Nonprofit Financial Literacy Program for Adults Living in Rural Communities

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Nonprofit Financial Literacy Program for AdultsLiving in Rural CommunitiesLisa CollazoWalden University

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Walden University

COLLEGE OF EDUCATION

This is to certify that the doctoral study by

Lisa Collazo

has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made.

Review Committee Dr. Michael Butcher, Committee Chairperson, Education Faculty

Dr. Jennifer McLean, Committee Member, Education Faculty Dr. Irene McAfee, University Reviewer, Education Faculty

Chief Academic Officer

Eric Riedel, Ph.D.

Walden University 2016

Abstract

Nonprofit Financial Literacy Program for Adults Living in Rural Communities

by

Lisa L. Collazo

MBA, South University, 2008

BA, South University, 2006

Doctoral Study Submitted in Partial Fulfillment

of the Requirements for the Degree of

Doctor of Education

Walden University

September 2016

Abstract

Consumer research has indicated that financially uneducated adults who live in rural

areas often make poor financial decisions that plague them for decades. As a result of

increased home foreclosures, student loan defaults, and bankruptcies, policymakers at the

state and federal level, business leaders, academic communities, and non-profit agencies

have identified a need for quality financial education programs. The purpose of this study

was to examine the effectiveness of a financial literacy program created for financially

uneducated adults living in a rural community, as measured by participants’ perceptions

of their financial concepts knowledge and financial management ability after program

completion. The conceptual framework was guided by the transtheoretical model of

change theory, which holds that an individual’s behavior and beliefs affect his or her

surroundings and self-perceptions. Data were collected from 36 former program

participants through a mailed 3-part survey developed by the Federal Deposit Insurance

Company. The data were analyzed using descriptive statistics and one-sample chi-square

tests to determine whether responses to 3 survey items measuring knowledge gain and

improved ability to manage finances were equally distributed. The tests were significant

and indicated that all participants (100%) agreed/strongly agreed that they were more

financially knowledgeable after the financial literacy program and could use what they

learned independently. Most participants (86%) also reported that, after completing the

financial literacy program, they were better able manage their finances on their own.

Implications for positive social change include providing research-based findings to the

program administrators, which may assist in promoting the program and improving the

financial literacy of the adults in this rural community.

Nonprofit Financial Literacy Program for Adults Living in Rural Communities

by

Lisa L. Collazo

MBA, South University, 2008

BA, South University, 2006

Doctoral Study Submitted in Partial Fulfillment

of the Requirements for the Degree of

Doctor of Education

Walden University

September 2016

Dedication

To the Lord for giving me the strength to complete this doctoral journey. To my

father who started this journey with me over five years ago. While you were not able to

see the finished project, I thank you for your love and support. To my family, especially

my husband, thank you for all of the love, support, and encouragement. To my friends

and co-workers, thank you for believing in me.

Acknowledgments

Over the past five years I have received unconditional support and inspiration

from my family, friends, and co-workers. My committee Chair, Dr. Michael Butcher has

been an inspiration during this doctoral journey. His guidance has made this a thoughtful

and rewarding experience. I would like to acknowledge my second committee Chair, Dr.

Jennifer McLean for all of her guidance and passion on this doctoral study. Her in-depth

reviews were instrumental in my completion of this project. To Dr. Irene McAfee, my

University Research Reviewer (URR), thank you for your vital feedback on this project.

To the Walden University Institutional Review Board (IRB), thank you for you valuable

input and assistance.

i

Table of Contents

List of Tables ....................................................................................................................... v

List of Figures ..................................................................................................................... vi

Section 1: The Problem ....................................................................................................... 1

The Local Problem ........................................................................................................ 1

Definition of the Problem .............................................................................................. 3

Rationale ........................................................................................................................ 5

Evidence of the Problem at the Local Level ........................................................... 5

Evidence of the Problem From the Professional Literature .................................. 13

Definition of Terms ..................................................................................................... 15

Significance of the Study ............................................................................................. 16

Research Questions and Hypotheses .......................................................................... 18

Review of the Literature .............................................................................................. 19

Implications ................................................................................................................. 42

Summary ...................................................................................................................... 43

Section 2: The Methodology ............................................................................................. 46

Research Design and Approach ................................................................................... 46

Evaluation Design and Description ....................................................................... 47

Justification of Design ........................................................................................... 48

Description of the Type of Evaluation Conducted ................................................ 49

Justification for Using the Logic Model in Program Evaluation .......................... 50

Logic Model in Program Evaluation ..................................................................... 51

Outcomes and Performance Measures .................................................................. 52

ii

Overall Evaluation Goals ...................................................................................... 53

Participants .................................................................................................................. 53

Criteria for Selecting Participants ......................................................................... 55

Justification for the Number of Participants .......................................................... 55

Procedures for Gaining Access to Participants ..................................................... 56

Methods for Establishing a Research-Participant Working Relationship ............. 57

Measures for Ethical Protection of Participants .................................................... 59

Data Collection ............................................................................................................ 61

Data Collection Choices and Justification ............................................................. 61

Specific Plan for the Survey .................................................................................. 63

Data Collection and Recording ............................................................................. 63

The System for Tracking Data and Emerging Understandings ............................. 64

The Role of the Researcher ................................................................................... 65

Data Analysis and Findings ......................................................................................... 65

Criteria for Selecting Participants ......................................................................... 65

Procedures for Gaining Access to Participants ..................................................... 66

Specific Plan for the Survey .................................................................................. 67

How and When Data Were Analyzed ................................................................... 67

Data Analysis Results .................................................................................................. 69

Evidence of Quality and Procedures to Assure Accuracy and Credibility ............ 86

Procedures for Determining Validity .................................................................... 86

Procedures for Dealing with Discrepant Cases ..................................................... 86

Limitations/Assumptions ............................................................................................. 87

iii

Research Questions and Outcomes ............................................................................. 88

Summary ...................................................................................................................... 90

Section 3: The Project ....................................................................................................... 91

Introduction ................................................................................................................. 91

Description and Goals ................................................................................................. 92

Description .................................................................................................................. 92

Project Goals ............................................................................................................... 94

Rationale ...................................................................................................................... 96

Review of the Literature .............................................................................................. 97

Project Description .................................................................................................... 103

Project Evaluation Plan ............................................................................................. 105

Implications Including Social Change ....................................................................... 108

Local Community ................................................................................................ 108

Far-Reaching ....................................................................................................... 109

Conclusion ................................................................................................................. 110

Section 4: Reflections and Conclusions .......................................................................... 112

Project Strengths and Limitations ............................................................................. 112

Introduction ............................................................................................................... 112

Project Strengths ........................................................................................................ 112

Project Limitations .................................................................................................... 113

Recommendations for Alternative Approaches ......................................................... 113

Scholarship, Project Development and Evaluation, and Leadership andChange ...... 114

Project Development and Evaluation ........................................................................ 116

iv

Leadership and Change ............................................................................................. 117

Reflection on Importance of the Work ...................................................................... 117

Analysis of Self as Scholar ........................................................................................ 118

Analysis of Self as Practitioner ................................................................................. 119

Analysis of Self as Project Developer ....................................................................... 120

The Project’s Potential Impact on Social Change ..................................................... 121

Local Community ................................................................................................ 121

Far-Reaching ....................................................................................................... 121

Implications, Applications, and Directions for Future Research .............................. 122

Conclusion ................................................................................................................. 123

References ....................................................................................................................... 125

Appendix A: Evaluation Report ...................................................................................... 133

Appendix B: Survey Instrument ...................................................................................... 187

v

List of Tables

Table 1. Census Bureau Poverty Level Comparison…………………………………….24

Table 2. Department of Corrections Inmate Population...………………………………54 Table 3. Returned Survey Demographics…….…………………………………………81 Table 4. Returned Survey Results: Part I.…….…………………………………………85 Table 5. Returned Survey Results: Part II.……………………………………………...89 Table 6. Returned Survey Outcomes……...…………..………………………………...94

vi

List of Figures

Figure 1. 2012 class attendance by quarter.……………………………………………19

Figure 2. 2012 class attendance by month ………………………………………….....19

Figure 3. Sample logic model...……………………………………………………….63

Figure 4. Survey respondents with and without savings accounts…………………..149

Figure 5. Survey respondents with and without checking accounts...……………….149

Figure 6. Where survey respondents cash their checks..…………………………….149

Figure 7. How much survey respondents pay to cash their checks...………………..150

Figure 8. Monthly checks written……………………………………………………150

Figure 9. Survey respondent monthly withdrawal activity..………………………....151

Figure 10. Survey respondent monthly deposit activity.......…………………………151

Figure 11. Survey respondents: no checking account bill pay methods……………...151

Figure 12. Survey respondents wire of money activity..……………………………..151

Figure 13. Borrowing money activity.………………………………………………..152

Figure 14. Who survey respondents borrow money from...………………………….152

Figure 15. What survey respondents use borrowed money for……………………….153

Figure 16. Survey respondent’s knowledge of interest rates.....………………………153

Figure 17. Knowledge of how to open up a bank account....…………………………154

Figure 18. Survey respondent knowledge of writing checks...……………………….154

Figure 19. Survey respondent knowledge of atm/debit card usage..…...…………….155

Figure 20. Survey knowledge of the cost of opening a bank account..………………155

Figure 21. Knowledge of the cost of borrowing money.……………………………..156

Figure 22. Survey respondent knowledge of apr rates…..……………………………156

vii

Figure 23. Financial literacy program knowledge levels...…………………………...157

Figure 24. Survey respondent ability to manage own finances….....………………....158

Figure 25. Can survey respondents use what they have learned...…..….…………….158

1

Section 1: The Problem

The Local Problem

Newspapers throughout the United States feature headlines dealing with home

foreclosures, student loan debt levels, unemployment, bankruptcy, and money-related

commission of crimes leading to incarceration. As of January 2013, the unemployment

rate in the United States is 7.9%, which translates into nearly 10.4 million U.S. adults out

of work (Bureau of Labor Statistics, 2012). As of December 2012, the home foreclosure

rate stood at 77% (Bureau of Labor, 2013). These numbers accompany historically low

savings rates, high consumer debt, and rising bankruptcy rates. Although these personal

financial difficulties might be due in part to the recent economic downturn, a survey of

1,001 Americans by Princeton Survey Research Associates International (2008) indicated

a lack of understanding of financial systems and the complexity of financial services and

products. Research indicated that many Americans believe recent economic struggles are

due, in large part, to U.S. citizens being underprepared to compete in a “knowledge

economy” that is global (Cochran-Smith & Power, 2010, p. 8).

The success of rural adult learners surviving future economic downturns is

critical, and existing financial literacy programs must be custom-made to meet the

literacy needs of these learners. Cochran-Smith and Power (2010) also highlighted that

students are not learning what they need to know to compete in a global society and that

teachers are not always prepared to teach all students effectively. Organizations such as

Financial Empowerment, local churches, and the federal government have introduced

programs to educate consumers on personal money management to assist minority

2

households with improving their credit histories and building savings for the future.

Financial education is needed among adults living in rural communities in Georgia;

however, adults living in these areas are not taking advantage of current financial literacy

programs offered. I explain the problem in this section and provide the reasoning for the

study in local and national educational settings. A list and explanation of key definitions,

significant terms, and concepts relevant to the study are also discussed in this section.

Much of this section involves background information about the problem and the

potential outcomes of minority families, along with a review of literature related to

theories about the research problem and overall success of the financial literacy program.

This program evaluation used quantitative descriptive data to capture the

perceptions of the program participants (Creswell, 2002, 2003; Creswell et al., 2003).

