FINANCIAL LITERACY EDUCATION FOR ADULTS WITH MINOR CHILDREN by Kari Sue Ure A project submitted in partial fulfillment of the requirements for the degree of MASTER OF EDUCATION IN CURRICULUM AND INSTRUCTION WEBER STATE UNIVERSITY Ogden, Utah April 7, 2020 Approved ____________________________________ Peggy J. Saunders, Ph.D. ____________________________________ Allyson D. Saunders, Ph.D. ____________________________________ Naomi Brower, MFHD Naomi Brower FINANCIAL LITERACY EDUCATION 2 Acknowledgements I am humbled by the hours so many have graciously given to my thesis project and coursework. Dr. Peggy Saunders as my chair, Dr. Allyson Saunders and Mrs. Naomi Brower as committee members, and also my curriculum evaluators who had no connection to me prior to this program have given hours of their time. They all willingly provided crucial input for my project and also in my development as a person, student, and researcher. They have motivated me to make sure I pay it forward to others’ development and give back as so many have given to me in this process. The coursework during this program was valuable due to the diligence of my professors and classmates, and I value the growth I have experienced during this program. My upbringing shaped my own financial literacy and taught me the value of work and management of money. I am grateful for my parents’ example of money management and their wise parenting. My parents and siblings have played an active part in this project. Leading the pack in hours selflessly devoted to this project is my husband, Brent, who encouraged me to start this program as a later-in-life student and provided endless discussion with me through assignments, presentations, and my thesis project. The countless hours he spent cooking meals, doing laundry, cleaning the house, and taking care of the yard allowed me to successfully complete this program. I am grateful for his hobbies of farming and skiing so that he had enjoyable activities to do during my hours of homework. He is the epitome of selflessness and teamwork in financial literacy as he successfully supports two households and truly puts all of our needs before his own. I am thankful for his faithful companionship. FINANCIAL LITERACY EDUCATION 3 Table of Contents NATURE OF THE PROBLEM………………………………………………………….….…. 6 Literature Review……………………………………………………………………..…….. 7 Need for Improved Financial Literacy……………………………………………...… 7 Definition of financial literacy………………………………………………….. 7 Current overall economic well-being in the United States of America………… 10 Indicators of a lack of financial literacy in the United States of America……… 12 Individual Well-being and Marriage and Family Relationships……………………… 14 Individual well-being………………………………………………………...…. 14 Financial stress negatively impacts physical and mental health................. 15 Financial wellness as a component of employer wellness programs……… 15 Marriage and family relationships………………………………….…………… 16 Finances as a source of marital conflict………………………………….. 17 Similarities in marital financial skills and marital relationship skills……. 18 Development of financial literacy………………………………………… 19 Financial Literacy Requires Both Knowledge and Application of Knowledge…….… 20 Financial knowledge…………………………………………………..………… 20 Application of financial knowledge……………………………………..……… 22 Behavior modification……………………………………………………...…… 24 Summary………………………………………………………………………………….… 25 PURPOSE…………………………………………………………………………….………… 27 METHOD………………………………………………………………………………….……. 28 Format of Curriculum…………………………………………………………...………….. 28 FINANCIAL LITERACY EDUCATION 4 Expert Curriculum Evaluators…………………………………………………………….... 28 Procedure……………………………………………………………………………………. 29 Data Analysis Plan………………………………………………………………………….. 29 FINDINGS AND DISCUSSION……………....…………………………….…………….…. 30 Feedback..........................................................................................................................…... 30 Areas for Improvement……………………………………………………..………… 31 Specific Feedback by Evaluator…………………………………...………………….. 32 Revisions……………………………………………………………………………………. 33 Personal Reflection………………………………………………………………………….. 35 REFERENCES…………………………………………………………………………………. 37 APPENDICES………………………………………………………………………………..… 41 Appendix A: Evaluation Form……………………………………………………………… 42 Appendix B: Curriculum with Revisions…………………………………………………… 49 Participant Guide…………………………………………………………………….... 50 Assessments…………………………………………………………………………… 94 Lesson 1: Game Plan………………………………………………………………. 96 Lesson 2: What’s The Big Deal? ........................................................................... 120 Lesson 3: Where Did It All Go? ………………………………………………... 158 Lesson 4: It’s A Team ………………………………………………………….... 179 References……………...……………………………………………………………. 206 FINANCIAL LITERACY EDUCATION 5 Abstract Many financial literacy programs increase financial knowledge of participants but do not result in participants changing their financial habits. The purpose of this project was to develop a financial literacy curriculum that improved financial literacy and supported behavior modification in the financial decision making process. The curriculum focused on adults with minor children. Four lessons were developed focusing on basic financial literacy. Three expert evaluators with differing areas of expertise reviewed the curriculum and provided feedback. Feedback was obtained through an electronic form and followed up with a phone interview with each evaluator. Suggestions were evaluated and revisions were made to the curriculum. The feedback provided by the evaluators strengthened the curriculum in education principles, supporting behavior modification, and general organization of the presentation of the content. Financial literacy involves both financial knowledge and proper application of that knowledge, which often requires changing the financial decision making process. Financial literacy is important to overall wellness of individuals and spouse and family relationships. FINANCIAL LITERACY EDUCATION 6 NATURE OF THE PROBLEM Research shows most adults in the United States of America are not financially literate (Bailey, 2019; Collins & Holden, 2014; Ward & Lynch, 2019). While a widely accepted definition of financial literacy is hard to find, management of money is one basic definition. Remund (2010) further defined financial literacy as the ability to understand and engage in short-term financial management as well as long-term financial planning. Financial literacy includes decisions in regard to earning, spending, saving, investing, and protecting. Collins and Holden (2014) added capability as an important aspect of financial literacy as one must be able to incorporate financial knowledge into decisions and behaviors. Despite reports of a strong economy, indicators show Americans lack financial literacy (Consumer and Community Research Section, 2019). Financial literacy is important because it impacts individual well-being as well as marriage and family relationships (Bailey, 2019; Higginbotham, Tulane, & Skogrand, 2012; Papp, Cummings, & Goeke-Morey, 2009; Skogrand, Johnson, Horrocks, & Defrain, 2011; Winick, 2019). Financial literacy improves financial health of individuals, which leads to reduced stress, better contribution to employment activities, and improved social relationships. In turn, the well-being of individuals directly influences the well-being of marriage and family relationships (Bailey, 2019). The quality of marriage is further influenced by wise money management (Higginbotham et al., 2012; Papp et al., 2009; Skogrand et al., 2011). Given this relationship between financial literacy, individual well-being, and the quality of marital/familial relationships, being financially literate is crucial. Financial literacy requires both knowledge of good financial decisions as well as the skills and determination to put that knowledge into practice (Collins & Holden, 2014). FINANCIAL LITERACY EDUCATION 7 Knowledge of correct financial information alone does not help individuals achieve financial literacy (Forté, 2013). Correct application of financial information is necessary for financially literate decisions (Collins & Holden, 2014). Behavior modification is essential for the correct application of financial information (Forté, 2013). Thus quality financial literacy education should aim to not only increase students’ financial knowledge and skills but also build students’ motivation so that they are more likely to apply those skills and engage in financially literate behaviors. Therefore, the aim of this project is to increase financial literacy in adults by developing a financial literacy curriculum that emphasizes behavior modification. Literature Review Emphasis has grown on improving financial literacy in both youth and adults in the United States of America (Chambers, Asarta, & Farley-Ripple, 2019). Increased financial literacy improves the well-being of both individuals and families (Winick, 2019). A crucial point in improving financial literacy requires individuals to change behavior (Shelton, Smith, & Panisch, 2019). Need for Improved Financial Literacy Researchers do not agree on a universal definition of financial literacy. Without a widely accepted definition, assessing financial literacy as well as developing curriculum to improve financial literacy is a challenge. Research indicates a need for improved financial literacy among adults in the United States of America (Bailey, 2019; Collins & Holden, 2014; Ward & Lynch, 2019). Definition of financial literacy. A basic definition used in this review is the ability of individuals to manage money (Remund, 2010). The management of money includes both knowledge as well as the proper application of the knowledge (Ward & Lynch, 2019). Using this FINANCIAL LITERACY EDUCATION 8 definition, research shows the majority of adults in the United States of America are not financially literate (Bailey, 2019; Collins & Holden, 2014; Ward & Lynch, 2019). Common measures of financial literacy may include management of earning, saving, spending, investing, and protecting in regards to financial assets. The Programme for International Student Assessment (PISA) administers an international assessment to students near the end of their compulsory education. A section to assess financial literacy was an optional addition starting with the 2012 assessment (Chambers et al., 2019). The data collected from this financial literacy assessment have been instrumental to guide development of a financial literacy definition. The PISA financial literacy assessment studied correlations of the level of the students’ consumer socialization and the students’ exposure to financial information and household practices. Consumer socialization is the process in which “children grow up learning how to be consumers and how to live in an economic world” (Chambers et al., 2019, p. 98). The correlations show the importance of both cognitive financial knowledge and also non-cognitive skills of financial literacy. The non-cognitive aspects found in this study show the importance of including financial skills in the definition of financial literacy (Chambers et al., 2019). An important element of financial literacy is the wise use of financial knowledge in making decisions regarding finances (Shelton et al., 2019). The ability to apply the information to the decisions is a deeper level than merely having understanding of financial knowledge. In addition to financial knowledge, decisions in application of the knowledge include emotions, habits, and self-control (Shelton et al., 2019). Due to these application factors, the definition of financial literacy becomes more complex. FINANCIAL LITERACY EDUCATION 9 Financial literacy includes both short and long term financial planning (Remund, 2010; Ward & Lynch, 2019). Along with wise use of money in the present, financial literacy also includes the ability to plan well for future use (Collins & Holden, 2014; Remund, 2010). Thus the ability to have a vision of future needs and use self-control in the present to achieve financial goals is another element of defining financial literacy. The definition of financial literacy should also include aspects of financial well-being. The Consumer Financial Protection Bureau (CFPB, 2015) defined financial well-being: Our research suggests financial well-being can be defined as a state wherein you: - Have control over day-to-day, month-to-month finances; - Have the capacity to absorb a financial shock; - Are on track to meet your financial goals; and - Have the financial freedom to make the choices that allow you to enjoy life. Because individuals value different things, traditional measures such as income or net worth, while important, do not necessarily or fully capture this last aspect of financial well-being. (p. 5) Financial literacy leads to financial well-being when individuals correctly apply financial knowledge (CFPB, 2015). An important factor of financial well-being is the individual’s perception of their financial security (CFPB, 2018). Research completed by the CFPB concluded financial well-being improves when individuals increase in financial knowledge, improve financial skills, and increase in financial self-efficacy. Results in their study suggest financial skills and financial self-efficacy make a larger contribution to financial well-being than increasing financial knowledge (CFPB, 2018). Financial literacy encompasses financial knowledge, financial skill, and financial well-being. FINANCIAL LITERACY EDUCATION 10 Current overall economic well-being in the United States of America. Each year the Consumer and Community Research Section of the Federal Reserve Board’s Division of Consumer and Community Affairs publishes the Report on the Economic