before you began
the program?
3.1. What would you like to learn since taking the program?
4. On a scale of 1 – 10 (1 being worst and 10 best), how would you rate yourself in terms of
understanding banking/checking/saving/bill paying and all aspects of money
management?
4.1. Why did you rate yourself this way?
5. What did you expect you’d learn before you enrolled in the financial literacy program?
5.1. Were your expectations met?
5.2. Why, or why not?
6. What did you find missing in terms of information provided in the financial literacy
program?
7. Were the learning modules clear and did you understand the concepts being taught?
7.1. If not clear, what was unclear or confusing?
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8. What new concepts/information about financial matters was presented to you in the
learning modules?
9. Were any of the concepts/information/money management methods presented in modules
things you already know about, or do?
9.1. What are they?
10. If the concept/information were new, do you plan to start using it or doing it now that you
have finished the program?
10.1. Why, or why not?
11. Do you know more about banks, banking, and handling money than you did before?
11.1. What are the new things you’ve learned?
12. Now that you’ve finished the program, will you open a bank account?
12.1. If so, checking or savings?
12.2. Why, or why not?
13. Please tell me what you liked best about the financial literacy program?
13.1. What you liked least?
14. We want to help people and we want to improve, so what can we do to improve our
financial literacy program?
14.1. What can we do to get more people involved?
Closing: Thank the interviewee for their participation and cooperation and that
their confidentiality will be maintained. Let them know if they have questions or
concerns they can get in contact through the gatekeeper, or use the phone number or
email listed on their copy of the informed consent form.
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Appendix F2
Interview Research Questions for Research Study
Research Project Introduction: The research project will evaluate the Money
Smart Financial Literacy program to determine what can be done to improve the program
and increase participation. To organize the data collected the interview begins with
demographic questions then, follows with questions about the Money Smart program.
Participants such as yourself volunteered to be interviewed because you have attended the
Money Smart program.
The interview will be taped to offset my lack of ability to take shorthand and
ensure accurate documentation of the interview. The interviews will be analyzed to
develop recommendations to improve the Money Smart program. The interview should
take about one hour. If you feel comfortable to continue, I have a consent form which
explains the research project and your rights to end the interview at any time which we
can go over.
Your signature on the consent form provides me with your permission to use the
information collected during the interview for the research study. It also protects your
right to confidentiality. To ensure your confidentiality, please give yourself a fictitious
name which will be used in the research report.
[Collect signed consent form turn on microphone to record interview.]
Questions:
A Gender ___________ Female __________ Male
B Age when you attended the Money Smart program ___ 18 to 25 ___ 26 to 35 ___ 36 to 50
___ 51 to 60 ___ 61 to 70 ___ 71+
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C Is your income over $30,000 _____ yes ______ no
D Number of people in your household you are financially supporting: adults 18 and over
________ and children under 18 ________
E Do you have a bank account(s) ____ Never _____ Closed _____ Savings _____ Checking
____ Other
1. Now that you’ve finished the program, will you open a bank account?
1.1. If so, checking or savings?
1.2. Why, or why not?
2. How did you learn of the Money Smart program?
3. Why did you decide to attend the financial literacy program?
4. Do you recall which Money Smart module or modules you attended?
4.1.1. Bank on It [Information on banks];
4.1.2. Borrowing basics [understanding credit cards];
4.1.3. Check It Out [How to use a checking account];
4.1.4. Money Matters [Budgeting];
4.1.5. Pay Yourself First [Savings];
4.1.6. Keep It Safe [rights as a consumer];
4.1.7. To Your Credit [how to read credit report and build and repair credit
history];
4.1.8. Charge It Right [How to use credit cards responsibly];
4.1.9. Loan to Own [Understanding options of types of loans];
4.1.10. Your Own Home [Home buying process];
4.1.11. Financial Recovery [steps to recover after a financial setback]
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4.1.12. Why?
4.2. And which modules would be of interest now, why?
4.3. Why not other modules?
5. On a scale of 1 – 10 (1 being worst and 10 best), how would you rate yourself in terms of
understanding banking/checking/saving/bill paying and all aspects of money management
before taking the program and after?
5.1. Why did you rate yourself this way?
5.1.1. Describe your money management style.
5.1.2. Do you have money habits you would recommend for others to use?
6. What did you expect you would learn before you enrolled in the financial literacy
program/module?
6.1. Were your expectations met?
6.2. Why, or why not? Can you describe information you expected but found missing?
7. Were the learning modules clear and did you understand the concepts being taught?
7.1. If not clear, what was unclear or confusing?
8. Were any of the concepts/information/money management methods presented in modules
things you already know about?
8.1. What are they?
9. What new concepts/information about financial matters was presented to you in the
learning modules?
9.1. If the concept/information were new, do you plan to start using or doing the new
concepts now that you have finished the program?
9.2. Why, or why not?
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10. Do you know more about banks, banking, and handling money than you did before?
10.1. What are the new things you’ve learned?
11. Please tell me what you liked best about the financial literacy program?
11.1. What you liked least?
12. We want to help people and we want to improve the financial literacy modules, so in
your opinion what can we do to improve our financial literacy program/modules?
12.1. What can we do to get more people to attend any of the financial literacy
modules?
Closing: Thank the interviewee for their participation and cooperation and ensure them that their
confidentiality will be maintained. Let them know if they have questions or concerns
they can get in contact through the organization’s director, use the phone number, or
email listed on their copy of the informed consent form.
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Appendix G
Participants’ Interview Transcripts
Participant Annastasia
Researcher: Good afternoon Annastasia thank you for participating in my research study
Researcher: What age were you when you attended the Money Smart Program 18-25, 26-35,
36-50,
Annastasia: 26-35
Researcher: Is your income over $30, 000
Annastasia: No
Researcher: How many people are in your household, children under 18 and adults over 18?
Annastasia: Under 18 there are 2, over 18 including myself there are 4
Researcher: Do you have any bank accounts?
Annastasia: Closed
Researcher: They are closed
Researcher: Now that you have finished the program are you going to open any bank
accounts?
Annastasia: I would consider opening a savings account
Researcher: But why?
Annastasia: I budget money and I put it to the side but then I dip into it, but if I open a
savings account, I can then take that savings money and put it into the account where I can’t
just run and go take
Researcher: So you are saying control access to your money
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Annastasia: Yes, you can call it that.
Researcher: How did you learn of the Money Smart Program?
Annastasia: From a friend
Researcher: Why did you decide to attend the program after you learned about it?
Annastasia: To get better knowledge on budgeting and see where I am with my budgeting
and see what can help me from this
Researcher: On the list of the Money Smart Modules can you recall which one you
attended?
Annastasia: I attended Money Matters
Researcher: Now you read the rest of them Bank on It- is information on Banks, Borrowing
Basics- is understanding basics credit cards, Check It Out- is how to use a checking account
and you did Money Matters, Pay Yourself First- is savings, Keep It Safe- is your consumer
rights, To Know Your Credit- is how to read your credit reports, Charge It Right –is how
to use your credit cards responsibly, Loan to Own-is understanding types of
loans,Homeownership and Financial Recovery. Do any of these perk your interest to go into
further?
Annastasia: The Pay Yourself First about savings
Researcher: Are there any that are of no interest
Annastasia: That would be the Homeownership process. I’m not quite there yet
Researcher: So the savings you would be interested in so we can put you in touch with
someone and if any others become of interest you can contact me and we can put you in
place to take the next one
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Researcher: On a scale of 1 to 10, 1 being the worst and 10 being the best how would you
rate yourself in terms of your money management skills before the program?
Annastasia: Before the program, I would say an about an 8
Researcher: Now how would you rate yourself after the program?
Annastasia: After the program, I would say probably about a 9-9.5
Researcher: Now why did you rate yourself that?
Annastasia: Well because I get unnecessary things with my savings stash that I dig into. I
have a good budget plan but I still dip into that money that I want to save. I’m pretty good
otherwise
Researcher: So you rate yourself a 9 because
Annastasia: Well now I am considering doing the savings account with the bank I won’t
have access to the money as easily
Researcher: Do you have any money habits that you would recommend for other people?
Annastasia: I would cut back on your non necessities if you are don’t need it or just because
it’s nice you don’t have to get it, use lots of coupons and shop around. If you have computer
or internet shop around for the best prices and value for what you need and not what you
want.
Researcher: What did you expect to learn before you enrolled in the Financial Literacy
module?
Annastasia: I thought that it was going to be a bunch of numbers, because you hear financial
and you think numbers, numbers, numbers. So I though numbers
Researcher: Was your expectations met
Annastasia: Yes, it was different than what I thought it was so yes
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Researcher: So it wasn’t formulas.
Annastasia: No it was talking about planning and saving and ways you can save more
Researcher: Without being formula forced
Annastasia: Yes
Researcher: Taking it can you described what you expected but found missing
Annastasia: As far as missing, not really because like I said I was expected more formulas
number wise and we discussed it in a different way so not really
Researcher: Were the learning modules clear and did you understand the concepts being
taught?
Annastasia: Yes
Researcher: Was any of the concepts presented, things that you already knew?
Annastasia: Yes
Researcher: What were they?
Annastasia: The spending the plan, and keeping trap and the sheets and such
Researcher: Were there new concepts presented to you?
Annastasia: Yes, the tax filing section, discussed who can file your taxes for free and who
can file your taxes for free, I did not know that and it was something new to me
Researcher: So the new things you plan on using them
Annastasia: Yes absolutely, its money savings
Researcher: Do you feel you know more about the banks and handling money than you did
before?
Annastasia: Yes
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Researcher: The new things you learn or new things you can pass along to the next
generation
Annastasia: The next generation is becoming very savvy with technology like we discussed.
What can I do say take these surveys they are not boring.
Researcher: What did you like best about the program?
Annastasia: Hearing everybody’s thoughts on what they do to save and to keep track of their
money, like the apps that They talked about, everyone had a different app as to how they
saved for their phone, on what they do and what. Could be helpful
Researcher: What did you like the least?
Annastasia: The least, I don’t think I have anything that I liked the least about the program
Researcher: So we are trying to improve the Financial Literacy Module so in your opinion
what can we do to make it more wow?
Annastasia: Bring more cake, to make it more wow, tell people that there will be others
there in groups instead of just a single one on one interview, you do it in a group and you tell
them you will share your ideas and learn new ideas and things. When people think about
doing an interview or we are going to interview someone or one on one and you have to sit
there and listen you get more than one person’s opinion and you learn ideas from that person
cCombine it. I think group sessions are more fun and you hear everyone’s opinions on
everything.
Researcher: So based on this whole concept of groups, how can we get more people to
attend, because they post that they have them but attendance is very low
Annastasia: You offer people free appetizers and child care and designate one person to
watch the children to get the people going, because they may see it posted somewhere but it
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may be for a date where they cannot find a babysitter or it’s going to be one on one and it’s
not going to be worth my time. A lot of people have children have children and they cannot
take their children because they hear financial and they think money just so grown up and
them cannot bring the child to the interview. So you designate someone to watch the children
and you have light refreshments and there will be other children for the kids to interact with
acts. Little parties maybe.
Researcher: Thank you for participating
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Participant Angelina Jolie
Researcher: Hi Angelina Jolie I appreciate you coming in for the interview for the Financial
Literacy Research Study.
Researcher: At what age did you attend the Money Smart Program 18-25, 26-35 or 36-50?
Angelina Jolie: 18-25
Researcher: Is your income over $30, 000
Angelina Jolie: No
Researcher: How many people are in your household, adults over 18 and children under 18?
Angelina Jolie: There is 1 adult myself and two children under 18
Researcher: Do you have any bank accounts?
Angelina Jolie: Yes I do
Researcher: What kind?
Angelina Jolie: Checking and savings
Researcher: So how did you learn about the Money Smart Program?
Angelina Jolie: Through a friend
Researcher: Why did you decide to attend the program?
Angelina Jolie: To see how it is and see if it would be able to help me budget
Researcher: You have in front of you a list of the 11 Money Smart modules and you
attended the Money Matters Budgeting and looking at the rest are there any of the remaining
modules that are of interest to you now or in the future and if not why?
Angelina Jolie: Own Your Own Home
Researcher: Why?
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Angelina Jolie: Well because renting is starting to be a pain to me
Researcher: What is a pain the rent?
Angelina Jolie: The rent and all of the other bills on top of the rent, it is just a lot of bills to
worry about every month
Researcher: You didn’t mention a lot of other ones, why didn’t they sound appealing?
Angelina Jolie: I like Pay Yourself First
Researcher: Ok that is the savings and why?
Angelina Jolie: I do save but then there are times when I have to go into it for a reason but I
have had savings whereI have been able to live off of it for a whole year, so I do know how
to save
Researcher: So there is no reason why the others have no interest for you?
Angelina Jolie: Probably the Loan to Own
Researcher: Understanding the different types of loans available out there
Angelina Jolie: Yes
Researcher: So the rest of them don’t have any interest for you?
Angelina Jolie: No not at this time
Researcher: Now on a scale of 1 to 10, with 1 being the worst and 10 being the best; how
would you rate yourself in terms of understanding money management before you took the
program and after?
Angelina Jolie: I would say I was an 8 before
Researcher: And after?
Angelina Jolie: Still an 8 after
Researcher: Why do you rate yourself these numbers?
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Angelina Jolie: I don’t really have a problem budgeting, it is more of a money factor with
the income that I have coming in to budget with. My financial situation or bills etc., is
more than my income at this time, so me it is hard to budget.
Researcher: How would you describe your money management style and how you
developed it and what influenced you into your savings mode?
Angelina Jolie: I have always been a saver, I have a savings to buy what I want and then I
have a long term savings whereI know I am going to need this in the long run.
Researcher: So you developed it on your own
Angelina Jolie: Yes
Researcher: Do you have any money habits, tricks of the trade things that you would
recommend to others that has worked for you?
Angelina Jolie: Don’t make plans for money you don’t have in your hands, like your tax
returns because you never know what can happen, if you can’t go out with your friends this
weekend that you can’t go out
Researcher: What did you expect to learn before you enrolled in the Financial Literacy
module?
Angelina Jolie: No not really
Researcher: Do you have any future expectations or goals, because you mentioned that you
wanted to buy a house, is that your next big goal?
Angelina Jolie: For the future yes
Researcher: Were the learning modules clear and did you understand the concepts being
taught?
Angelina Jolie: Yes
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Researcher: Were any of the concepts presented in the module things that you already knew
about?
Angelina Jolie: Yes
Researcher: Which ones do you remember?
Angelina Jolie: The scheduling
Researcher: What are some new concepts that were presented that you will use going
forward?
Angelina Jolie: Yes the one where I can reschedule my bills so that they all come in at one
time
Researcher: Do you feel you know more about handling your money than you did before?
Angelina Jolie: Yes I would say so
Researcher: Can you tell me what you liked best about the Financial Literacy program?
Angelina Jolie: I the daily and monthly charts
Researcher: What did you like the least?
Angelina Jolie: I don’t think there was anything that I liked least
Researcher: Now we are trying to help people and improve the financial modules, so in your
opinion what can we do to make the modules better or more interesting?
Angelina Jolie: Not anything that I can think of off hand
Researcher: The big one is how we can get more people to attend the modules? What kind
of marketing schemes do you think we can use to get more interested about Money
Management?
Angelina Jolie: Well it shouldn’t have to be a scheme because people should want to know
how to balance their finances.
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Researcher: How would we attract one that is slightly more interested to market to them to
say hey this is a great thing to do?
Angelina Jolie: Well you have the big money thing maybe give them lotto tickets, no not
really but maybe a small reward or a certificate.
Researcher: Ok and where do you think we should put up the signs?
Angelina Jolie: In tax offices, so that when they receive their refunds they won’t just blow it
and stores
Researcher: I was thinking too to put it in with your refund check to people so the Federal
Government can say well why Don’t you sign up for these programs that are close by
Angelina Jolie: Yes that would be good
Researcher: Well thank you so much for coming and participating.
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Participant Belle
Researcher: Good evening Belle and thank you for coming and participating in my Research
Study.
Researcher: What age were you when you attended the Money Smart Program 18-25, 26-35
Belle: 18-25
Researcher: Is your income over $30, 000
Belle: No
Researcher: What is the number of people in your household – adults over 18 and children
under 18
Belle: Adults over 18 is two and children under 18 is three
Researcher: Do you have any bank accounts?
Belle: Yes
Researcher: Current
Belle: Yes
Researcher: Are they checking, savings or other
Belle: Saving and checking
Researcher: Now that you have finished the program are you going to open other accounts
or are you satisfied with the with the accounts that you have.
Belle: For now I’m ok with the checking and savings
Researcher: Now how did you learn about the Money Smart Program?
Belle: Through a friend
Researcher: Why did you decide to attend the program
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Belle: Because I need help figuring out my money disabilities, because I do not know how to
manage my money properly
Researcher: Now you have a list of all the Money Smart modules there is a list of 10 of
them and you took the Money Matters Budgeting modules, now when you look at all the
other modules, were any of them of any interest to you to take
Belle: I wanted to look into Your Credit Module because there are some issues with my
credit and I would like to rebuild it.
Researcher: Ok, so also that might be Financial Recovery as well, just though you might
want to look into that.
Researcher: Now the other modules you did not pick, why?
Belle: Well some of the things I had already learned in school, like how to use a checking
account. I learned as a child and Understanding how to use a credit card is not that hard to
figure out that you have to use it and pay it off.
Researcher: On a scale of 1 to 10, 1 being the worst and 10 and being the best how would
you rate yourself with your money management before the program and after the program
Belle: Before the program probably a 3-4 and after a program getting up to about a 5-6 and
on my way to higher
Researcher: So why did you rate yourself those numbers?
Belle: I don’t really think about saving too often, I just think about paying thing off at the
moment but the module did make me think about saving for bigger things
Researcher: For long term more orientation so you are not dealing with today but dealing
with the future
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Belle: Right, that I don’t have to save big amounts I can save small amounts and it will add
up to big amounts eventually
Researcher: Do you have any money habits that you would recommend to others that would
help them. Any tricks of the trade that you use to make your money stretch, you know when
you are feeling pinched what do you do?
Belle: I stick to Ramen Noodles for food and get extra money by not spending it on bigger
food items, because I tend to eat out a lot
Researcher: So you just cut back on the eating out and you save.
Researcher: What did you expect to learn when you enrolled in this module?
Belle: How to organize my money issues
Researcher: Were your expectations met?
Belle: Yes
Researcher: Now thinking back is anything missing now that you think about the budgeting
and what you’ve learned, do you feel like there is something we should be adding to the
modules, something that is missing?