Quantitative data were collected using a Money Smart survey. The survey questions

helped analyze whether the program participants gained skills necessary to change their

current financial situations. I utilized the transtheoretical model of change (TTM) theory

because it is a theory that explained changing behavior in adult learners. The concept

focused on changing what people believe or their behavior in relation to dramatic life

events. It is learning that goes beyond obtaining content knowledge, learning equations,

or memorizing mathematical formulas. Content knowledge generally refers to the facts,

concepts, theories, and principles that are taught and learned, rather than to related skills.

Skills such as reading, writing, or researching that students also learn in academic

courses. It is a valuable process for adults to learn to think for themselves, through

redefining what they have to come to know through life experiences (Merriam,

3

Caffarella, & Baumgartner, 2007). In this case, participating in the financial literacy

program should assist the students in gaining new financial skills, thus changing overall

financial behaviors.

This study contributes the body of knowledge needed to address this local

problem of financial literacy among minority families living in rural communities. The

focus is on the effectiveness of current financial education programs and their ability to

generate increased participation, ultimately leading to changes their financial behaviors.

Definition of the Problem

According to 2008 U.S. Census data, more than 12 million adults in the United

States report they do not speak English well or at all. Proficiency in reading, writing,

speaking, and understanding the English language appears to be linked to multiple

limitations in adult life in the United States, including financial literacy—the ability to

make informed judgments and take effective actions regarding the current and future use

and management of money (U.S. Census Bureau, 2008). Having financial freedom is

about understanding financial choices and the implications of making those choices in

relationships and personal finances. Money affects almost every part of life. The

decisions made regarding how to earn, spend, and save money have never been more

critical. The Federal Deposit Insurance Company (FDIC) reported that households that

are unbanked (those households most likely not to have a checking or saving account) are

more likely to use alternative financial services, and approximately two-thirds of these

households used pawn shops, payday loans, rent-to-own agreements, nonbank money

orders, or check-cashing services (FDIC, 2009).

4

Many rural minority families experience financial challenges such as debt,

insufficient savings, and unemployment. Uninformed financial choices have led families

into debt and lower living standards because they cannot meet basic living needs. In

2003, recognizing the importance of teaching adults financial education, Congress passed

Title V of the Fair and Accurate Credit Transaction Act (FACT Act, 2003), which

established the Financial Literacy and Education Commission with the purpose of

improving the financial literacy and education of persons in the United States (U.S.

Department of Treasury, 2012). In 2004, the state of Georgia and the Georgia State Board

of Education approved new Georgia Performance Standards (GPS) social studies

curriculum intended to strengthen economics content across K–8 grades and includes

personal finance in all grades, including high school. In the fall of 2006, a required high

school economics course entitled, “Let’s Make It Personal” focused on five themes:

fundamental, microeconomics, macroeconomics, international, and personal finance were

instituted in public schools in Georgia.

During the past 10 years, my work as an accredited financial counselor and

planning educator (AFCPE) in rural communities allowed me the opportunity to advise

some of these families. A majority of the families were living paycheck to paycheck and

had damaged credit histories. Some clients expressed concerns of embarrassment and

criticism associated with turning to family or friends for help. This led to the frequent

utilization of payday lenders and check cashing facilities to help pay for basic everyday

living expenses. Because of these poor financial decisions, most paid a higher cost for

5

borrowing the money. These same poor decisions only made their financial dilemmas

worse (Caskey, 2005).

Tattnall County, Georgia, is the location of this study. The county has five

incorporated communities including Glennville, the most populated city in the county;

Reidsville, the county seat; Collins; Cobbtown; and Manasas. The county population in

July 2012 was 25,384, with 21% living in urban areas and 79% living in rural areas. The

population as of July 2012 was 58.8% White, non-Hispanic; 29.7% Black, non-Hispanic;

10.8% Hispanic or Latino; 0.5% Asian alone; and 0.9% two or more races (U.S. Census

Bureau, 2013). The city of Glennville is the location of the financial education class. The

local problem that prompted this study was the low participation level of rural minority

adults attending offered financial education classes in this community. This study

evaluated a current nonprofit financial education program and its ability to help

participants gain new financial literacy skills that lead to making more informed financial

decisions.

Rationale

This section examined the viewpoints presented in the literature and a description

of the significance of the problem in rural communities.

Evidence of the Problem at the Local Level

Financial Empowerment is a local faith-based nonprofit organization that

provides a wide range of personal financial education classes as part of its financial

literacy program. The goal of the course is to teach rural adults personal finance skills

that transform their current economic situations. The program offered is 5 weeks long and

6

consists of eight personal finance modules. Each module lasts for approximately 2 hours

once per week.

The organization implemented a new financial management course for adults

living in the rural community of Tattnall County in Georgia in 2011. Implementation has

been quite expensive, involving the purchase of instructional materials and computer

software, and faculty training. The organization would like to study the effectiveness of

the new financial management program, looking at issues such as the effect on student

participation rates, student academic progress, student satisfaction with the program, and

program implementation issues.

The local problem of whether the Financial Empowerment personal financial

literacy program effectively addressed rural students’ needs was the focus of this study.

Developing effective adult literacy programs in rural communities is a learning process

that takes time and requires resources. Trust among stakeholders must be earned, and the

trust deepens as people believe their interests are considered. Most collaborative

relationships take time to develop, and in Tattnall County, it took more than 3 years for

Financial Empowerment to establish a working relationship within this rural community.

At the same time, federal legislation has limited the ability of local adult basic education

programs to respond to local needs by imposing a national definition of basic skills and

standard measurement criteria, (i.e., one size fits all) (Ziegler & Bingman, 2007). Listed

below is the class attendance organized quarterly, which is broken down by each month.

7

Figure 1. 2012 class attendance by quarter.

Figure 2. 2012 class attendance by month.

Figures 1 and 2 indicated participation levels for the 2012 calendar year. There

were a total of 50 participants signed up for the financial literacy class. Each quarter

indicated the number of adults signed up for the class and the actual number of

participants. The second figure represents class participation on a monthly basis. Each

month indicated the number of adults signed up for the class and the actual number of

participants.

8

According to Cheung and Wong (2002), “The major premise of an academic

curriculum should aim at developing students’ intellectual abilities in subject areas that

are most worthy of study” (p. 225) or evaluation. Schwartz (2006) mentioned that a good

curriculum is not only designed for the students, but also for the teachers. In other words,

effective curriculum should not only educate students, but teachers should also teach

something of value to the students. In Tattnall County, rural adults do not take advantage

of offered financial literacy program classes. Some program participants indicated on

course evaluations that they were too busy to participate, leading the organization to

believe they did not perceive the overall value of the program.

Currently, Financial Empowerment is working on ways to increase student

satisfaction with the course and curriculum. Continuation of the problem could lead to

increased student dropout rates and the elimination of the classes. The problem affects

students, Financial Empowerment administration, community leaders, and Tattnall

County as a whole. Student dropout rates influence revenue for the organization, local

churches, and individual households. Financial Empowerment has invested a substantial

amount of money to implement new technology in the classroom. The funding would

also be used to establish professional development programs. These programs would

introduce alternative ways of teaching in efforts to encourage student learning. Many

possible factors contribute to this problem, such as (a) student boredom, (b) lack of

perceived value to the student, (c) lack of time to participate in the course, and (d) student

ability to comprehend the current curriculum.

9

Financial education is important; however, some rural adults believe they do not

need to participate in financial education classes. The study conducted by the National

Assessment of Adult Literacy (NALS, 2009) indicated there is a need. The most recent

National Adult Literacy Survey commissioned by the U.S. Department of Education

established that approximately 63% of those surveyed demonstrated low levels of literacy

(NALS, 2009). The survey was administered to approximately18, 500 adults (16 years

and older) living in households and in prisons across the country. The study demonstrated

that minorities scored much lower than Caucasians in reading and writing levels (NALS,

2009). In addition, the Department of Education’s National Adult Literacy Survey

indicated that 17% of the adult population in the State of Georgia demonstrated low

levels of literacy (NALS, 2009). Currently, state and local county high schools offer

economics classes aimed at preparing high school seniors for the State-mandated End of

Course Tested (EOCT) course worth 15% of the semester grade. The financial education

class is not mandated. The concern is some minority adults that have already graduated

from high school did not have access or take advantage of the financial education offered

in high school.

Several gaps have been identified in the current research on financial literacy

issues and data. Most of the financial literacy assessments began in the 1900s and, until

recently, emphasis on financial literacy was not a priority (Bamberger et al., 2006). With

rising consumer debt levels, bankruptcies, home foreclosures, and identity thefts,

increasing the financial literacy of consumers has become a primary focus (U.S.

Department of the Treasury, 2011, p. 1). More banks and consumer agencies are offering

10

financial education; however, low program participation rates indicated adult minorities

living in rural communities are not using the programs.

The adult basic financial education programs were distant. Although the program

staff had relationships with individuals from other agencies, no structure was in place that

promoted interaction. Like other programs that provided social services, they reported

directly to the state offices that provided funding. Accountability was at the state and

federal levels rather than at the local level. Educational program and social service

agency staff had little reason or incentive to interact with local business or industry. The

lack of communication or coordination among different stakeholder groups in the county

was not apparent in day-to-day activities. Industrial plant closings, lack of population

growth, an aging population, low educational levels, and diminishing financial resources

had combined with the county’s geographical remoteness to produce a decline in the

vigor of the area. There were fewer employers, jobs, and qualified applicants for the jobs

that were available (Dykes & Rupured, 2006).

Although military families stationed at Fort Stewart, Georgia are moving to the

community, other young families were leaving the county for opportunities elsewhere.

The University of Georgia cooperative extension is located in Statesboro, Georgia. The

university is currently the only organization that offers financial education classes to rural

communities at the local level (Dykes & Rupured, 2006). The University of Georgia’

consumer financial literacy program, “Making Every Dollar Count,” is aimed at

enhancing financial education practices among Georgia residents. According to Dykes

and Rupured (2006), “Ninety-one of Georgia’s 121 counties are classified as persistent

11

poverty counties or areas in, which a high proportion of the residents have lived in a

constant state of poverty since at least 1980” (p. 77). The literacy program also indicated

that these counties represent an estimated 1.2 million Georgians, or 22% of the state’s

population. Data from the 2010 Census Bureau indicated that income in rural Tattnall

County was approximately $15,900, whereas the rest of the 68 counties in Georgia had a

medium income of approximately $34,919 (U.S. Census Bureau, 2010). Because of the

poverty levels, it is critical that non-profit agencies such as Financial Empowerment

collaborate with other stakeholders in efforts to provide personal financial education to

rural adults living in Tattnall County.

Table 1 indicates current U.S. Census Bureau National income level comparisons

by regions and race. The comparison is based on 2010 and 2011 census bureau data

reported by U.S. households. There are some limitations to the data in the form of

individual household’s accountability. The problem of poverty is significant at the

national and local levels. These poverty statistics demonstrate little change in the overall

economic status of everyday households. Americans are dealing with an economy that is

slowing down, increase in consumer, and rising unemployment rates.

12

Table 1 U.S. Poverty People in poverty (numbers in thousands)

2010 2011 Change in poverty Count % Count % Count %

Region U.S. 46,343 15.1 46,247 15.0 -96 -0.1 Northeast 7,038 12.9 7,208 13.1 170 0.2 Midwest 9,216 14.0 9,221 14.0 5 -- South 19,123 16.8 18,380 16.0 *-743 *-0.8 West 10,966 15.3 11,437 15.8 471 0.5 Race and Hispanic origin White 31,083 13.0 30,849 12.8 -234 -0.2 White, not Hispanic 19,251 9.9 19,171 9.8 -80 --

Black 10,746 27.4 10,929 27.6 183 0.2 Asian 1,899 12.2 1,973 12.3 74 0.1 Hispanic origin (any race)

13,522 26.5 13,244 25.3 -278 *1.2

Nativity Native-born 38,485 14.4 38,661 14.4 176 -- Foreign-born 7,858 19.9 7,586 19.0 -272 *-1.0 Naturalized citizen 1,954 11.3 2,233 12.5 *279 *1.2 Not a citizen 5,904 26.8 5,353 24.3 *-

551 *-2.5

*Note: Information taken from the U.S. Census Bureau: http://www.census.gov/2010census. Reprinted with permission.

