Examining the Effectiveness of Alabama Cooperative Extension System's Youth Financial ...

227 Pages·2014·5.19 MB·English

by  Theresa Jones

Examining the Effectiveness of Alabama Cooperative Extension System’s Youth Financial
Education Program: Behavioral Changes of Program Participants

by

Theresa Jones

A dissertation submitted to the Graduate Faculty of
Auburn University
in partial fulfillment of the
requirements for the Degree of
Doctor of Philosophy

Auburn, Alabama
May 3, 2014

Keywords: financial literacy, financial behavior,
financial knowledge, financial perception

Copyright 2014 by Theresa Jones

Approved by

Maria Martinez Witte, Chair, Associate Professor of Educational Foundations, Leadership and
Technology
James E. Witte, Professor of Educational Foundations, Leadership and Technology
David C. DiRamio, Associate Professor of Educational Foundations, Leadership and Technology
Leslie Cordie, Assistant Clinical Professor of Educational Foundations, Leadership and
Technology
Abstract

The purpose of this study was to measure the effectiveness of the Alabama Cooperative
Extension System’s Youth Reality Check financial education program. This study identified
intended changes in financial behaviors; changes in knowledge, and any effects of demographics
on participant’s perception of the Reality Check program. A total of 396 students in 7th through
12th grades participated in the study.
Data was collected from students in eight of nine regions in Alabama. The assessment
instrument was partially modified from a Financial Literacy questionnaire developed by Danes et
al. (1999) and Mandell (2008). The instrument was adapted by adding one financial behavior
question and six knowledge questions. The inclusion of demographics, eight perception
questions and one open-ended question was added to allow multiple responses.
The results of the assessments showed that the Reality Check program is effective and it
is making an impact on students. Over three-fourths of the participants reported financial
behavior changes. The frequency of all eight financial behavior practices increased whereas the
number of students reporting “never” or almost never” decreased. Items participants reported
practicing the most before and after the program included buying items needed first, then items
wanted, setting money aside for future needs or wants, and saving money on a regular basis.
Students reported a significant intent to change their financial behavior after the program, and
the Cohen’s d effect size (1.399) was large.

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Eighty-one percent of participants received a passing score on the knowledge post-test after only
56% passed the pre-test. There was a significant change in participants’ knowledge with a
medium Cohen’s d effect size (.767). For the effect of participants recommending the Reality
Check program to other teens, significant differences were found when analyzing perception by
race and by gender. As it relates to the effect of students feeling that the Reality Check program
helped them to see the relationship between education and career options, significant differences
were found when analyzing participant’s perception by grade. Lastly, as it relates to the effect of
the Reality Check program improving youth’s financial management skills, significant
differences were found when analyzing perception by home location.

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Dedication
“So the last shall be first, and the first last: for many are called, but few chosen.”
Matthew 20:16, KJV
To whom much is given, much is required.” This degree is dedicated to my amazing
husband and children whom I love dearly. To my father Roosevelt Ross Sr. and my belated
mother, Marva Jean Ross, I am forever thankful for the morals and values they instilled in me. I
am appreciative for the hard work ethic that was planted as a seed when I was just a child. Mom,
God bless your soul and I wish you could be here to witness the history I am making for our
family. Dad, God bless you for being alive and well. I pray that I have made you proud since you
with only a six grade education and mom, a high school diploma successfully raised ten
exceptional children. This degree, I dedicate to you and thank you for your guidance and the love
you have given me. Thank you for the woman, mother, wife, and spiritual leader I am today.

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Acknowledgements
Seek the Kingdom of God above all else, and live righteously, and he will give you everything
you need.