Belle: Maybe an example of the spreadsheets to use maybe
Researcher: Something to fill in and a more detailed explanation
Belle: Yes
Researcher: Now were the learning modules clear and did you understand the concepts?
Belle: Absolutely
Researcher: Were any of the concepts presented things that you already knew about?
Belle: I knew that I could get certain things back on my income tax if they were towards
school or work, like my uniforms for school could be put on my income tax.
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Researcher: Did you learn anything new
Belle: Everything else
Researcher: Are there any of the key modules that you are going to use later on?
Belle: The spreadsheets, it makes it easier to keep track of everything if I can write it all
down and learn to keep my Receipts so that I have an actual physical copy of things that I
have been spending my money on
Researcher: I might not have mentioned but someone else mentioned that there are some
apps on the phones this yellow wallet or leather wallet and you can just scan them in
Belle: That would be good because my receipts tend to fade pretty quickly when I try to save
them
Researcher: Do you feel that you know more about banks and handling money than you did
before?
Belle: Handling money yes, banks not so much, there is not too much to know about the
banks
Researcher: What did you like best about the program?
Belle: The presenter was very upbeat, it is a lot easier to follow information if the presenter is
not very drab and dull and can actually keep me interested in the program
Researcher: So how many people were in your program, was there a limit that works?
Belle: Smaller groups are better
Researcher: What is the number frame that works best for you?
Belle: I would say 10 max, after that it starts to get too loud and too many side conversations
and you cannot really focus
Researcher: What did you like the least about the program?
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Belle: I am a visual person and I like to have very color things around me to make me focus a
little more
Researcher: So the presentation should be more of a flash screen up on the wall
Researcher: We are trying to improve the modules, so in your opinion is there anything we
should do to jazz up the modules besides the visuals
Belle: Maybe have some exercises and have us walk through each one of the exercises
Researcher: Would people mind giving that kind of information up?
Belle: They could possibly use fake numbers just so that we could have an idea of how to
walk through it
Researcher: What is your marketing technique that you would use to bring people to take
the modules?
Belle: People my age and that are around me a lot tend to go coffee shops a lot, so I would
suggest putting out flyers in. Or anywhere that has caffeine available
Researcher: Is there any marketing ploy a big flashy phrase that we should put up, can you
envision something like that. We could put up at the coffee shop, like buzz words. Can you
think of anything like that? Think in terms of if you. We’re making it up and you had to go
put the signs up.
Belle: The only things I can think of is Manage Your Money Better, Save Your Money, Do
You Want to Have More Money Those kinds of things
Researcher: To draw their attention
Belle: Something in big bold letters to draw their attention
Researcher: Now do you think the time we already scheduled for them to walk-in or should
they be calling to set their own schedules
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Belle: I like the idea of setting their own schedules because people tend to be busy and it is
easy to work around your own schedule that to fit something into their already busy one. But
I think it is better to have a little of both to have the option to go to an open class or to have
one at your own time
Researcher: Ok so it’s better to have the option and say these are the scheduled classes but if
they don’t accommodate you please call here. Great ideas. Thank you Belle for participating
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Participant Betty
Researcher: Hi Betty thank you for participating in my research study
Researcher: What was your age when you attended the Money Smart Program 18-25, 26-
35?
Betty: 26-35
Researcher: Is you income over $30, 000
Betty: No
Researcher: What is the number of people in your household that you are financially
supporting, adults over 18 and children under 18?
Betty: Adults including myself only 1 and children under 18 there is 1
Researcher: Do you currently have any bank accounts?
Betty: Yes, checking and savings
Researcher: How did you learn about the Money Smart Program?
Betty: From a friend
Researcher: Why did you decide to attend the Money Smart Program?
Betty: It sounded like a good opportunity to learn about budgeting
Researcher: Do you recall which Money Smart module you attended?
Betty: It was Money Matters
Researcher: I have a list of all of the modules available through Money Smart, could you
tell me which ones you would like to attend in the future or not?
Betty: Own Your Own Home and Financial Recovery
Researcher: Why
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Betty: In the future I may be interested in purchasing a home or condo, so it would be good
to find out more about that and the Financial Recovery because I was laid off for two years
and just recently started working again in the past year, to find out more about getting a
handle on getting my finances back on track.
Researcher: You have the other modules listed, can you give me any reasons why you
would not attend any of the other ones?
Betty: Well the charge it Right – I don’t really use credit cards so that would not be one I
would attend. The Loan to Own – I don’t know if I would need that at this time because I
don’t know that I would be taking out any loans at this time or in the near future
Researcher: On a scale of 1being the worse and 10 being the best, how do you rate yourself
on understanding Money Management before you took the program and after?
Betty: I would say a 6 before the program and after I would say an 8.
Researcher: Why did you rate yourself this way?
Betty: Well, I think before I knew pretty well how to manage my money but then hearing
different ideas and new things made me have some new ideas I may want to think about.
Researcher: Could you describe your current money management style?
Betty: At this time it is week to week
Researcher: Do you have any money habits that you would recommend to others to use?
Betty: What I do now is write my bills out on a piece of paper as what’s needed to be paid
sooner and later and try to get to those immediate items first and then get to the lesser items
that are due months down the road and figure out how I can save for that later.
Researcher: What did you expect that you would learn before you enrolled in the Financial
Literacy module?
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Betty: I guess ways to manage my money as far to cut out things that I don’t need or
different ways to lay out your finances, bills and things like that and also to organize.
Researcher: Were your expectations met?
Betty: Yes
Researcher: Can you describe any information you expected but might have been missing?
Betty: I can’t really think of anything that was missing
Researcher: Were the learning modules clear and did understand the concepts being taught?
Betty: Yes
Researcher: Were any of Money Management methods presented in the modules things that
you already knew about?
Betty: Some of them yes
Researcher: What were they?
Betty: Some of the tax programs I knew about, also writing daily your spending habits as
well
Researcher: What new concepts about money management were presented to you?
Betty: Just talking about different systems of saving money, like putting it in envelopes or
you have the option of putting it in the bank so that you do not see it or different ways of
organizing on a calendar or spreadsheet however you want to.
Researcher: Now that you have finished the program are you planning on using any of these
new things?
Betty: I would like to start writing down more daily of my spending habits so that I can see
on paper what I am doing Wrong or right
Researcher: Do you feel that you know more about handling money that you did before
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Betty: Yes I do
Researcher: Can you tell me what you liked best about the program module?
Betty: I liked learning about the different ways to budget your money more for things that
you want versus the things that you need and how you can eliminate the wants if your needs
are more important and putting those above the wants.
Researcher: What did you like the least?
Betty: I can’t really think of anything that I liked the least. I think it was all useful
information
Researcher: We want to help and improve the Financial Literacy Module, so in your opinion
what can we do to improve the module that you took.
Betty: I think maybe making more people aware of the program so that more people know
about it
Researcher: That is the next questions, what are your ideas that will increase participation?
How can we get more people to take a module that interests them and make them aware of
the program?
Betty: Word of mouth, maybe people could tell their friends, and you can put up flyers in
schools, banks or community centers
Researcher: Thank you for your participation in my research study.
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Participant Chester
Researcher: Hi Chester thank you for coming and participating in my research study
Researcher: So what was your age when you attended the Money Smart module 18-25, 26-
35?
Chester: 18-25
Researcher: Is your income over $30, 000
Chester: No
Researcher: What is the number of people in your household, adults over 18 and children
under 18?
Chester: There are 2 over 18 and none under 18
Researcher: Do you have any banks accounts?
Chester: Yes I have two
Researcher: Are they currently open?
Chester: Yes
Researcher: Are they savings and checking?
Chester: Yes
Researcher: Now that you have finished the program are you going to open any additional
accounts?
Chester: I plan on eventually opening another account, I’m not sure of the name of it but it is
a locked account where you cannot open it for x amount of years and you can deposit into but
if you were to withdraw you get a penalty.
Researcher: Now how did you learn about the Money Smart Program?
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Chester: I was informed by a friend of mine who had told me about the program and told me
that she was going to be participating in the program as well and she knows that I have
financial struggles and she knows it has been hard for me to manage money in certain
situations and thought the program would be helpful and that I would not have to feel
uncomfortable because the person that teaches the course is very nice, open minded and will
listen to what I have to say, so I wanted to give it a full effort and try and learn more so that I
can also be better at handling my finances.
Researcher: Do you recall which Money Smart module you took?
Chester: It was the Money Matters Budgeting module
Researcher: You have the list of all ten modules Money Smart has, when you look at then
are there any of interest to take in the future?
Chester: For me the two that I would be most interested in are Loan to Own and Your Own
Home because for myself the next big investment that I want to make is owning my own
home.
Researcher: Now looking at the other one are there one that are of no interest to you?
Chester: There are two and that is because I want to make sure it never happens is Financial
Recovery, because I don’t plan on having anything happen to be set back and Right of the
Consumer.
Researcher: Are these two that you are saying you would want to take just to steer clear?
Chester: No, they are the two I would be the least interested in?
Researcher: On a scale of 1 to 10, with 1 being the worst and 10 being the best how would
you rate yourself in term of your money management before and after the program?
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Chester: Before the program I was about a paycheck by paycheck person so I would be on
the lower side so about about a 3 or a 4. After the program and getting a better understanding
of what I need to know, what I’ve learned from it if all goes right I should be between
an 8 to 9.
Researcher: can you describe your current money management style, how you manage your
money?
Chester: Well throughout each paycheck it is direct deposit and from there I divide off based
off on what I have to pay the bills so I get paid biweekly. So each paycheck half is going to
bills, and I have a lot of hospital bills to pay and I have my car paid off which helps. So 45%
of each pay check goes directly to bills from the start so that leaves me with essentially one
check every period that I have to myself. More recently I have been spending money a bit
more easily than in the past. Before I would spend my money down to the wire and hope to
make it the last few days before the next paycheck and then repeat that process. The best way
I go about budgeting before I had the bigger bills was that I would take $50 cash out during
the week and keep that in my wallet and everything else I would keep in my savings account
so that way I can’t use my credit card to charge because I would have to go down to the bank
and transfer the money and this was before I had smart phone to do it electronically.
Therefore anything I had to spend on it was something that I had to prepare for, granted that
it leaves me stuck if there is an ice for example and my car breaks down or if I ran out of gas,
then I would have to better prepare but for the most part I would leave everything in my
savings and only car a small amount of cash on me. If I had to go to the bank I knew I only
spent the $50 so far and what I have in the bank remaining.
Researcher: So how are you planning on changing what you are doing now?
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Chester: Well, I still plan on doing the same idea where I keep the minimum amount of cash
on me
Researcher: You were talking about owning your own home, so what is your plan on
starting to save towards owning your that?
Chester: At this point I work more hours than I did before, so I have more income coming in
now, and I have a very short commute to work and on that route I pick up a co-worker so
now we carpool and split the cost of commuting to work. So that saves me on gas money and
I also have in both accounts now for that where my paycheck gets divided through both so I
still have money in my checking accounts as I need to and the money that goes into my
savings I take half of that and put it into this separate investment account where it goes
strictly for home ownership and because there is a penalty for withdrawing monies from it I
cannot afford to do so, so all of that money will be just for purchasing a home. So I may
have a bit less in my savings but I have that money ultimate worst case scenario it is still
available, but not readily accessible for things that are not necessary at this time.
Researcher: What did you expect to learn before you enrolled in the Financial Literacy
Budgeting Module?
Chester: The biggest thing I expected to learn obviously was management of money and
how to divide up spending and also the idea of how to be able to compromise what you don’t
need all the time versus what you do need, in terms of you don’t need to eat out twice a
week, or go out to buy new toys or new video, or sports equipment etc. I felt that it also
taught me the idea of being able to control your spending by knowing what you can write out
for meaning if you were to make a spreadsheet for example to show what you spend on
average, whether it is per day, week or month whatever suits you that it gives you a better
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idea than saying I have $1200 in this and this item that I want is about $300 so I’ll have about
$800 left and if you don’t keep track of it then of course you are going to keep spending and
then one day you are going to be declined. But by writing out a spreadsheet and having a
budget, even on a phone or computer so that you have it easily accessible it will help.
Researcher: Were your expectations met from the modules?
Chester: Yes they were
Researcher: When you think back on the module is there anything missing or something that
should be put in there for people to see or hear on budgeting?
Chester: I think if there was some ideas to grow it could be like giving the attendees a fake
budget with monopoly money and say here is your budget and say you have a certain amount
of money for the month and these are your bills, this the rest of what you have now what do
you want to spend your money on and how would you normally handle your bills versus
what you think you should do for the day.
Researcher: Were the learning modules clear and did you understand what was being
taught?
Chester: Yes every single point
Researcher: Were any of the concepts presented things that you already knew?
Chester: Some yes
Researcher: Do you know which one they were?
Chester: The ones I remember are the ideas of how to meet your financial goals, the free tax
program called VITA and the idea of using spreadsheets to better finance your accounts.
Researcher: Are there any new ideas that were presented to you in the module?
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Chester: The one new thing that was presented to me because I did not know the difference
was ideas of expenses and what the difference was between flex spending and fixed
expenses. I always thought that fixed and fiscal spending were the same but was explained
to about some of the differences were as comparison to and I got a better understanding of
the two.
Researcher: Are any of the new concepts things that you are will apply going forward, in
terms of the computer spreadsheet?
Chester: Yes, that is one of them
Researcher: Do you feel that you have learned more about banks and how to handle money
that you did before the program?
Chester: Definitely more about how to handle my money absolutely
Researcher: What did you like best about the program?
Chester: From the start I had a very comfortable feeling going into this and I knew that this
was not just going to be a yes/no this is what you need to do. If I had to walk into a bank with
these same questions to get help it would not have had the same outcome. I felt this program
made me feel more at ease, that I did not have to eat out all the time, or take random drives to
Maryland. Before the program I was on overkill and now I see ever expense I can do instead
of waiting for my monthly bank statement to show me that I blew through my money, this
can show me how much I can spend for the weekend and if I go over that that if cuts into
what I have for the next week and limits my flexibility going forward.
Researcher: What did you like the least?
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Chester: I felt that I needed more of an understanding about banks in general. I do know a
thing or two about banks but maybe some smaller details like the difference between bank
and credit union and how one can help over the other.
Researcher: Actually that is the Bank On module which explains the difference between the
two, just so you know.
Researcher: Now the concept we are trying to do here is to improve the Financial Literacy
modules, so the one that you took, what do you think can help jazz it up or make people like
it more? Is there anything you can suggest, like the size of the classes, doing it on a loan
basis, etc.?
Chester: I think smaller groups work best; a big open group might make people more
hesitant to ask more questions because you don’t want to feel like you are so dumb in front of
so many people. When things are conducted in smaller groups or even a one on one session
you feel you get a much stronger learning experience because you are directly in contact with
the person as compared to being in a big open atmosphere where there is plenty of who may
have the same question but are afraid to ask and by being a one on one you can say wait I
don’t understand or I have a question about this, can you explain that better. You will have
more clientele with larger classes but the learning experience I think will diminish.
Researcher: So is there a number that you think the class size should not go beyond?
Chester: Honestly I don’t think it should go above one. For the best experience if you don’t
have anyone else to cause a distraction to you then you can focus directly on what you need
to. I think any experience is best learned one on one. Depending on the person they can be
as easily distracted as the person causing the distraction.
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Researcher: We are trying to get more people to take the program, so what would your
marketing scheme be for your age group to get them to come? How can we market the
program and different modules to them? Should we market the modules all together as one
big package or individual packages?
Chester: I would definitely go with the individual marketing of the module approach. When
someone especially in an age range such as mine the 18-25 range, everyone would be
hesitant with a lot of more thrown at them especially with the younger group. To throw so
much at someone from the start seems overwhelming for anybody, if you give someone a big
book to study compared to a smaller flip through book you will be more intrigued by the
smaller book and you may find interest in a certain chapter and you may learn about loans
and how they work so then you say let me learn about the home mortgages and expand from
one to the next. But throwing all of them at once you might find that they are not interested in
A-E but F and G is ok, then you feel that you are wasting your time and not care until it
comes to a point where you do care. Individually marketing the ones that you want you
specifically target what you want and need to learn for what you feel will make you grow
better.
Researcher: That is a great way to market by module. Now how do we get in contact with
your age group, what is the best marketing tool for that…posters on boards?
Chester: Well of course, the one thing that probably everyone in my age group do is browse
the net, so there is the basic things of social media networking sites is always the best way to
go. Those always have the most viewers at a time even though you may not have the best
results because someone might not be there to check that out. Television programming works
very well if you know your target audience, usually for the most part it will be people late at
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night because a. they do not work or b. they are up late to begin with because they are
stressed throughout the day and they can’t sleep. Targeting the weekends would not work for
my age group because we like to go out, so they are harder to do. So targeting at the
beginning or at the end of the month when people have their bills due and that would be the
perfect time to exemplify what you have to offer because you are there to say you are
struggling, why not take an hour out of your day like a Thursday if you are home and not
busy. You have that are due soon and you won’t have enough to pay them and you won’t
know what to do, you may try to do a Google search but that won’t help but if you took this
program it will help you out much better along the way much better than last minute. I’m out
of ideas searches.
Researcher: Ok, well thank you for being a part of my research study.
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Participant Clint
Researcher: Thank you Clint for participating in my research study
Researcher: So what age were you when you attended the Money Smart Program 18-25,
26-35, 36-50
Clint: 18-25
Researcher: Is your income over $30, 000
Clint: No
Researcher: How many people in your household adults 18 and over and children 18 and
under?
Clint: One adult over 50 who is my father
Researcher: And no children under 18
Clint: No children under 18
Researcher: Do you already have a bank account?
Clint: No
Researcher: Never or were they closed
Clint: Never
Researcher: Now that you have taken the program are you willing to open any bank
accounts?
Clint: Yes, a savings account would be nice
Researcher: Why
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Clint: Just to save money and keep it. If I ever come across a situation where I am
financially in debt or something like that, I would have that money stored so if I ever need it I
could take it out and use it
Researcher: How did you learn about the Money Smart Program?
Clint: My friend told me about the program
Researcher: How did you decide to attend the program? Your friend told you about it but
what made you want to go.
Clint: I was curious to see what was going on and to be better financially suite myself
Researcher: Now do you recall and I am giving you the list of the 10 Money Smart modules,
if you can look at it. Can you recall which one you attended?
Clint: Money Matters
Researchers: Out of the remaining ones, are there any that seem of interest to take later if
not now, next month, or two months from now?
Clint: Financial Recovery
Researcher: Why?
Clint: It seems like it would save me out of a situation, so I would see what happens
Researcher: That’s a module that’s inclusive of all the other ones so you are just hitting it to
the quick and then you can skip all the other pieces
Researcher: Is there any on here that you would never want to attend that just don’t seem to
fit?