The ability to read and write is important for minority families in making smart

financial decisions. As minority households pursue employment, training, and higher

education, financial literacy can assist them in preparing for the future. Adults lacking the

13

basic financial literacy skills face barriers as they attempt to earn a living wage, support

their children financially, and participate in civic and community life.

Evidence of the Problem From the Professional Literature

The Department of the Treasury was selected to take the lead in efforts of

coordinating financial literacy within other branches of the federal government. Now,

average Americans have access to financial education resources relating to bank

accounts, consumer credit, mortgages, leasing vehicles, and personal finance. In addition,

Federal Reserve banks around the country sponsor education programs on a variety of

topics, including the Money Smart program, created by the Federal Deposit Insurance

Corporation (FDIC, 2012). Along with free resources, there are organizations that

provided fee based financial education. Visa and the American Bankers Association

(2012) offer financial education programs free to educators, consumers, and bankers. To

ensure the information reaches all demographics, the Jump$tart Coalition targets

students, while the National Community Reinvestment Coalition tries to reach low-to-

moderate income people (Jump$tart, 2009). Other financial education programs were

more focused on helping consumers build assets in the form of homeownership.

Using the financial education curricula developed by Financial Links for Low-

Income People (FLLIP), several nonprofit organizations offered a free, 12-hour financial

education course for Illinois welfare recipients and adults with children under 18 and

incomes up to 2005 of the federal poverty level (Anderson, Scott, & Zhan, 2004). The

curriculum covered an array of topics, from spending choices and understanding credit,

debt, and taxes to using financial institutions, insurance, and job benefits (Anderson et al.,

14

2004). In addition, FLLIP sponsored an IDA program that included a 10-hour financial

education course and 6 hours of asset-specific training. A summary evaluation noted that

about one-third of participants did not “graduate” from the training program, and that

non-completion rates were nearly three times higher at the “education-only” sites than at

the IDA sites. Follow-up surveys indicated that participants improved their budgeting,

payment, credit card, and loan practices (Anderson et al., 2004, p. 61).

In September 2008, the Institute commissioned the National Research Council of

the National Academy of Sciences to conduct a 3-year all-inclusive review and synthesis

in the area of adult literacy (Welch-Ross, 2008). The purpose was to locate the themes

identified in the framework within the research text. The study was designed to look at

instructional contexts and settings, including the development and assessment of

instructional interventions, student and teacher distinctiveness, adult and adolescent

student learner and teacher quantitative and qualitative outcomes, instructional

approaches, and related student outcomes for adult learners. The study also examined the

motivational and engagement factors that directly or indirectly influence enrollment,

involvement, and retention in adult education programs. The desired outcome was to help

these adults gain meaningful employment after participating in adult literacy education.

Lynch (2009) discussed research on the literacy of low-income parents of students

and suggested ways that teaching methods in adult literacy programs can be improved.

The author “suggested literacy programs should incorporate everyday literacy practices,

interests, and life experiences of participants and comments on how parental literacy

affects children's literacy development” over their life time (Lynch, 2009, p. 509). The

15

research literature clearly suggests that the problem of financial education and how to

meet the needs of rural adults exists in a larger context.

Definition of Terms

In this study, financial literacy meant that one is literate in the issues of managing

money (including saving, budgeting, investing, credit, insurance, and taxes), and utilized

that knowledge to gain personal welfare through financial security.

Asset: All money, investments, and property owned by an individual, family, or

business (U.S. Census Bureau, 2012).

Consumer credit: Credit granted to an individual especially to finance the

purchase of consumer goods or to defray personal expenses (U.S. Census Bureau, 2012).

Credit score: A report containing detailed information on a person's credit history,

including identifying information, credit accounts and loans, bankruptcies, and late

payments, and recent inquiries. Prospective lenders with the borrower’s permission, to

determine his or her creditworthiness (U.S. Census Bureau, 2012), can obtain a credit

score.

Investment: In finance, the purchase of a financial product or other item of value

with an expectation of favorable future returns. In general, terms, investment means the

use money in the hope of making more money (U.S. Census Bureau, 2012).

Financial literacy: The ability to read, analyze, manage, and communicate about

the personal financial conditions that affect material well-being. Financial literacy

includes the ability to discern financial choices, discuss money and financial issues

16

without discomfort, plan for the future, and respond competently to life events that affect

every day financial decisions (Vitt, 2000).

Liability: An obligation that legally binds an individual or company to settle a

debt (U.S. Census Bureau, 2012).

Net worth: Total personal assets minus total personal liability (U.S. Census

Bureau, 2012).

Opportunity cost: The cost of passing up the next best choice when making a

decision. For example, if an asset such as capital is used for one purpose, the opportunity

cost is the value of the next best purpose the asset could have been used for (U.S. Census

Bureau, 2012).

Poverty: If a family’s total income is less than the family’s threshold, then the

family and every individual is considered in poverty (U.S. Census Bureau, 2012).

Poverty rate: The percentage of people (or families) who are below poverty (U.S.

Census Bureau, 2012).

Poverty thresholds: Dollar amounts that the Census Bureau uses to determine a

family or person’s poverty status (U.S. Census Bureau, 2012).

Significance of the Study

Program evaluations are important because they provide information to

stakeholders about program effectiveness, potential limitations, and strengths of the

program. This program evaluation centers on exploring whether the existing financial

literacy program has all the components needed to inspire rural adults to take advantage

of the program. Improving the program can assist these families with developing the

17

necessary skills and behavioral changes needed to become successful in this current

economic environment. The results of this study provided powerful insight from these

rural families on the challenges they face regarding community-based financial education

program participation and the effectiveness of these programs. The goal of this program

evaluation is to increase utilization of existing community based financial literacy

programs and better meets the needs of minority adults living in rural communities. This

information would then be integrated into the financial education program with the

ultimate outcome of empowering minority families. This study informed researchers,

policymakers, and educators about the beliefs and perceptions of the minority family

participation in community-based financial education programs. The assessment of the

financial literacy programs could possibly facilitate enhancements to existing financial

literacy program designs. In addition, evaluation of financial literacy programs can

provide sponsors with information needed to regulate and adjust these programs to better

accommodate those minority families utilizing the programs. The study could allow other

schools with low graduation rates and achievement gaps in financial literacy to apply the

findings to their environments.

Another goal of this program evaluation was to positively contribute to the

existing research on financial illiteracy and improve current financial education programs

offered to minority households in rural communities thus motivating these families to

take advantage of existing financial education programs. Positive social change

implications resulting from this study include increasing the knowledge levels of

educators, program developers, and other researchers who are seeking understanding into

18

effective ways of increasing utilization rates in financial education programs among rural

minority families. Social change could occur for those rural minority families as

organizations work to develop and implement evidence-based programs that interrupt the

cycle of non-utilization among rural minority families.

Research Questions and Hypotheses

Financial education programs nationwide are expected to improve student

financial learning outcomes or continue dealing with the consequences of increasing debt

loads and low standard of living among these adults. Underutilization of existing

financial education programs in rural communities is a problem that needs to be

addressed. Current delivery methods are in-person only classroom based instruction.

Rural communities must examine current financial education programs and delivery

methods in efforts to increase participation. This examination required an up-front

understanding of the challenges rural minority adults have so that an effective action plan

could be established. Therefore, the focal questions in relation to the effectiveness of the

financial program are.

Research Question 1: What are the perceptions of stakeholders and students

regarding the financial literacy program offered by Financial Empowerment and does the

program provide students with a realistic experience to prepare them to better manage

their finances in the future?

19

Research Question 2: What is the difference between actual responses for

knowledge gain and hypothesized (equally distributed) responses for knowledge gain as a

result of participating in the financial literacy program?

H01: There is no difference between the actual responses for knowledge gain and

hypothesized (equally distributed) responses for knowledge gain as a result of

participating in the financial literacy program.

H1: There is a difference between the actual responses for knowledge gain and



Research Question 3: Does the financial literacy program provide students with a

realistic experience to prepare them for future financial responsibilities and can they use

what they have learned in the program on their own?

To answer this question, I conducted a program evaluation in efforts to

understand how minority adults view the financial program, and if they perceive there is

an increase in their financial literacy levels. This evaluation was critical in identifying

and/or implementing changes to the existing financial education program that would

ultimately meet the financial literacy needs of those who participate in the program.

Review of the Literature

An exhaustive review of the literature between 2001 and 2016 in several specified

databases using the keywords revealed limited research on financial literacy for rural

adults. The database searches revealed limited scholarly articles on financial literacy.

Different points of view were presented to predict the relationship of the present study to

20

previous research on financial literacy. Considering the local level problems with adults

not participating in financial literacy education programs, and the local communities’

desire to increase training participation for rural minority adults to become more

financially literate, local financial education program’s most significant and relevant

flaws were reviewed.

In this section are quotations from education reform reports to provide a snapshot

of the little progress that has been made over several years of implementing legislations

focused on improvement. Subheadings have been used to organize the literature.

References have been made throughout to the local community, noting how the topic

pertains to the community. Also included in this literature review is some information on

the differences in minority adult demographic backgrounds, their literacy levels, and the

effects of financial program non-utilizations, recent legislations, reports on financial

education program effectiveness, traditional instruction, and minority challenges when

participating in existing financial programs.

The literature noted in this review was found through a search of the Educational

Index, Index of Doctoral Dissertations, current Index of Journals in Education, by search

of databases such as ProQuest, Business Source Complete, ERIC, and SAGE databases,

as well as by general online Boolean search methods. Search terms included financial

literacy, rural Americans, program effectiveness, program evaluation, traditional

instruction, adult poverty levels, and African Americans, finance, financial, education,

economics, business, debt, and literacy, which were used in many combinations. All

relevant articles were included to the point of saturation.

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Conceptual Framework

The TTM was originally developed to explain how individuals progress from one

stage of behavior change to a higher stage when trying to prevent a negative health

behavior or forming a new positive health behavior (Burke, 2011; Prochaska,

DeClemente, & Norcross, 1992; Prochaska, & Velicer, 1997; Prochaska et al., 1994).

More recently, the TTM has been applied to other fields of study, including financial

behavior studies, and has also been used to help determine the effectiveness of financial

education programs. Lyons and Neelakantan (2008) argued that the TTM may not be an

appropriate measure of financial behaviors because standards for financial behaviors have

not been ascertained. Although it is easier to conclusively identify positive health-related

behaviors than positive financial behaviors, the TTM can still be a valuable framework

for financial educators regarding how to help consumers improve their financial

behaviors (Burke, 2011).

Xiao et al. (2008) used the TTM to develop specific strategies to help motivate

employees to make positive financial behavior changes based on their readiness to

change. For individuals in the precontemplation stage, increasing awareness or raising

consciousness about financial risks and the benefits of change are strategies that may help

to motivate them to progress to a higher stage. Similarly, one strategy for helping those in

the contemplation stage is to convince them that the benefits of changing outweigh the

costs. Strategies used in the preparation stage include empowering people to make an

action plan and encouraging them to take small steps to build confidence.

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People in the action stage benefit from both behavioral and cognitive strategies,

such as reinforcement management and positive thinking. Finally, supportive strategies,

like having a plan to cope with setbacks, would be most beneficial for individuals who

have reached the maintenance stage (Xiao et al., 2008). The TTM categorization helped

to expand beyond merely savers and non-savers and provided more insight about

individuals’ saving intentions as well as behaviors. Gutter et al. (2007) found that marital

status, age, preference (e.g., time horizon and risk tolerance), and other financial sources

(e.g., net worth, job tenure, cash reserve, and employer match) were all significantly

related to participation in defined contribution plans as categorized by the TTM

framework.