Matthew 6:33 (NLT)
First, I give thanks my Lord and Savior in whom I live, move, and breath for being with
me every step of the way on this journey. The completion of this project also would have not
been possible without the enormous help of numerous individuals. My advisor, Dr. Maria Witte,
not only encouraged the exploration of this important topic, but also provided guidance and
support. Her unmerited support and encouragement help guided me through this study. I am also
grateful to my other committee members, Dr. James Witte, and Dr. David DiRamino, Dr. Leslie
Cordie as well as my outside reader, Dr. Carol Centrallo for providing expertise that greatly
enhanced this project. Their enthusiasm, guidance, recommendations, encouragement,
perspectives, and insight were priceless and gave me the will to continue through this process. I
could not have selected a better power team than this group of professors.
I am forever grateful to Dr. Dorothy Brandon for her time and consultation regarding data
analysis using the SPSS program. What she has done for me is PRICELESS! Thanks go to
Nafsaniath Fathema as well for her input.
I appreciate Dr. Gary Lemme and Dr. Paul Brown for supporting me through my work in
all regions and through the process of completing this dissertation. I am forever grateful for you
allowing me to collect data across the state of Alabama in support of this research. I wish to
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thank Dr. Sam Fowler and Dr. Gaines Smith for having the vision to originate the Extension
distance learning opportunities. Thanks also to Dr. Evelyn Crayton for challenging the Family
and Consumer Science Team to return to school to further our education. Her encouragement
and challenge in developing employees has benefitted not only me as an individual but many of
my colleagues as well. It is my desire to continue to carry out the mission of Extension as I
contribute to helping both youth and adults empower themselves and their communities.
I appreciate the cooperation of the cooperating school principals, teachers, and students
for being a vital part of this study. Thanks to all wonderful Alabama Extension’s REA’s and
County Executive Coordinators who served a role in helping to complete this research and for
recommending various schools from their region for this research. Thanks to Ruth Gomez, Dr.
Sylvia Craft, and Ferlisa Dotson for editing my dissertation and for being a beacon of light in
times of distress.
It truly took a village to complete a mission of this scope. Above all things, I thank my
husband Dwight for his love, everlasting support, and patience. As my better half, I share this
degree freely with him. I appreciate all the love, and understanding from my children Alexia,
Alizha, and E. Shamel. I also thank my oldest daughter, TeNesha for her encouragement. I pray
that they will strive for higher heights in life and that I am not only a great mother but also an
awesome role model. Also, thanks to my extended family, friends, and co-workers for your
support.
I am forever indebted to my family and friends for all the prayers and the assistance they
provided along this road that I did not have to travel alone. I truly appreciated them sharing their
lives with the demands placed in my path for this degree. Thank you also to my pastors, Terry
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and Cheryl Bennett and the Victorious Life Church family for all of their continuous prayers and
support as I pursued my degree. Thank you everyone for not giving up on me!
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Table of Contents

Abstract .............................................................................................................................................ii
Dedication ..........................................................................................................................................iv
Acknowledgements ............................................................................................................................v
List of Tables .....................................................................................................................................xii
List of Figures ....................................................................................................................................xiv
Chapter 1 Introduction .......................................................................................................................1
Statement of the Problem .......................................................................................................4
Purpose of the Study ..............................................................................................................5
Research Questions ................................................................................................................7
Significance of the Study .......................................................................................................7
Limitations .............................................................................................................................8
Assumptions ...........................................................................................................................9
Definitions of Terms ..............................................................................................................9
Organization of the Study ......................................................................................................11
Chapter 2 Review of Literature ..........................................................................................................12
Introduction ............................................................................................................................12
Purpose of the Study ..............................................................................................................12
Research Questions ................................................................................................................14
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Financial Literacy ..................................................................................................................14
Alabama Cooperative Extension Overview ...........................................................................16
Alabama Cooperative Extension System ...................................................................16
Alabama Cooperative Extension System’s Mission ..................................................16
Alabama Cooperative Extension System’s 4-H and Youth Development Program..17

History of Alabama Cooperative Extension System’s Reality Check Program ........18

The Need for Financial Education .........................................................................................18
Financial Literacy Act............................................................................................................23
State Mandates .......................................................................................................................25
Effectiveness of Personal Finance Education .......................................................................29
Approaches to Teaching Financial Education .......................................................................31
Personal Financial Literacy National Standards ....................................................................33
National Standard for Personal Financial Literacy for Adults ...................................34
National Standards for Personal Financial Literacy for Youth ..................................41
Youth Financial Education and Behavior ..............................................................................48
Parents and Family and Financial Literacy ............................................................................52
Evaluating Financial Literacy ................................................................................................55
Financial Literacy Education Programs .................................................................................59
Summary ................................................................................................................................67
Chapter 3 Methods .............................................................................................................................70
Introduction ............................................................................................................................70
Purpose of the Study ..............................................................................................................70
Research Questions ................................................................................................................72
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Design of Study......................................................................................................................72
Population ..............................................................................................................................74
Instrumentation ......................................................................................................................77
Instrument Development ............................................................................................77
Validity ......................................................................................................................81
Pilot Test ....................................................................................................................84
Reliability ...................................................................................................................85
Ethical Issues .........................................................................................................................86
Privacy and Confidentiality of Student Data .........................................................................88
Procedures ..............................................................................................................................88
Variables ................................................................................................................................92
Data Analysis .........................................................................................................................93
Summary ................................................................................................................................95
Chapter 4 Findings .............................................................................................................................96
Introduction ............................................................................................................................96
Purpose of the Study ..............................................................................................................96
Research Questions ................................................................................................................98
Demographic Characteristics .................................................................................................99
Research Question 1 ..............................................................................................................101
Research Question 2 ..............................................................................................................106
Research Question 3 ..............................................................................................................114
Question 3 Race/Ethnicity Variables .........................................................................115
Question 3 Gender Variable.......................................................................................117
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