Clint: I mean all of them provide knowledge about a financial situation which some of them
or pretty much all of them I really don’t know about. So to say one I wouldn’t take it a bit
presumptuous. I don’t want to say that.
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Researcher: On a scale of 1 to 10, 1 being the worst and 10 being the best, how do you rate
yourself in terms of your financial literacy and your money management skills before the
Budgeting Module and after?
Clint: Before I rated as a 4, now I would say it has moved up to a 5 or 6
Researcher: Now why would you rate yourself as a 4 and then a 5?
Clint: I learned ways that I could better adapt myself, like conserving my money and
keeping track of my spending. That is definitely some knowledge that I could use. The 4 I
didn’t care that much, and now especially opening a savings account to save some money
would be nice. So I rate myself from a 4 to about a 6
Researcher: What is your current money management style like?
Clint: Do you mean how my spending is
Researcher: Yes
Clint: I don’t really spend a lot; the only thing I would spend nowadays is just on food. I
would say at least $20-$30 a month on delivery or something like that. There are times my
dad cooks so we are set on that
Researcher: Do you have any money habits that you would recommend for others to use?
Good tips, things that you do that are really helpful that other people could take to heart.
Clint: Definitely that Lemon Log let app could definitely save you some money. It keeps
track of your receipts and the amount of money you spend on food and such and one photo of
receipts and you can put that on a spreadsheet and keep track of your money spending habits,
which is definitely good.
Researcher: What did you expect to learn before enrolling in the Financial Literacy module?
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Clint: I kind of expected spread sheets and things like that, maintaining your money,
spending, how to conserve your money, etc. I kind of expected what came to be.
Researcher: So your expectations were met?
Clint: Yes
Researcher: Is there anything that you found missing now that you look back, is there
something out there that we could add to the program?
Clint: No, I think that it is all there, I think maybe you could add another question. It seems
like all of the questions from the beginning part to the end seems a bit sequential and they
almost seem in the same order. So maybe vary that up and make it seem harder and more of a
challenge.
Researcher: Were the learning modules clear and were the concepts being taught clear?
Clint: Yes
Researcher: Were any of the concepts presented in the modules things that you already
knew about?
Clint: Spreadsheets, I already knew that because my dad does that himself
Researcher: Were there any new things that were presented, like the Lemon Log
Clint: Yes the Lemon Log
Researcher: Do you plan to start using or doing any of the new concepts?
Clint: Yes, I am going to get that app right away and probably open up a savings account
and put some money in.
Researcher: Do you feel that you know more about banks and handling money than you did
before?
Clint: Yes I would say so
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Researcher: Could you tell me what you liked best about the financial literacy module that
you attended?
Clint: The module on Money Matters, well I just like the environment of it.
Researcher: Was it the environment, the small scale versus a big room or going into a big
auditorium.
Clint: Yes. No, no not really a small group seems good because them you would get to
actually engage the reader
Researcher: You have a number that you think it should not be bigger than X for it to be
effective and then if we went to like 50
Clint: Oh yes 50 would be a disaster,
Researcher: But 1 does not work?
Clint: No, 1 does not work, I would say 10 people max, that would seem like a good number
Researcher: What did you like the last about the program?
Clint: I guess my issue was the multiple choice portion was not that challenging enough but
that would be it.
Researcher: The research is to try and improve the module so it there anything that you can
think of than can help improve the module itself?
Clint: Not really, I think it is ok the way it is
Researcher: We are trying to engage more people and get more people to attend, you got it
through word of mouth and someone convinced you to come, how can we convince the
average person. What marketing ideas do you have that can make more people come?
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Clint: Well I think you need to target people who are financially struggling with their debts
and such, because if they learn about this then they would start saving and it would be an
education for them to start saving.
Researcher: So you are saying target but how?
Clint: I guess you can contact their friends, like I said my friend told my about this and I
came to the program so I guess you can put posters up but mainly tell people, “listen if you
can tell your friends about this place I would be grateful” to get more people to come and
learn
Researcher: So more word of mouth would work.
Researcher: Great thank you Clint for coming.
Participant Foxy
Researcher: Hi Foxy I appreciate you coming in for the interview for the Financial Literacy
Research Study.
Researcher: At what age did you attend the Money Smart Program 18-25, 26-35 or 36-50?
Foxy: 18-25
Researcher: Is your income over $30, 000
Foxy: No
Researcher: How many people are in your household, adults over 18 and children under 18?
Foxy: There are 2 adults and 1 child
Researcher: Do you have any bank accounts?
Foxy: Yes I do
Researcher: Which ones do you have?
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Foxy: Checking and savings account and closed
Researcher: So how did you learn about the Money Smart Program?
Foxy: From my cousin
Researcher: Why did you decide to come take the program?
Foxy: I think it is always good to know more information
Researcher: So you attended the Money Matters Budgeting module and as you can see
Money Smart offers 11 different modules, can you review them and see if there are any that
may be of further interest to you?
Foxy: I like the Pay Yourself First I think that is the savings
Researcher: Why does this one interest you?
Foxy: Well I pay everything first and then take out something last and then I have less at the
end. But if I take out some first and use the rest then I think I will be able to save more
Foxy: The other one that interests me is Owning Your Own Home because in a few years I
would like to own my own home.
Researcher: So there are about 9 others on the list that you didn’t choose from can you tell
me why they didn’t interest you?
Foxy: They just do not seem that interesting to me.
Researcher: Now on a scale of 1 to 10, with 1 being the worst and 10 being the best; how
would you rate yourself in terms of understanding money management before you took the
program and after?
Foxy: I would say a 6 before the program and now I would give myself a 8
Researcher: Why do you rate yourself these numbers?
Foxy: The little things I would never take those things into consideration but they do add up
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Researcher: How would you describe your money management style and how did you
developed it?
Foxy: I think it was family based and watching my mother from before and it was much
easier when I was single but now that I recently got married the beginning of this year it has
been a bit tough to match both of our ideas of managing money together and now with a baby
added in too. Plus our priorities are different.
Researcher: Do you have any money habits or recommendations, tricks of the trade things
that you have learned that other people might be able to use?
Foxy: I do not want a credit card, I want to avoid that as long as I have to and I try to take a
little cash out and do not use my debit card unless I have to and just live off of the money in
my purse and that way I can account for what I have. I find when I swipe I have no idea how
much money I end up spending
Researcher: Were the learning modules clear and did you understand the concepts being
taught?
Foxy: Yes they were clear
Researcher: Were any of the concepts presented in the module things that you already knew
about?
Foxy: A couple of them like the daily spending log which is tough when you are on the go
Researcher: I think it was more of like a once in a while kind of thing to analyze where your
money is going because otherwise you are not going to pay attention.
Researcher: What are some new concepts that were presented that you will want to take
forward?
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Foxy: The same thing about paying yourself first. Just simply before you get the money in
your hand just send $20 in an account and letting it build over a period of time.
Researcher: Do you feel you know more about handling your money than you did before?
Foxy: Yes I think so
Researcher: Can you tell me what you liked best about the Financial Literacy program?
Foxy: I liked that it opened your mind to different possibilities and there are a lot of
different ways to do things. We think that everything has to be computerized and I like that
but like my husband does not so this has a happy medium so that both of us can do it.
Researcher: What did you like the least?
Foxy: I don’t think there is anything I liked the least.
Researcher: Now we are trying to help people and improve the financial modules, so in your
opinion what can we do to make the modules better or more interesting?
Foxy: I think maybe some people are very graphic in terms of showing them how other
people did things, not just on paper maybe like more power points.
Researcher: What can do so more people will attend, how can market the program to get
them to attend?
Foxy: I did these focus groups that I say on Craigslist, so you could put it there and hold it at
a venue and you would be surprised at the amount of people that actually will come, because
a lot of big companies do that especially like Yale places ads and they call it a focus group
and they pay you like $30 and people do show up.
Researcher: Ok great that’s really good, thank you for coming.
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Participant Holly Berry
Researcher: Hi Holly I appreciate you coming in for the interview for the Financial Literacy
Research Study.
Researcher: At what age did you attend the Money Smart Program 18-25, 26-35 or 36-50?
Holly Berry: 36-50
Researcher: Is your income over $30, 000
Holly Berry: No it is not
Researcher: How many people are in your household, adults over 18n and children under
18?
Holly Berry: There is one adult and no children
Researcher: Do you have any bank accounts?
Holly Berry: Yes I do
Researcher: Which ones do you have?
Holly Berry: Checking and savings account
Researcher: So how did you learn about the Money Smart Program and this budgeting
module?
Holllie Berry: I learned about it from my sister
Researcher: Why did you decide to come take the program?
Holly Berry: I wanted to see what I could learn
Researcher: So you have a list of the Money Smart modules and I believe you took the
Money Matters Budgeting one. Now when you look at the remaining ones are any of them of
interest and why?
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Holly Berry: Number five is of interest the Pay Yourself First module
Researcher: Why does this one interest you?
Holly Berry: I would like to see if I could save a little bit more than I am now
Researcher: Are there any other ones of interest?
Holly Berry: Number 11 which is Financial Recovery
Researcher: So why would you want Financial Recovery?
Holly Berry: Well I am not working right now so maybe that could help me
Researcher: So there are about 9 others on the list that you didn’t choose from can you tell
me why they didn’t interest you at all?
Holly Berry: Well I do not have a credit card and I don’t own my own home at this time
and I can budget myself pretty good so far.
Researcher: Now on a scale of 1 to 10, with 1 being the worst and 10 being the best; how
would you rate yourself in terms of understanding money management before you took the
program and after?
Holly Berry: I would say I was about a 2 before the program and now I am at a 7 after.
Researcher: Now why do you rate yourself this way?
Holly Berry: I was not spending the right way before
Researcher: So after the program you are a 7
Holly Berry: I learned not to spend my more
Researcher: How would you describe your money management style and how did you
develop it and who influenced it?
Holly Berry: My mother influenced my style and I pay the most important bills first and I
don’t go shopping a lot.
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Researcher: Do you have any money habits or recommendations, things that you have
learned along the way that other people might be able to use?
Holly Berry: I don’t really have anything special that I do
Researcher: What did you expect to learn before you enrolled in the learning Money Matters
module?
Holly Berry: Just basic budgeting because I watch Suzie Orman a lot on t.v.
Researcher: Do you have any future goals or expectations for yourself financially?
Holly Berry: Yes to hopefully get a job and start saving more
Researcher: Were the learning modules clear and did you understand the concepts being
taught?
Holly Berry: Yes they were clear
Researcher: Were any of the concepts presented in the module things that you already knew
about?
Holly Berry: Yes somewhat
Researcher: Do you know which ones they were?
Holly Berry: I think believe it or not I knew most of them
Researcher: What about anything new that you learned that you will take with you going
forward?
Holly Berry: Maybe not going to Dunkin Donuts every day and eating out all the time, I am
going to
Researcher: Do you feel you know more about handling your money before?
Holly Berry: Yes I do
Researcher: Can you tell me what you liked best about the program?
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Holly Berry: I like you and really learned a lot from the program
Researcher: What did you like the least?
Holly Berry: I can’t think of anything that didn’t like
Researcher: Now we are trying to help people and improve the financial modules, so in your
opinion what can we do to make the modules more interesting?
Holly Berry: I think everything is fine, the problem starts when people don’t follow the rules
of the module and then there is nothing that you can do to help them beyond that.
Researcher: The other big thing is how do you think we can market the program to get more
people to attend?
Holly Berry: Maybe offer them food
Researcher: Ok offer them food and get it out to the people, but where do we offer it to
them and say we are going to have a discussion on Money Matters and Budgeting to help
you? Where would we put that ad?
Holly Berry: Well you can do flyers in e-mails, pass them out at schools and have kids hand
them out to people as well.
Researcher: Holly, Thank you for participating.
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Participant Jane
Researcher: Good afternoon Jane and thank you for being apart of the Financial Literacy
Research Study.
Researcher: At what age did you attend the Money Smart Program 18-25 or 26-35?
Jane: 18-25
Researcher: Is your income over $30, 000
Jane: No it is not
Researcher: How many people are in your household, adults over 18n and children under
18?
Jane: There are 6 adults and no children
Researcher: Do you have any bank accounts?
Jane: No, they are closed
Researcher: Now that you have finished the program, do you think you will be opening any
bank accounts?
Jane: No I think I will continue to keep the cash with me and do the envelope idea and split
it off into different
Researcher: So how did you learn about the Money Smart Program?
Jane: My mother informed me about it
Researcher: Why did you decide to take the program?
Jane: I need a lot of help with my spending and I spend very frivolously
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Researcher: So you have a list of the Money Smart modules and I believe you took the
Money Matters Budgeting one. Now when you look at the remaining ones are any of them of
interest?
Jane: It would probably be To You Credit about how to read your credit and how to build
and repair your credit history because mine is pretty bad
Researcher: So are there any listed that you have no interest in?
Jane: Probably the Loan to Own
Researcher: Now on a scale of 1 to 10, with 1 being the worst and 10 being the best; how
would you rate yourself in terms of understanding money management before you took the
program and after?
Jane: Before I took the program I was probably only like a 4 and now I feel like it is around
a 7 or an 8.
Researcher: Now why do you rate yourself this way?
Jane: Before I never actually stop to think about how I spent my money I just spent it as I
went.
Researcher: You just described your money management style which, is spend as you go.
Jane: Yes
Researcher: Do you have any money habits or recommendations, things that you have
learned along the way that other people might be able to use?
Jane: One of the big things that I have learned this week is that I actually roll my own
cigarettes as oppose to buying pack after pack. When I calculated it I was spending about
$400 on individual packs and now rolling my own it cost me $30 and that lasts me 3 weeks
of cigarettes.
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Researcher: What did you expect to learn before you enrolled in the learning module?
Jane: I was just hoping to learn different ways to keep track of money
Researcher: Were your expectations met?
Jane: Yes
Researcher: Now thinking back about it is there anything in the module that is missing that
would be helpful to be thrown in there?
Jane: I guess more ways for people besides doing the envelope or the check book for writing
down your expenses. As for myself checkbooks never worked for me because I always
balanced it out wrong. I need something better than the checkbook and the envelope that
would work better, like examples of how to do it.
Researcher: So you are a more visual hands on learner than to have something on the side
and now you have figured out that the envelope is the best way for you?
Researcher: Were the learning modules clear and did you understand the concepts
presented?
Jane: Yes they were clear and I liked the examples that were examples that were given
Researcher: Were any of the concepts presented in the module things that you already knew
about?
Jane: Some of the things I already knew about were not spending on things that want versus
things that I need
Researcher: What were some of the new concepts that were presented to you in the module?
Jane: The Spending Diary, so that I can see day to day what I spend money on
Researcher: Will you use this new information going forward?
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Jane: Yes I plan to, I think I am going to take this page from you actually and bring it
upstairs and write it down
Researcher: Do you feel you know more about handling your money before?
Jane: Yes because now I can see myself saving for future expenses are a better idea than just
spending for now.
Researcher: Can you tell me what you liked best about the program?
Jane: I liked the people that I took it with because they asked questions that I couldn’t form
so it gave me more answers to questions that I couldn’t think of tight away and more insight
to other things and it was described in a way that was also easy to understand.
Researcher: What did you like the least?
Jane: Pretty much all of it was useful and there was not much that I did find that was not
useful
Researcher: Now we are trying to make the financial module better, so after taking them is
there anything that we can do to improve the module?
Jane: The only thing I can see that would relate to visual learners like myself is having
diagrams to explain it, like having the daily spending diary with a little bit more to it like,
instead of having is just separated where you have the whole day out you can halve columns
where you have morning, midday and night so I can better keep track.
Researcher: So what can we do, because we are trying to get more people to take the
program so how can we market the program to them, what would you suggest as a marketing
tactic?
Jane: Well plenty of people now a day are going out and spending money on things they
think they need as oppose to what they actually do need, so it would be good to market it
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towards people who like we were saying before go out and spent $200 on junk food as
oppose to getting meals for the week
Researcher: How do week approach that person without offending them to get them
interested because if they are offended then they are not going to be bothered so how do we
target those people?
Jane: It would be good to market towards college students who have to balance between
working, school and their daily lives because you may be able to get them to see that a
budgeting class would be good because it can show then that there are a lot of better ways to
spend their money and that.
Researcher: So you are saying catch them in school before they go out on their own.
Jane: Pretty much before they go out into the world and they are just shoved into it and have
no idea, catch them while they are still in school and show them that this is a better way to do
it.
Researcher: Is there a way to catch the ones that have gotten out and have no idea that these
things are available? Where should we put up signs and we do you think we can catch
attention?
Jane: Besides like businesses, I don’t know many places that would allow posting besides
colleges
Researcher: It is just food for thought and it you think of anything else later you can contact
me. I appreciate your time and thank you again.
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Participant John
Researcher: Good evening John thank you for in my research study.
Researcher: You are male and at what age did you attend the Money Smart Program 18-25,
26-35
John: 18-25
Researcher: Do you have income of over $30, 000
John: No
Researcher: What is the number of people in your household adults over 18 and children
under 18?
John: Two that are over 18
Researcher: Do you have a bank account
John: No
Researcher: Never or did you close them
John: I closed them
Researcher: Now that you have finished the module will you be opening any bank accounts
anytime soon?
John: Yes, soon not too soon, but soon enough
Researcher: How did you learn about the Money Smart Program?
John: I learn about it from my neighbor
Researcher: What made you decide to attend the program?
John: I wanted to see what it was about and to learn more about the program and to see how
to save money better
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Researcher: Do you recall which Money Smart module you attended?
John: The Money Matters budgeting
Researcher: Are you interested in any of the other modules now or in the future?
John: Probably the Pay Yourself First savings because I would like to learn how to save
more and also your Charge it Right on how to use a credit card responsibly, I would
definitely want to learn how to try and do that better. The Homeowner one is another module
but not right now, maybe in the future when I would like to buy a home. Financial Recovery
Steps so if I ever need to recover from financial debt I would know how to do it.
Researcher: Why would you not want to be in the first couple, one was Bank on It for
information on banks or Borrowing Basics
John: Actually I would like to do the Bank on It, I do know a good bit about banks but I
would like to know a little more, the Borrowing Basics and the understanding credit cards, I
do know a bit about credit cards already but maybe I could learn a little more so yes I would
be interested in that and in most of them.
Researcher: What would make you attend them, what is stopping you from attending these
modules now?
John: Nothing really, I would attend them if I could
Researcher: Ok well then I will put you in touch with the person in charge of them
John: that would be great
Researcher: On a scale of 1 to 10, 1 being the worst and 10 being the best how would you
rate yourself in terms of understanding banking, your savings and bill paying pretty much
everything about money management before the program and after the program?