To examine financial behavior change of Individual Development Account (IDA)

participants, Shockey and Seiling (2004) also used the TTM. Six money management

behaviors were identified that could enable participants to begin or increase their savings,

including: setting financial goals, using a spending plan, tracking spending, reducing

debt, setting aside money, and saving money. A readiness assessment for these six

behaviors was administered to participants to determine their stage of behavior change

before and after completing the four-week financial education classes. On average, they

found that all six of the money management behaviors improved. Participants were at the

preparation stage for all of the money management behaviors except for reducing debt;

participants were at the action stage on debt reduction. Shockey and Seiling (2004)

concluded that the TTM is applicable for evaluation of financial education programs.

23

Xiao et al. (2004) assessed the readiness of consumers to get out of credit card

debt when they were already having credit card problems. The TTM framework was used

to compare individuals’ readiness to change their debt habits. In addition to the stages of

change, other key constructs of the TTM were used, including decisional balance,

processes of change, and self-efficacy. Xiao et al. found that behavioral changes could

involve multiple stages. Consumers in the first three stages of change (e.g.,

precontemplation, contemplation, and preparation) were comparable to each other while

individuals in the last two stages (e.g., action and maintenance) were also similar. This

information can be beneficial for financial counselors and educators as they seek to tailor

their programs and resources to more appropriately suit the needs of consumers.

The TTM has been used in a number of studies related to participants’ change in

financial behavior. The TTM was implemented to better target individuals for financial

education based on their readiness for change (Xiao et al., 2008). The literature

demonstrated how the TTM has been used to classify individuals according to their stage

of behavior change (Burke 2011; Gutter et al., 2007; Lown, 2007; Xiao et al., 2004).

Overview of Program Evaluation

Effective program evaluation is a critical element of successful financial

education programs. This review of literature is comprised of three sections. The first

section explains the importance of program evaluation in financial education and reviews

program evaluation resources used by financial educators and researchers, including the

National Endowment for Financial Education (NEFE) evaluation toolkit and logic

models. The second section explores the overall impact of financial education, such as

24

increased financial knowledge and improved financial behaviors, by examining studies

related to financial program evaluation. The third section investigated the TTM as related

to financial behavior change.

Program Evaluation

Financial education programs have the potential to empower individuals with

knowledge and skills to make responsible consumer decisions. According to Consumer

Financial Protection Bureau’s 2013 Financial Literacy Annual Report, “As consumers act

upon their financial knowledge, they are more likely to reach financial goals and improve

their economic wellbeing” (CFPB, 2013, p. 22) in the future. For this reason, positive

financial behavior changes are often a desired outcome of financial education programs.

Program evaluation is necessary for financial practitioners to determine if a program is

successful in helping participants improve their financial behaviors (NEFE, 2011).

Evaluation is the process of determining the impact of a program. Through program

evaluation, researchers and educators are able to determine if a program is meeting the

needs of the participants and to document the outcomes. Program evaluations may also

provide insight as program coordinators seek to enhance efficiency of management and

delivery.

Program evaluation is most successful when it is incorporated at every phase of

the program design and implementation (Bamberger et al., 2006; Collins & O‘Rourke,

2010; Fox & Bartholomae, 2008). However, oftentimes evaluation is an after-thought for

program developers. This may be a result of the lack of time, money, data, and other

factors that often accompany new educational programs (Bamberger et al., 2006). It is

25

more difficult to accurately determine the effectiveness of a program when the evaluation

process is not planned from the initial design phase. In addition, if the program objectives

or desired outcomes are determined after the program has occurred, then program

coordinators may express bias by way of the results (Hathaway & Khatiwada, 2008).

Therefore, program goals and outcomes are an important part of program evaluation and

should be considered at the onset of program development.

Money Smart Versus NEFE Evaluation Toolkit

One useful resource for financial educators is the Financial Education Evaluation

Toolkit sponsored by the NEFE (2011). NEFE is a nonprofit organization that seeks to

help Americans gain the knowledge and skills necessary to be financially stable. The

evaluation toolkit was created to assist financial educators in assessing the outcomes and

success of financial education programs and provides information about the program

evaluation process and how to collect, analyze, and summarize evaluation data. The

toolkit includes an evaluation manual, which is a simple guide designed specifically for

financial practitioners to measure the extent to, which people change their attitudes or

behaviors because of participation in educational programs (Burke, 2011).

The five key elements of the NEFE manual include: (a) needs assessment, (b)

define objectives, (c) program development, (d) program delivery, and (e) evaluation

(NEFE, 2011). Evaluation is integrated into every step to help maximize the impact of

financial programs. The evaluation manual also provides step-by-step instructions about

how to identify appropriate impact indicators for different types of programs and explains

some of the advantages and disadvantages of various evaluation methods. The NEFE

26

manual focuses specifically on methods for evaluating one-time programs, long programs

(e.g., 2 hours or more), multi-session programs, and train-the-trainer programs. The

manual also includes an evaluation database to allow educators to design their financial

program evaluation measures (Burke, 2011).

The FDIC launched Money Smart as a nationwide initiative in September of

2001. The curriculum was designed to help adults enhance their money management

skills, understand basic financial services offered by the financial mainstream, and build

financial confidence to use banking services effectively. Money Smart was also designed

to provide financial institutions with a tool to assist in community outreach and economic

development. The Money Smart curriculum consists of ten modules: (a) Bank On It: an

introduction to bank services, (b) Borrowing Basics: an introduction to credit, (c) Check

It Out: how to choose and keep a checking account, (d) Money Matters: how to keep

track of your money, (e) Pay Yourself First: why you should save, save, save, (f) Keep It

Safe: your rights as a consumer, (g) To Your Credit: how your credit history will affect

your credit future, (h) Charge It Right: how to make a credit card work for you, (i) Loan

To Own: know what you’re borrowing before you buy, and (j) Your Own Home: what

home ownership is all about. The curriculum is available in both an instructor-led version

and a computer-based instruction (CBI) version. For this study, all sites used the

instructor-led version. The instructor-led curriculum is available in six languages

(English, Spanish, Chinese, Korean, Vietnamese, Russian), as well as Braille and large

print. Only the English and Spanish language versions were used to develop the survey

(FDIC, 2001).

27

For this program evaluation, a three-part financial education survey instrument

developed by the Federal Deposit Insurance Corporation (FDIC) to evaluate its Money

Smart Program was utilized (See Appendix A). The FDIC contracted the Gallop

Organization (GAO) in 2007 to conduct a longitudal evaluation of the program. Using a

three-part survey to determine the effectiveness of its Money Smart financial education

curriculum, the FDIC found that the program positively influenced how course

participants manage their finances as well as their financial confidence. The study also

found that these positive changes were sustained months after participants had completed

Money Smart training (GAO, 2007).

Evaluation of Financial Education Programs: Does Financial Education Work?

In 2003, the Office of Financial Education of the U.S. Department of the Treasury

(2004, 2006) suggested eight key elements regarding the content, delivery, impact, and

sustainability of successful financial education programs to guide financial education

developers. The eight elements state that a successful program:

• Is tailored to its target audience, taking into account its language, culture,

age and experience.

• Is focused on basic savings, credit management, home ownership, and/or

retirement planning.

• Is offered through a local distribution channel that makes effective use of

community resources and contacts.

• Follows up with participants to reinforce the message and ensure that

participants are able to apply the skills taught.

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• Establishes specific program goals and uses performance measures to

track progress toward meeting those goals.

• Demonstrates a positive impact on participant’s attitudes, knowledge, or

behavior through testing, surveys, or other objective evaluation.

• Can be easily replicated on a local, regional, or national basis to have

broad impact and sustainability.

• Is built to last as evidenced by factors such as continuing financial

support, legislative backing, or integration into an established course of

instruction (2006).

According to several financial program evaluations, financial education appears to

be beneficial and has a positive impact on the lives of consumers; however, it is difficult

to measure and determine what kind of impact and to what degree (Hogarth, 2006). At

present, there is no clearly defined method for evaluating financial education programs

(McCormick, 2009). Considering that the number of financial education programs has

increased over the years, there has been relatively few program evaluations published that

assess the impacts of this education (Collins & O‘Rourke, 2010).

Despite these broad guidelines, the task of evaluating the content, delivery,

impact, or sustainability of financial programs can be difficult for researchers and

educators. For instance, individuals who take advantage of voluntary financial education

are assumed to be more motivated than those who choose not to participate. In addition,

future-oriented individuals are more likely to attend financial education programs

because they are more likely to manage their personal finances better than their

29

counterparts (Meier & Sprenger, 2007). These factors can confound the effectiveness of

education programs because participants are already likely to change their financial

behaviors regardless of the financial education delivery method.

Another important reason why it is difficult to evaluate financial programs is that

there is no widely accepted standard (McCormick, 2009). After reviewing 41 program

evaluation articles on financial education and counseling, Collins and O‘Rourke (2010)

found that existing evaluation research is not conclusive because it is prone to several

methodological problems. The problems they cited included selection bias, longitudinal

designs, measurement issues, and a general lack of theory. However, financial education

and counseling still hold promise as a strategy for consumers to enhance their financial

abilities and decisions (Collins & O‘Rourke, 2010).

A number of studies have evaluated various financial education and counseling

programs. Although there is a distinction between financial education and counseling,

they often overlap as counselors provide educational resources and educators address

personal questions for participants (Collins & O‘Rourke, 2010). Because of this

crossover, both financial education and counseling evaluations were reviewed. Financial

program evaluation topics that were reviewed in the following section included

workplace financial education, school-based financial education, general financial

management education, bankruptcy counseling and education, and housing counseling

and education.

30

The Need for Financial Literacy Educational Programs

Financial mistakes can simply be made in any area of spending if consumers are

not educated in common problems to avoid. Many of the problems described in this

section were some of the most common financial mistakes that are being made by

Americans today. Whether Americans dropout of high school, graduate from high school

and get a job, or decide to attend college for higher education, the one element that most

citizens seem to have in common is personal debt.

Joblessness can dramatically impact individuals’ finances (Economic Policy

Institute, 2011). Unemployment not only affects individual's short-term financial

situation, in terms of increased consumer debt and possible mortgage default, but can also

strain individual’s finances long-term. Unemployed workers forgo employer-sponsored

benefits, such as health insurance and retirement plan contributions, and often tap into

their retirement accounts to pay current expenses.

Credit illiteracy is a problem in the United States. The finance and credit skills of

high school students are unsatisfactory (Jump$tart, 2008). Poor credit scores contributed

to the eventual bursting of the housing bubble and the subprime loan crisis (Lewis, 2009).

Credit cards are instruments that allow consumers to borrow money and repay the debt at

a later date (Gross & Souleles, 2002; Soman & Cheema, 2002). As a result, credit cards

can lead to consumer overleveraging or debt buildup. Recently, consumer debt stemming

from credit cards has attracted the attention of legislative bodies, suppliers of credit, and

researchers (Huizinga, McEneney, Van De Weert, & Kaufmann, 2009).

31

It is believed that high levels of consumer debt can be a detriment to the financial

stability of the national economy because of the risks involved. Statman (2009) argued

that the transfer of systemic risk is observed in the recent recession, where overleveraged

consumers have been unable to service their monthly debt obligations, primarily

household mortgages. As a result, these overleveraged consumers end up in default.

Financial Literacy Research From a Consumer Perspective

Among earlier literature reviews, Braunstein and Welch (2002) focused on

financial literacy from the consumer’s perspective. The focus was to understand

consumer habits and create solutions that would help consumers. Most of the early

research on financial literacy merely provided a broad overview of financial literacy

research (Martin, 2007). This survey by Mandell and Klein (2008) discovered evidence

supporting the presence of student motivation as a factor in increasing the financial

literacy of respondents, indicating that motivated adults benefit from targeted financial

education.