Well-Being of U.S. Households. The purpose of the report is to provide information on the results of the Survey of Households Economics and Decisionmaking (SHED). The most current report published in 2019 reported the survey results for 2018. The annual survey started in 2013 making six surveys so far in the data comparison. Over 11,000 individuals completed the online survey during October and November 2018 (Consumer and Community Research Section, 2019). The perception of adults in the United States is that most feel they are living comfortably. Seventy-five percent of those surveyed reported they perceive they are living comfortably, which is 12% higher than when the survey started in 2013 (Consumer and Community Research Section, 2019). An important point to remember is the survey was self-reported perception and was administered through online means. These factors may have altered the information as the sample might not provide an accurate representation of all adults in the United States as income levels determine to some degree the accessibility to the survey. Language may have also limited accessibility to the survey. Among the 11,000 adults surveyed, the findings report “notable differences remain by race and ethnicity, education attainment, and geography” (Consumer and Community Research Section, 2019, p. 1). These three areas of economic disparities have consistently persisted since 2013 when the first survey was administered. Despite the encouraging outlook reported in the survey, issues persist that indicate the perception of and report of financial circumstance may be elevated (Consumer and Community Research Section, 2019). FINANCIAL LITERACY EDUCATION 11 The National Foundation for Credit Counseling has completed an annual survey since 2007 to survey adults in the United States (Harris Poll, 2019). The survey measures financial knowledge and practices in regards to retirement, savings, and debt. The most recent survey was completed online in March 2019 by Harris Poll and included 2,086 adults (Harris Poll, 2019). Harris Poll (2019) found 60% of adults surveyed reported credit card debt in the previous 12 months with 37% carrying the debt from month to month consistently. In addition to this finding, 12% reported they were “not very or not at all confident” (p. 4) in the last major financial decision. A major financial decision was defined as “picking a credit card, buying a car, or refinancing their mortgage” (p. 4). This statistic was an increase in comparison to previous years’ surveys (Harris Poll, 2019). The unemployment rate indicates a strong economy; however, the survey found there are some adults who are still unemployed or underemployed (Consumer and Community Research Section, 2019). Varied income remained a stress for 30% of individuals and one-third of those with varied income reported this was a barrier in meeting expenses. Ten percent of adults and 25% of adults under age 30 reported they received help meeting expenses from family or friends living outside of their home. Varying work schedules were reported to increase financial stress, and 25% of those surveyed reported having varying work schedules. Thirty percent surveyed supplemented their income with side jobs. Although so many positive indicators are reported, there is room for improved employment among adults in the United States (Consumer and Community Research Section, 2019). Particular concern is how to overcome the disparity in financial wellness due to race and ethnicity, educational attainment, and geography (Consumer and Community Research Section, 2019). Black and Hispanic populations reported lower levels of income, lower ability to meet FINANCIAL LITERACY EDUCATION 12 expenses, lower number of employment hours, increased inability to access credit if needed, more difficulty when renting to have repairs completed, and less access to higher education. Those people without higher education reported lower satisfaction in overall financial circumstance and were less likely to be satisfied with the number of employment hours. If they did start college, they were more likely to be behind on student loan payments (Consumer and Community Research Section, 2019). Indicators of a lack of financial literacy in the United States of America. Despite the encouraging report overall of the economic situation in the United States, many individuals and families are financially vulnerable (Consumer and Community Research Section, 2019). Although 75% of adults in the United States reported living comfortably, only 61% reported they could cover an unexpected $400.00 expense. Seventeen percent of adults reported they were unable to cover their current monthly expenses making any unexpected expenses impossible. Twenty-five percent of adults surveyed reported they opted out of necessary medical care due to the cost. These findings may demonstrate a lack of financial literacy as some of the individuals surveyed do not recognize their financial vulnerability. The report concluded that while most individuals reported making ends meet month to month, the circumstances of many with volatile income and low savings can quickly make every day inconveniences (like a delayed check) a large problem (Consumer and Community Research Section, 2019). The survey completed by Harris Poll (2019) also found insufficient savings to be a high concern. This concern ranked second in the area of personal finances causing the most worry for adults in the United States (Harris Poll, 2019). Financial literacy includes future financial planning. The Consumer and Community Research Section (2019) survey questioned adults on their retirement circumstance. The findings FINANCIAL LITERACY EDUCATION 13 showed adults in the United States are not well prepared for future financial needs. Twenty-five percent of adults surveyed reported they did not have a retirement savings or pension of any kind. Only 36% of non-retired adults reported they were on track with their retirement savings. Considering the report is self-reported, this finding can be viewed more accurately as how many adults perceived they were on track as questions were not asked to determine if they were actually on track (Consumer and Community Research Section, 2019). The Harris Poll (2019) found that only 18% feel very confident that they are saving enough for retirement, and 25% felt not confident at all in their retirement saving circumstance. Insufficient retirement savings was found to be the top financial worry in adults surveyed (Harris Poll, 2019). A common focus is on the importance of increasing financial literacy among low income groups, and studies support the need to provide support in financial literacy to individuals with low income (Wagner, 2019). Often those with higher income are able to obtain financial education. However, studies support the need of improved financial literacy among individuals in all income levels (Bailey, 2019). One indication that financial literacy is needed by adults in all income levels is the comparison that 75% of adults surveyed by the Consumer and Community Research Section (2019) reported they were doing okay financially, yet the average score on five financial literacy questions was answering fewer than three correctly. A series of studies found financial literacy may be linked to a need-to-know basis (Ward & Lynch, 2019). The study determined in marital relationships only one of the two partners usually felt the need to become financial literate. This response could be one reason for testing of overall financial literacy being low. It may also be the reason studies do not show financial literacy education to be very effective as only half of adults may be interested in becoming financially literate (Ward & Lynch, 2019). While these studies may explain reasoning behind FINANCIAL LITERACY EDUCATION 14 data, they do not justify adults lacking financial literacy. Adults benefit from becoming financially literate. Individual Well-being and Marriage and Family Relationships Financial literacy affects financial health and well-being. When individuals are financially healthy, other aspects of their individual circumstance and relationships benefit (Bailey, 2019; Higginbotham et al., 2012; Papp et al., 2009; Skogrand et al., 2011; Winick, 2019). Family members’ financial literacy directly impacts the level of living and opportunities available to the household, which influences the overall health and wellness of individuals and families (Bailey, 2019). Knowledge, skills, and attitudes of financial behaviors develop at a young age and are heavily influenced by parental engagement (Gill & Bhattacharya, 2018; Legenzova, Gaigalienė, & Leckė, 2019; Moreno-Herrero, Salas-Velasco, & Sánchez-Campillo, 2018). Individual well-being. Financial literacy is an essential life skill. In Abraham Maslow’s (1943) hierarchy of needs, physiological needs are first in the hierarchy and include food, water, shelter, and rest. Wise financial decisions are required to meet these basic human needs. Once the physiological needs are met, the next level in the hierarchy consists of safety needs. Safety needs include avoiding predators or stressors that threaten well-being. Job security could be included as a factor of safety needs (Bailey, 2019; Maslow, 1943). Financial literacy leads to financial stability and plays a central role in individuals meeting their physiological and safety needs. Meeting these basic needs is a prerequisite for higher level needs that include love and belonging, esteem, and self-actualization, which are required for individual well-being (Maslow 1943). Increased financial literacy enables individuals to independently meet their basic needs, which leads to increased well-being. FINANCIAL LITERACY EDUCATION 15 Financial stress negatively impacts physical and mental health. A lack of financial literacy results in poor financial decisions, which often lead to chronic stress (Bailey, 2019). This stress decreases the physical and mental health and well-being of individuals (Bailey, 2019; Montpetit, Kapp, & Bergeman, 2015). Despite the reports of a healthy economy, individuals reported feeling stressed due to finances (Bailey, 2019; Drake, O’Neil, & Hoffmire, 2019). The consistent reoccurrence of stress due to ongoing financial demands has been found to negatively affect individual well-being more than non-financial major stressful events. Financial strain also adds to stress in non-financial stressful situations as individuals have limited resources to use in facing other stressful situations that occur (Montpetit et al., 2015). The link between financial stress and physical and mental health validates the importance of financial literacy education. Another benefit from increased financial literacy for individuals is improved social relationships (Bailey, 2019). A relationship has been found between perceived strength of social relationships and financial well-being. When financial well-being suffers, social relationships suffer. Social integration leads to individual well-being (Bailey, 2019). Montpetit et al. (2015) found that the effect on health of multiple other stressors was minimized when individuals experienced satisfying levels of social integration. A positive social support system helped the participants’ overall well-being (Montpetit et al., 2015). The improvement in social relationships due to increased financial literacy improves individual well-being. Financial wellness as a component of employer wellness programs. The impact of employee financial stress on employers has recently become a focus of many organizations (Bailey, 2019; Drake et al., 2019; Winick, 2019). While many employers have offered programs to support their employees’ physical and mental wellness, some are just now recognizing the importance of financial health in the overall well-being of their employees (Winick, 2019). FINANCIAL LITERACY EDUCATION 16 When employees are able to thrive in their personal lives, the organization is able to thrive (Bailey, 2019). Organizations such as Meredith Corporation and Prudential Financial have integrated financial wellness as a component of their overall employee wellness initiative (Bailey, 2019; Drake et al., 2019; Winick, 2019). Components of employer financial programs include assessments, workshops, one-on-one financial coaching, child and adult care discounts, retirement advisement, and education on maximizing the employer-offered benefit package (Bailey, 2019; Drake et al., 2019; Winick, 2019). Employers have also extended these programs to spouses of employees. Offering financial literacy education in multiple learning styles to maximize employee and spouse participation is another component employers are starting to add to the wellness programs (Bailey, 2019; Drake et al., 2019; Winick, 2019). Both employees and employers experience benefits from financial literacy education initiatives (Drake et al., 2019; Winick, 2019). Employees have reported lower financial distress, lower cash flow stress, increased use of retirement accounts, better understanding and use of health plans, and improved family relationships (Drake et al., 2019; Winick, 2019). Employers have reported increased productivity, decreased absenteeism, increased employee appreciation, less turnover, and better workforce management due to workers choosing to retire on their own terms due to being financially prepared (Drake et al., 2019; Winick, 2019). Financial literacy education increases individual financial well-being. Furthermore, financial well-being provides individuals with health, social, and employment benefits (Bailey, 2019). Marriage and family relationships. Management of finances affects marriage and family relationships (Higginbotham et al., 2012). Financial stress