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John: I would say before the program I was at a 3 and now after the program I almost closer
to a 10 almost like and 8 or 9
Researcher: Why did you rate yourself this way?
John: Well based on the fact that I didn’t really know much about banking before and
definitely this has taught me a lot more about it
Researcher: What is your current money management style? How Do you control or
organize your money or spending?
John: Well when I had money I would put it in my bank account and check it by getting a
receipt to see what I was spending each day and try to write down what I spend each day i.e.
if I bought a soda so that I would know how much money I would have the next day
Researcher: Do you have any money habits that you would recommend to others to use?
John: Basically everyday write down what you spend and make sure that your finances are
good and don’t spend more on something if you know you have to pay your rent
Researcher: What did you expect you would to learn before you enrolled in this Financial
Literacy module?
John: I expected that I would learn more banking and financial and more about saving
money and I did learn that and monthly calendar and writing down what you spend
Researcher: Was there any information that you expected but was found missing in the
program?
John: No not at all
Researcher: Were the learning module clear and did you understand the concepts being
taught?
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John: Yes almost every one of them was clear and I understood the concepts being taught.
One of the questions on the pre-test that I got mixed up on because it was not too clear
Researcher: Were there any concepts in the Money Management methods things that you
were already doing or knew about?
John: Yes, like how I save my receipts, because it said to do that usually all the time and I
always know how much money I have in my bank account.
Researcher: Were any new concepts about financial matters presented to you in the learning
modules?
John: Yes definitely, some of the new ones presented to me were about how I can save
money with the coupons and all different ways to save money and financial be able to do
other things with your money and not spend it all on things you
Researcher: Do you plan to start using any of these new items you learned about?
John: Yes definitely
Researcher: Do you feel you know more about the banks, banking and handling money than
you did before?
John: Yes
Researcher: What did you like best about the program and what you liked the least about it?
John: I liked best probably being explained how to save money more efficiently than I was
before. I was spending my money more quickly before even though I knew how much I had
but now I learned more how to save my money and put it aside for the things that I really
need than things that I want.
Researcher: Is there anything that you liked least about the program, maybe something that
you would change to make it better for you?
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John: It seemed ok, I learned a great deal of stuff
Researcher: We want to help people and we want to improve the Financial Literacy
Program so in your opinion what can we do to improve out Financial Literacy module for
budgeting?
John: Maybe talk about financial aid more
Researcher: A big thing is how can we get more people to attend these Financial Literacy
Modules? What do you think is a good marketing tool for people your age group to get them
to come?
John: Post an add on a billboard, tv or in newspaper or even just something like in the mall
where young kids hang out advertisement set up at like a kiosk in the mall because a lot of
young kids hang out there and spend money and if they see these signs up they might want to
learn more about it because the kids don’t know how to save their money.
Researcher: Do you think they would feel uncomfortable asking or going
John: Maybe some people might feel uncomfortable about it probably 90% would feel
comfortable and 10% would feel uncomfortable
Researcher: Thank you for being a part of my research study
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Participant Juliet
Researcher: Hi Juliet I appreciate you coming in for the interview for the Financial Literacy
Research Study.
Researcher: At what age did you attend the Money Smart Program 18-25 or 26-35?
Juliet: 18-25
Researcher: Is your income over $30, 000
Juliet: No
Researcher: How many people are in your household, adults over 18 and children under 18?
Juliet: There are 6 adults including myself and no children
Researcher: Do you have any bank accounts?
Juliet: Yes I do
Researcher: Do you have any currently that are active?
Juliet: Yes, savings and checking
Researcher: Now that you have finished the program are you going to open any additional
bank accounts?
Juliet: I actually might
Researcher: Why?
Juliet: I like how you talk about the splitting your paycheck into two separate accounts so
have one that you forget about so that you can save the extra money.
Researcher: So how did you learn about the Money Smart Program?
Juliet: From my roommates
Researcher: Why did you decide to come take the program?
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Juliet: II thought it was good to learn more about money and budgeting, I could always use
the extra help with that.
Researcher: You have in front of you a list of the Money Smart modules can you tell me
which one you attended?
Juliet: It was the Money Matters Budgeting module.
Researcher: If you look at all the other modules are any of them of any interest to take
currently or in the future?
Juliet: Definitely I really like this course so I would definitely take a couple more
Researcher: Is there a specific time-frame or interest because we can set you up for that?
Juliet: Yes I would definitely be interested in taking something in a couple of weeks
Researcher: Is there any listed there that you have no interest in?
Juliet: Well I really don’t need a loan so I wouldn’t be interested in that one but everything
else looks pretty interesting.
Researcher: Now on a scale of 1 to 10, with 1 being the worst and 10 being the best; how
would you rate yourself in terms of understanding money management before you took the
program and after?
Juliet: Before the program I would say a 5 but afterwards I say about a 8 or 9 because I don’t
think I knew as much as I thought I did.
Researcher: How would you describe your money management style?
Juliet: Pretty much at this point I just have all of my money going into one bank account
and I forget it until I need to make a payment and then I take it out but then as soon as I see
how much I have I say I have a lot of money in there I spend a little more because I save a
little more, which in turn makes all my savings go away
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Researcher: Do you have any money habits, tricks of the trade things that you would
recommend to other?
Juliet: It is pretty much just if you are going to spend money on yourself you need to set a
specific that you are not going to go over. My credit card limit is only up to $400 and I have
an e-mail notification once I hit $200 and that is pretty much the amount that I will spend on
myself for recreational stuff.
Researcher: What did you expect to learn before you enrolled in the Financial Literacy
module?
Juliet: I hoped to learn some extra tips and see if I’m doing anything right or if I’m doing it
all wrong
Researcher: Were your expectations met?
Juliet: Yes I figured out where I could definitely improve a lot
Researcher: Were the learning modules clear and did you understand the concepts being
taught?
Juliet: Yes they
Researcher: Now that you think about and reflect it is there something missing, something
we can add to the budget module to bring it together?
Juliet: I think you covered all the bases correctly and I didn’t have any questions on it and it
was well put together.
Researcher: Well you jumped ahead to the next question, was the learning modules clear
and did you understand the concepts being taught?
Juliet: Yes I found everything to be very well spoken
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Researcher: Were any of the concepts presented in the module things that you already knew
about?
Juliet: I think it was just about handling your own budget
Researcher: What are some new concepts that were presented that you will use going
forward?
Juliet: I did like the concept of using the separate account with having and extra savings it’s
a smart idea
Researcher: Do you feel you know more about handling your money than you did before?
Juliet: Yes I do
Researcher: Can you tell me what you liked best about the Financial Literacy program?
Juliet: I liked that it wasn’t very dry course, it was fun, and I was able to understand things a
little bit better instead of just of being told to just do this, this and this, it was presented in a
more personal manner
Researcher: So you didn’t mind having people, you prefer that. A crowd of people taking it
or is there a limit to that?
Juliet: I definitely would say a small group of people would be fine. A room full of 40-50
people would be too much but if you had a room of 20 to maybe 30 that would be ok.
Researcher: What did you like the least?
Juliet: Probably the part where I was told I was doing it wrong, but other than that
everything was fine.
Researcher: Now we are trying to help people and improve the financial modules, so in your
opinion what can we do to make the modules better or more interesting?
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Juliet: I think it all went pretty well, I like that you can get the spreadsheets with the class
and you show how to put them into effect with what you have learned and you can reference
back to it
Researcher: We are trying to get more people to attend the modules so give us your
marketing tips, how do we reach people in the 18-25 range to get them to come?
Juliet: After hearing it I’m going to put it into effect for myself and I can say look I’ve taken
these tips and use them to save money and you can do the same. If they ask how did I learn
how to do that I can tell them that I went to these classes and they were easy, well spoken,
easily understood and you can learn a lot.
Researcher: So you are saying to market based on word of mouth. Now how do we connect
to w wider scope any ideas on how to do that?
Juliet: I would say for something along this line I see people at tables at certain events you
can do that you can do that and do small advertisement.
Researcher: Previously someone mentioned a kiosk at the mall with flyers and the full front
of it made appealing
Juliet: Yes it could be like those boat for sale advertisement and have all the modules
available so they can see and say hey, check out these modules they can help you save money
or work on your finances
Researcher: We can have your testimonial attached and local testimonials
Juliet: Yes that would be good because they can identify with myself or others
Researcher: Ok great ideas and thank you for coming.
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Participant Lee Brown
Researcher: Hi Lee Brown I appreciate you coming in for the interview for the Financial
Literacy Research Study.
Researcher: At what age did you attend the Money Smart Program 18-25, 26-35 or 36-50?
Lee Brown: 26-35
Researcher: Is your income over $30, 000
Lee Brown: No
Researcher: How many people are in your household, adults over 18 and children under 18?
Lee Brown: There are two adults and two children in my household
Researcher: Do you have any bank accounts?
Lee Brown: Yes I do
Researcher: What kind?
Lee Brown: Checking and savings
Researcher: So how did you learn about the Money Smart Program?
Lee Brown: Through a family member
Researcher: Why did you decide to attend the program?
Lee Brown: It is good to get more information on how to save and budget and good to see
and get other ideas on how to save.
Researcher: You have in front of you a list of the 11 Money Smart modules and you
attended the Money Matters Budgeting and looking at the rest are there any of the remaining
modules that are of interest to you now or in the future and if not why?
Lee Brown: The Pay Yourself First would be one
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Researcher: Ok that one interests you, why is that?
Lee Brown: Well it would be good to save for an emergency so when you pay yourself first
and you put away any little bit for that it is a good way to save some kind of emergency fund
Researcher: Any other ones look interesting?
Lee Brown: Yes the Owning Your Own Home and the Home Buying Process
Researcher: Why are these other two of interest to you?
Lee Brown: Well because it is good to own a home and it is also a way to save as well
because when you own a property it is a good investment and it is a long term savings that
you can get out of it.
Researcher: Do you own a home already or are you looking to buy currently?
Lee Brown: I am looking to buy
Researcher: Now the others that you did not chose is there reasons why you would not be
interested; is it now or never that kind of thing?
Lee Brown: Not now
Researcher: So the rest of them don’t have any interest for you?
Lee Brown: Yes they do but maybe I would take them at a later time
Researcher: Now on a scale of 1 to 10, with 1 being the worst and 10 being the best; how
would you rate yourself in terms of understanding money management before you took the
program and after?
Lee Brown: Before the program I would say I was a 4 and after I would say I am about a 6
now.
Researcher: Why do you rate yourself these numbers?
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Lee Brown: I got some good information on how to eliminate credit card and how to pay
myself first, I think those was very good process of doing some saving.
Researcher: How would you describe your money management style and how you
developed it?
Lee Brown: My current style is not having enough reserve for emergency and I got to this
point by not planning properly.
Researcher: But how did you get your sense of money management, as a teen etc.
Lee Brown: I would say as an adult
Researcher: Who were you influenced by?
Lee Brown: By myself
Researcher: Ok so you were a self-learner
Researcher: Do you have any money habits, tricks of the trade things that you would
recommend to others that has worked for you?
Lee Brown: Pay everything with cash and stay away from the credit cards
Researcher: What did you expect to learn before you enrolled in the Financial Literacy
module?
Lee Brown: I really didn’t have any expectations; I just came to see what I could learn
Researcher: Do you have any future financial goals, you mentioned the house is that the
next big thing you are trying to save for, a car or something in between?
Lee Brown: To be debt free
Researcher: Were the learning modules clear and did you understand the concepts being
taught?
Lee Brown: Yes they were clear and the concepts were ok
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Researcher: Were any of the concepts presented in the module things that you already knew
about?
Lee Brown: Yes I think so
Researcher: Which ones do you remember?
Lee Brown: It wasn’t presented to me in that way but to put away some money for a rainy
day but it wasn’t presented like a pay yourself first format
Researcher: What are some new concepts that were presented that you will use going
forward?
Lee Brown: I like the credit card where this lady has a bill and she uses one credit card to
pay for the bill and before the six months expires she uses another card to pay for the first
card, so the interest rate does not accumulate.
Researcher: Do you feel you know more about handling your money than you did before?
Lee Brown: I would say yes somewhat
Researcher: Of the new things that you’ve learned is there anything that feels important?
Lee Brown: No it’s the same thing
Researcher: Can you tell me what you liked best about the Financial Literacy program?
Lee Brown: I liked the teaching
Researcher: What did you like the least?
Lee Brown: To me it was fine, I didn’t see anything that was least that I liked.
Researcher: Now we are trying to help people and improve the financial modules, so in your
opinion what can we do to make the modules better or more interesting?
Lee Brown: No I don’t think that there was anything more that could be added it was fine to
me
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Researcher: The big one is how we can get more people to attend the modules?
Lee Brown: I guess by word of mouth
Researcher: We would like to market the program better, so it there a place where we can
put up signs or things like that?
Lee Brown: Oh well maybe you can visit like a church setting and hand out flyers to church
members or a community center and hand out flyers there as well.
Researcher: Well thank you so much for coming and participating.
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Participant Margarita
Researcher: Hi Margarita I appreciate you coming in for the interview for the Financial
Literacy Research Study.
Researcher: At what age did you attend the Money Smart Program 18-25, 26-35 or 36-50?
Margarita: 36-50
Researcher: Is your income over $30, 000
Margarita: No
Researcher: How many people are in your household, adults over 18 and children under 18?
Margarita: 1 adult and 3 children
Researcher: Do you have any bank accounts?
Margarita: Yes
Researcher: What kind?
Margarita: Checking and savings
Researcher: So how did you learn about the Money Smart Program?
Margarita: I heard about if from my friend
Researcher: Why did you decide to attend the program?
Margarita: I really need to fix my bills and I need to learn how to keep my money
Researcher: You have in front of you a list of the 11 Money Smart modules do you
remember which one you took?
Margarita: The Money Matters Budgeting
Researcher: Not it lists all of the others ones can you explain if any of them are of interest
that you would like to take as or if they are or not interest?
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Margarita: Well right now the one that interests me is the Budgeting that is more important
Researcher: Ok so right now you are fixated on that to start
Margarita: Yes
Researcher: Now on a scale of 1 to 10, with 1 being the worst and 10 being the best; how
would you rate yourself in terms of understanding money management before you took the
program and after?
Margarita: I would say before the program I was a 2 and not after the program I am now an
8
Researcher: Why?
Margarita: Well because I am able to understand more
Researcher: How would you describe your money management style are you a saver, a
spend as you go, what is it?
Margarita: Well I am a saver and I try to find different ways to save my money
Researcher: Do you have any money habits, tricks of the trade things that you would
recommend to others that has worked for you?
Margarita: Well coupons help a lot and try to get only what you need at home, like for
instance with your cable don’t get a lot of channels you can’t afford get smaller package and
save on your bill
Researcher: What did you expect to learn before you enrolled in the Financial Literacy
module?
Margarita: I wanted to learn how to better distribute my money for my bills and pay my
bills on time
Researcher: Were your expectations met for the programs?
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Margarita: Yes I think so
Researcher: Were the learning modules clear and did you understand the concepts being
taught?
Margarita: Yes
Researcher: Were any of the concepts presented in the module things that you already knew
about?
Margarita: No
Researcher: What are some new things that you learned in the module that has started to
help you manage your money better?
Margarita: That there are places that can help me
Researcher: Are some new concepts that were presented that you will use going forward?
Margarita: Yes there are
Researcher: Do you feel you know more about handling your money than you did before?
Margarita: Yes I do
Researcher: Can you tell me what you liked best about the Financial Literacy program or
what makes it positive that that you would recommend it to others?
Margarita: Well first of that you are going to be ok and that you are going to be ok and pay
your bills on time now that you know what to focus on first
Researcher: What did you like the least?
Margarita: I didn’t like anything the least
Researcher: Now we are trying to help people and improve the financial modules, so in your
opinion what can we do to make the modules better or more interesting?
Margarita: Reassure them that they will get what they expect from the program
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Researcher: The big one is how we can get more people to attend the modules? How can we
market the program so that more people who need help will come and get it, that what
marketing means, so how can we do that?
Margarita: Talking to other people if we know someone and letting them know about the
program and that it can help them
Researcher: Ok great so word of mouth by talking to people that brings them in
Researcher: Is there any kind of marketing that we can do and at what kind of location to
let people know there are these program and where should we put up these signs?
Margarita: You can go to the health places like the Spanish centers where we get help and
they can hand out the information
Researcher: Well thank you so much for coming and participating.
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Participant Monster
Researcher: Good evening Monster and thank you for participating in my research study
and your attendance in the money Smart Module
Researcher: What was your age when you attended the program 18-25, 26-35?
Monster: 18-25
Researcher: Is your income over $30, 000
Monster: No
Researcher: How many are in your household and how many are under 18?
Monster: That I am responsible for? I have 7 roommates that are over 18, no children
Researcher: Do you have any bank accounts?
Monster: Yes
Researcher: Savings, checking
Monster: I have two checking accounts and a savings
Researcher: Now that you have finished the program are you going to open any other
accounts?
Monster: No, I plan on closing one of the checking accounts because I don’t use it any more,
the only reason I originally opened it was because that was where I got my money but then I
moved to another bank, I’ve taken out all the money I just have not closed it as of yet
Researcher: Now how did you learn about the Money Smart Program?
Monster: M y friend introduce me to it
Researcher: Why did you decide to attend?
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Monster: I’ve never been too responsible with money and I’ve never really fallen into the
negatives but I’m always scraping by and I’m lucky enough to make my bills on time but the
money that I need for myself for fun that I never have
Researcher: You took the Budgeting module but Money Smart offers 10 different modules,
so if you look through the list that I gave you is there any that you might be interested in
taking later or are any of them that you have no interest in at all?
Monster: I would say the home buying process because I plan on buying a home at some
point
Researcher: Is there any that you would not want to take?
Monster: I would say the Check it Out, because I already have a checking account
Researcher: Yes you are good with that one
Monster: And Borrowing Basics, because I have had credit cards and it’s like buy and pay
off as soon as I do and I tried to build my credit but then I got bored with it
Researcher: On a scale of 1 to 10 with 1 being the worst and 10 being the best, how would
you rate yourself on understanding your money management before you took the module and
after?
Monster: Understanding my money management before I would say well before, but I don’t
really follow the plan I set down but I don’t have the will power to go through with it. This
program has given me a little bit more of an understanding and before I was at a 7 and now I
am at about an 8
Researcher: So what is your money management style?
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Monster: I wait until I get paid and then I take care of everything that needs to get taken care
of and then the money that is left over is considered me money. But my money is always
blown on the most ridiculous things. I always write out a plan and I never follow it
Researcher: So do you have any money habits that you would recommend to others to use,
like tricks of the trade that you have developed that you would pass along that may help
someone else?