On a large scale, biennial surveys of high school seniors carried out by the

Jump$tart Coalition for Personal Financial Literacy consistently found that students who

had taken a high school class in personal finance or money management are no more

financially literate than those who have not (Jump$tart, 2009). Specifically, a financial

literacy index was developed from student responses to basic age-relevant questions

relating to financial knowledge. The four key areas covered in the survey included

income, money management, savings and investing, and spending and credit.

32

Further search of the literature did not conclusively indicate that financial

education was effective as indicated in this study by Hathaway and Khatiwada (2008),

which presented a limited review of the effectiveness of prior financial education

initiatives. Kindell (2009) indicated that rural young adults would miss the mark when it

comes to retirement. However, Knoll (2010) provided an extensive review of retirement

saving in the context of behavioral economics, indicating that most Americans do not

have the necessary savings needed to sustain future living conditions.

Many of the issues related to poverty in rural communities are unique to those

communities, and do not mirror the issues associated with poverty in suburban and urban

areas. The present study addresses some of the issues facing individuals who come of age

in rural and persistently poor communities, which have received limited attention in the

existing rural poverty literature. The present study addresses the impact of these factors

on a variety of key outcomes influencing quality of life: education and cognitive skill,

geographic mobility, individual and household income, unemployment, poverty, and

family formation (marital status and childbearing). In addition, the effects of education

and geographic mobility on later outcomes are addressed in the context of rurality and

persistent poverty, and the effects of cognitive skill on selected outcomes are addressed in

the context of rurality and geographic mobility.

In his thesis, Calamato (2010) examined the relationship between parental

involvement and student level of financial literacy. He examined past studies that

indicated those parents that passed on financial values and beliefs helped shape their

children’s financial behavior and attitudes. Using a convenience sample of 108

33

undergraduate students at a local state university, Calamato (2010) tested whether

students with higher levels of financial literacy had parents who had taught them about

finances. The results of the test show that the student’s level of financial literacy is not

significantly related to parental involvement.

Financial education is commonly assumed to affect knowledge and behavior, yet

its impacts remain relatively untested. In 2010, very low-income families in a subsidized

housing program were randomly assigned to a mandatory financial education program

and tracked for 12 months. This study illustrated the methodological issues that arise in

social experiments with small samples, including attrition and self-report bias. The

findings suggested that information transfers alone could have at least modest effects on

behaviors requiring self-control, including savings (Collins, 2010).

Financial Literacy From a Cultural Perspective: Data and Statistics

According to Dykes and Rupured (2006), “ninety-one of Georgia’s 121 counties

are classified as persistent poverty counties or areas in, which a high proportion of the

residents have lived in a constant state of poverty since at least 1980” (p. 77) and these

levels continue to rise. The Literacy Program also indicated that these counties represent

an estimated 1.2 million Georgians, or 22% of the state’s population. Currently, these

poverty statistics are not symbolic of Georgian’s living in rural communities.

Cochran-Smith and Power (2010) recognized students’ abilities, cultures,

religions, ethnicities, and linguistic backgrounds are wide-ranging and disparities

continue to increase as time passes. When these groups of students are compared,

achievement is found to be disproportionate. For example, data indicated an achievement

34

gap between European American students and African American students on

standardized test scores and college graduation rates (Paige & Witty, 2010). Paige and

Witty (2010) also noted that African American students scored below 75% of European

American students on most standardized tests, and African American students make up a

higher percentage of dropouts compared with European American peers. Other groups of

students also have inequalities in their outcomes.

In this qualitative study by Sprow (2010), a case study design was used to explore

the teaching and learning that takes place in an adult Latino financial literacy education

that was aimed specifically at Latina single mothers. The study focused on the

experiences of the educators and learners within this program that targets these Latina

learners and attempted to understand the influence of sociocultural factors on their

education in financial matters.

Financial Literacy and Program Effectiveness

Angela, Palmer, Koralalage, and Scherpf (2006) noted “research indicated that

many financial education providers still do not have a basic level of evaluation capacity

and are unable to identify program outcomes and design effective evaluation

instruments” (p. 208) that can be used. It is difficult to propose a national evaluation

strategy without a basic understanding of current evaluation capacity and of the critical

gaps in program evaluation. In addition, there has been little discussion about the

challenges facing financial professionals and educators who are on the "front lines"

delivering and evaluating programs (Angela et al., 2006, p. 220). The study addressed

critical gaps in the literature and provided an overview of the current state of financial

35

education and program evaluation. Using qualitative and quantitative data collected from

financial professionals and educators nationwide, this study provided insight into what

can be done to build national evaluation capacity and conduct more effective program

evaluations.

This next study evaluated a 2-day financial education course taught to U.S. Army

soldiers stationed at Ft. Bliss in El Paso, Texas (Bell, Gorin, & Hogarth, 2009). A pretest

and two consecutive midterm observations with comparison groups were administered to

assess the changes in participants’ financial behaviors. The type of evaluation design

used, known as a comprehensive longitudinal design, is one of the strongest quantitative

evaluation designs (Bamberger et al., 2006). Bell et al. (2009) found that the financial

education did affect the financial management behaviors of the soldiers. Among the

observed behavior changes, the self-selected treatment group was more likely to save on

a regular basis, to have a longer planning time horizon, and to have retirement saving

plans than the comparison group. One challenge the researchers faced was attrition. Out

of the 3,324 participants who completed the pretest survey, only 3.7% were matched with

the posttest survey. In conclusion, Psychological Perspectives (2010) also noted some

thought-provoking opinions about adult literacy programs and learning:

Adults are unique group of people to teach and if proper attention is

paid, they can boost up economic development of the country. The

objectives of financial literacy programs can best be achieved by

keeping in mind the psychology of adults (p. 88).

36

Financial Literacy and Instructional Delivery Methods

The utilization of technology to teach students online has progressed in the field

of education. Collins (2007) evaluated the delivery of mortgage default counseling to

subprime borrowers. A posttest only design was used to analyze the effects of additional

hours of counseling and other aspects of counseling delivery to mortgage default clients.

Collins concluded that borrowers are more likely to continue meeting with a counselor

after a face-to-face counseling session compared to a telephone counseling session. In

addition, the probability of a client moving toward foreclosure diminished approximately

3.5% with each additional hour of counseling. Therefore, the mortgage default counseling

was found to be effective regardless of the type of delivery method.

The use of technology in universities and colleges has grown tremendously in the

last 10 years. This is evidenced by the number of online courses that can be found in all

areas of study and at many leading universities and colleges. Many traditional schools are

using technology to enhance classroom instruction using the Intranet, Internet,

PowerPoint, and other multimedia resources (Bekele & Menchaca, 2008; Jason,

Kennedy, & Taylor, 2001; O’Hanlon, 2008). One of the resources that the web has

provided to both classrooms and Internet courses is the availability of open source

materials, which provide educators and students with a wealth of instructional materials

(O'Hanlon, 2008).

Research indicated that there are alternative methods to teach financial literacy

courses to working adults. Having access to computers allows low-income adults to work

around cultural barriers and current work schedules (Voithofer & Winterwood, 2009). In

37

other research, Knight (2009) described the importance of teaching students using a

methodology that considered the student’s background and experiences. For example,

Knight’s new teaching method, called “othering,” required her to leave her comfort zone

(e.g., standard lessons based upon the standard curriculum) and engage students within

their comfort zones. According to Knight, she linked her curriculum more directly to the

students’ realities, “which involved a variety of media and drew on the experiences of all

students” (p. 112) nationally. Knight reconfigured lesson plans and formats to incorporate

student background knowledge and realities as a method to better engage the students in a

more relevant and connected process. Several researchers have evaluated the benefits of

using technology in the classroom to engage students (Eckstein, 2009; Feldon, 2010;

Guzzetti, 2009).

Eckstein (2009) described how students need a learning environment that is

contextual, relevant, and authentic. She described some of the many tools that are

available (e.g., blogs, social bookmarking, podcasts) to keep students engaged,

motivated, and achieving academically. Guzzetti (2009) engaged her students by relating

her classroom material to the events and interests occurring in her students’ lives. She

used popular television shows to build background knowledge and bring real life

experiences and relevance into the classroom. Amirell (2009) followed similar paths in

his research and allowed students to select their own study topics based upon their own

experiences, and involved them in history by using real-world events outside the

classroom. Research has suggested that evaluations of technology in the classroom have

38

provided some functional benefits for the development of academic knowledge in

students.

Feldon (2010) compared traditional lectures with the use of technology to

increase student achievement. He concluded that good lectures and traditional

methodologies promote learning. He also stated, “when games and other digital learning

environments are developed in accordance with principles of effective instruction, they

achieve positive results” (p. 17) overall. Guzzetti (2009) and Feldon both found positive

aspects for the use of technology in the classroom and concluded that the use of

technology promotes relevance and achievement in students. Feldon stated that

technology can provide valuable tools for student achievement but cautioned,

“technologies need to be designed in such a way that they are not confusing or

overwhelming for the students who would use them” (p. 17) in the present day. This

concern is especially relevant for some students in the CRP who have only limited access

to and knowledge of computers and the Internet.

Financial Literacy From a Legislative Perspective

In 2003, recognizing, the importance of teaching adults financial education, the

United States Congress passed Title V of the Fair and Accurate Credit Transaction Act

(FACT Act), which established the Financial Literacy and Education Commission with

the purpose of improving the financial literacy and education of persons in the United

States (U.S. Department of Treasury, 2012).

In 2004, Georgia's State Board of Education approved new Georgia Public School

(GPS) Social Studies Curriculum intended to strengthen economics content across K-8

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grades and includes Personal Finance in all grades, including high school. In the fall of

2006 a required high school Economics course entitled, Let's Make It Personal focused

on five themes that were instituted in public schools: Fundamental, Microeconomics,

Macroeconomics, International, and Personal Finance.

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

(BAPCPA) contained the largest federal mandate for adult financial literacy education in

American history. Section 727(a) (11) required that debtors seeking Chapter 7 protection

complete "an instructional course concerning personal financial management" prior to

receiving their discharge. Consumer debtors seeking protection under Chapter 13 or 11

must also meet this same requirement. This "instructional course concerning personal

financial management" is separate from the pre-filing credit counseling that debtors must

complete (Linfield, 2011, p. 71).

More recently, the President’s Advisory Council on Financial Capability was

established January 29, 2010 by President Barack Obama to assist the American people

in understanding financial matters and making informed financial decisions, and thereby

contribute to financial stability (U.S. Department of the Treasury, 2011, p. 1).

Alternative Forms of Consumer Borrowing

Financial literacy programs can only benefit those adults in debt. Research

indicated that a substantial segment of Americans engage in alternative forms of

borrowing, such as taking out an auto title loan, a “payday” loan, getting an advance on

tax refunds, using pawn shops, or using a rent-to-own store (Applied Research, 2009).

40

All of these borrowing methods usually charge high interest rates; much higher than are

charged by banks or by credit card companies

A refund anticipation loan (RAL) is money borrowed by a taxpayer from a lender

based on the taxpayer’s anticipated income tax refund. RALs are interest-bearing loans

that allow a taxpayer to receive his or her refund from a lender before receiving it from

the IRS. Nationally, 8% of people report receiving a RAL in the past five years (Applied

Research and Consulting, 2010). A payday loan is a small unsecured, short-term loan that

is usually repaid on the borrower’s next payday. Customers are required to supply a few

supporting documents, including proof of a regular income, a personal checking account,

and identification.