carries over into marital and family relationships and often leads to conflict. Wise financial management decreases financial FINANCIAL LITERACY EDUCATION 17 stress, which reduces family conflict (Moreno-Herrero et al., 2018; Papp et al., 2009; Skogrand et al., 2011). Finances as a source of marital conflict. Finances are viewed as a common source of conflict in marriage and families (Higginbotham et al., 2012; Papp et al., 2009). A relationship between debt, specifically consumer debt, and a decrease in marital satisfaction has been found (Skogrand et al., 2011). Unity and commitment to a wise household financial plan is essential for couples to achieve success in financial management thus minimizing marital conflict. The financial plan minimizes debt and aids couples in achieving their financial goals (Higginbotham et al., 2012). One study found the impact of marital financial conflict may lead to the common view of finances as the most common cause of marital conflict (Papp et al., 2009). Questionnaire research often concludes finances are the most frequent source of marital conflict (Higginbotham et al., 2012; Papp et al., 2009). When asked to report past experiences, couples may overestimate the frequency of financial conflict due to the increased impact of financial arguments in relation to non-financial arguments (Papp et al., 2009). Papp et al. (2009) explored the frequency of financial marital conflict as well as how couples handled financial marital conflict in relation to other sources of marital conflict. Their study reported finances were not the most frequent sources of marital conflict; however, the impact of the financial marital conflict was longer lasting. The impact of the conflict was deeper due to the level of intensity, emotion, lack of resolution, and having a higher-level of importance to the overall relationship than other subjects of marital conflict (Papp et al., 2009). The researchers concluded that while financial marital conflict was not the most common subject of marital conflict, it was the most reported in general marital conflict questionnaires as FINANCIAL LITERACY EDUCATION 18 the effects of the financial conflict linger and are more damaging overall to the relationship (Papp et al., 2009). Due to the impact of financial conflict on marriage and family, financial literacy is an important skill for successful marriage and family relationships. Similarities in marital financial skills and marital relationship skills. Couples in happy marriages reported high levels of trust, good communication, focus on common goals, and division of financial responsibilities as requirements for good financial practices (Skogrand et al., 2011). Successful financial management in marriage requires the same relationship skills that have been found to be important to overall marriage and family relationships (Higginbotham et al., 2012; Skogrand et al., 2011). Relationship education therapists and financial therapists often seek to improve the same skill set in making improvements (Higginbotham et al., 2012; Skogrand et al., 2011). These skills focus on collaboration, team work, power sharing, and realistic expectations (Higginbotham et al., 2012). Individual circumstances contribute to dynamics of financial decisions in marriage relationships (Higginbotham et al., 2012). One dynamic that adds to the impact of financial skills is when the family is blended. Blended family financial resources are often impacted by external factors that require further communication about redistribution of financial resources. Financial conflict tends to increase with these additional factors. Financial literacy education skills become even more important in blended families (Higginbotham et al., 2012). Correct application of money management skills in a blended home is a crucial element in a quality financial literacy education course. Couples who reported happy marriages stated they were united in the highs and lows created by money management and this unity strengthened their relationship (Skogrand et al., 2011). An important element in good relationships and financial management is discipline. One FINANCIAL LITERACY EDUCATION 19 survey participant reported In no way should you go into debt just to have it all–having it all does in no way make for a happy marriage. Struggling and limiting your spending will help to give you strength. If you had it all you would have no place to put it. (Skogrand et al., 2011, p. 33) Couples reported that good money management added to their overall marital happiness. Strong relationship skills are necessary for couples to successfully manage their finances (Skogrand et al., 2011). Development of financial literacy. Parents’ financial literacy directly affects their children. The home environment has been shown to be a key in financial socialization of young people (Chambers et al., 2019; Gill & Bhattacharya, 2018; Legenzova et al., 2019; Moreno- Herrero et al., 2018). Family financial influences are both implicit and explicit in shaping the views, attitudes, and actions of children and youth (Chambers et al., 2019). Young people learn from their parents in regard to saving, risk aversion, investing, and the ability to find goods at the lowest price possible (Gill & Bhattacharya, 2018; Legenzova et al., 2019). Financial attitudes include both what the parents do in financial matters as well as what they instruct and verbally share in financial matters (Chambers et al., 2019; Gill & Bhattacharya, 2018). As youth watch good financial actions in their parents, they recognize the importance of financial preparation for unforeseen and unpredictable events in regards to changes in finances due to health, employment, and other variables (Legenzova et al., 2019). In addition to financial attitudes and actions, parents also increase their children’s financial literacy when they provide them with experience in financial management (Moreno- Herrero et al., 2018). Most often this experience starts with the child’s basic management of FINANCIAL LITERACY EDUCATION 20 small amounts of money (Moreno-Herrero et al., 2018). Managing a basic savings account also helps children develop financial literacy (Legenzova et al., 2019). The personal, hands-on experience with financial products and money management is an important exercise in increasing financial literacy in young people. Exposure to financial products such as savings accounts, simple investments, and credit gives youth experience to increase their financial literacy (Legenzova et al., 2019). Interaction between parents and their children is an important piece in the transfer of financial knowledge and application (Moreno-Herrero et al., 2018). The good financial practices of parents are vital so that future generations will development correct financial views, attitudes, and behaviors at a young age. Financial Literacy Requires Both Knowledge and Application of Knowledge Two required elements of financial literacy are knowledge of good financial decisions and skills to put that knowledge into practice (Collins & Holden, 2014; Shelton et al., 2019). Financial literacy programs need to include the information portion of finances, but the step of applying that knowledge to individual present and future financial decisions is crucial for individuals to become financially literate. Behavior modification is critical to success in financial literacy programs. If individuals are not psychologically prepared for changes in their financial habits, the knowledge of finances alone will not lead to financial literacy (Shelton et al., 2019). Financial knowledge. Financial knowledge is the foundation of financial literacy. Individuals make better financial choices when they have sound financial knowledge (Collins & Holden, 2014). Knowledge is a prerequisite to good financial decisions. Financial literacy courses are often added to education curriculum at the elementary, secondary, and postsecondary levels (Collins & Holden, 2014; Jobst, 2014). Community education programs are also developed in efforts to help adults with financial literacy (Forté, 2013; Higginbotham et al., FINANCIAL LITERACY EDUCATION 21 2012; Jobst, 2014). An important aspect of a financial literacy program is for the individuals to feel the knowledge elements of the program apply to their own circumstance (Jobst, 2014). Financial literacy programs commonly use knowledge pre and posttests to determine program effectiveness (Higginbotham et al., 2012; Jobst, 2014). This assessment allows measurement of change in financial knowledge. Knowledge assessments only account for the portion of financial literacy pertaining to the knowledge needed but are an important element to evaluating financial literacy programs due to knowledge preceding financial application skills (Collins & Holden, 2014). The PISA assessment provided valuable data in financial knowledge of secondary students (Chambers et al., 2019; Moreno-Herrero et al., 2018). This assessment measured financial literacy of secondary students at one point in time and did not assess specific program effectiveness. The information gained from this assessment may be used in developing curriculum and recognizing the value of family and household on financial literacy. The assessment is a student completed survey (Chambers et al., 2019). Results of the PISA assessment give a starting point for developing financial literacy curriculum. In one study, interviews and class observations were used to explore more in-depth understanding of levels of financial knowledge (Forté, 2013). This format of assessment was valuable to find participants’ views and observe their financial knowledge in an open-ended question format. This format required more time but provided added details of where the knowledge was acquired (Forté, 2013). The purpose of the study was to find how the knowledge gained changed actions, but assessing the participants’ ability to retain the financial knowledge during the program was an important foundation. The study concluded that hands on methods FINANCIAL LITERACY EDUCATION 22 and use of stories were especially valuable in aiding the development of financial knowledge in the participants (Forté, 2013). In support of financial knowledge leading to financial literate behaviors, Allgood and Walstad (2016) completed a study to test financial knowledge in relation to financial behaviors over five financial topics: credit cards, investments, loans, insurance, and financial advice. Participants were asked four or five questions in each section relating to relevant financial behaviors in the section. The researchers concluded that higher financial knowledge in participants correlated with financially literate behaviors. Each of the five areas showed a positive correlation between financial knowledge and financial behavior. A unique aspect studied in the same project was if years of experience (age) affected the level of financial literacy. No correlation between age and financial literate behaviors was found when analyzing years of experience with credit card and investment behaviors (Allgood & Walstad, 2016). Application of financial knowledge. When knowledge is assessed at the start and end of the financial education program, the effect of the program on individual knowledge is clear. What is less clear is how the increase in the financial knowledge affects future individual financial choices (Collins & Holden, 2014). This dichotomy creates a challenge in assessing financial literacy programs and challenges the creation of curriculum for these programs. Thus the challenge is creating viable curriculum for financial literacy programs and effectively assessing these programs. In addition to surveying for financial knowledge at the start and end of a college financial literacy course, one course assessed the students’ behaviors using a behavior survey (Jobst, 2014). Students were surveyed about their financial behaviors at the start of the course and at the end of the course. In May 2012 previous financial literacy students (since 2008) were invited to FINANCIAL LITERACY EDUCATION 23 complete the survey with the intent to study long term behavior changes due to the course. The survey did not gather the length of time since students completed the course and had a low response rate of 12%. Effort was made to link the course to changes in behaviors in the participants. Due to the small sample size in this study, linking the course to changes in behavior was a challenge. The study concluded that financial behaviors improved (Jobst, 2014). This finding shows a positive relationship between financial knowledge education and financial behavior. Necessity was found to be a key element in motivation to become financially literate. The study completed by Ward and Lynch (2019) explored division of financial responsibilities among couples. The researchers went through a series of five studies to explore levels of financial knowledge and financial behaviors of couples and the division of responsibility in financial decisions. Through their study of how responsibility for financial matters was divided, the researchers found “consumers develop expertise on a ‘need to know’ basis. Offloading responsibility to a relationship partner may eliminate this need in the present, while simultaneously creating barriers to developing expertise when needed in the future” (Ward & Lynch, 2019, p. 1013). Individuals may not feel the need to develop financial literacy when they feel someone else is taking care of these decisions for them. Other research showed when couples and families are united in their financial endeavors, there is more success in a team effort. This success is due to more accountability and higher commitment to common financial goals (Higginbotham et al., 