Monster: Well I have a million ideas, I have great ideas and if you follow them the plan
would work. One idea is to never, never eat out, cook for yourself, buy your own food, make
sure you know where the discounts are, couponing, I would love to get into couponing, I do
not have the will.
Researcher: What did you expect to learn before you enroll in the module?
Monster: Maybe a little bit better with the budgeting
Researcher: Were your expectations met?
Monster: For the most part, I’ve taken money management courses before and one very
similar to this one that may have been derived from this one and it got a lot more in depth
that the previous course as it was only powerpoint slides for like 2-3 hours and this one took
a bit longer and I had to read through and push myself forward
Researcher: Now that you have taken the course did you find that there is anything missing
or anything that you would add to the module that you help?
Monster: No I think, you broke down the whole idea of budgeting and that was the most
important aspect for me and you write everything down and you keep a nice little chart and
keep track of your daily expenses and what you spend most of your money on.
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Researcher: Now the module that you took was it clear and did you understand the concepts
presented to you?
Monster: Yes
Researcher: Were any of the concepts presented things that you already knew about?
Monster: yes a lot of them actually
Researcher: Like what?
Monster: Well a couple of the tax programs for example that they mention, I had heard of
them before.
Researcher: Were there any new concepts presents?
Monster: I can’t think of new ones at the moment
Researcher: Are you going to apply any of the concepts presented or are you thinking about
it but you are not sure how successful you will be?
Monster: It is all in my will power
Researcher: Is there something like if you had a mentor to check on you monthly that would
help or be a hindrance to you?
Monster: I think that would be more of a hindrance because I would feel like I would have a
bit of a pride issue with having someone checking up on me
Researcher: Well I was just saying you could sign up for a mentoring program where they
could say check on you and say how’s it coming because some people have a mother
syndrome where my mom’s calling so I have to do it? So I don’t know how to work your
psyche to get you to do it and make it come to fruition, but it may be that something comes
up that you need to save for and that may change your mind
Monster: I think that would be it, I do plan on saving up eventually to move somewhere
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Researcher: Do you feel that you know more about the banks and handling money than you
did before?
Monster: I would say about the same
Researcher: Can you tell me what you like best about the program and what you liked the
least?
Monster: I would say the monthly payment calendar, although I would never really consider
the monthly aspect like daily and break it down, that was the most informative to me
Researcher: It brought you into a longer term orientation verses a daily option
Monster: It opens the door for a yearly plan and it makes me looks towards the future rather
than daily
Researcher: What did you like the least?
Monster: I like the tax part, just because the word taxes scares me
Researcher: My research is to help the module get better so could you tell me anything to
help jazz it up and make it more exciting or what we can do to make it more exciting?
Monster: I would say just say the play on words, a lot of the things seem scary like loans
and credit. The way you approach it has to seem like an advantage, to make it fun and
inviting. Presented program in a more friendly, warm, and inviting way.
Researcher: So for your age group, how do we market the program so more people take it.
What is your suggestion for getting more people to take it and how can we market it?
Monster: Have the young crowd go out and talk about it mostly, especially because I see a
lot of successful people my age that are good with money management and if you can get
them to take your Money Management course and if they learn something from it and they
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push the word to their friends that are not good with money management and say this helped
me
Researcher: So word of mouth is key for your generation too
Monster: Social networking too like Facebook, Twitter if you can get actual people to say
things like that on behalf of the university for this program that would help
Researcher: Thank you for participating in my research study
Participant Oil Man
Researcher: Hi Oil Man I appreciate you coming in for the interview for the Financial
Literacy Research Study.
Researcher: At what age did you attend the Money Smart Program 18-25, 26-35 or 36-50?
Oil Man: 18-25
Researcher: Is your income over $30, 000
Oil Man: No
Researcher: How many people are in your household, adults over 18 and children under 18?
Oil Man: 1 adult and no children, one on the way
Researcher: Do you have any bank accounts?
Oil Man: Yes
Researcher: What kind?
Oil Man: Checking and savings
Researcher: So how did you learn about the Money Smart Program?
Oil Man: I heard about if from my cousin
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Researcher: Why did you decide to attend the program?
Oil Man: Well it was pretty good and I try to save and put money away
Researcher: You have in front of you a list of the 11 Money Smart modules and you
attended the Money Matters Budgeting and looking at the rest are there any of the remaining
modules that are of interest to you now and why?
Oil Man: The Money Building so that I could try to put money aside for a college education
for my daughter before she gets here and by the time she turns 18
Researcher: Why aren’t any of the other ones interesting?
Oil Man: Well as for the credit card I’m not good with those, so if I don’t have any money I
don’t want to use a credit card
Researcher: Ok and so most of the modules seem to lean in that direction?
Oil Man: Yes
Researcher: Now on a scale of 1 to 10, with 1 being the worst and 10 being the best; how
would you rate yourself in terms of understanding money management before you took the
program and after?
Oil Man: I would say I was a 7 before
Researcher: That was before why?
Oil Man: Well I would spend a lot of money and I would not budget myself
Researcher: And now after the program?
Oil Man: Now I really started to write down what I spend
Researcher: So now how would you rate yourself after the program?
Oil Man: I would give myself about an 8 pretty good
Researcher: Why
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Oil Man: Now I start to budget myself and realize that I can’t just spend money like I want
and before I didn’t care I would just spend my money on stupid things
Researcher: With the baby on the way your mind set is switching
Oil Man: Yes even before I found that out, I use to spend $100 on an item if I wanted it, I
bought it without a care
Researcher: How would you describe your money management style and how you
developed it and what influenced you into your savings mode?
Oil Man: As I was growing I never use to save I would spend a lot of money and as I got
older I realize that I have to be more financially stable and start saving more
Researcher: So the influence was just your life experience, no one telling you that you have
to do it?
Oil Man: Yes that right
Researcher: Do you have any money habits, tricks of the trade things that you would
recommend to others that have worked for you?
Oil Man: No I don’t really have any
Researcher: What did you expect to learn before you enrolled in the Financial Literacy
module?
Oil Man: No not really, I didn’t know what to expect
Researcher: Do you have any future expectations or goals, you mentioned that you wanted
to save for your daughter to go to college, do you have any goals that are closer than that
because that is a long ways off?
Oil Man: Well no not right now no
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Researcher: I didn’t know because sometimes you might have a new car that you might
want or get a house
Oil Man: Well that is true and by the next year or two I told myself that we would like to
get a house by then
Researcher: So then we could coordinate because Own Your Own Home would be the next
to take.
Oil Man: Yes definitely in the future
Researcher: Were the learning modules clear and did you understand the concepts being
taught?
Oil Man: Yes
Researcher: Were any of the concepts presented in the module things that you already knew
about?
Oil Man: Yes the majority of them I knew
Researcher: Which ones do you remember?
Oil Man: They talked about the finance expense and bill that you have to put away, and how
you put the bill to come in at the same time. I was going to call and change that but I like to
pay my bill as soon as it comes in and in three week I have three more checks and I can do
whatever I want to with it.
Researcher: What are some new concepts that were presented that you will use going
forward?
Oil Man: I think I will have to review the paperwork again and see what I find that I can use
for myself
Researcher: Do you feel you know more about handling your money than you did before?
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Oil Man: I would say a little bit better
Researcher: Can you tell me what you liked best about the Financial Literacy program?
Oil Man: It was good
Researcher: What did you like the least?
Oil Man: I didn’t like anything the least it was all good
Researcher: Now we are trying to help people and improve the financial modules, so in your
opinion what can we do to make the modules better or more interesting?
Oil Man: Not that I see right now
Researcher: The big one is how we can get more people to attend the modules? What kind
of marketing schemes do you think we can use to get more interested about Money
Management?
Oil Man: Maybe advertise more.
Researcher: Ok but where?
Oil Man: Go to a school program and tell them that you would like to talk to more people
and invite to the program and see what they think about it.
Researcher: Well thank you so much for coming and participating.
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Participant Paul
Researcher: Hi Paul thank you for participating in my research study
Researcher: What was the age when you attend the Money Smart program module?
Paul: 39
Researcher: Is your income over $30, 000
Paul: No
Researcher: What is the number of people in your household adults over 18 and children
under 18?
Paul: 1 under 18 and myself
Researcher: Do you have bank accounts?
Paul: Yes
Researcher: Which types?
Paul: Saving and checking
Researcher: Now that you have finished the program are you going to open any other types
of accounts or duplicate accounts?
Paul: Yes I was thinking about doing so
Researcher: Why?
Paul: I was thinking about setting up a checking account just for my expenses
Researcher: How did you learn about this Money Smart Program?
Paul: I learned about it through a friend
Researcher: Why did you decide to take the program?
Paul: I didn’t see anything wrong with learning new ideas and concepts with financial and
budgeting
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Researcher: Do you recall which money smart module you attended; the list is in front of
you?
Paul: Yes, the Money Matters Budgeting
Researcher: When you look the rest of them are any of them of any interest to you now or in
the future or if not which ones have no interest?
Paul: Well it’s always good to be looking at new ideas to better budget finances so I would
definitely be open to learn some of these modules
Researcher: Are there any of them if you look at the titles that you would not be interested
in?
Paul: Not really, everything seems relevant and it could become handy and one supports the
other at some point
Researcher: On a scale of 1 to 10 with 1 being the worst and 10 being the best, how would
you rate yourself in terms of understanding money management before and after you took the
program?
Paul: I would say before I took the program I was a 5 and after I was a 7
Researcher: What made the change?
Paul: Just different point here and there that made the change that I was not aware of and I
could definitely implement into my current budget
Researcher: How would you describe your current money management style?
Paul: I try to budget but I could definitely steer out of temptations here and there
Researcher: Do you have any money habits that you could recommend to others to use?
Paul: At this point not really, I just try to keep to necessities what I need
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Researcher: What did you expect to learn before you enrolled in the Financial Literacy
program and Budgeting Module?
Paul: How to better budget my finances
Researcher: Were your expectations met?
Paul: Yes absolutely
Researcher: Did you find anything missing or things that maybe we should add to the
program?
Paul: Well with the charts that they had on the modules for someone that is learning
something new I think it is pretty basic. As to something new that could be added to it, I
don’t there is much maybe that is what I am only a 7 after the program.
Researcher: The learning module was it clear and did you understand the concepts presented
and the pretest was it clear enough that you understood the questions?
Paul: Yes to me it is pretty clear. I have taken some accounting classes so I am familiar with
it
Researcher: Were any of the concepts in the module things that you already knew?
Paul: Yes
Researcher: What were they?
Paul: Shopping smart, lower interest on credit card I was aware of that
Researcher: What were some new ones that you learned about?
Paul: Some tax credit, other information about taxes and certain agencies that can help you
out
Researcher: Do you think that you will be using any of the new things that you learned?
Paul: Yes absolutely
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Researcher: Do you feel that you know more about the banking system than you did before?
Paul: Yes I do
Researcher: What where some of the new things?
Paul: Just some habits and some pointers, and if I implemented getting into the habits it
could make a difference financially
Researcher: can you tell me what you liked best about the program that you took?
Paul: The clarity, it was very clear, straight forward and down to the point
Researcher: What did you like the least?
Paul: Probably that I could get a little more information and get a bit more in depth and then
it would have to be longer
Researcher: We want to help people improve their financial literacy and improve the
Financial Literacy modules, so can you give us any ideas to help to improve it?
Paul: Maybe even setting up something like some charts or some formulas pretty basic that
could be repetitive that can help the person get into habits
Researcher: How can we market the program so that more people can attend?
Paul: Well nowadays with the financial situations that we are having I think everyone is
more sassier about saving either with coupons or trying to save a buck and I think more
people are becoming more aware from being in this situation.
Researcher: But how do we get them to come and take the budgeting module, how do you
think we can market to get to the average Joe’s out there to come in?
Paul: What I’ve seen a lot especially with the internet is a lot social gatherings for different
people for different hobbies or interests and they get together. I know a friend who does real
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estate and he went online and found a social network where people from different areas met
online and he was able to connect with them and get market his business
Researcher: So we should market by into these social gatherings to get the word out there
Paul: Yes because people feel more relaxed more open in a social setting
Researcher: Thank you for coming
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Participant Raptor
Researcher: Hi Raptor thank you for participating in my research study
Researcher: You attended the Money Smart module at what age did you 18-25, 26-35, and
36-50
Raptor: 18-25
Researcher: Is your income over $30, 000
Raptor: No
Researcher: How many people in your household adults over 18 and children under 18?
Raptor: 6 adults over 18 and no children
Researcher: Do you have bank accounts?
Raptor: Yes
Researcher: Which kind?
Raptor: Checking and savings accounts
Researcher: Now that you have finished the program are you going to open any additional
accounts or are you ok with what you have?
Raptor: I’m ok with what I have for right now
Researcher: How did you learn about this Money Smart Program?
Raptor: I learned about it through my roommate
Researcher: Why did you decide to take the program?
Raptor: I thought it would be a good idea to learn how to budget my money a little better
Researcher: You have a list in front of you of all the Money Smart Modules can you tell me
which module you attended?
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Raptor: The Money Matters Budgeting
Researcher: When you look all the titles Bank on It –information on banks, Barrowing
Basics, Credit Cards are there other ones you would be interested in taking and if so why?
Raptor: To Your Credit
Researcher: Why
Raptor: Well because I know my credit is messed up and I would like to know how to repair
it
Researcher: Are there any of them listed there that you would never be interested in?
Raptor: Not really, I would say that all of them would be pretty useful
Researcher: Would you be interested in me giving you information on how to get to the next
one To Your Credit?
Raptor: Sure, yes I would
Researcher: On a scale of 1 to 10 with 1 being the worst and 10 being the best, how would
you rate yourself in terms of understanding money management before and after you took the
program?
Raptor: Before the program I had an educated guess on everything and now I know I have
more of a direction on steps that other people take to do things and that always helps, having
a guide behind everything.
Researcher: So what is your scale or your rating of yourself before and after the program?
Raptor: My rating of myself before would be a 4 but now would be a 7 or an 8. I wound be
a 10 until I actually apply it and see how it works
Researcher: How would you describe your current money management style, how do you
manage your money?
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Raptor: For the most part I live day to day and I try to spend the least amount of money a
day but sometimes it happens. I end up getting lunch twice and sometimes I’ll get up before
work and I’ll eat breakfast and lunch and other times I won’t do that. I notice now how that
really impacts me and my finances.
Researcher: Do you have any money habits that you could recommend to others to use, like
tricks of the trade on how to stretch your money?
Raptor: Well my bank every time I use my debit card it puts $1 dollar into my savings
account so that really does help, so I try not to use any of that money, but it does not always
work but if I did not touch that money I would have a good amount of money saved. So I
would suggest something like that every certain amount put a bit aside to save.
Researcher: What did you expect to learn before you took the module?
Raptor: I just wanted to learn more of a guideline on how to save
Researcher: Were your expectations met?
Raptor: Yes
Researcher: Can you describe anything you might have expected but found missing or
things now after you reflect on it something that should have been in there?
Raptor: Not really I thought the program as a whole was pretty complete and organized how
it was presented. I think it was pretty much complete as is.
Researcher: Was the learning module was it clear and did you understand what was going
on?
Raptor: Yes to me it was very clear
Researcher: Were any of the concepts or methods presented things that you already knew
about?
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Raptor: Yes, like how to use a bank, which was pretty easy because I have been doing that
for years as well as the advice on direct deposit which I already knew as well.
Researcher: What were some new concepts that you were presented with?
Raptor: The models for savings and writing down expense and everything, I had considered
that in the past but I never realized how practical it would be until it was written on paper
until now so that was something that is new to me now and I like that idea a lot.
Researcher: Do plan to start using it now?
Raptor: Yes absolutely
Researcher: Do you feel that you know more about the banks and handling money than you
did before?
Raptor: Yes I do
Researcher: Can you tell me what you liked best about the Financial Literacy Program?
Raptor: That it was written in a way that was easy to understand and you don’t have to be
super smart to understand money and it was simplified so it was easy to comprehend.
Researcher: What did you like the least?
Raptor: There wasn’t anything that I liked the least about it. It was pretty easy, quick and
easy to understand and comprehensive. If I have to pick one thing it would be that I do have
a desire to learn more about certain things like my credit and other things.
Researcher: So the research is to try to help improve the modules, so can you can you give
any tips on what can be helpful to improve the Budgeting Module?
Raptor: Maybe do one on one, because then you review things that personally affect me,
like how I go about using my bank as oppose to everyone’s one banks
Researcher: Would you be interested in having a one on one session if it was scheduled?
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Raptor: Yes
Researcher: How can we market this program and the different modules to the people who
can use it? How do we get them to come or how do we present it to so that they sign up?
Raptor: Well I think word of mouth couldn’t hurt and obviously advertising is big and
maybe placing ads in papers or maybe on job websites that is one thing I realize that when I
am looking for a job I am always worried about my finances as well, so perhaps something
like that may help some more people that are working or are not working but they are
looking for a new job so they can see that they can come take a class like this and realize that
sometimes it’s easier to be told to flex money than doing it yourself.
Researcher: Well that is a great idea; I have not had that idea presented before. Thank you
for participating.
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Participant Sarah
Researcher: Good evening Sarah, thank you for participating in my research study Financial
Literacy.
Researcher: I would like to start off with your age when you attended the program 18-25 or
26-35
Sarah: 18-25
Researcher: Is your income over $30, 000
Sarah: No it is under $30, 000
Researcher: The number of people in your household adults over 18 and children under 18
Sarah: 1 under 18 and two over 18
Researcher: Do you have any bank accounts
Sarah: Yes
Researcher: Saving, checking, other
Sarah: Savings
Researcher: Now that you have finished the program, will you open additional banks
accounts, checking account
Sarah: I will probably open a checking account
Researcher: Do you know why
Sarah: I spend my money a bit crazy and I try to put some in my savings and I need
something else
Researcher: How did you learn about the Money Smart Program
Sarah: From my father
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Researcher: Why did you decide to take the program
Sarah: My father brought up the program to me and at first I was unsure about it but after
thinking about it more, I decided to it made sense to try
Researcher: Do you recall which Money Smart Module you attended or did you attend more
Sarah: Money Matters Budgeting
Researcher: Out of all of the remaining ones are you interested in taking them now or in the
future and why or why not?
Sarah: Pay Yourself First sounds really interesting because I run my money like crazy and I
need to constantly save more money for myself
Researcher: are there any other ones, or any time-frames on taking them?