Using data from a nationally representative survey, Applied Research and

Consulting (2010) found that 5% of respondents reported using a payday loan in the past

five years. The rent-to-own (RTO) industry (also known as the rental-purchase industry)

consists of retailers that rent furniture, appliances, home electronics, and jewelry. RTO

transactions provide immediate access to such goods for a relatively low weekly (or

biweekly) or monthly payment without credit checks or a down payment. A nationally

representative survey found that 5% of respondents reported using an RTO store in the

past five years (Applied Research and Consulting 2010).

Most importantly, these alternative methods of borrowing are disproportionately,

though not exclusively used by those who are unbanked. Thus, lack of a bank account is

likely to result in the utilization of high-cost borrowing. Many of the users of these

alternative methods also do not have credit cards. Lack of formal ways of borrowing

41

often translates into heavier use of high cost borrowing. The most frequent users of these

methods are disproportionately the young, low-income families, high school education

level, African Americans, and Hispanics (Lusardi et al., 2010).

Summary

The answer to whether financial education is effective remains ambiguous based

on previous research. Key findings in the program evaluation literature suggest that,

overall, financial education produced positive changes in participant’s financial

knowledge, confidence, or behaviors (Bell et al., 2009; Carswell, 2009; Danes &

Haberman, 2007; Garman et al., 1999; Haynes-Bordas et al., 2008; Holland et al., 2008;

Kim, 2007; Lyons et al., 2008; Wiener et al., 2005). However, several limitations remain.

For instance, it may be less likely that negative program evaluation results would be

widely published and distributed. In addition, methodological problems make it difficult

to accurately estimate the magnitude of program impacts of many of the studies

reviewed.

Similar to previous findings (Collins & O‘Rourke, 2010), the majority of the

studies used a retrospective pretest (Carswell, 2009; Danes & Haberman, 2007), posttest

only (Collins, 2007; Garman et al., 1999; Haynes-Bordas et al., 2008; Peng et al., 2007),

or pretest-then-posttest design (Holland et al., 2008; Kim, 2007; Lyons et al., 2008).

According to Bamberger et al. (2006), these are considered the weakest quantitative

research designs because of their inability to account for external factors. Attrition was

another limitation experienced by evaluators as well as the primary use of self-report

data. Attrition can dramatically affect the statistical outcomes of a study, and self-reports

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can result in response bias, which can positively bias the results. Another explanation of

why evidence in favor of financial education remains unclear is due to the lack of

effective program evaluation, as discussed previously (Hathaway & Khatiwada, 2008).

However, even though it may be premature to address the larger question of the

effectiveness of financial education programs due to these limitations, the literature did

suggest that financial education is essential and that many existing approaches appear to

be effective (Martin, 2007).

Implications

If minority families living in rural communities continue to mismanage their

money, credit, and debt, future generations could reap the consequences. Evaluations of

Adult Literacy Programs in Psychological Perspectives (2010) noted, “Adults are unique

group of people to teach and if proper attention is paid, they can boost up economic

development of the country. The objectives of financial literacy programs can best be

achieved by keeping in mind the psychology of adults” when it relates to learning

(Evaluations of Adult Literacy Programs in Psychological Perspectives, 2010, p. 88).

Table 2 represented the recent inmate populations of prisons located in three rural

Georgia counties. The data extracted was a short snapshot of the number of inmates

incarcerated and the fact that their offenses are money-related offenses. Some of these

offenses resulted in the commission of robberies, drug-related offenses, check forgeries,

frauds, and murder. The data only provided statistical data in relationship to the type of

crime committed and the total number of inmates in prison due the committing that

particular money-related crime. The Department of Corrections inmate population data

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does not indicate that the numbers of inmates are decreasing. As a society, we must

invest in the future of financial literacy education and empowering people economically.

Data indicated that the Department of Corrections offered inmate rehabilitation by

providing the basic life skills for these offenders. However, the life skills encompassed

reading, writing, and math in efforts to obtain the General Education Diploma (GED). If

the problem of illiteracy as well as financial literacy is not addressed, most would face

the increased probability of becoming repeat offenders and returning to the Department

of Corrections.

Table 2 Georgia Department of Corrections Current Inmate Population Data Race Offender

Count % of Total

Active Population (54,236) Black 12,566 23.17% White 4,615 8.51% Asian 49 0.09% Other 20 0.04% Unknown 1,003 1.85% Total 18,253 33.65% Note: Data derived from the Georgia Department of Corrections website http://www.dcor.state.ga.us/GDC/OffenderStatistics/jsp/OffStatsSelect.jsp. Reprinted with permission.

Summary

The war on poverty has been ongoing since the 1900s. President Johnson declared

his "war on poverty" and greatly expanded the government services for the poor enacted

during the Great Depression (Hill, Hirschman, & Bauman 1996). The literature review

stated that financial literacy has been a subject of discussion for many years. In the

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United States, literacy efforts on behalf of rural citizens most frequently addressed the

lack of social equity. Ferrell and Howely (19991) suggested,

Rural residents often do not value formal education. It is believed that these

prevailing attitudes originated at a time when the local economy required that

even relatively young children be available to work on farms, fisheries, and in the

mines (p. 369-370).

There was also the perception that the curriculum offered in schools was not a means of

attaining more desirable forms of work or a way to improve work skills during this time.

Even today, rural residents overlook the value of seeking higher education.

Programs that were enlarged or created during this period include revenue sources

including food stamps, and health insurance from Medicaid. Unfortunately, these services

were eroded or discontinued during the ensuing decades due to a variety of agendas from

both political parties, resulting in less coverage, lower benefit levels, and greater and

more diverse societal poverty (Hill & Macan, 1996). As a nation, we must look at our

current fundamental education programs to ensure they are reaching those populations in

need of them most. People only wanted to participate in events they felt meet their

current needs. In other words, the financial program must convince the adult learner there

is value in participating. We must also look at how motivation and education influence

rural minority participation levels.

According to Wlodkowski (2008), “Although there have been research studies of

adult motivation to participate in adult education program, no research studies thoroughly

examine the relationship between adult motivation and learning” thus, indicating there

45

was a need for further research (p. 5). Financial education is a key component in the

economic development and success of this country. If the programs do not meet the needs

of targeted audiences this nation could suffer in the future.

Section 1 discussed background information about the problem of financial

literacy among adults living in rural communities. The adults who are targeted for the

program are underutilizing existing financial education programs and the study focuses

on identifying the reasons of non-utilization, assessing the needs of these adult learners,

and implementing an action plan to enhance these programs. Section 1 also discussed

potential implications when rural adults do not receive the necessary financial education

needed to survive in today’s economy. Section 2 reviewed the methodological design for

the study. Section 3 described the project created with the intent to increase the use of

effective financial literacy instructional practices. Finally, section 4 summarized the study

and included final reflections and conclusions.

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Section 2: The Methodology

Research Design and Approach

Lodico et al. (2010) described program evaluation as the “field of education filled

with programs designed to improve both learning and teaching” in adult learners (p. 41).

Program evaluation is designed to make decisions about such programs. Although

program evaluation uses quantitative and qualitative methods, its overall purpose is

different from most other types of research. Whereas quantitative and qualitative

researchers study programs, findings from such studies typically are slow to change or

improve the programs themselves. In program evaluation, however, findings are often

used for ongoing or short-term decision-making purposes, and programs can be changed

or “improved” based on the results of a single evaluation (Lodico et al., 2010, p. 41). The

intent of this program evaluation is to evaluate the financial literacy program offered by

Financial Empowerment and assess whether participants are gaining the necessary

financial literacy skills that result in future behavior changes for the rural adults who

participate in the program. For this program evaluation, the TTM theory suggests ways

in, which adults make meaning of their lives. It looks at “deep learning,” not only content

or process learning, as critical as those both are for many kinds of learning, and the

program examines how adults move from a limited knowledge of knowing to what they

know without questioning. This knowledge usually comes from their culture, families,

organizations, and society (Merriam et al., 2007).

Financial Empowerment is a nonprofit corporation offering minority adults living

in rural Tattnall County, Georgia, financial solutions to their current economic situation.

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This program evaluation focused on their perceptions of the existing financial education

program offered by Financial Empowerment. The study of adult perception of education

can play an important role in adult literacy and financial education because it allows the

adult to be included in the outcome of developing an effective financial program. Adult

literacy skills are essential to the success of financial education program completion.

Financial literacy programs must also assess the needs of minority adults living in these

rural communities in relationship to their current reading and writing capabilities.

Evaluation Design and Description

This program evaluation used a quantitative descriptive research design,

consisting of one distinct phase of data collection (Creswell, 2002, 2003; Creswell et al.,

2003). A one-sample chi-square statistical test was also used to test whether a single

categorical variable followed a hypothesized population distribution among each of the

three research questions. The first method used a Money Smart survey/questionnaire to

collect demographic information and basic program feedback. The survey helped analyze

whether the program participants gained skills necessary to change their current financial

situations. I used the TTM theory because it is a theory that explains changing behavior

among adult learners. The concept focuses on changing beliefs or behaviors in relation to

dramatic life events. It is learning that goes beyond just getting hold of content

knowledge, learning equations, or memorizing mathematical formulas. It is a valuable

process for adults to learn to think for themselves, through redefining what they have to

come to know through life experiences (Merriam et al., 200 7). In this case, participating

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in the financial literacy program should assist the students in gaining new financial skills,

thus changing overall financial behaviors.

This conceptual framework has been utilized to study religious or spiritual

transformation of adults later in life. This acceptance sometimes required a person to re-

evaluate what they accept as true. In the financial areas, adults had to evaluate what they

had been taught about money and how this information shaped their current behaviors in

relationship to money. According to Mezirow (1994), “The adult would go through three

steps comprised of receptiveness, recognition, and grieving” during this transformation

(p. 222). Mezirow considered using these steps or meaning structures to understand the

situations that adult learners would go through in life. He stated, “By understanding,

these meaning structures students and teachers would be able to understand what kind of

concepts and opportunities need to be worked on in order to make education successful”

in the lives of these adults (Mezirow, 1994, p. 224).

Justification of Design

A program evaluation design allowed the use of both qualitative and quantitative

forms. According to Cresswell and Plano Clark (2007), “The basic assumption for using

both quantitative and qualitative methods, in combination, provides a better

understanding of the research problem and questions than with method by itself” in

evaluations (p. 552). However, this program evaluation did not combine both quantitative

and qualitative data in the study of the Financial Empowerment financial course. For this

study, it was to better understand the research problem by using a quantitative approach

only to understand wide-ranging trends and detailed views of the program participants in

49

an effort to advocate change for the rural adults taking the financial literacy class.

Creswell (2008) indicated quantitative data and results provide a general picture of the

research problem (e.g., what internal and external factors contribute to and/or impeded

students’ persistence in the financial literacy program) whereas the quantitative data and

its analysis refine and explain those statistical results by exploring participants’ views in

more depth (Creswell & Plano Clark, 2007).

Description of the Type of Evaluation Conducted

Because this program evaluation is focused on the student outcomes after

participating in the financial course, a descriptive survey instrument was used to gain

insight from program participants. The stakeholders requesting this program evaluation

are interested in providing a financial program to rural adults to improve these adults

economic outcomes. They are interested in rural adults using the financial program and

how the program can motivate these adults to participate in and change their attitudes

toward personal finances (Spaulding, 2008, p. 12). An outcomes-based program

evaluation asks whether an organization is conducting the appropriate program activities

needed to bring about the verified outcomes for the program participants. Outcomes are

benefits that minority adults gain from participation in the financial literacy program.

Outcomes are usually in terms of enhanced learning, knowledge, perceptions/attitudes,

skills, and or conditions. The United Way of America’s website (2013) provides an

excellent overview of outcomes-based evaluation, including introduction to outcomes

measurement, a program outcome model, why to measure outcomes, use of program

outcome findings by agencies, eight steps to success for measuring outcomes, examples

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of outcomes and outcome indicators for various programs, and the resources needed for

measuring outcomes (United Way, 2013).