2012). Allgood and Walstad (2016) explored financial knowledge in relation to perceived financial literacy. Using a self-assessment to evaluate the level of perceived financial literacy in participants, the researchers found a surprising correlation of perceived financial literacy and FINANCIAL LITERACY EDUCATION 24 actual financial literacy among participants. Participants testing high in perceived financial literacy also tested high in financial behavior. The combination of financial knowledge and perceived financial literacy had the highest correlation with actual financial literacy (knowledge and behavior); however, in those with the same levels of knowledge, a perception of being financially literate showed to have an independent influence on good financial behaviors (Allgood & Walstad, 2016). Behavior modification. Increasing financial knowledge in learners can be achieved using traditional education practices. In order to develop financial literacy, behaviors of the learners must change. The goal of financial literacy education is to improve long term financial behavior (Collins & Holden, 2014). Financial decisions have a long term effect on individual and family circumstance. Financial literacy requires both cognitive and emotional changes (Collins & Holden, 2014). Financial literacy can only be increased when individuals are ready for lifestyle changes (Shelton et al., 2019). Shelton et al. (2019) found the importance of financial therapy as the route to financial literacy in a study of a five-step model program. They explained, “financial therapy is used to address the psychological, emotional, and behavioral components involved in the process of learning and utilizing new financial literacy skills” (Shelton et al., 2019, p. 18). The process of the true lifestyle change requires changes to existing patterns and is a gradual process. Individuals must recognize their habits in connection to money as related to self-control, impulsivity, cognitive ability, thought processes, and emotions. Individuals who make the lifestyle changes and successfully improve their financially literacy often also benefit in other aspects of their lives as the self-control and process to improve financial literacy often transfer to other areas (Shelton et al., 2019). FINANCIAL LITERACY EDUCATION 25 The five steps in the program are want, need, have, do, and plan (Shelton et al., 2019). The program supports the psychological aspect of making changes and the process of improvement. When participants are able to evaluate where they are in the changing process, they are better able to use the tools given to progress. The goal for improvement is in the financial behaviors over time rather than a test of financial knowledge. Utilizing financial therapy leads participants to gain long term improvement in financial literacy. The therapy explores past financial experiences as well as future financial goals to help individuals make lifestyle changes to develop financial literacy. The program leads participants in exploring childhood experiences with finances and the influences of families and household upbringings on financial decisions. One participant reported the program, “helped me realize where I came from and why I spend money the way that I do” (Shelton et al., 2019, p. 22). This understanding leads participants to make changes and helps open the understanding that the present financial decisions shape future financial circumstances. Effective financial therapy helps individuals prepare for changes (Shelton et al., 2019). The five step model focuses on small changes that are able to be maintained rather than large changes that often lead to failure. Individuals often know what choices should be made, but consistently making them requires constant effort. The program emphasizes the changing process and that mistakes along the way are part of the process (Shelton et al., 2019). Effective financial literacy programs lead the participants to change the financial decision-making process (Collins & Holden, 2014; Forté, 2013). Summary Financial literacy is a growing area of interest. Defining financial literacy is an on-going challenge that leads to difficulty in assessing the current levels of individuals as well as making FINANCIAL LITERACY EDUCATION 26 improvements. Managing money wisely for the present and future is one basic definition (Remund, 2010). Quality financial literacy education increases well-being of individuals and families. Effective financial literacy education is important because financial literacy affects individual health, social relationships, employment organizations, and family relationships (Bailey, 2019; Papp et al., 2009). Financial knowledge is the starting point for financial literacy. Financial literacy requires both financial knowledge and correctly applying that knowledge in financial decisions. Changes to financial behaviors require lifestyle changes in individuals and is a gradual, deliberate process. Effective curriculum for financial literacy combines elements of education, knowledge, and behavior (Shelton et al., 2019). FINANCIAL LITERACY EDUCATION 27 PURPOSE The Consumer and Community Research Section (2019) survey from 2018 reported many Americans feel comfortable with their financial circumstance. However, the survey showed those surveyed may not have understood financial literacy to be able to correctly identify their own financial circumstance. The results show the need of increasing financial literacy in the United States (Consumer and Community Research Section, 2019). Good financial management is required for strong marriages and families. The skills necessary for correctly applying financial knowledge strengthen relationships (Higginbotham et al., 2012; Skogrand et al., 2011). Parental engagement and modeling are key influences for developing financial practices in young people making it crucial that correct financial principles and practices are taught in the home (Moreno-Herrero et al., 2018). The purpose of this curriculum project was to develop financial literacy curriculum for adults with minor children. The objectives of this project were 1. Develop curriculum that increases financial knowledge in participants. 2. Develop curriculum that supports behavior modification leading to application of financial knowledge. 3. Develop curriculum that supports participants in learning how to sustain changes long term. FINANCIAL LITERACY EDUCATION 28 METHOD Many financial literacy programs focus on increasing actual financial knowledge. This project was designed to increase financial literacy in adults by increasing both financial knowledge and correct application of financial knowledge. The program was designed for community education focusing on adults with minor children. The program emphasized the importance of financial health for overall individual and family health. Emphasis was given on the importance of developing financial literacy in adults for the benefit of the entire family unit. Format of Curriculum This project developed four lessons for community financial literacy education. The curriculum was developed for adults with minor children. Curriculum topics were selected based on the research found for the literacy review. Lesson topics included evaluation and goal setting, spending and saving, budgeting, and money management in a family setting. Plans included slideshow instruction with instructor guidance and a participant guide. Expert Curriculum Evaluators Three expert evaluators provided feedback on the curriculum. Expert evaluators reviewed the curriculum and provided feedback for revision using the electronic evaluation form provided in Appendix A. Following completion of the electronic form, evaluators were contacted for an interview to review their ratings of the curriculum. Expert evaluators were chosen based on different areas of expertise. Evaluator 1 holds a PhD in curriculum and instruction and has 18 years of education experience. This evaluator is an associate professor in the Department of Teacher Education at Weber State University and conducts research in student motivation and effective teaching practices. FINANCIAL LITERACY EDUCATION 29 Evaluator 2 was an extension associate professor with Utah State University Extension and retired in January 2020. This evaluator holds a Master of Science degree and is certified in family and consumer sciences (CFCS) by the American association of family & consumer sciences (AAFCS). This evaluator has nearly 43 years of experience in education. The experience includes 35.5 years in community education, four and a half years in secondary education, and two and a half years in higher education. This evaluator specialized in financial literacy for community education. Evaluator 3 holds a Master of Education degree and is an instructional designer and training specialist for Weber State University. This evaluator is adjunct faculty at WSU. This evaluator has nine years’ experience as adjunct faculty and three years’ experience in instructional design. Procedure A curriculum with four lessons was developed. Expert evaluators reviewed the curriculum and provided feedback for revisions using the electronic evaluation form (Appendix A) and a phone interview. Revisions were made to the curriculum and are shown in Appendix B using yellow highlights for additions and strikethrough for removal. Data Analysis Plan The curriculum was revised using feedback from the three expert evaluators. The expert evaluators provided feedback on the value of the curriculum in increasing financial knowledge and supporting change in financial behavior. Determination for changes was evaluated and the curriculum updated. FINANCIAL LITERACY EDUCATION 30 FINDINGS AND DISCUSSION The financial literacy curriculum developed was based on the research in the literature review. A crucial element missing from many financial literacy curriculums is guidance in application of financial principles. This curriculum focuses on supporting participants in behavior modification of financial decisions. The curriculum includes presentation slides for four lessons and an accompanying participant guide. Instructor notes are found in the presentation notes. The participant guide is an important component in the support of behavior modification. The guide supports participants in their exploration and evaluation of financial decisions, individual financial goal setting, and evaluation of progression towards the goals. Feedback The curriculum was sent to three evaluators. Each evaluator provided a unique perspective. Evaluators provided feedback using the electronic form (Appendix A) and then a follow up phone interview was conducted to further explore their feedback. The questions asked during the phone interview focused on assessing the strengths and weaknesses of the curriculum, the order of lesson material, curriculum supporting behavior modification, and specific follow up questions for each evaluator based on the individual’s feedback. The phone interview questions can be found in Appendix A. Evaluators consistently reported a strong point for the curriculum was the space given in the participant guide for participants to reflect on their individual perspective and goals. This reflection is an important element in behavior modification and sustaining change as it gives the participants reasons for changes and realistic expectations for those changes. Change is an individual process. By going through the reflection activities, the participants will be able to identify their unique needs and make changes accordingly. Another strength reported was the FINANCIAL LITERACY EDUCATION 31 time taken at the beginning of each lesson to remember the lesson prior and discuss progress the participants made since the previous lesson. Areas for Improvement Three themes for improvement were consistent among all evaluators. The themes were to strengthen the objectives, increase participant interaction with the content, and make a stronger connection between the objectives and assessment. Further suggestions included adding page numbers for better organization between the participant guide and instructor notes, updating selected slides for more concise wording, providing more detailed examples in connection to information presented, adding more information for the presenter notes, showing a stronger link between content activities and how they should lead to action changes in participants, and establishing pre and post program assessments. Following the development of the initial four lessons, I found myself questioning the order of delivery of the content. Originally the order of an introduction/personal evaluation, general financial literacy instruction, and then the team (marriage/family) principle made logical sense. However, when I finished the original lessons, I started to explore another order. I went back and forth with the original order compared to the order of introduction/personal evaluation, team, and then the general financial literacy instruction. The altered order would allow participants to establish their team prior to going through the general financial literacy activities, and participants could then approach those activities with the team mindset. I discussed the order of lessons with each evaluator during the follow up phone interview. I wanted the evaluators to go into the evaluation without looking specifically for order. All three evaluators gave feedback that the original order seemed to flow well, and they would not change the order overall. Evaluator 2 suggested if the order was changed that the concept of team could be added to the FINANCIAL LITERACY EDUCATION 32 start of lesson 2 and touched on briefly to address the team concept and then built upon more fully in