Researcher: So on a scale of 1 to 10, 1 being the best 10 being the worst, how would you
rate yourself on understanding the banking, checking, savings and all aspects of your money
management before taking the program and then after.
Sarah: I give myself a 5
Researcher: Before and now what after
Sarah: Now after I give myself a 7
Researcher: Why did you rate yourself as a 5 and a 7
Sarah: I rate a 5 because as soon as I get my paycheck from work, I just spend it. It mostly
goes to gas, but I spend it on food and clothes and I should not and I need to cut back with
that.
Researcher: Describe your current management style
Sarah: I just let it go
Researcher: You just let your money come in and go out
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Sarah: Yes
Researcher: Do you have money habits that you recommend for others to use, like tricks of
the trade
Sarah: Split your money in half first, I get paid every two weeks, so this half of the money I
use for the first week and my second half of the money for my next week so that by the next
pay period I will have some money left over from the last check.
Researcher: What did you expect to learn before you enrolled in the Budgeting Module?
Sarah: How to manage my money more
Researcher: Were your expectations met
Sarah: Yes
Researcher: Can you describe any information you expected or found missing
Sarah: I think it covered everything for me
Researcher: Was the Budgeting Module that you took clear and did you understand the
concepts being taught?
Sarah: Yes I did
Researcher: Were any of the concepts on Money Management Methods presented in the
modules things that you already knew about?
Sarah: They were things that my mother had talked to me about it but for some reason it
never clicked but for some reason now reading it now it made more sense.
Researcher: What new concepts or information were presented to you in the modules. Tips
or anything that you learned and you will take forward with you?
Sarah: I think getting a checking account to start giving myself money
Researcher: So you now know more about the bank and handling money than you did
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before. What other new things did you learn?
Sarah: Help in saving your money. Carpooling ideas, I don’t usually carpool because I like
to drive and I realize that I waste more money on gas
Researcher: How far is it from where you live to where you work?
Sarah: 30-35 minutes, it is a drive
Researcher: So public transportation is not really available
Sarah: I have a friend that lives in Milford and she lives about 10-15 minutes away, so that
might be an idea
Researcher: So can you tell me what you liked best about the Financial Program and what
you liked least
Sarah: What I liked the most is that it targeted me personally because I knew exactly what
was going on and that everything that was being taught I had to take seriously and it was to
help me with my spending problem
Researcher: So more with organization
Sarah: Yes
Researcher: Did you like the idea of having financial goals so that you can try to meet them
better
Sarah: Yes I did
Researcher: What did you like the least
Sarah: There wasn’t anything that I did not like, it was more of a learning experience for me
Researcher: Based on your opinion, what do you think we can do to improve the modules
Sarah: Having more people in the group would be better because you can talk about your
problems within the group and come up with a solution
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Researcher: We want to get more people to attend the Financial Literacy Modules, as you
can see not a lot of people come. How do you think we should market the program to get
more people to come?
Sarah: I will tell more people to come myself as well as my friends, because it has been
really beneficial to me. They might be skeptical at first but hopefully after l listening to it
they will have a better understanding. Possibly post something on the website as everyone is
on the web now a days
Researcher: Well there is a lot on the website Financial Literacy FDA, but how do we direct
them to that, how do we link into your age grow to get them interested in money
management
Sarah: Maybe try to go on Facebook
Researcher: Interest through Facebook, that’s a good idea
Sarah: Yes because everyone is always on it even if it is for 5 minutes, they check updates
and such. You can get many people to read it and understand it especially all ages.
Researcher: Sarah, Thank you for participating
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Participant Snow White
Researcher: Thank you for participating in the Financial Literacy program
Researcher: At what age you attended the program 18-25, 26-35, 36-50
Snow White: 26-35
Researcher: Is your income over $30, 000
Snow White: No it is not
Researcher: What is the number of people in your household, adults over 18 and children
under 18?
Snow White: There are 4 adults and 3 children
Researcher: Do you have any bank accounts?
Snow White: Yes I do, I have a savings and checking
Researcher: Now that you have finished the program are you going to open any additional
accounts?
Snow White: No I am not
Researcher: How did you learn about the Money Smart Program?
Snow White: I learned of it through a friend of mine
Researcher: Why did you decide to attend the program?
Snow White: I have money spending issues
Researcher: There is a list of the 10 Money Smart modules, can you recall which one you
attended?
Snow White: It was the Money Matters module
Researcher: When you look at the remaining modules are any of them of interest to you?
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Snow White: Yes I actually like the Financial Recovery one
Researcher: Why do you like that one?
Snow Whiter: Well because I have horrible credit from when I was younger, so I would like
to repair it and get and fresh start
Researcher: Is there any on the list that you have no interest in at all?
Snow White: Probably Bank on It, I would not be interested in that just because you can go
into the bank and get the information on the bank if you needed it.
Researcher: On a scale of 1 to 10, with 1 being the worst and 10 being the best how would
you rate yourself in terms of your money management skills before the program and after the
program?
Snow White: Before the program I would say it was a 7 and now after the program I would
say it is a 9
Researcher: Why do you rate yourself these numbers?
Snow White: Well a 7 before because I am one of those frequent spenders. I go into the
stores and if I see something, even if it is not on my list I buy it. The 9 now because I actually
make a list an try not to veer from it and I actually use a couple of the ideas that are in the
program such as the keeping daily track.
Researcher: Do you have any money habits that you would recommend for other people to
use?
Snow White: Probably not
Researcher: Any tricks of the trade, how to bring in money through your hobbies and
making that a business?
Snow White: Yes, I have been thinking about it, because I am artistic
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Researcher: So what was the trick that helped you turned your hobby into a business? It may
be something that can inspire other people.
Snow White: Well it was more money. Basically, we do things like for example for my
daughters party or for her room. I will do a whole mural I can paint and such and I am a part
time worker and a full time mom. Obviously I can’t work fulltime like I use to and the
money would be utilized better if we made more, so I was brainstorming about what I could
do to bring in more income and still be a mom without having to work fulltime. So what we
like to do is draw, and create artistic stuff and parties so we were discussing getting a art
table for some of the craft table for some of the art festivals and in some of our spare time
when the kids go to bed we can do jewel boxes and paint and do what we know how to do
and then profit from it and still be stay at home at and I only at home until 12pm every day.
Researcher: Did you have any expectations of what you would learn in the financial
modules before you took it?
Snow White: Not really, I was not sure what to expect. I assumed that it would have
something to do with budgeting tips
Researcher: Now that you think about it is there something missing, something triggered
that might be helpful to add to the program?
Snow White: Yes, there is now that you have said that to me. If someone is taking a
budgeting class it is because they are having money issues because they are not spending
their money correctly which most likely means they are financially strapped or in my case I
have horrible financial history so maybe in the next class you can include phone numbers of
credit help. But other than it was good
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Researcher: Were the learning modules clear and did you understand what was being
taught?
Snow White: Yes I did
Researcher: Were any of the concepts presented things that you already knew about?
Snow White: Yes
Researcher: Which ones
Snow White: The direct deposit and the banking
Researcher: Were there any new concepts that you learned?
Snow White: Yes, the spreadsheets, the taxes, tax numbers, and a couple of the ideas for
savings such as the list and not getting anything that is not on the list.
Researcher: Are you going to use any of these new concepts that you learned about?
Snow White: Yes I am
Researcher: Do you feel that you know more about the banks and how to handle money that
you did before taking the program?
Snow White: Not more about the banks but yes about the money, as far as like different
revenues of savings and keeping daily spending reports which are things that I don’t
normally do and the receipt thing as well.
Researcher: What did you like the best about the Financial Literacy Program?
Snow White: What I liked best was the financial saving reports and the ideas that were given
to help steer you into saving money and budgeting.
Researcher: What did you like the least about the program?
Snow White: The direct deposit because I already knew about it
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Researcher: My research is to try to get the program up and running and doing better, so the
first question is – on the module that you took what do you think can be done to improve it,
besides providing the numbers for the credit agencies?
Snow White: Besides providing those numbers, I thought it was pretty good and I don’t
think it was lacking in anything
Researcher: How can we get more people to come, you came through word of mouth?
Snow White: To get more people to come it depends because everyone is motivated by
different courses but if someone is going to be taking the budgeting class or something of
that nature it is because they are have money issues so the one thing that would stimulate
people that are having budgeting issues is money.
Researcher: So how do we get to that target, how do we find them to give them the
information about the class and where do you think we can target them?
Snow White: As far as marketing?
Researcher: Yes, a marketing program so that they know that it is there for them to access
and come and take it?
Snow White: I’m not sure how they operate but maybe you can sign up through the things
that pay you to test their products
Researcher: Where do we posts the signs about the class to let people know about it so that
they can come?
Snow White: Well I would post the signs in the stores and maybe even in the papers, a lot of
people flip through the paper, so that would be a good advertisement but not where you have
to spend a lot of money because obviously there are people who are financially strapped who
would benefit from taking a budgeting class. So as far as a marketing strategy maybe you can
264
talk to CL&P and see if you would be able to send a letter out with the monthly electric bill
and tie into some of the companies that bill people. I know that CL&P is really good for the
conservation and they send flyers with their bills for that so why would they not want to help
out with this as well.
Researcher: Well, I appreciate you participating and thank you.
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Participant Wetgrass
Researcher: Good evening and thank you for coming for the interview process.
Researcher: What was your age when you attended the Money Smart Program 18-25, 26-
35?
Wetgrass: 18-25
Researcher: Is your income over $30,000
Wetgrass: No
Researcher: What is the number of people in your household adults 18 and older and
children under 18?
Wetgrass: There are 6 adults including myself
Researcher: Do you have any bank accounts?
Wetgrass: Yes I do, I have both a checking and a savings account
Researcher: Are they both currently open?
Wetgrass: Yes
Researcher: Now that you have finished the program, will you open any additional
accounts?
Wetgrass: Yes I think so, I think I will open accounts at a different bank
Researcher: Ok and Why? Would it be a check or savings account?
Wetgrass: Probably a savings account at a different bank so that if anything ever happen to
the original accounts that I have money saved someplace else
Researcher: So it’s about access, not being able to easily get to the money
Wetgrass: Yes
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Researcher: How did you learn about the Money Smart Program?
Wetgrass: From my roommate
Researcher: Why did you decide to attend the program?
Wetgrass: I thought I was a good opportunity for me to learn how to budget and save some
money that I need to save and put it where it needs to go
Researcher: I have given you a list of all of the Money Smart modules, do you recall which
one you attended?
Wetgrass: The Money Matters
Researcher: There are 10 total modules are there any others that are of interests to you to
take later?
Wetgrass: Yes, I would probably take the Keep it Safe, To Your Credit and Charge it Right
Researcher: Why do these look interesting to you?
Wetgrass: Just ways to save money and maintain good credit and keep money for future
Researcher: Now why not the other ones?
Wetgrass: I know stuff about banks and information on banking and understanding credit
cards and how to use them, so I feel that the one I chose are the ones that I would need help
with
Researcher: On a scale of 1 to 10, with 1 being the worst and 10 being the best, how would
you rate yourself in terms of money management before the program and then after?
Wetgrass: Before the program I would say a 5 and now I would probably say a 6 or 7
Researcher: Why are you rating yourself this way?
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Wetgrass: I feel like only a 5 because if it were higher than that I would have a lot of money
saved up and I would not need to take this class, but now I do have a better grasp on things I
can do to save money
Researcher: Now how do would you describe your money management skills?
Wetgrass: Not great, I save for things that I want and then after I get those things I have to
start all over and I don’t have any savings left.
Researcher: So do you have any money habits that you would recommend for other people,
tricks of the trade that you do to extend your money that other people might find helpful?
Wetgrass: Actually I have a system with my bank accounts where it takes $10 from my
checking account and puts it into my savings every month
Researcher: What did you expect to learn before you enrolled in the module?
Wetgrass: Honestly I didn’t know what to expect from it but I feel like my expectations
were exceeded
Researcher: Now that you put it together with the budgeting it there anything missing from
the module that would be helpful to throw in there?
Wetgrass: I don’t think that there is anything that I can come up with that was not in there
Researcher: The learning modules that you took were the concepts clear enough to
understand?
Wetgrass: I think so yes, they were explained well, I have a better grasp on different
concepts
Researcher: Were any of the concepts presented in the module things that you already
knew?
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Wetgrass: No actually, I know it’s a good idea to know how much money you are earning
and know what you use your money for but when it comes to the concepts I think I learns a
bunch of different ways to save more money
Researcher: The new concepts that were presented to you will you start using any of them?
Wetgrass: I think so, I like the expense envelop system it is a good way to not spend your
money and put them in different places and keep them separate, label them for things that
you need them for and know that you cannot take from there and then you have that money
set aside and you know what you can take from and what you can’t
Researcher: So did you like any of the written out presentation, the daily plan verses the
income statement to analyze your expenses, was that something that you think you will be
able to do?
Wetgrass: Yes I think so
Researcher: Now do you feel you know more about banks and handling money than you did
before?
Wetgrass: Yes I do, I think will find another bank to put money in separately that I won’t
take from, I’ll save that money and keep it in a savings and not take from there
Researcher: Can you tell me what you liked best about the program?
Wetgrass: I liked all the different tools that I have, all the different sheets that were given to
me to help me manage my money, different worksheets like the monthly expense worksheets
and the monthly payment schedule and the monthly payment calendar I think that will be
useful in the future.
Researcher: What did you like the least?
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Wetgrass: The least I liked, was learning that I don’t have a grasp on saving my money and I
should probably become more serious about that
Researcher: I’m trying to make sure the program flourishes and gets better so can you give
me any suggestions to help the modules get better, presentations or anything that would make
it where you can absorb more information?
Wetgrass: I think the worksheets are good and will keep people interested and give them
something to do that is not just for during the course and they will use them for throughout
their lives and that is a good thing. I’m not sure of any other ways to make it more
interesting, but like I said it exceed my expectations.
Researcher: The last but not least thing is we are trying to market to that more people take
these modules, what kind of ideas can you come up with that we can use to bring more
people in? What do you thing is keeping people away and what can we do to bring
them in?
Wetgrass: I feel like if it is explained that this is to help people budget and help I feel that
they will be more likely to take the course if they realize it is solely to benefit them and if
they are going to get tricks out of it and it will be useful so maybe explain to them how much
debt people are in and let them know that it is for their benefit
Researcher: Now how do we present it out there to your age group 18-25, how can we reach
them, what is your preference of information. How do we get your friend from work without
you telling her about it, notified about the program? Or should it be mostly word of mouth?
Wetgrass: I feel like word of mouth is one of the best advertising techniques. I’m not sure
of any ways you can make it seem like it is a fun thing but I feel like people are very into like
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benefiting themselves and helping themselves and if they hear that they can get heal to save
money they might be more inclined to go take the course.
Researcher: So presentation in the marketing
Wetgrass: maybe make different titles for each module and make them sound more exciting
and more like they are going to benefit people and telling them
Researcher: Because for instance this Money Matters is about budgeting and it’s supposed
to grab you and it didn’t do that
Researcher: Ok great, well thank you for coming.
The Absence of Financial Literacy Taught in Schools using Qualitative Research Method
A Dissertation Presented in Partial Fulfillment
of the Requirements for the Degree
Doctor of Education
ABSTRACT
DEDICATION
[To be indented and completed upon full dissertation completion]
ACKNOWLEDGMENTS
[To be indented and completed upon full dissertation completion]
TABLE OF CONTENTS
Contents
Page
List of Tables………………………………………………………………………………………………….. x
List of Figures …………………………………………………………………………………………………. x
Preface……………………………………………………………………………………………………………… (optional)……………………………………………………………………………………………… x
Chapter 1: Introduction…………………………………………………………………………………….. x
Background of the Problem
……………………………………………………………………. x
Problem Statement
…………………………………………………………………………………. x
Purpose of the Study………………………………………………………………………………. x
Population and Sample
…………………………………………………………………………… x
Significance of the Study
………………………………………………………………………… x
Nature of the Study
………………………………………………………………………………… x
Research Questions
/Hypotheses………………………………………………………………. x
Theoretical or Conceptual Framework……………………………………………………… x
Definition of Terms
……………………………………………………………………………….. x
Assumptions
,
Limitations
, and
Delimitations
…………………………………………….. x
Chapter 2: Literature Review …………………………………………………………………………….. x
Title Searches and Documentation…………………………………………………………… x
Historical Content………………………………………………………………………………….. x
Current Content…………………………………………………………………………………….. x
Theoretical or Conceptual Framework Literature……………………………………….. x
Methodological Literature………………………………………………………………………. x
Research Design Literature……………………………………………………………………… x
Conclusions………………………………………………………………………………………….. x
Chapter
Summary
………………………………………………………………………………….. x
Chapter 3: Research Methodology………………………………………………………………………. x
Research Method and Design Appropriateness…………………………………………… x
Research Questions/Hypotheses………………………………………………………………. x
Population and Sample…………………………………………………………………………… x
Informed Consent and Confidentiality………………………………………………………. x
Instrumentation……………………………………………………………………………………… x
Field Test or Pilot Test…………………………………………………………………………… x
Credibility and Transferability or Validity and Reliability…………………………… x
Data Collection……………………………………………………………………………………… x
Data Analysis……………………………………………………………………………………….. x
Chapter Summary………………………………………………………………………………….. x
Chapter 4: Analysis and Results…………………………………………………………………………. x
Research Questions/Hypotheses………………………………………………………………. x
Data Collection……………………………………………………………………………………… x
Demographics……………………………………………………………………………………….. x
Pilot Study……………………………………………………………………………………………. x
Data Analysis……………………………………………………………………………………….. x
Results…………………………………………………………………………………………………. x
Chapter Summary………………………………………………………………………………….. x
Chapter 5: Conclusions and Recommendations…………………………………………………….. x
Research Questions/Hypotheses………………………………………………………………. x
Discussion of Findings…………………………………………………………………………… x
Limitations…………………………………………………………………………………………… x
Recommendations for Leaders and Practitioners………………………………………… x
Recommendations for Future Research…………………………………………………….. x
Chapter Summary………………………………………………………………………………….. x
References
…………………………………………………………………………………………………….. x
Appendix A: Title…………………………………………………………………………………………… x
Appendix B: Title…………………………………………………………………………………………… x
Appendix C: Title…………………………………………………………………………………………… x
LIST OF TABLES
Table 1: Title ………………………………………………………………………………………………….. x
Table 2: Title…………………………………………………………………………………………………… x
[Only include a list of tables if there are two or more tables. Use title case, defined as capitalizing keywords, for table titles.]
LIST OF FIGURES
Figure 1: Title ………………………………………………………………………………………………… x
Figure 2: Title ………………………………………………………………………………………………… x
[Only include a List of Figures if there are two or more figures. Use title case, defined as capitalizing keywords, for figure titles.]