An outcome-based survey program evaluation is one of many evaluation methods

that can identify whether a program has been successful. The outcome-survey-based

program evaluation also focuses on the results of services that were intended from the

outset of the program. It is different from other forms of evaluation that evaluate a

program after it is over and attempts to assess what happened during the course. These

evaluations assist with planning a project and helped, in a practical way, to identify

potential program outcomes. Summative or outcome-based evaluation occurs at the end

of the course or program. Program participants might not have much time to give

thorough evaluations after the program ends. According to Suskie (2009), “The key

drawback of outcomes program assessments is they occur at the end of the course or

program” (p. 23) and students may not receive any feedback other than possibly an

overall grade or certificate of completion.

Outcome-based evaluation is not formal research. However, the user of this

process in program evaluation can make the evaluation formal using reliable and valid

data instruments to collect outcomes information. Outcome-based evaluation should be

considered a management tool comparable to setting budgets and holding the

organization to a formal accounting system to see whether budgetary goals are being met.

Justification for Using the Logic Model in Program Evaluation

The TTM concept best explains why adults learn because it is a theory of changing

what we believe in relation to dramatic life events. It is learning that goes beyond just

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getting hold of content knowledge, learning equations, or memorizing mathematical

formulas. It is a valuable process for adults to learn to think for themselves through re-

defining what we have to come to know through life experiences (Merriam et al., 2007).

The logic model is a good tool for this program evaluation because it provides a

detailed picture as to how the researcher expects to achieve the desired program

outcomes. The logic model also looks at what mechanisms are required for adults to

identify, assess, and evaluate other sources of information (Mertins, 2008). These sources

may look at how adults can identify, assess and evaluate new information, and in some

cases, reframe their world-view through the integration of new knowledge or information

into their belief system (Mertins, 2008). A person born into poverty may accept this as

factual, until learn that they do not have to remain poor.

Logic Model in Program Evaluation

The logic model served as an evaluation framework and make it possible to

identify appropriate evaluation questions and relevant data needed for this study. Logic

models also helped monitor progress by providing a plan against, which you can keep

track of changes. An effective logic model helped program planners to be more deliberate

about what they are doing and identifies assumptions that may need validating. It is

important to understand the potential and limits of a financial literacy program. Finally,

the logic model helps promote communications needed to market your financial literacy

program to the intended market or audience. Figure 3 is a sample outcome logic model

used by Financial Empowerment for its existing financial literacy program:

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Figure 3. Sample logic model: Developing a logic model: Teaching and Training guide 2/29/2008 Handout 4 © 2008 by the Board of Regents of the University of Wisconsin System. All rights reserved.

Outcome-based program evaluation is one of many evaluation methods that can

identify whether a program has been successful. Because outcome-based program

evaluation focuses on the results of services that were intended from the outset of the

program. It is different from other forms of evaluation that evaluate a program after it is

over. This type of evaluation attempts to assess “what happened” in the execution of the

financial literacy program.

Outcomes and Performance Measures

The overall objective is to evaluate a personal financial education program

specifically targeted to this segment of the population and address gaps related to

financial literacy as identified in our previous assessments. The performance measures

are listed below were generated from the specified Financial Empowerment program

outcomes:

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1. To assess the financial literacy of rural Georgians age 17 and older living in

rural counties.

2. To determine their current level of consumer debt, including credit card,

installment loan, etc. as well as their attitudes and values regarding debt.

3. To understand consequences of debt pressures for individual and family well-

being.

4. To utilize findings to develop financial education curriculum that address

gaps in financial literacy as well as specific risks related to increased debt.

5. To disseminate the project outcomes to policy/program makers statewide and

nationally in an effort to promote financial resilience among older rural

adults.

Overall Evaluation Goals

The loss of jobs, loved ones, and physical injuries can be life-changing events that

transforms how we view the world. The emphasis is providing rural minorities’ financial

education that allows them to make better-informed decisions. The goal of the financial

literacy program is to motivate these adults to make a decision to accept the loss of

income or look at learning new skills so that he/she can move past the loss. The overall

objective is to provide a personal financial literacy program specifically targeted to this

segment of the population that addresses gaps related to financial literacy involvement.

Participants

During this study, I surveyed past financial literacy attendees from the rural

community of Tattnall County, Georgia. There were a total of 50 attendees that

54

completed the class. This population consisted of rural adults living in the Southeastern

region of Tattnall County Georgia in the United States. The program evaluation used

purposeful sampling to identify past financial literacy program participants. According to

Creswell (2008), the use of standardized sampling helps identify individuals or sites

based on membership in a subgroup that has defining characteristics. This study focused

on attendees living in a rural community who have attended the financial literacy class

offered by Financial Empowerment.

The Financial Empowerment financial literacy program is relatively new to the

Glennville, Georgia community. The financial literacy program was launched in 2010

and only has data for the previous three years. During the past three years, predicted

program participation goals were not reached. As a result, the Mt. Zion Outreach and

Financial Empowerment initiated this program evaluation with hopes of increasing

participation levels. Due to the small number of participants, the program evaluation had

to work with those documented past program participants. The goal was to obtain data

from all 50 program participants, with the anticipation of having at minimum 25 program

participants actually responding (this would represent 50% of the total program

participants) to this study. The participants of the study must live in a rural community

and have attended a financial literacy course within the past two years. The

characteristics of these participants was relevant to this study due to the roles and

responsibilities that were asked of them. Each of these roles played a vital part in decision

making for the Financial Empowerment organization.

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Criteria for Selecting Participants

Comparable to other financial education programs, it is important to acknowledge

that individuals who chose to attend the financial literacy course were likely to already be

motivated to make positive financial behavior changes. It may be assumed that

participants desired to learn more about or to evaluate their plan for retirement more than

employees who chose not to participate; therefore, participants were likely to be at the

preparation, action, or maintenance stages of behavior change in the TTM. The

participants involved in this project study derived from mixed socioeconomic statuses,

races, and genders. Formerly, there were 50 participants with this background; however,

there were no guarantees that I would be able to reach all 50 participants for this study.

The participants also varied in their abilities to make financial decisions. They consisted

of participants between the ages of 18 and 55 years. The financial literacy class was

located in a rural community with 70% of the student body coming from lower income

families.

Justification for the Number of Participants

According to Suskie (2009), “the sample should be large enough and

representative enough that you can use the results with confidence to make decisions

about a course or program” (p. 47) during the assessment. I wanted to ensure that I had a

diversified representation of the entire organization to include current and former

participants that participated in the program. There was an attempt to obtain data from at

least 44 participants for this study. There were 50 participants who completed the

Financial Empowerment financial course. Keeping the sample size to 25-50 allowed an

56

error margin of 15% in the compiling of data (Suskie, 2009, p. 48). This rationale was

based upon the fact that the financial literacy program is a small program and there was

an assumption that a percentage of the class attendees would not participate in the survey.

The sample size was linked to the research site. In this study, the research site is a

local church in Glennville, Georgia that offers community based financial education

training. The sample size is appropriate for the number of participants historically

attending the financial literacy program training offered by Financial Empowerment.

Procedures for Gaining Access to Participants

Financial Empowerment was commissioned by the Mt. Zion Church, in

Glennville, GA to conduct on-site financial literacy training for church members. Access

to course participants was granted by the Pastor of Mt. Zion, identified as a primary

stakeholder. Financial Empowerment introduced the course to the Pastor and church

board members. A course sign-up sheet was later distributed among church members to

gather participant information for class registration. This basic information was utilized

to determine who would receive a cover letter describing the survey and the intent. The

Pastor and church board members also commissioned the study of the current financial

literacy class due to low participation rates.

The Pastor and each board member were given an evaluation packet that included

a cover sheet, a participant identification-confidential form, and a pre-addressed

envelope. The intent was to ask permission to attend the church board meeting and

present the evaluation packet at that time. The majority of the participants are church

members living in rural Georgia. A study consent form was provided to the past program

57

participants with a statement informing them that their participation in the survey is

voluntary. The survey would collect data that would be used to assess student perceptions

about the personal financial literacy program offered by Financial Empowerment since it

was implemented in 2010. The participants would be asked to provide some personal

information about their demographics, update participant records, and to ensure that a

correct sample of the entire organization was represented. All efforts were made to ensure

student and faculty confidentiality.

The method of sampling was purposeful, because the sample consisted of those

rural adults that have completed the financial literacy course offered by Financial

Empowerment. Using a purposeful sampling process allowed data to be collected in an

environment familiar to the participants. According to Creswell (2008), “in purposeful

sampling, researchers intentionally selected individuals and sites to understand the central

phenomenon” (p. 214) that occurred. The population intended for this study was minority

adults between the ages of 18 and 55 years of age living in rural Tattnall County,

Georgia. This critical sampling of rural minority adults assisted this study because these

participants attended a community-based financial education programs and could best

help the researcher understand the overall effectiveness of the financial program.

Methods for Establishing a Research-Participant Working Relationship

Objectivity in research has an important impact on the outcome of conducting and

presenting research. Lodico, Spaulding, and Voegtle (2010) suggested that the

investigator must play a “detached role where there is little opportunity for interaction

with the participant under study” (p. 7) to avoid bias. Since the investigator’s beliefs and

58

personal biases can influence research, I would not want that objectivity to manipulate

the outcome of the research. Ultimately, research should be based on the facts and not

assumptions. Researchers want their research to be based on facts that can be

substantiated. If researchers presented research that was prejudice and full of

preconceived notions, then the research could be discredited as well as the researcher.

(Lodico et al., 2010). As scholar-practitioners, objectivity is difficult to achieve because

of the human factor. Regardless of how hard we try to avoid bias, it could still spill over

into the research.

There is no single research method or approach that can be classified as more

“objective” (Lodico et al., 2010, p. 41) in program evaluation. As humans, there can be a

great deal of passion about the topics we are researching. This passion could lead to our

emotions playing a role in the research. The emotions lead to forming opinions and

eventually the research could become slanted. Knowledge-oriented approaches and

action-oriented approaches have two different roles in research. The knowledge-oriented

approach encourages the researcher to strive towards objectivity or detachment, while the

action-oriented approach encourages active participation. Basic research attempts to

modify theories, while applied research looks at whether or not the theory is useful. Both

approaches have room for the researcher to interject his/her biases or opinions (Lodico et.

al., 2010).

Confidentiality is of the utmost importance in collecting, analyzing, and reporting

data from the surveys. Each study participant was assigned a participation code that was

used to collect, store, and report data in reference to this program evaluation. As

59

mentioned earlier, I first sent out a cover letters describing the survey and interview

intent. The participants were aware that the survey and their participation in the survey

was voluntary based on signing the consent form. Past program participants had the

chance to provide their input about the program and its overall effectiveness.

The participants were asked to give some personal information about their

demographics to ensure that a correct sample of the entire organization was represented.

All efforts were made to ensure student and faculty confidentiality by using assigned 6-

digit participant codes. After compiling the results, the data was evaluated, recorded, and

shared with Walden University, the research site Pastor, Board of Directors, and or

designated representatives.

Measures for Ethical Protection of Participants

The primary concerns for this study was ensuring I had informed consent from the

participants. Confidentiality is of the utmost importance in collecting, analyzing, and

reporting data from the survey. Ethical issues were addressed at each phase in the study.

In compliance with the regulations of the Institutional Review Board (IRB), the

permission for conducting the research must be obtained (IRB, 2012). The Request for

Review Form was filed, providing information about the principal investigator, the

project title, and type, source of funding, type of review requested, number, and type of

subjects. Application for research permission contained the description of the project and

its significance, methods and procedures, participants, and research status.

