Contributions to Research and Education
In this section, we highlight some findings as a way to elaborate on the theoretical framework and methods of analysis used. We suggest ways that this research contributes to developments in current research and pedagogical practice in financial capability education. More detailed descriptions of our findings can be found in the briefing report. [pdf link]
Statistical Analysis of Response Patterns and Change
Our analysis of survey questionnaire responses has been both formal and informal.
For example, descriptive analysis showed us that over 90% of students reported that the course helped them in understanding money issues better. We also conducted statistical tests which indicated that the differences in responses to this item between male and female students were not statistically significant (Mann Whitney test (P=0.977).
We were able to explore results from specific questions further by comparing across surveys to analyse change. For example, cross-tabulation for students' responses to an item asking about their confidence in their ability to manage personal finances showed male students reported a greater level of confidence then female students. Three quarters of male students reported 'very confident' compared with approximately half the female students. The likelihood ratio chi-square shows that this difference across gender is statistically significant (p<0.01). We then examined change across the surveys (ie: the survey completed at the beginning of the course and the survey completed at the end of the course). The analysis found that a probability of a positive change in response across the two surveys (i.e. from disagreeing to agreeing with this item) is much greater than that of a negative change for both female and male students. Therefore, it appears that for students in the longitudinal sample, confidence in managing students' own finances increased during the period of the course. Furthermore, the percentage of a positive change for female students is greater than for their male counterparts.
Identifying Discourses of Personal Financial Management
From our analysis of the interviews, we identified three main ways our 16-19 year old students approached their finances - as consumer aware or savvy, as entrepreneur and as debt averse. Each main way reflects a set of beliefs and actions about personal financial management. More specifically, we found students talked about personal finance in three main ways as:
'consumer aware or consumer savvy'
Personal financial management is considered as being part of everyday life, now and in the mid and more distant future, is about being able to make informed decisions about financial products, planning ahead and managing money.'entrepreneur'
Implies being consumer aware and in addition a strong belief in making money work: money makes money and wanting to play an active role in making this happen.'debt averse'
May or may not be consumer aware, finance is seen as a matter of constraints, regarding things to not do rather than things that could be done to advance one's financial position.
We analysed the frequency of these different cultural models across our year 3 cohort and found that consumer aware or consumer savvy (55%) was the main way students enacted their financial participation followed by debt averse 21%, entrepreneur 11%.
Analysis of Course Impact
One way to evaluate course impact is to examine student responses in interview and survey data regarding how the course has influenced their beliefs about finance and their personal financial practices. These results show an overall positive impact.
Another way we sought to understand the course impact was by drawing on socio-cultural perspectives on learning (see Research Design section). Using methods of discourse analysis, we aimed to tease out the ways the course narrative and discourse of personal finance interacted with other narratives and discourses learned from other times and places in their lives. We propose that expectations of university or work, and future happenings in life acted as a gravitational pole on the students at a time when they were becoming young adults, which fuelled motivation to engage with the ifs School of Finance course and to become more financially capable.
Implications for Financial Education
Several important implications for financial education arise from this research:
- There is evidence that a specifically designated and substantial course for which the aims of improving personal financial management of students is explicit can be effective in changing ways in which young people think about themselves in relation to personal financial management and their participation.
- There is evidence that realistic personal financial management oriented curriculum can engender a 'financially capable-consumer aware' approach to personal financial management, and captured in this we imply a shift to a firm belief that personal financial management is for life.
- There is evidence that personal financial management education is effective when provided at a time when young people are experiencing a marked transition towards greater 'life' independence and adulthood.
Future research
- This research has focused on 16-19 year old students who opted to take a course in financial studies at AS level. Conducting this research has identified the need to understand better socio-cultural influences (e.g. ethnicity, gender and social class) on young people's ways of participating in personal financial management.
- Further research is needed to compare personal financial management practices and identification for students who have chosen financial studies with otherwise comparable students who have not, in relation to their identification and participation in personal financial management; a future study should scope the 14-19 year old age span.
- This research suggests that financial education may be more effective when provided at a time of marked transition to greater independence. This suggests that the time for financial education may be better earlier for vocation students who are not likely to continue to level 3 courses. Further research is needed.