Introduction
Education about financial literacy is an important subject that could help students to handle money at school and in the professional world. Students who acquire this knowledge are different from those without because they would make sound financial decisions in an attempt to avoid common financial mistakes. The mistakes most people make while attempting to meet their financial needs are associated with a lack of financial literacy (Amagir et al.,
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18). Therefore, this study will focus on the gaps that manifest in the schools regarding financial education, their impacts, and how they can be solved. This paper gives clear and described information on a study that focuses on the gap that is evident in schools on the incorporation of financial education.
Both the youth and the community as a whole enjoy the benefits of understanding and applying the principles of financial literacy. The financial education principle gives the capability of making sound financial decisions. Teachings about financial education tools will help students become skillful and discrete when handling finances in schools. A great future is created when students are equipped with the knowledge of financial literacy (Amagir et al., 2018). With a financial education in place, the first thing students shall do before gambling with their money is to recall the essential concepts of financial management they will have learned from school. The main ticket towards living a debt-free life is being knowledgeable about financial management and that can only be achieved through lessons taught in classes. Youths have always manifested confidence in the way they use money and in fact, most of them believe they are knowledgeable concerning the use of money. However, in real life, the youth struggle with planning their finances and that predisposes them to a life full of debts while they are still young (Amagir et al., 2018). This excessive confidence and state of awareness held by individuals are barriers that need to be cleared out through the use of financial education. There are different programs that a typical school should implement to help train and educate students on matters related to finance. However, most schools focus on programs that emphasize didactics that are practical and theory-based (Blue & Grootenboer, 2019). Most of these didactics are based on benefit plans, which do not fully cover the main concepts of financial literacy. Both students and members (principals, administrators, teachers, housekeepers, secretaries, police officers, guidance counselors, cafeteria workers) of the school, hold some level of misconception about financial literacy.
Background of the Problem
Surveys and research show that teens and youths power the country’s economy at a higher percentage (Amagir et al., 2018). Lack of financial literacy exposes many youths to unending financial management problems. This leads to developing poor money spending habits, and unsuccessfully managing their customer credit. Poor financial habits caused by financial illiteracy always lead to poor budgets amongst teens. According to Amagir et al., (2018), 20% of the high school seniors with savings projects or saving accounts graduate with financial discipline and literacy. However, the fears of these youths getting into adulthood are that they do not understand the principles of saving, spending, earning, investing, or even balancing a checkbook (Faulkner, 2017). Hence, there is an increasing need for students to have financial literacy, which will help create some level of independence and a sense of self-sufficiency and responsibility. With financial literacy in place, students get to understand the basics of financial markets, investment choices, and financial budgeting. As a result, students will avert facing issues of debt, which is a phenomenal trend among adult youths. It is not hard to acknowledge some financial management techniques, especially when interacting with well-informed and planned professionals. Therefore, students with financial literacy will hold discussions with well-learned and informed individuals because they will foresee risks and argue-justify matters at hand (Amagir et al., 2018). Since the financial status of individuals contributes to the economy, there is an increased need to polarize financial literacy within schools.
It is very essential to incorporate the study of financial education in the system because this gives leeway to building and molding better financial accountants for the near future. The students in the learning institutions will become good economic moderators. There are different players in the financial sector whom financial educators would rely on. These include; Entrepreneurs being an originator, challengers, and drivers. They are the persons who create something new. It can be a corporation, an initiative, or a business. They combine land, labor, and capital in an investment (Kirkham, 2016).
Financial Savvy is a person that is well conversant in dealing with expenses, credit, and other money matters. At the same time, this term can mean many different things to different people; the overall idea of being savvy financially emphasizes one notion, hereby maintaining a healthy financial standing through proper planning and budgeting (Kirkham, 2016).
Problem Statement
The problem statement in this research paper defines financial illiteracy among the youth. A greater number of youths and teens lack the financial discipline which should have been taught in financial education. According to the article by Amager et al., 2020, there is a large gap in terms of financial education among teens and youth. The article focused on 15-year old15-year-old students in high school who did not have financial literacy. The revelations in the article call for urgency in introducing financial literacy programs in schools because financial literacy does not only steal from the youth and teens of their economic prosperity but also robs the nation (Lusardi, 2019). Most young adults ignore the importance of financial education and therefore schools should move a step further to introduce the necessary financial education programs.
Purpose of the Study
The purpose of this study is to use both qualitative and quantitative approaches in accomplishing research exploring the subject of financial literacy among youths and teenagers using a mixed-method. The research will take place within the school district of Palm Beach County, Florida. The objectives of the study on financial literacy are:
1. To identify the gaps in the financial literacy education in the schools within Palm Beach County, Florida.
2. To determine the long-term impacts of inadequate financial knowledge to youths and teens through savings and investments. The purpose needs clarity. Also, you need to state the research design.
Population and Sample
Data collected from interviews will be used in developing a thesis for the research topic. Principals from 20 schools around the district will be interviewed while only ten of the curriculum developers across the state of Florida will be interviewed. The school district of Palm Beach County, Florida has about 180 schools and a principal leads each school so that means only 11.1% of the principals will be involved. A random sampling method will be used to select the twenty principals from the schools within the district. In addition, the curriculum developers that will be involved in the research will be selected.
Significance of the Study
The study on financial literacy is very important to an individual, the state, and the US national government. The economy of the US depends much on proper financial planning. If the youth are equipped with the relevant knowledge about how to manage funds, it is a plus for the economy of the United States and the state of Florida because proper financial education leads to informed financial planning which prompts economic development (Amagir et al., 2018). Further, the study of financial literacy gaps in the schools will help the policymakers in curriculum development to plan on introducing holistic financial literacy programs in these schools (Bakar and Bakar, 2020). The financial education programs are aimed at benefiting the teens and the youth as they will be able to acquire immense knowledge on financial management, which will help them become responsible citizens and parents financially (Amagir et al., 2018). The study on financial illiteracy is aimed to pioneer more research into the field of financial literacy.
Add more to the discussion here. Start with significance to participants, and then to policymakers. The discussion here has both individual and policy mixed in the same paragraph.
Nature of the Study
The qualitative research method will be used to collect, compare and interpret different information that will be collected through interviews (Hennink et al., 2020). The qualitative method is appropriate because data for the study will be collected through interviews observations. A narrative design for data analysis will be used to analyze the collected data (Hennink et al., 2020). Narratives will include analyzing the words or stories shared during the interviews to identify the gaps in financial education within the school district of Palm Beach County, Florida.
The advantage of using qualitative research in analyzing financial literacy in education is that it has the power to generate adequate information which is required to answer the research questions on financial education (Hennink et al., 2020). Secondly, the use of qualitative data will ensure that the information provided is specific to the qualitative field of financial education. Lastly, the qualitative approach is a subjective method of research and thus, will answer the question of why there is financial illiteracy among youths and teens in the US (Hennink et al., 2020).
To answer the research questions on financial literacy, a qualitative research method shall be used. The qualitative method is most relevant for this study because it shall provide contexts and an overview of financial literacy in schools. An ethnographic design will be used. This is because it allows first-hand information to be collected. Direct observation and questionnaire interviews shall be used to collect (Jamshed, 2014). The participants will answer interview questions on the state of financial literacy in their schools and what they believe are implications of lack of financial literacy
The qualitative research method shall be used in answering questions on financial literacy because it will lead to deep insights about financial literacy and its impacts on teenagers and youths. Also, the qualitative research method will save money because information shall be collected through interviews and direct observations. The main setback is that, even though the grounded method shall be used to analyze the data, the factor of bias is hard to overcome. Therefore, the findings and conclusions on financial literacy in schools and how it affects youth and teenagers may not be accurate due to the bias factor.
Research Questions
There are three research questions.
1. What gaps are found in financial education among the schools in Palm Beach County, Florida?
2. Are there evident effects of financial illiteracy on the youth and teens within the state?
3. What actions should be taken to address the gaps witnessed in financial education among schools in Florida and nationally?
Theoretical Framework
College students in the United States continue to struggle with massive debt. A majority of adults live from paycheck to paycheck, implying that there are a vast majority of financially illiterate persons. Entrepreneurs in the economy are extremely disappointed with the lack of preparation and financial savvy of recent graduates and prospective candidates. The concept of financial literacy is just a normal unit for most students. Students are learning to pass the examination, only to live beyond their monthly income, cannot purchase a home, cannot subscribe to a monthly insurance plan, and cannot even save for retirement due to the lump sum debt (Draper, 2019).
It is estimated that 44% of Americans can’t cover a $400 emergency without debt. 56% of Americans have less than $10,000 in savings for their retirement (FederalReserve, 2018). Some of these skills should be taught by parents to their children; however, many parents live in great debt. If students are not learning financial skills at home, then it is expected that financial illiteracy will be a norm for many persons. Schools should only facilitate what is being taught at home. Research on financial literacy showed that 27 states received a “C” or lower grade. While students learn mathematics in schools, most schools are not required to teach finance-related curriculum like the concept of compound interest and how to complete a tax return (Champlain, 2019). Teaching personal finance is not just the responsibility of learning institutions as it is not just effective to teach personal finance in a condensed format and expect significant results. The behavior of students learning to save their pocket money should be applied in a manner that enables students to apply what they learn in school. This is because it goes a long way in improving financial literacy in schools (Kirkham, 2016).
Definition of Terms
College students are individuals who have been enrolled in tertiary learning institutions. They majorly pursue degree courses. In this research, they are faced with different financial constraints during their period f study. College students are at a higher risk of getting into depression and stress due to poor financial budgets.
Paycheck to paycheck is a terminology used o define people who would not meet their financial errands without jobs. They highly depend on the salaries and if the salary is not available then they get depressed. They commit their earnings to expenditure.
Financial Literacy entails understanding and effectively using various financial skills, including personal financial management, budgeting, and investing. Financial literacy is the basis of the association with money, and it is an enduring erudition voyage (Lusardi, 2019).
Assumptions
The notion that financial information can be supernumerary for low levels of financial literacy rests on the supposition that less well-informed persons face higher footraces regarding the assortment and dispensation of information and thereby save more on data and search costs when revolving to an advisor. The assumption disregards literature from the study of adult teaching, psychology and behavior change, and the socio-cultural factors that disturb learners (Lusardi, 2019).
Another assumption seems to be that anybody with complications connected to money must have insufficiency in financial knowledge, or the problems would not have happened. The answer is to offer knowledge in individual accountability for one’s achievements and disappointments, which is a vital part of American philosophy. Another supposition is the anticipation that education in financial substances will surge individuals’ literateness and, by allowance, advance their monetary well-being. This assumption disregards non-fiction from the study of adult education mindset and behavior variation (Lusardi, 2019).
Limitations
Based on the discussion under the dissertation, research states that public-choice researchers sought innovative approaches to curb opportunistic behaviors in the absence or limitation of government regulation. Smith capitalism has been criticized by socialist economists. According to ethics scholars, public trust in American business leadership is eroding. Researchers linked a transgression of leadership ethics to a loss of confidence. A research study’s limitations are flaws that could prevent the findings from being generalized to other populations. A time constraint was one of the study’s limitations. The investigation focused primarily on historical data from 2005 to 2010. Gross profit margin and after-tax profit margin were used to assess economic success. These financial ratios are generated using data from the income statements of the business under consideration. Furthermore, the financial records and regulatory reports that were archived may have been unreliable. As a result, another study restriction was the possibility of incorrect data leading to inaccurate results. The cause-and-effect relationship between variables is reflected in a causal explanation. Statisticians who use a multivariate model get a better estimate of the criterion and predictor variables than those who use a single-variable analytical perspective. The ability of descriptive-correlation researchers to infer causality is restricted. The use of correlation by statisticians does not indicate causality (Hennink, 2020). However, quantitative researchers must determine the sources of a variable’s variation to analyze it scientifically. Because the qualitative technique is a subjective research method, it will provide an answer to the question about why there is financial illiteracy amongst teens and youths in the United States. The research method’s limitation is that it does not address how these issues began or came to be.
Delimitations
The purpose of research delimitations is to define where a study’s scope ends. The study’s boundaries will be established. An example is a situation where thousands of securities are listed on three stock exchanges. Even though the study examined a sample of 74 financial services companies classified as SIC 6211, the demographic and industry classification might restrict the generalizability of the findings to other firms in other countries. The purpose of utilizing qualitative research to analyze financial literacy in education is that it can provide enough content to address the financial literacy research questions. Using qualitative data will help ensure that the information presented is relevant to the area of education.
The research study is based on seeking the importance of seeking the value in the incorporation of financial education into the learning program. It analyses the importance and the benefits that are likely to accrue in the teaching of financial education.
Summary
Evidence of the impact of regulatory compliance or misconduct on economic performance has been overlooked in present empirical research (Suparno, 2018).
Educators should thus use the research findings to support the financial education policy. This would provoke a better understanding and knowledge for better economic performance. The theoretical framework gives a comprehensive revelation of financial education. Other supports such as the financial regulatory system are also essential. The financial regulatory system played a major role in the 2008 financial crisis. It was also engaged during the failure of several financial institutions that followed. Personal Finance is a term that covers the concepts of managing money, saving, and investing. It also includes banking, budgeting, mortgages, investments, insurance, retirement planning, and tax planning. An illustration of personal finance knows how to budget, balance a checkbook, obtain funds for major purchases, save for retirement, plan for taxes, purchase insurance and make profits (Lusardi, 2019).
References
Amagir, A., Groot, W., Maassen van den Brink, H., & Wilschut, A. (2018). A review of financial-literacy education programs for children and adolescents. Citizenship, Social and Economics Education, 17(1), 56-80.
Amagir, A., Groot, W., van den Brink, H. M., & Wilschut, A. (2020). Financial literacy of high school students in the Netherlands: knowledge, attitudes, self-efficacy, and behavior. International Review of Economics Education, 34, 100185. https://doi.org/10.1016/j.iree.2020.100185
Blue, L. E., & Grootenboer, P. (2019). A praxis approach to financial literacy education. Journal of curriculum studies, 51(5), 755-770.
Cieslick, J., & van Stel, A. (2017). Explaining university students’ career path intentions from their current entrepreneurial exposure. Journal of Small Business and Enterprise Development, 24(2), 313-332
Daveramsey.com (2019). Should Financial Literacy Be Taught in More Schools [Blog post]? Retrieved from
https://www.daveramsey.com/blog/should-financial-literacy-be-taught-in-schools
Draper, S. (2019). Why Financial Literacy in Schools matter today for the workforce of Tomorrow. Retrieved from
https://www.forbes.com/sites/forbescommunicationscouncil/2019/12/16/why-financial-literacy-in-schools-matters-today-for-the-workforce-of-tomorrow/?sh=7765a940110c
Dyer, S.P.; Lambeth, D.T.; Martin, E.P. Effects of multimodal instruction on personal finance skills for high school students. J. Sch. Educ. Technol. 2016, 11, 1–1
Faulkner, A. E. (2017). Financial literacy education in the United States: Exploring popular personal finance literature. Journal of Librarianship and Information Science, 49(3), 287-298.
Federal Reserve Bank of New York. Quarterly Report on Household Debt and Credit; Federal Reserve Bank: New York, NY, USA, 2016; pp. 1–33
FederalReserve (2018). Federal Reserve Board issues report on the economic well-being of U.S. Households. Retrieved from
https://www.federalreserve.gov/newsevents/pressreleases/other20180522a.htm
Hennink, M. M., Hutter, I., & Bailey, A. (2020). Qualitative research methods. SAGE Publications Ltd.
Jamshed, S. (2014). Qualitative research method-interviewing and observation. Journal of Basic and Clinical Pharmacy, 5(4), 87.
https://doi.org/10.4103/0976-0105.141942
Khan, S. N. (2014). Qualitative Research Method: Grounded Theory. International Journal of Business and Management, 9(11).
https://doi.org/10.5539/ijbm.v9n11p224
Kirkham E. (2016). 1 in 3 Americans has saved $0 for retirement. Retrieved from
https://money.com/retirement-savings-survey/
Lusardi, A. (2019). Financial literacy and the need for financial education: evidence and implications. Swiss Journal of Economics and Statistics, 155(1). https://doi.org/10.1186/s41937-019-0027-5
Lusardi, A.; Tufano, P. Debt literacy, financial experiences, and over in datedness. J. Pension Econ. Finance. 2015, 14, 332–368.
Rajh, E., Budak, J., Ateljević, J., Davčev, L., Jovanov, T., & Ognjenović, K. (2016). Entrepreneurial intentions in selected Southeast European countries. EIZ Working Papers, (9), 5-27.
Nova. (2018). Financial education stalls, threatening kids’ future economic health. Cnbc.Com. https://www.cnbc.com/2018/02/08/financial-education-stalls-threatening-kids-future-economic-health.html
Suparno, S. & Saptono, A. (2018). Entrepreneurship education and its influence on financial literacy and entrepreneurship skills in college. Journal of Entrepreneurship Education, 21(4), 1-11
Qualitative research method-interviewing and observation [Video]. (2014, November). PubMed Central (PMC).
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4194943/
20
SAMPLEDISSERTATION TITLE:
STATE THE STUDY METHODOLOGY
[Double space title and use all capitals. No more than 15 words inclusive of your design]
by
Jane Doe
Copyright XXXX
A Dissertation Presented in Partial Fulfillment
of the Requirements for the Degree
Doctor of [Name your program]
The Dissertation Committee for Jane Doe certifies approval of the following dissertation:
SAMPLE DISSERTATION TITLE:
STATE THE STUDY METHODOLOGY
Committee:
John Doe, EdD, Chair
Julie Jones
, PhD, University Research Methodologist
James Smith
, EdD, Panel Validator
_________________________
John Doe
_________________________
Julie Jones
_________________________
James Smith
_________________________
Hinrich Eylers, PhD
Vice Provost, Doctoral Studies
University of Phoenix
Date Approved: ____________
ABSTRACT
[Start text here; do not indent. Abstracts typically are limited to no more than 250 words.]