lesson 4. This evaluator also suggested another option would be to add another lesson as the children portion of lesson 4 could be an additional lesson. All evaluators stated the presented order made sense and without my prompting would not have discussed order. Based on the literature review, the focus of this curriculum is to guide participants to make improvements in their financial decisions. Behavior modification is required in a successful financial literacy program. Evaluators felt the activities in the participant guide were crucial in this process. Evaluators supported the use of the participant guide activities in exploring reasons for current decisions and making written goals of the changes they would make. They also commented on the discussions to start each lesson as an important element in helping participants in their path of change. They emphasized the benefit of participants sharing their progress and having space in their participant guides to document their own progress. Specific Feedback by Evaluator Evaluator 1 provided beneficial curriculum development knowledge and instruction methods suggestions. This evaluator commented on the wrap up slides for each lesson being a strong point for behavior modification and found value in the slide that had columns for financial knowledge and financial application. They felt the wrap up in this view helped participants have a specific action to take away from the lesson to guide them to modify financial decisions. Evaluator 2 provided helpful feedback with community education and the dynamics of short term classes. This evaluator gave crucial feedback in financial literacy content, and their level of experience showed in that detailed feedback. Due to the number of years of experience in community education, this evaluator provided essential feedback on guiding the reflection of the participants in the direction of behavior modification. Evaluator 2 pointed out the importance FINANCIAL LITERACY EDUCATION 33 of making sure participants know the intent of why they are modifying financial behavior in order to be motivated to make the needed adjustments. Evaluator 2 also gave suggestions on guiding participants in their goal setting so that their goals are specific enough to have a clear path of progression in meeting the goals. The evaluator suggested the use of SMART goals as a way to promote behavior modification. SMART goals are defined as goals that are specific, measurable, assignable, realistic, and time-based (Doran, 1981). This evaluator commended the activity of having participants reflect on other areas of their lives they have had success in behavior modification in order to make their plan of financial behavior modification and give them positivity in knowing they can be successful in making changes. Evaluator 3 provided valuable direction in the instructional design of the curriculum. This evaluator gave direction on specific slides to decrease text and to tighten up some of the organizational elements like page numbers on the participant guide linking to the presenter notes. Evaluator 3 also gave feedback to use more specific examples in presenting budget options. This evaluator suggested adding a list of resources. Evaluator 3 provided useful insight into the pre and post assessment options for the curriculum. They suggested developing assessments that could be used before the program, after the program, after each session, and six months after the program. The instructional design perspective of this evaluator was a different viewpoint than the teaching model perspective of the other two evaluators and added depth to the project. Revisions Based on evaluator feedback, objectives were revised. Evaluators were consistent in their suggestions for the improvements and wording updates. The updates to the objectives strengthened the direction of the lessons. All three evaluators provided feedback to improve the interaction of the participants with the content. Evaluators discussed during the interviews FINANCIAL LITERACY EDUCATION 34 examples of activities to improve the instruction methods. These suggestions were added to the lessons. Assessments were altered to more closely align with the revised objectives. This alignment improved the direction of the lessons and will help participants have a clear view of what they should be doing to apply the content and modify financial decisions. These three changes were made to all lessons in the curriculum. Changes are shown in the original lessons in Appendix B as yellow highlights for additions and strikethrough for removal. Due to the evaluators feeling the current order of the lessons would achieve the goals of the curriculum, the order of the lessons was not changed. The SMART goal model (Doran, 1981) was added to the curriculum in order to strengthen the goal setting of participants, which will lead the participants to have stronger motivation for behavior modification. Research completed by Forté (2013) demonstrated the value of specific goals in financial literacy curriculum. Participants in the study utilized trackers in their goal setting and improvement resulted (Forté, 2013). The importance of goals was further confirmed by the research completed by Shelton et al. (2019). Emphasis was given to the importance of planning and carrying out specific goals (Shelton et al., 2019). More specific reflection was added to the curriculum in effort to lead participants to discover their challenges and successes in behavior modification. By assessing their successes and challenges from time to time throughout the course, the intent is that participants will see their progress and have motivation to make further progress. The reflection also helps them identify what is holding them back and resolve the issues that are barriers to making changes. Organizational revisions included decreased text on select slides, page numbers to the participant guide and linked to the presenter notes, and updating the budgeting section to include examples. An assessment for participants to complete at the beginning and end of the curriculum was added. The goal with the assessment is to evaluate the effectiveness of the FINANCIAL LITERACY EDUCATION 35 curriculum. Revisions to the curriculum are shown with yellow highlights for additions and strikethrough for removal in Appendix B. Personal Reflection This project taught me the value of applying research in creation of educational programs. The research I found during the literature review gave me motivation to pursue creating a curriculum that will increase overall wellness in individuals and in spouse and family relations. The research also motivated me to focus on financial literacy in marriage and family. As I synthesized the research, it became clear that increasing financial literacy in children benefits individuals, families, and society long term. This project helped me see that the most successful way to increase financial literacy in children is to increase financial literacy in parents. The evaluation process helped me see the need to use diverse learning methods and guide participants in connecting personally with the content. As I created the curriculum, I did so from a bias of my own learning style and how I thought I would learn material as a participant. The evaluation interviews helped me to think through options and find opportunities to improve the interaction with the curriculum. The evaluation process created a depth to the project that could not be gained in any other way. This project taught me the value of collaborating with different perspectives. I found great value in the differing areas of expertise of each evaluator. As my desired career path aligns with evaluator 2, the connection with this evaluator was especially important in the learning progression of this project. I was able to see important connections of using research in developing curriculum for short term educational programs. This project helped me to see that true education is providing learners with the right experience and tools so they become lifelong learners. Behavior modification is crucial in making a FINANCIAL LITERACY EDUCATION 36 difference with education programs. Evaluator 2 pointed out behavior modification is ultimately up to the individual, but there are several education routines that support giving individuals the necessary tools to give them the opportunity for improvement in their behavior. FINANCIAL LITERACY EDUCATION 37 REFERENCES Allgood, S., & Walstad, W. B. (2016). The effects of perceived and actual financial literacy on financial behaviors. Economic Inquiry, 54(1), 675–697. doi: 10.1111/ecin.12255 Bailey, S. M. (2019). Financial well-being: An opportunity to have profound impact with solutions that match needs. American Journal of Health Promotion, 33(1), 147–151. doi: 10.1177/0890117118812822b Chambers, R. G., Asarta, C. J., & Farley-Ripple, E. N. (2019). Gender, parental characteristics, and financial knowledge of high school students: Evidence from multicountry data. Journal of Financial Counseling and Planning, 30(1), 97–109. doi: 10.1891/1053- 3073.30.1.97 Collins, J. M., & Holden, K. C. (2014). Measuring the impacts of financial literacy: Challenges for community-based financial education. New Directions for Adult & Continuing Education, 141, 79–88. doi: 10.1002/ace.20087 Consumer and Community Research Section. (2019). Report on the economic well-being of U.S. households in 2018. Washington, DC: Government Printing Office. Retrieved from https://www.federalreserve.gov/publications/files/2018-report-economic-well-being-us-households- 201905.pdf Consumer Financial Protection Bureau. (2015) Financial well-being: The goal of financial education. Retrieved from https://files.consumerfinance.gov/f/201501_cfpb_report_financial-well-being.pdf Consumer Financial Protection Bureau. (2018). Pathways to financial well-being: The role of financial capability. Retrieved from FINANCIAL LITERACY EDUCATION 38 https://files.consumerfinance.gov/f/documents/bcfp_financial-well-being_pathways-role-financial- capability_research-brief.pdf Doran, G. T. (1981). There’s a S.M.A.R.T. way to write management’s goals and objectives. Management Review, 70(11), 35-36. Drake, D. S., O’Neil, T., & Hoffmire, J. S. (2019). Financial wellness at Meredith Corporation. American Journal of Health Promotion, 33(1), 153–155. doi: 10.1177/0890117118812822d Forté, K. S. (2013). Educating for financial literacy: A case study with a sociocultural lens. Adult Education Quarterly, 63(3), 215–235. doi: 10.1177/0741713612460267 Gill, A., & Bhattacharya, R. (2018). Don’t do as I do, do as I say? Evidence on the inter-generational transmission of financial attitudes. Eastern Economic Journal, 44(2), 177– 189. doi: 10.1057/s41302-016-0016-7 Harris Poll. (2019). 2019 consumer financial literacy survey. Retrieved from National Foundation of Credit Counseling website: https://www.nfcc.org/2019-consumer-financial- literacy-survey/ Higginbotham, B. J., Tulane, S., & Skogrand, L. (2012). Stepfamily education and changes in financial practices. Journal of Family Issues, 33(10), 1398–1420. doi: 10.1177/0192513X12450000 Jobst, V. J. (2014). Does a university financial literacy course change financial behavior? Journal of Higher Education Theory & Practice, 14(5), 63–77. Legenzova, R., Gaigalienė, A., & Leckė, G. (2019). Impact of parental financial socialization factors on financial literacy of Lithuanian high school students. Acta Prosperitatis, (10), 41–60. FINANCIAL LITERACY EDUCATION 39 Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370–396. doi: 10.1037/h0054346 Montpetit, M. A., Kapp, A. E., & Bergeman, C. S. (2015). Financial stress, neighborhood stress, and well-being: Mediational and moderational models. Journal of Community Psychology, 43(3), 364–376. doi: 10.1002/jcop.21684 Moreno-Herrero, D., Salas-Velasco, M., & Sánchez-Campillo, J. (2018). Factors that influence the level of financial literacy among young people: The role of parental engagement and students’ experiences with money matters. Children and Youth Services Review, 95, 334– 351. doi: 10.1016/j.childyouth.2018.10.042 Papp, L. M., Cummings, E. M., & Goeke-Morey, M. C. (2009). For richer, for poorer: Money as a topic of marital conflict in the home. Family Relations, 58(1), 91–103. doi: 10.1111/j.1741-3729.2008.00537.x Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. The Journal of Consumer Affairs, 44(2), 276–295. doi: 10.1111/j.1745-6606.2010.01169.x Shelton, V. M., Smith, T. E., & Panisch, L. S. (2019). Financial therapy with groups: A case of the five-step model. Journal of Financial Counseling and Planning, 30(1), 18–26. doi: 10.1891/1052-3073.30.1.18 Skogrand, L., Johnson, A. C., Horrocks, A. M., & Defrain, J. (2011). Financial management practices of couples with great marriages. Journal of Family and Economic Issues, 32(1), 27–35. doi: 10.1007/s10834-010-9195-2 FINANCIAL LITERACY EDUCATION 40 Wagner, J. (2019). Financial education and financial literacy by income and education groups. Journal of Financial Counseling and Planning, 30(1), 132–141. doi: 10.1891/1052- 3073.30.1.132 Ward, A. F., & Lynch, J. G. (2019). On a need-to-know basis: How the distribution of responsibility between couples shapes financial literacy and financial outcomes. Journal of Consumer Research, 45(5), 1013–1036. doi: 10.1093/jcr/ucy037 Winick, K. (2019). Pioneering workplace financial wellness. American Journal of Health Promotion, 33(1), 151–153. doi: 10.1177/0890117118812822c FINANCIAL LITERACY EDUCATION 41 APPENDICES Appendix A: Evaluation Form Appendix B: Curriculum with Revisions FINANCIAL LITERACY EDUCATION 42 Appendix A Evaluation Form Financial Literacy Curriculum Evaluation Thank you for being willing to provide feedback for my thesis