DEDICATION
[To be indented and completed upon full dissertation completion]
ACKNOWLEDGMENTS
[To be indented and completed upon full dissertation completion]
TABLE OF CONTENTS
Contents Page
List of Tables x
List of Figures x
Preface (optional) x
Chapter 1
:
Introduction
x
Background of the Problem x
Problem Statement x
Purpose of the Study x
Population and Sample x
Significance of the Study x
Nature of the Study x
Research Questions/Hypotheses x
Theoretical or Conceptual Framework x
Definition of Terms x
Assumptions x
Limitations x
Delimitations x
Chapter Summary x
Chapter 2:
Literature Review
x
Title
Searches and Documentation x
Historical Content x
Current Content x
Theoretical or Conceptual Framework Literature x
Methodological Literature x
Research Design Literature x
Conclusions x
Chapter Summary x
Chapter 3: Research Methodology x
Research Method and Design Appropriateness x
Research Questions/Hypotheses x
Population and Sample x
Informed Consent and Confidentiality x
Instrumentation x
Field Test or
Pilot Test x
Credibility and Transferability or Validity and Reliability x
Data Collection x
Data Analysis x
Summary x
Chapter 4:
Analysis and Results
x
Research Questions/Hypotheses x
Data Collection x
Pilot Study x
Data Analysis x
Results x
Chapter Summary x
Chapter 5:
Conclusions and Recommendations
x
Research Questions/Hypotheses x
Discussion of Findings x
Limitations x
Recommendations for Leaders and Practitioners x
Recommendations for Future Research x
Summary x
References x
Appendix A: Title x
Appendix B: Title x
Appendix C: Title x
LIST OF TABLES
Table 1: Title x
Table 2: Title x
(Only list tables if there are two or more tables)
LIST OF FIGURES
Figure 1: Title x
Figure 2: Title x
(Only list figues if there are two or more figures)
OTHER LISTS
[start optional section text here]
PREFACE
[start optional section text here]
19
Chapter 1
Introduction
(Note that “Introduction” is the chapter title)
No introduction heading before the first paragraph of the introductory text. The introduction serves to engage the reader by discussing the overall research topic and background information to your proposed study. A good introduction should describe the broad foundations of your study and indicate the general scope of your study but should not go into so much detail that later sections such as the purpose, problem, and methodology become irrelevant. The introduction can also provide an overview of the sections that will appear in chapter 1.
Background of the Problem
This section should lead up to the statement of the problem in order to create the context of the problem for the readers. In this section, you will want to draw upon the origins of the issues from which the problem is based upon. Be sure to integrate appropriate references to evidence the existence of a problem. Your discussion should reflect why the research problem is of important social concern or theoretical interest. This section is typically several pages in length.
Problem Statement
This section must clearly identify the problem. Include the phrase “The problem is…” to allow the reader to distinguish the issue driving the study. The problem must be supported with citations. A researchable problem is not simply a gap in the literature or a lack of information; a research problem is a documented existing social issue for which there is not a known solution or an effective solution. Review the Problem Statement section associated with your selected design to ensure that this section aligns with your design. This section is typically brief at less than one page in length.
Purpose of the Study
This section should concisely explain the focus of your study. Begin this section with the method and design you have selected and provide a clear statement of the research objectives of your study. Provide a brief description of the means through which the goals of your study will be achieved and the geographic location of the study. Review the Purpose Statement section associated with your selected design to ensure that this section aligns with your design. This section is typically brief at less than one page in length.
Population and Sample
Describe the population by discussing the criteria that you will use for your study participants. Also, briefly discuss your sampling type and sample size. If your study will not include participants or primary data, then briefly explain your proposed sources of data.
Significance of the Study
The significance sections explain why the study is a unique approach to the problem to be investigated, potential benefit/benefactors from the proposed study, and the ways in which the study results might make an original contribution to the field. Discuss why this study important and to whom. Describe the potential contribution this research may make to current and future studies and thought and how the results of this research might add to leadership knowledge and literature. Review the Significance of the Study section associated with your selected design to ensure that this section aligns with your design. This section is typically brief at less than one page in length.
Nature of the Study
This section should include a description of the general means through which the goals of the study will be achieved. In this section, you will present a synopsis and justification of the research method and design for your study. Provide an overview discussion of the research method (quantitative, qualitative, or mixed) and the appropriateness of the method for addressing the purpose of the study. Additionally, discuss why your proposal research design is more appropriate than two or three other possible research designs. Also provide a brief overview of the proposed instrumentation, data collection, and data analysis. This section is typically 1 to 3 pages in length.
Research Questions/Hypotheses
(Only include “hypotheses” in the heading if applicable)
In this section you will state your research questions and sub-questions, if appropriate. Please number the questions such as R1, R2, and so forth. For quantitative studies and mixed method research the questions should include the proposed hypotheses, if appropriate.
Theoretical or Conceptual Framework
(One or the other—delete either theoretical or conceptual from the heading)
The framework should place the study in perspective among existing theories or conceptual models and provide a framework related to the research topic. The discussion should reflect the broad theoretical area under which the research falls and reflect familiarity with germinal and current theories in the field. Remember that a theoretical framework is typically used for a quantitative study to model the theoretical relationships between the variables; a conceptual framework is typically used for a qualitative study and consists of several theories that underpin the topic. The framework should only introduce readers to the relevant theories; this discussion will be expanded in chapter 2.
Definition of Terms
This section is only required if any operational terms or words are used in a unique way in this study. Any definitions must be supported with citations.
Assumptions, Limitations, and Delimitations
State any assumptions that you will be using as a basis for your study. Limitations are issues that the researcher cannot control. In contrast, delimitations define how you are choosing to control or scope your research. Also mention generalizability of the study findings. Note that qualitative studies are not generalizable to the population.
Chapter Summary
The discussion should summarize key points presented in chapter 1. Information should be presented in a discussion context. Supporting citations should be provided for key points. The chapter summary should end with a transition to next chapter such as “Chapter 2 will…” or “In chapter 2…”.
Chapter 2
Literature Review
Begin with an introduction with no section heading. Remind the reader of the study topics and the foundational theories that drove the review of the literature.
Title Searches and Documentation
Describe the approach that you used to search for relevant documentation including key words used to search for publications. You can opt to include a table in this section to describe the numbers of journals, books, or other sources used for your various topics.
Historical Content
Generally, historical content is defined as over 5 years old. Include subsections for each of the various topics related to your study. The topic subsections should be presented in order from the broadest topic to the narrowest topic. Include both germinal content and content that is considered historical based on its publication date. It is crucial that you do not develop your literature review as merely a series of annotated bibliographies that discuss one source after another. It is crucial to synthesize the sources by comparing and contrasting the various perspectives on each topic.
Current Content
Generally, current content is less than 5 years old. Include the same subsections that you used in the historical content unless there is no current literature for a specific topic. Here again it is important to synthesize the sources—compare and contrast the various perspectives on each topic. It is important to describe all perspectives of each research topic including any controversial literature rather than presenting only literature that supports your own perspective in order to create credibility.
Theoretical or Conceptual Framework Literature
(One or the other; must reflect the type of framework used in Chapter 1)
The framework in chapter 1 should only have introduced readers to the relevant theories. This section should include subsections for each of the relevant theories and discuss supporting germinal and current literature on those theories.
Methodology Literature
Describe the various studies that have been accomplished within your topic area. Focus on the methodologies that have been used in research and on the findings of those studies. Key objectives are to address what has already been accomplished in previous research and to support that your methodology will add to the body of knowledge.
Research Design Literature
In chapter 1 you briefly described your selected research design. This section should expand on that discussion and include support from several design methodologists including the germinal methodologists associated with the design.
Conclusions
It is important to recognize that this section is not the chapter “conclusion”; it is “conclusions”, meaning what did you conclude from the literature? Focus on what you derived from the literature you reviewed and remember to cite each assertion.
Chapter Summary
The discussion should summarize key points presented in chapter 2. Information should be presented in a discussion context. Supporting citations should be provided for key points. The chapter summary should end with a transition to next chapter such as “Chapter 3 will…” or “In chapter 3…”.
Please note that chapter 2 should be expanded to 30 to 50 pages prior to submitting the complete proposal for review.
Chapter 3
Research Methodology
No heading for the introduction. Remind the reader of the purpose and objectives of the study. Introduce the contents of the chapter.
Research Method and Design Appropriateness
Expand on the Chapter 1 discussion by supporting selection of the research method and design. Provide a detailed overview discussion of the research method (quantitative, qualitative, or mixed) and the appropriateness of the method for addressing the purpose of the study. Additionally, include a detailed description of why your proposal research design is more appropriate than two or three other possible research designs within the selected method.
Research Questions/Hypotheses
This section should reiterate the research questions and any hypotheses introduced in Chapter 1.
Population and Sample
Discuss the population for the proposed study, defined as the pool of potential participants for the study. If the study will include a stratified sample discuss the various population groups to be included. Follow the population discussion with a description of the sample size and how the sample size was established. For stratified samples discuss the sample size to be obtained from each population group. For studies that will not include primary data use an alternate heading such as “Data Sources” and discuss the proposed sources of the study data, such as archival data. Ensure that you collect demographic data from the participants, including any data relevant to the study topic such as organizational position and experience in years, to include in Chapter 4.
Informed Consent and Confidentiality
Discuss how you will obtain informed consent from any participants and describe any signed permissions already obtained including Permissions to Use Premises, Permission to Use Data, Permission to Use Survey, and so forth. Describe how any confidential data will be stored and later destroyed. Refer to appendices such as the Informed Consent Form; for example, “See Appendix A for the Informed Consent Form”.
Instrumentation
Describe any instrumentation to be used to collect primary data such as qualitative questionnaires, interview protocols, or surveys. Include a table to indicate how the instrumentation items align to the research questions or hypotheses. Refer to appendices such as the instrumentation.
Field Test or Pilot Study
Qualitative studies require a field test on original narrative data collection instruments. Original quantitative instruments require use of a pilot study to produce validity and reliability data. Note that while field tests must be conducted prior to proposal approval, pilot studies cannot be conducted prior to proposal and IRB approval. Mixed-method studies may require both a field test and a pilot test.
Credibility and Transferability or Validity and Reliability
For qualitative studies, include a section on credibility and transferability or trustworthiness to discuss how these attributes will be accomplished within the study. Include any relevant discussion regarding how the various sources will be triangulated. For quantitative studies, include a section on validity and reliability. Quantitative instruments that are commercially produced or have been published should have validity and reliability data available. Original quantitative instruments require use of a pilot study to produce validity and reliability data. Note that pilot studies cannot be conducted prior to IRB approval. Mixed-method studies often require discussion of both credibility and transferability, and validity and reliability.
Data Collection
This section must include a complete description of the processes to be used to collect any primary or secondary data. Include discussion of how any participants will be recruited for participation and describe any permissions required to collect these data. If data will be collected in phases, such as during a Delphi study with two or more rounds, a case study with multiple sources of data, a study with a stratified sample, a quantitative study with more than one survey instrument, or a mixed-method study, describe each phase of data collection process clearly.
Data Analysis
Data analysis section must include a detailed description of the processes or statistical techniques to be used for analysis of any primary or secondary data. Proposed data analyses techniques must clear and appropriate to the research design and a sufficient level of detail must be provided. Qualitative analysis steps must be described and must align with the selected design, such as the constant comparative approach for a grounded theory study and a modified van Kaam process or Stevick-Colaizzi-Keen process for phenomenology. When applicable, quantitative data analysis discussion must include information on the statistical tests to be performed, Alpha levels for hypotheses testing, and whether the testing will be one-tailed or two-tailed.
Summary
The discussion should summarize key points presented in chapter 3. Information should be presented in a discussion context. Supporting citations should be provided for key points. Although Chapter 4 is not submitted as part of the proposal the chapter summary should end with a transition to next chapter such as “Chapter 4 will…” or “In chapter 4…”.
Chapter 4
Analysis and Results
No heading for the introduction. Remind the reader of the purpose and objectives of the study. Introduce the contents of the chapter. Keep in mind that Chapter 4 should solely describe the analysis process and the study results; therefore, no citations should be included in this chapter.
Research Questions/Hypotheses
This section should reiterate the research questions and any hypotheses. Ensure consistency in the wording with previous chapters.
Data Collection
Provide a detailed discussion of the informed consent and data collection process used. Additionally, if the actual data collection process differs from the proposed process as described in Chapters 1 and 3 revise those chapters to reflect the actual process used. Note that if data collection is performed in multiple phases, such as in a Delphi technique or a mixed-method study, Chapter 4 should include subsections for each of these data collection and data analysis phases.
Demographics
Describe the study participants by stating information such as gender, age range, ethnicity, region, occupation, years of experience, or other relevant demographics. To avoid confidentiality issues, collect and report age in ranges such as 20 to 30, 30 to 40, and so forth. Include the demographic information as text, tables, or a combination or text and tables. However, report the demographics individually without linking the demographic data together or to a participant. For example, the reader should not be able to determine that Participant 1 was an Asian female teacher in her 30s who lives in the North West region since this information may compromise confidentiality. For studies that did not include primary data use an alternate heading such as “Data Sources” and discuss the sources of the study data.
Pilot Study
(Include this section only for original quantitative instruments)
Original quantitative instruments require use of a pilot study to produce validity and reliability data. For any research that included a pilot study report the results in this section.
Data Analysis
Data analysis section must include a detailed description of the processes or statistical techniques used for analysis of any primary or secondary data. If the actual data analysis process was altered from the proposed process revise Chapters 1 and 3 to reflect the procedures actually used. The description of data analysis steps should include a level of detail that would allow a competent researcher to reproduce your analysis.
For narrative data analyze these data individually for each research question rather than for each interview or questionnaire question. Similar to data collection, if the analysis is performed in multiple phases, such as in a Delphi technique or a mixed-method study, Chapter 4 should include subsections for each of these data analysis phases.
Results
Effective reporting of the results is extremely important. For qualitative narrative data the results are typically reported as themes. Each theme should be reported in a separate sub-section and should be numbered such as Theme 1, Theme 2, and so forth. Typically, the number of major themes for a qualitative study are three to eight. Consider that each theme will need to be compared and contrasted against existing literature in Chapter 5, so exceeding eight themes is not recommended.
Themes should be short but complete sentences that reflect the objective of the study. For example, a theme of “Communication” is too vague to be effective, whereas “Insufficient communication from administration was a barrier to effective teaching strategies” conveys a much clearer context. Each theme must be supported by example narrative, such as three to five examples of brief participant quotes. Identify the participants using their code, for example “P3 stated ‘If we could only get clear direction from the principal it would make our jobs so much easier’”.
For quantitative data, include the analysis tables and describe the results of the analysis. Include a sub-section for each research question and reiterate the associated hypotheses. Discuss the meaning of the results in terms of supporting or not supporting the null hypotheses, and clearly describe the meaning ascribed to those results.
Regardless of the research method, include any outlier data. Do not compare the results to literature in Chapter 4; save this information for Chapter 5.
Summary
The discussion should summarize the chapter and reiterate the results presented in Chapter 4. The chapter summary should end with a transition to chapter 5.
Chapter 5
Conclusions and Recommendations
No heading for the introduction. Remind the reader of the purpose and objectives of the study. Introduce the contents of the chapter.
Research Questions/Hypotheses
This section should reiterate the research questions and any hypotheses. Ensure consistency in the wording with previous chapters.
Discussion of Findings
The objective of this section is to compare and contrast the study results to existing literature. For qualitative and mixed-method studies with resultant themes, this section must include sub-sections for each theme. For quantitative and mixed-method studies with hypotheses, this section must include sub-sections for the results of each set of hypotheses. Compare or contrast each result to three to five published sources. Note once you have established the study results you may need to slightly expand the Chapter 2 literature review to include relevant information or information that has been recently published.
Limitations
In contrast to the limitations discussed in Chapter 1, the Chapter 5 limitations section should focus solely on unforeseen limitations that were revealed while conducting the study. Remember that limitations are out of the control of the researcher.
Recommendations to Leaders and Practitioners
Keep in mind that the entire study culminates in this section so consider this discussion carefully. Based on the research questions and the results, convey how leaders and practitioners might mitigate the problem underlying the study. Consider including a recommendation for each of the results. Be very specific in the recommendations and consider ending the section with a table to reiterate the recommendations for each of the results. Additionally, ensure that the recommendations align with the research design. For grounded theory studies include a theory or a theoretical model, and for action research clearly describe the recommended actions for leaders and practitioners to pursue. Whenever appropriate include a model in this section. Remember that the goal of a practitioner doctorate is to improve your field of practice, which is accomplished through your recommendations.
Recommendations for Future Research
When completing this section consider how you might have accomplished the study differently. Also consider what you have uncovered that might be further explored through additional research. Include three or four specific recommendations for further study and include recommended methodologies.
Summary
Summarize only Chapter 5 rather than the entire dissertation. Reiterate each of the study objectives or research questions and state the study findings. End with a strong cogent statement that conveys what the study has contributed to the body of knowledge.
A researcher reflection section can also be included in Chapter 5, and this section can be written in first-person language.
References
[Use hanging indent format and double space the entire list]
Appendix A
Title
[start section text here]
AUTHOR BIOGRAPHY
[optional]
[start section text here]
UNIVERSITY OF PHOENIX
January 2010
Current Content Sources
Reference list for lack of financial literacy taught in schools
1. Aboagye, J., & Jung, J. Y. (2018). Debt holding, financial behavior, and financial satisfaction. Journal of Financial Counseling and Planning, 29(2), 208-218.
2. Artavanis, N., & Karra, S. (2020). Financial literacy and student debt. The European Journal of Finance, 26(4-5), 382-401.
3. Bamforth, J., Jebarajakirthy, C., & Geursen, G. (2018). Understanding undergraduates’ money management behaviour: a study beyond financial literacy. International Journal of Bank Marketing.
4. Curran, M. A., Parrott, E., Ahn, S. Y., Serido, J., & Shim, S. (2018). Young adults’ life outcomes and well-being: Perceived financial socialization from parents, the romantic partner, and young adults’ own financial behaviors. Journal of Family and Economic Issues, 39(3), 445-456.
5. Dewi, V., Febrian, E., Effendi, N., & Anwar, M. (2020). Financial Literacy among the Millennial Generation: Relationships between Knowledge, Skills, Attitude, and Behavior. Australasian Accounting, Business and Finance Journal, 14(4), 24-37.
6. Herrerias, R. (2020). Financial Inclusion and Household Financial Behavior. Available at SSRN 3717100.
7. Kasman, M., Heuberger, B., & Hammond, R. A. (2018). A review of large-scale youth financial literacy education policies and programs. The Brookings Institution.
8. Raut, R. K. (2020). Past behaviour, financial literacy and investment decision-making process of individual investors. International Journal of Emerging Markets.
9. Skagerlund, K., Lind, T., Strömbäck, C., Tinghög, G., & Västfjäll, D. (2018). Financial literacy and the role of numeracy–How individuals’ attitude and affinity with numbers influence financial literacy. Journal of behavioral and experimental economics, 74, 18-25.
10. Tejero, E. L. I. S. A., Pilongo, L., & Pamaran, F. R. A. N. C. I. S. (2019). Financial literacy in relation to financial management. University of Bohol Multidisciplinary Research Journal, 7(1), 138-165.