project! Name of Evaluator: Your answer When is the best time for me to contact you for a phone conversation to go over your feedback? Your answer Phone Number: Your answer FINANCIAL LITERACY EDUCATION 43 Lesson One: Game Plan Not Developed Starting to Develop Mostly Developed Fully Developed Organization (order of content, time spent in each area) Clarity (objectives clear) Content (current, relevant, useful in meeting needs, meets objectives) Instruction Methods (diverse, effective, engagement, interaction) Audience (appropriate for community education, adults with minor children) Learning activities and supporting materials appropriate for objectives Behavior Modification (Does the curriculum support behavior modification?) Assessment Lesson One Comments: Your answer FINANCIAL LITERACY EDUCATION 44 Lesson Two: What's the Big Deal? Not Developed Starting to Develop Mostly Developed Fully Developed Organization (order of content, time spent in each area) Clarity (objectives clear) Content (current, relevant, useful in meeting needs, meets objectives) Instruction Methods (diverse, effective, engagement, interaction) Audience (appropriate for community education, adults with minor children) Learning activities and supporting materials appropriate for objectives Behavior Modification (Does the curriculum support behavior modification?) Assessment Lesson Two Comments: Your answer FINANCIAL LITERACY EDUCATION 45 Lesson Three: Where Did it All Go? Not Developed Starting to Develop Mostly Developed Fully Developed Organization (order of content, time spent in each area) Clarity (objectives clear) Content (current, relevant, useful in meeting needs, meets objectives) Instruction Methods (diverse, effective, engagement, interaction) Audience (appropriate for community education, adults with minor children) Learning activities and supporting materials appropriate for objectives Behavior Modification (Does the curriculum support behavior modification?) Assessment Lesson Three Comments Your answer FINANCIAL LITERACY EDUCATION 46 Lesson Four: It's a Team Not Developed Starting to Develop Mostly Developed Fully Developed Organization (order of content, time spent in each area) Clarity (objectives clear) Content (current, relevant, useful in meeting needs, meets objectives) Instruction Methods (diverse, effective, engagement, interaction) Audience (appropriate for community education, adults with minor children) Learning activities and supporting materials appropriate for objectives Behavior Modification (Does the curriculum support behavior modification?) Assessment Lesson Four Comments: Your answer FINANCIAL LITERACY EDUCATION 47 Thank you for your time and contributing to my Master's Project! - Kari Ure Never submit passwords through Google Forms. This form was created inside of Weber State University. Report Abuse Submit Forms Phone Interview Questions: What are the strengths and weaknesses of the curriculum? What do you think of changing the order of the lessons so the team concept from lesson four is taught right after lesson one so that the participants can have the team concept in mind through the rest of the curriculum? Do you feel the curriculum supports behavior modification? What specific parts of the curriculum support behavior modification? What would strengthen the support of behavior modification? Evaluator one specific questions: Objectives, participant involvement, and assessments Evaluator two specific questions: Objectives, participant involvement, strength of content, assessments, audience specific alterations, instructor notes, goals helping behavior modification Evaluator three specific questions: Objectives, participant involvement, assessments, examples, resources, organization FINANCIAL LITERACY EDUCATION 48 FINANCIAL LITERACY EDUCATION 49 Appendix B Curriculum with Revisions FINANCIAL LITERACY EDUCATION 50 2 “Financial literacy is not simply a basic understanding of terms and definitions, but also implies the capability to incorporate financial knowledge into decisions and behavior” (Collins & Holden, 2014, p. 79). My Motivation for Improving My Financial Literacy _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ “Financial literacy is not simply a basic understanding of terms and definitions, but also implies the capability to incorporate financial knowledge into decisions and behavior” (Collins & Holden, 2014, p. 79). FINANCIAL LITERACY EDUCATION 51 3 Changes I’ve made and big goals I’ve accomplished: What steps did I take to make the change or accomplish the goal? What motivated me to change? How did I work through setbacks? FINANCIAL LITERACY EDUCATION 52 4 Past Where do my ideas of money come from? How were finances managed in the home of my upbringing? Emphasis on spending, saving, impulse buying, waiting, attitude of having more than others “status”, content with status, money meaning happiness ______________________________________________ ______________________________________________ ______________________________________________ What did my parents/caregivers teach me about money management? ______________________________________________ ______________________________________________ What were my own experiences with money as a child? ______________________________________________ ______________________________________________ What were my first money management experiences as an adult? ______________________________________________ ______________________________________________ ______________________________________________ What is my most memorable money management experience? ______________________________________________ ______________________________________________ ______________________________________________ FINANCIAL LITERACY EDUCATION 53 5 Present Where do I stand now? What is my motivation to attend this class? ______________________________________________ ______________________________________________ ______________________________________________ What strengths do I have in money management? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________ What weaknesses do I have in money management? ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________ Do I currently take responsibility for my money decisions? ______________________________________________ ______________________________________________ Who am I accountable to for my money decisions? ______________________________________________ ______________________________________________ FINANCIAL LITERACY EDUCATION 54 6 Future Where do I want to be? Am I ready to make changes to my financial decision making? ______________________________________________ What do I see holding me back or distracting me from making changes in my financial decisions? ______________________________________________ ______________________________________________ Short term financial goals: ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________ Long term financial goals: ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________ I commit to make positive changes in my management of money: Signature: _____________________________ Date: __________ Futur t eady _____________________________________ ee ch al ____________________________ _________________________ ___________________ _____________________ _______________________ _________________________ cial ________________________________ ___________________________________ _____________________________________ _______________________________________ mmit o oney: ignature: FINANCIAL LITERACY EDUCATION 55 7 Futu re Where do I want to be? New Page Am I ready to make changes to my financial decision making? ______________________________________________ What do I see holding me back or distracting me from making changes in my financial decisions? ______________________________________________ ______________________________________________ Short term financial goals: Goal 1: ___________________________________________________ S: ___________________________________________ M: ___________________________________________ A: ___________________________________________ R: ___________________________________________ T: ___________________________________________ Goal 2: ___________________________________________________ S: ___________________________________________ M: ___________________________________________ A: ___________________________________________ R: ___________________________________________ T: ___________________________________________ FINANCIAL LITERACY EDUCATION 56 8 S hort term financial go als: Goal 3: ___________________________________________________ S: ___________________________________________ M: ___________________________________________ A: ___________________________________________ R: ___________________________________________ T: ___________________________________________ Long term financial goals: Goal 1: ___________________________________________________ S: ___________________________________________ M: ___________________________________________ A: ___________________________________________ R: ___________________________________________ T: ___________________________________________ New Page FINANCIAL LITERACY EDUCATION 57 9 Long term financial goals: Goal 2: ___________________________________________________ S: ___________________________________________ M: ___________________________________________ A: ___________________________________________ R: ___________________________________________ T: ___________________________________________ Goal 3: ___________________________________________________ S: ___________________________________________ M: ___________________________________________ A: ___________________________________________ R: ___________________________________________ T: ___________________________________________ I commit to make positive changes in my management of money: Signature: _____________________________ Date: __________ New Page FINANCIAL LITERACY EDUCATION 58 10 Lesson One Notes: ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 59 11 Ne w Page What success did I have in my financial decisions since last session? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ Reflection How did it go? What challenges did I have in my financial decisions since last session? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ How will I overcome the challenges? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 60 12 What changes in financial accounts do I need to make (savings accounts, checking accounts, debit/credit cards, certificate of deposits)? ____________________________________________________ ____________________________________________________ ____________________________________________________ Ideas for saving: ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 61 13 __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ __________________________________________________ Information on this page moved up from page 17 FINANCIAL LITERACY EDUCATION 62 14 List of My Expenses FINANCIAL LITERACY EDUCATION 63 15 FINANCIAL LITERACY EDUCATION 64 16 FINANCIAL LITERACY EDUCATION 65 17 Ideas for lowering expenses: ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ My financial decision card: ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ New Section FINANCIAL LITERACY EDUCATION 66 18 Lesson Two Notes: ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 67 19 Make a record of your expenses for 30 days FINANCIAL LITERACY EDUCATION 68 20 FINANCIAL LITERACY EDUCATION 69 21 FINANCIAL LITERACY EDUCATION 70 22 FINANCIAL LITERACY EDUCATION 71 23 FINANCIAL LITERACY EDUCATION 72 24 FINANCIAL LITERACY EDUCATION 73 25 FINANCIAL LITERACY EDUCATION 74 26 FINANCIAL LITERACY EDUCATION 75 27 FINANCIAL LITERACY EDUCATION 76 28 FINANCIAL LITERACY EDUCATION 77 29 New Page After seeing my expenses for 30 days, what surprises me? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ Where can I decrease my expenses? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ How can this information help me meet my financial goals? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 78 30 New Page What success did I have in my financial decisions since last session? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ Reflection How did it go? What challenges did I have in my financial decisions since last session? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ How will I overcome the challenges? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 79 31 What combination of backward and forward budgeting will I use? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 80 32 What tools will I use to organize my recordkeeping? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ What methods of payment will I use? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ How will I meet the payment deadlines and organize the actual payment? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 81 33 Example s of Budget Recordkeeping New Page FINANCIAL LITERACY EDUCATION 82 34 Categories for my budget: ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ How will I account for unexpected expenses or changes needed in the budget? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 83 35 Lesson Three Notes: ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 84 36 New Page What success did I have in my financial decisions since last session? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ Reflection How did it go? What challenges did I have in my financial decisions since last session? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ How will I overcome the challenges? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 85 37 ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 86 38 What do I hope my children learn from me about money management? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ New Page What do I think my children are currently learning from me about money management? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ What do I need to change so these two more closely align? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 87 39 How Will I Give Children Experience With Money? How will the child obtain money? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ How will the child’s money be distributed? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ What expenses will the child be expected to cover? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 88 40 How will the child have experience with accounts, investments, and credit cards? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ How will the child’s large future expense be managed? ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 89 41 Lesson Four Notes: ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ ____________________________________________________ FINANCIAL LITERACY EDUCATION 90 42 How should my short term financial goals be revised? Goal: ___________________________________________________ Steps to accomplish goal: ___________________________________________________ ___________________________________________________ ___________________________________________________ Goal: ___________________________________________________ Steps to accomplish goal: ___________________________________________________ ___________________________________________________ ___________________________________________________ Goal: ___________________________________________________ Steps to accomplish goal: ___________________________________________________ ___________________________________________________ ___________________________________________________ FINANCIAL LITERACY EDUCATION 91 43 How should my long term financial goals be revised? Goal: ___________________________________________________ Steps to accomplish goal: ___________________________________________________ ___________________________________________________ ___________________________________________________ Goal: ___________________________________________________ Steps to accomplish goal: ___________________________________________________ ___________________________________________________ ___________________________________________________ Goal: ___________________________________________________ Steps to accomplish goal: ___________________________________________________ ___________________________________________________ ___________________________________________________ FINANCIAL LITERACY EDUCATION 92 44 Revisions made based on evaluator feedback (all yellow highlighted areas are additions, strikethrough used for information that should be removed): 1. Page numbers added 2. SMART Goal Section (Page 6 was the original page, pages 7 to 9 are the revised version) 3. Added reflections between sessions (Page 11, Page 30, and Page 36) 4. Moved the information currently on page 13 up (Used to be after the current page 16) 5. Added the financial card decision section to page 17 6. Added page 29 7. Added page 33 8. Added page 38 9. Updated order so page 41 followed directly after lesson 4 and the goal pages follow (originally the goal pages came before the notes for lesson 4 page) FINANCIAL LITERACY EDUCATION 93 Code:_________________ Please rate the following questions with 1 being not true at all and 4 being completely true 1 2 3 4 I have written short and long term financial goals I have a plan to achieve my short and long term financial goals I feel like I have good financial habits I feel like I am able to change my financial habits I feel my current financial habits help increase my overall well-being I am confident I am using the most beneficial bank accounts I understand how my financial decisions today impact my future financial circumstance I have a plan for my household budget I follow my plan for my household budget My budget helps me achieve my financial goals I am confident talking about money with my spouse I am confident talking about money with my children I have a plan for my children to manage their own money Please list questions about financial literacy or topics you feel you need to understand better: FINANCIAL LITERACY EDUCATION 94 Code:_________________ Please rate the following questions with 1 being not true at all and 4 being completely true 1 2 3 4 I have written short and long term financial goals I have a plan to achieve my short and long term financial goals I feel like I have good financial habits I feel like I am able to change my financial habits I feel my current financial habits help increase my overall well-being I am confident I am using the most beneficial bank accounts I understand how my financial decisions today impact my future financial circumstance I have a plan for my household budget I follow my plan for my household budget My budget helps me achieve my financial goals I am confident talking about money with my spouse I am confident talking about money with my children I have a plan for my children to manage their own money Please share what you found most helpful in this course: Please share what you think can be improved in this course: FINANCIAL LITERACY EDUCATION 95 Financial Literacy Instructor Preparation: Dessert (do not cut into portions until during activity, make sure the size of what participants first see meets needs of activity as it may be that only a portion of the dessert is out and more will be given after the activity), serving supplies, paper for activity, sticky notes for activity; place participant guides, name tent, Assessment 1, and pens on tables prior to class and invite participants to sit at a book as they arrive. Welcome participants and go around the room with introductions. Ask participants to complete their name tent and Assessment 1 (can start on these once they arrive). The code on the assessment is so that the instructor can compare the assessment completed at the beginning to the one completed at the end of the program. Ask participants to use the same code each time (They may need to write this in their participant guide so they remember. Doesn’t matter if it’s their mother’s middle name, some set of numbers, just as long as they know what it is so they can put the same code on Assessment 2 at the end of the course). (The name tents should be gathered by instructor at the end of each class to be used for each session and will also be used in class activities) Explain that we will be going through the series of lessons and invite class involvement in a trusting and safe environment. Attention Activity: Show the brownies/cake/pie and ask how many participants would like some of the dessert. Instructor expresses interest in having a piece as well. Instructor cuts three very large portions and gives one to self and then asks who would like the other two. The pieces should be large enough that there is no way there is enough left for everyone else who expressed wanting some to receive very FINANCIAL LITERACY EDUCATION 96 much once remaining portion is divided. (Make sure the instructor piece is the largest as it will be divided later). Demonstrate how this is how managing money works - sometimes too many wants are put first and there isn’t enough left for needs - and sometimes it seems like there is no way to divide the portions to cover everything and make it work. Instructor can also opt to relate this activity to spenders and savers if audience participation allows - After participants are able to see how many people want a portion there will be some participants who do not volunteer for the first 2 large pieces knowing the other pieces will be smaller or will self-opt to go without a piece seeing the remaining portion. Have participants get into groups of 4-5 people. Each group receives a piece of paper. Instruct each group to make a list of as many terms that relate to money as they can. Explain that unique answers will help them as if they list a term the same as another group the term is not counted in their total. The goal is to get the highest number of unique terms. Set the timer for 2 minutes. At the end of the time list terms on the board and have groups ‘cancel’ out each others lists. Have groups share their scores to see who won. FINANCIAL LITERACY EDUCATION 97 Topics Covered ● Financial Literacy Evaluation ● Saving and Spending Basics ● Budgeting Basics ● Financial Literacy in Marriage and Family - All pictures from Pixabay This course is a very basic exposure to financial literacy - overview of lesson topics Instructor explains to participants the layout of the next 3 sessions FINANCIAL LITERACY EDUCATION 98 Further Topics ● Investing ● Home Purchase/Mortgages ● Large Purchases ● Loans/Debt Management ● Insurance/Asset Protection ● Credit Score ● Taxes ● Education/Increasing Wages ● Retirement Planning ● Estate Planning Encourage participants to seek out further information in other courses as these topics will not be covered in this basic course but are important for financial planning FINANCIAL LITERACY EDUCATION 99 Lesson One: Game Plan Past, Present, & Future This lesson explores general financial information and explores how participants came to their current financial place and what changes and goals they will make to improve. It will put the game plan in place to give participants direction in improving financial decisions. FINANCIAL LITERACY EDUCATION 100 XXXXX OOOOO X O O O O O O X X X X X Objectives - Learn what financial literacy is and how it improves individual and family well-being - Explore past, present, and future financial attitudes - Identify personal motivations and goals - your game plan strategy REVISED OBJECTIVES: - Participants will be able to describe how financial literacy improves individual and family well-being - Participants will be able to evaluate their financial literacy by exploring past, present, and future financial experiences - Participants will be able to write their own financial SMART goals FINANCIAL LITERACY EDUCATION 101 Financial Literacy - “Financial literacy is not simply a basic understanding of terms and definitions, but also implies the capability to incorporate financial knowledge into decisions and behavior” (Collins & Holden, 2014, p. 79). - “By the most basic definition, financial literacy relates to a person’s competency for managing money” (Remund, 2010, p. 279). Instructor invites a participant to read each quote aloud and then points out financial literacy is the application of financial knowledge FINANCIAL LITERACY EDUCATION 102 Financial Well-Being - Have control over day-to-day, month-to-month finances; - Have the capability to absorb a financial shock; - Are on track to meet your financial goals; and - Have the financial freedom to make the choices that allow you to enjoy life. (The Consumer Financial Protection Bureau, 2015, p. 5) Financial well-being isn’t measured necessarily in income, assets, net worth - it’s more about gaining freedom through finances being managed well to meet the individual/family needs - which looks different for everyone. FINANCIAL LITERACY EDUCATION 103 Abraham Maslow’s Hierarchy of Needs - Physiological Needs - food, water, shelter, rest - Safety Needs - Love and Belonging - Esteem - Self-actualization (Maslow, 1943) Discuss how financial stability meets the first two needs to allow us to move into deeper needs and richer living. FINANCIAL LITERACY EDUCATION 104 Benefits of Financial Well-Being ● Health & Wellness ● Satisfaction/Self-Suficiency ● Lower Stress ● Ability to Help Others ● Freedom to Focus on Other Endeavors ● Content With What we Have ● Improving Self-control in One Area Often Improves Self-control in Other Areas - Reasons why financial literacy matters….reasons give motivation to the action/change - Discuss points and how related to living in balance and being content. Properly managed money leads to well-being in the individual which benefits relationships with family, employment, etc. - Invite participants to add to benefit list and have them individually record in the participant guide which benefits they see as motivating them to do better in finances Update slide so that the left hand title, “Benefits of Financial Well-Being,” is the only part that comes up initially. Give participants sticky notes and ask them to list benefits they see of financial literacy and financial well-being (participants can refer to well-being definition on page 2 in their participant guide.) Invite participants to place their sticky notes with ideas on the whiteboard and go over them as a class and load the rest of this slide as the ideas are discussed. Have participants take a few minutes to complete their participant guide activity on page 2. FINANCIAL LITERACY EDUCATION 105 “The application of financial knowledge requires individuals to change their existing patterns of financial behaviors” (Shelton, Smith, & Panisch, 2019, p. 18). - May run into resistance if not psychologically ready to change - Gradual process to change behaviors - Requires consistency - Address self-control, impulsivity, emotions, heuristics - Explore motivations in money management (Shelton, Smith, & Panisch, 2019). Points listed are needed to explore how change should be made - without understanding reasoning and motivations behind actions, cannot change them Notes to the instructor should include definition of heuristics for discussion help. Heuristics: mental shortcut, reduces decision time as not a lot of thought is put into each decision, but doesn’t mean it is the best decision FINANCIAL LITERACY EDUCATION 106 - Think of past changes you have made that occurred over time - Fitness/Wellness/Addictions - Religious/Beliefs - Parenting/Spouse improvements - Think about long term goals accomplished - Graduation - Family relationships - Employment - Learning new skills - hobbies, musical, trades - Discuss change is difficult and requires consistent effort and is easy to be motivated for a while and then lose the direction and fall into previous habits. Have participants reflect on changes and goals they have accomplished to help them realize their own motivation style - what works for them. By seeing what changes they have attempted in the past and what ones they’ve succeeded with they can identify their own motivation needs and what direction for financial changes will be most successful for them. Give participants time to record in their participant guide. Participant guide page 3 - Remembering the practice and success/failure to learn other new things or make other changes helps prepare for financial decision making changes Give time for participants to share in smaller groups some of their exploration (same groups as first of class). Open up discussion to larger group. FINANCIAL LITERACY EDUCATION 107 Maintainable Changes - Ready to make the change - Motivation - Gradual - Consistent - Break into steps and get back on track after setbacks (Shelton, Smith, & Panisch, 2019). - Have participants think about changing the decision making process in money management and what they individually need to do for the change to occur Help participants recognize they need to evaluate where they are and their motivations to make changes. Explain that the best of intention to change without being in a place and time to be able to does not lead to change. Change requires more than a desire - although it starts with one, it requires action and planning. Recognizing what is possible helps guide goal setting. FINANCIAL LITERACY EDUCATION 108 Where we’ve been shapes where we are and where we are going Present Identifying where we are allows us to see needed changes Future Setting goals gives direction and motivation for improving actions Past Present Future Discuss how the past, present, and future are all related and we will explore each individually FINANCIAL LITERACY EDUCATION 109 Past Where do your ideas of money come from? ● Upbringing - Caregivers ● Own Experiences - Explain ideas of money come from past experiences and learning from caregivers along the way - Discussion on what views participants have of upbringing in regard to money management - what parents and other caregivers taught them - Discussion on how life experiences have influenced their money management - what past experiences influence their current management of money - Make connection that past experiences, especially as a child, shape current habits (sometimes following the same and sometimes making sure different) - Give time for participants to reflect and make notes in their participant guides - be sensitive to very personal information they are putting down into journals and recognize they may need privacy and may rather do so later as homework Have participants stand in a designated corner of the room based on their response to these questions (participants must choose the one that best relates to their upbringing): - In the household you grew up in, did your mother manage all of the finances? - In the household you grew up in, did your father manage all of the finances? - In the household you grew up in, did your mother and father share the responsibility of managing the finances? - In the household you grew up in, did you not know who managed the finances? FINANCIAL LITERACY EDUCATION 110 Repeat the activity with the following questions - have the corners align with the previous questions: - In your current household, does the wife manage all of the finances? - In your current household, does the husband manage all of the finances? - In your current household, do you and your spouse share the responsibility of managing the finances? - In your current household, do you not know who manages the finances? Point out how many participants are following what their upbringing was and how many spouse relationships show differing corners. Discuss as a class the importance of our upbringing on our views of household financial management and how we all come in with a different view. This is why it is important to discuss with our spouses our views and work out differences in perspective. Direct participants to complete page 4 in the participant manual and then give time for them to discuss briefly with their spouse (if present, or a neighbor if not). FINANCIAL LITERACY EDUCATION 111 Present Where do you stand now? ● Motivation for Attending This Class ● Money Management Strengths & Weaknesses ● Accountability - Explore participants’ ideas of where they are currently - what is working well, what isn’t, they signed up for the class so shows they (or someone who signed them up) have taken action and have put that much into it to attend. Focus on future, hope, and positive changes that are possible. Discuss reasons they are participating in the course and what motivated them to take the class. Give them a few minutes to personally reflect and make notes. - Discuss the Consumer and Community Research Section of the Federal Reserve Board’s Division of Consumer and Community Affairs, Report on the Economic Well-Being of U.S. Households - yearly survey, 11,000 surveyed in 2018: 75% of those surveyed said they were living comfortably when asked about financial status; yet only 61% said they could cover an unexpected expense of $400 - showing that we may not have a clear view of what living comfortably includes - ability to meet unexpected expenses is part of sound money management. Be sensitive that having $400 to meet an expense may be a stretch for participants and they may feel that is a lofty goal - emphasize that is why we are here, to improve. Knowing where we are helps us evaluate how to improve. - Have participants take a few minutes to list their strengths and weaknesses with current money management - Discuss accountability - it’s up to them to make changes - which leads to next section of future Page 5 in participant guide FINANCIAL LITERACY EDUCATION 112 Future Where do you want to be? ● Ready to Make Changes? ● Short & Long Term Goals ● Commit - Discuss change is a process and takes work with successes and failures along the way. We have to be ready to make changes for good ideas to be more than a good idea, action is required - Discuss short and long term goals and give participates time to reflect and record goals and actions they can take to meet goals. Refer back to changes being a deliberate and gradual process in order to be maintainable (copy of slides follow for easy access/reference/review). Recognize goals may change to be more specific during the following 3 lessons as more information is presented. Even “be better with money” is a start and through further lessons can be developed more specific. If participants have specific goals and ideas encourage that, but some may not be to that point without further information on what is priority for their financial path. - Goals Ideas: Debt reduction, home, vehicle, recreation, dinner out/dates, travel, savings/emergency fund, toys, tools. Suggest participants put list of goals and circle top two to three that are their priority. Participant Guide - Page 7-9. Next slide shows revision to add in SMART goal guidance FINANCIAL LITERACY EDUCATION 113 Buy a new car VS I(we) will buy a Dodge Caravan for $10,000 in 3 years S - Dodge Caravan M - $10,000 A - I or We R - Determine budget fit T - 3 years S pecific M easurable A ssignable R ealistic T ime-Based (Doran, 1981) This entire slide is an addition Go over the benefit of having SMART goals and what each letter means in application using the example given. Buying a car is too broad - without a plan to achieve. Buying a car with a SMART goal: S - Specific - Kind of car M - Measurable - Price A - Assignable - goal maker (s) R - Realistic - does the goal match the budget, is it realistic to save $10000 in 3 years time - averages $278 per month, can think of gifts or tax returns, but make sure goal matches the budget T - Time-based - 3 years, deadlines help us make progress and stay on track Participant guide - pages 7 -9 FINANCIAL LITERACY EDUCATION 114 “The application of financial knowledge requires individuals to change their existing patterns of financial behaviors” (Shelton, Smith, & Panisch, 2019, p. 18). - May run into resistance if not psychologically ready to change - Gradual process to change behaviors - Requires consistency - Address self-control, impulsivity, emotions, heuristics - Explore motivations in money management (Shelton, Smith, & Panisch, 2019). Instructor revisits the information on financial knowledge leading to financial application/changes in decisions and that leads to financial literacy. Review that change is hard and requires a plan and effort. FINANCIAL LITERACY EDUCATION 115 Maintainable Changes - Ready to make the change - Motivation - Gradual - Consistent - Break into steps and get back on track after setbacks (Shelton, Smith, & Panisch, 2019). - Have participants make the commitment for changing the decision making process in money management - commitment may be to self, spouse, and/or kids Participant Guide - Page 9 - Use prior list of what motivates them and how their ‘change style’ works for them to see what changes will be successful and what path needs to be taken for personal changes to be long term FINANCIAL LITERACY EDUCATION 116 Financial Knowledge ● Preparation for change and setting attainable and maintainable goals ● Gradual process with setbacks along the way with the goal being to improve overall over time Financial Application ● Definition of financial literacy ● Definition of financial well-being ● Maslow’s Hierarchy ● Benefits of financial literacy Summarize lesson Assessment: Participant guide activities FINANCIAL LITERACY EDUCATION 117 XXXXX OOOOO X O O O O O O X X X X X Objectives - Participants will be able to describe how financial literacy improves individual and family well-being - Participants will be able to evaluate their financial literacy by exploring past, present, and future experiences - Participants will be able to write their own financial SMART goals This slide is an addition Assessment: Take participants back to the lesson objectives and go through how each objective was met during lesson. Review the list of sticky notes on the whiteboard for first objective. Refer participants to their participant guides for 2nd objective. Review SMART goals and show participants link to participant guide. Invite participants to share goals in small groups for a few minutes (same groups as first activity in lesson). Open up sharing of goals to larger group. Give participants a few minutes to make any notes and ideas they have after group discussion. FINANCIAL LITERACY EDUCATION 118 Homework and What’s Coming 1. Continue to reflect on and record thoughts on class activities - Personal motivation and path of lasting change - How financial outlook has been shaped (past) - Identify current financial status; strengths and weaknesses (present) - Set appropriate SMART goals to make improvement; ready and willing to change; short and long term goals (future) 2. Up Next - What’s The Big Deal? Added the SMART wording Ask participants to continue to reflect and add to their participant guide the thoughts that come. FINANCIAL LITERACY EDUCATION 119 Remembering….. Last Session: General Financial Literacy and Goals Instructor Preparation: name tents, 3x5 cards, markers and large sheets of papers with questions, role cards for assessment activity (banking accounts, saving, spending on each card) Open discussion for anyone to share things they reflected on through the week or discoveries they have made. Successes, thought/decision process changes, etc. Have participants make notes in their participant guides to reflect on progress on changes since last session (Page 11). Give them a few minutes to share with their neighbor(s). Walk through the room during the sharing to evaluate where participants are with progress. FINANCIAL LITERACY EDUCATION 120 Lesson Two: What’s The Big Deal? A Penny Saved is a Penny Earned….and Often More - How many times do people say “What’s the big deal” when they spend money - or is an answer to a spouse when asked why they made the financial choice they did? - This lesson explores financial choices in spending and saving money - A penny saved is a penny earned is a common phrase, it’s not necessarily about just making more money, but how we manage the money determines our financial well-being. FINANCIAL LITERACY EDUCATION 121 Objectives - Learn about basic banking accounts - Learn basics of saving - Learn basics of spending REVISED OBJECTIVES: - Participants will be able to identify ways to improve their banking accounts - Participants will be able to apply wise saving methods - Participants will be able to apply wise spending methods FINANCIAL LITERACY EDUCATION 122 Financial Wisdom from a 6-year-old “How do you decide if to spend money or save money?” “You should think first” W. J. Salmon (personal communication, October 27, 2019) Message from creator of the curriculum: As part of one of my assigned projects in school I interviewed my nieces and nephew about finances. At first this answer caught me off guard - as something so simple that of course it makes sense. As I thought about it though I realized how many times this crucial step is missed and is a lot of the reason we make the decisions we do - some thinking first could save us a lot of future consequences when it comes to financial decisions. Personal Communication: W. J. Salmon (personal communication, October 27, 2019) FINANCIAL LITERACY EDUCATION 123 B