A pre-established informed consent form developed by Walden University was

utilized for this study (See Appendix B). The form stated that the participants are

60

guaranteed certain rights, agreed to be involved in the study, and acknowledged that their

rights were protected. The confidentiality of participants was protected by numerically

coding each returned questionnaire and keeping the responses confidential. All study

data, including the survey electronic files, and transcripts, were kept in locked metal file

cabinets in the researcher’s office and are to be destroyed after a reasonable period of

time. Participants were informed that summary data was disseminated to the professional

community, but in no way would this information be traced back to them individually.

As mentioned earlier, I sent out cover letters describing the survey and the intent.

The participants knew that the survey was voluntary and would be utilized to assess

current student and faculty perceptions about the financial literacy program they had

participated in. A sample of potential survey questions can be found in Appendix B, and

C. The participants were asked to provide some personal information about their

demographics (See Appendix B) to ensure that a correct sample of the entire organization

is represented. All efforts were made to ensure participant confidentiality. The goal for

the data collection was to use a pre-established financial literacy survey (See Appendix

B) that has already been drafted and tested for validity. After compiling the results, the

data were evaluated, recorded and shared with research site director or designated

representatives.

The survey instrument that was used was an existing three-part financial

education survey developed by the Federal Deposit Insurance Corporation (FDIC) to

evaluate its Money Smart Program (See Appendix B). To further test the reliability and

validity of the survey, a pilot study survey (See Appendix B) was administered to five

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financial readiness counselors currently employed with the Department of the Army.

These financial specialists were former colleagues and have substantive and diverse

financial backgrounds. The Association of Financial Counseling and Planning Education

(AFCPE) nationally accredited all five counselors.

Data Collection

Data Collection Choices and Justification

There would be 25 to 50 former students taking the Money Smart survey. Data

were collected once Walden University and the evaluation site received IRB approval.

Walden University’s approval number for this study is 11-14-14- 0164758. There was

only one primary data collection method used for this study. The method consisted of

using a survey instrument issued to 25 to 50 past program participants. This instrument

was a pre-established Money Smart survey (See Appendix B). The survey satisfied the

qualitative and qualitative data collection when conducting a program evaluation.

According to Lodico et al. (2010), “A survey or questionnaire is the main tool or

instrument used to collect data in a descriptive-survey research study” for that reason, I

decided to use a descriptive-survey to determine participant perceptions of the financial

literacy class (Lodico et al., 2010, p. 159). This design allowed maximum participation

from the participants, thus allowing them the opportunity to answer questions without

reprisal. A cover letter sent out to participants informed them of the important aspects of

the survey (See Appendix D). The cover letter consisted of a statement of purpose for the

survey and a confidentiality statement. I also included details on how the information

would be collected and reported. These participants were notified that their participation

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is voluntary. A unique and random six character, alphanumeric ID was assigned to each

survey only to ensure the surveys could be paired together if they became separated when

returned.

As stated in the previous section, the goal for the data collection was to use an

existing survey (See Appendix B), designed by the FDIC to evaluate its Money Smart

program. This survey has already been drafted and tested for validity. It was anticipated

that some issues may stream from the type of survey questions and how they are phrased.

This design allowed maximum participation of the students and faculty within the

organization, allowing them the opportunity to answer questions without reprisal. Some

of the sample survey questions were as follows:

1. Please describe your first memory about money (i.e., your first allowance,

wanting to buy something you wanted, your first gift of money for a special

occasion).

2. Please explain your experience at home as it relates to talking about money.

3. Please explain whether or not you feel learning about financial concepts has

changed your mind about the importance of improving your current financial

situation.

4. Please provide any additional information you would like to share about your

experience while participating in the financial literacy program offered by

Financial Empowerment.

5. Did you feel that this financial course has better prepared you for understanding

how to spend the money you earn?

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6. Please share any additional thoughts you had about your experiences during the

program.

7. Did you feel that you acquired/gained new financial literacy skills that helped you

with managing money after participating in this course?

Specific Plan for the Survey

The data collection was be in the form of survey questions (See Appendix B). The

rationale for using descriptive quantitative data is based on the premise that a useful

survey of participant experience could best be developed only after a preliminary

assessment of participant usage was conducted. An existing community-based financial

education program is the basis for this study. The goal is to ensure the program is

effective and meets the learning needs of rural adults. Using a concurrent embedded

strategy allowed broader perspectives within the study. The TTM theory also looks at

what mechanisms are required for adults to identify, assess, and evaluate other sources of

information. Often sources that may look at how adults can identify, assess, and evaluate

new information, and in some cases, reframe their world-view through the integration of

new knowledge or information into their belief system. A person born into poverty may

accept this as factual until learned they do not have to remain poor.

Data Collection and Recording

Given the sensitive nature of the data being collected, it was necessary to

construct a set of detailed data collection procedures to ensure the anonymity of the

financial literacy program participants. For this study, I utilized a pre-existing survey

instrument (See Appendix B) and end-of-course program evaluations received from past

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program participants. The instrument was developed to evaluate the FDIC’s Money

Smart Program in 2003 for evaluating the program’s effectiveness (Lyons & Scherpf,

2003). For this study, the primary means of collecting data was the use of a “paper and

pencil” survey/questionnaire (See Appendix B) mailed to individual participants. The

purpose for using survey was to generate facts, opinions, and insight from the financial

literacy program participants. The ultimate goal was to generate first-hand experience

from the program participants and to get their perceptions of the program.

The use of surveys as a data collection method began with the assumption that the

participants’ perspectives were meaningful, knowable, and could be made explicit, and

that their perspectives affected the success of the project. Two types of surveys used in

evaluation research are structured surveys, in which a carefully worded questionnaire is

administered, and in-depth surveys, in which the interviewer does not follow a rigid form.

Reporting the data depended upon the audience receiving the report. Since this report was

academic in nature, it would be reported using a combined reporting method using both

statistical and narrative information.

The System for Tracking Data and Emerging Understandings

Prior to the data collection, the survey would be given a value based on the

author’s instructions. The levels of rating were set prior to the start of data collection.

Each participant was assigned a numeric code. This code allowed this researcher to match

surveys returned by each participant. During the cataloging process, the surveys sheets

were processed and the information obtained from each survey was recorded using

Microsoft Excel as the primary tool for data analysis. After the data was processed, the

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data was then placed in an Excel spreadsheet and saved for later review by this

researcher. The data collected during this study would be retained for five years after the

study is completed. The data is stored on an external hard drive; a backup copy is on file

and saved as well. After the retention timeframe is complete, the data would be deleted

electronically and destroyed in order to protect the privacy of the participants involved.

The Role of the Researcher

As the current facilitator for the Financial Empowerment, I assumed a dual role as

facilitator and researcher for this study. The researcher’s involvement with data collection

in this study was limited to issuing a survey, collecting and reporting data, and reporting

these findings to stakeholders. The data analysis was performed using rigorous statistical

analysis techniques and the results were interpreted based on the established values for

the statistical significance of the functions. The researcher assumed a more participatory

role due to the “sustained and extensive experience with participants” (Creswell, 2009, p.

9) and personal involvement with the research topic. The role of this researcher in the

data collection process was to explain the process to each of the participants as well as to

monitor the participants. This researcher also ensured that the surveys were gathered in a

proper manner after the participants have finished completing them.

Data Analysis and Findings

Criteria for Selecting Participants

For this study, 50 former financial literacy attendees from the rural community of

Tattnall County, Georgia were selected to participate in this project by filling out a 3-part

Money Smart Survey. There were a total of 50 surveys mailed out, and participants were

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given the opportunity to fill out the survey and return it in the secure envelope provided

in the packet. The population consisted of rural adults living in the Southeastern region of

Tattnall County Georgia in the United States. These participants were purposefully

identified according to their past participation in the financial literacy program offered.

The participants involved in this project study were from mixed socioeconomic status,

race, age category, education levels, and gender. The participants also varied in their

abilities to make financial decisions. There were 50 participants with this background;

however, there are were no guarantees that all 50 participants would participate in this

study. After collecting the final surveys there were a total of 36 participants that

responded. The financial literacy class was located in a rural community with 70% of the

student body coming from lower income families, and the participants were linked to the

research site. For this project, the research site was a local church in Glennville, Georgia

that offered community based financial education and training.

Procedures for Gaining Access to Participants

Financial Empowerment was commissioned by the Mt. Zion Outreach Ministry,

in Glennville, GA to conduct on-site financial literacy training for church members.

Access to course participants was be granted by the Pastor of Mt. Zion, identified as a

primary stakeholder. A course sign-up sheet was used to gather participate information

for the purpose of mailing out the Money Smart survey. Contact information was

accessed to determine who received a cover letter describing the survey and the intent.

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Specific Plan for the Survey

There were 50 people selected to take the Money Smart survey for this project.

Data were not collected until I received IRB approval. The data collection method for this

project was narrowed down to just a survey for collection of data. The method consisted

of using a pre-established survey instrument issued developed by the Federal Deposit

Insurance Corporation (FDIC) called the Money Smart survey (See Appendix B). This

survey more than satisfied the requirement during this project. A cover letter was mailed

to all of the participants with full disclosure of the survey and required participation

requirements. Participants were informed of how their information would be collected

and reported. Due to the sensitivity of the survey, participants were issued a unique and

random six character alphanumeric ID for the purpose of ensuring the surveys were

paired together should they become separated when returned.

How and When Data Were Analyzed

The purpose of the program evaluation was to evaluate the Financial

Empowerment literacy program and measured participant outcomes based upon program

goals. Data were collected and analyzed separately for this program evaluation. The goal

was to combine the different categories of the survey using a process called triangulation.

This process of triangulation required me to list the findings from each component of the

project on the same page and consider where findings from each method agreed

(convergenced), offered complementary information on the same issue

(complementarity), or appeared to contradict each other (discrepancy or dissonance) in

the data.

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I then utilized the statistical analysis features in Microsoft Excel to compile and

then analyzed the Money Smart survey responses. The majority of the survey questions

focused on what the participants have learned from the program and if there were

behavior changes among program participants. The survey responses were measured

using frequency distribution. The scores were compiled and listed in a frequency table to

determine the common responses between participants. The table had two columns

labeled with the number of participants and the frequency of their responses to the survey

questions. The responses were further indicated by percentages. The use of figures and

tables helped present and clarify the results of descriptive and inferential statistics used to

analyze the data. This information was critical to measuring the success of a financial

literacy program that was implemented.

The data analyses began with descriptive statistics that identified the

characteristics of the participants. The frequencies and distributions of demographic

characteristics were summarized, as well as the percentages, means, and medians of the

independent and dependent variables. The use of one-sample chi-square analysis helped

to determine if the research questions were distributed evenly. The data were organized

according to research questions and themes identified from the survey. There were no

themes that stood out more than others. The data was relatively simple and focused on

behavior and perceptions to the financial literacy program. After the development of

potential themes, the findings were written in an evaluation report that incorporated the

use of tables and figures. The stakeholders will be presented with a complete overview of

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the project to include survey results after final approval of the project by Walden

University.

Data Analysis Results

The project study found that age and work experience were positively related to

financial literacy. Moreover, income levels positively correlated with survey respondent’s

satisfaction with the financial literacy program. The findings also indicated that survey

respondents with high level of education displayed higher financial literacy levels than

non-educated respondents. Survey results varied with age, education levels, marriage

status, gender, employment status, and income levels. Thus, the results were not strong

enough to definitely identify any potential changes needed to improve the financial

literacy program.

Program participants were asked to complete three parts of the Money Smart

survey (See Appendix B). There were 50 mailed surveys; 36 participants responded,

while 14 did not respond. Of the 36 returned surveys, 30 completed all sections of the

survey, while six left some questions blank. Most of the questions left blank pertained to

those questions about annual income and how many family members resided in the home.

The remaining survey findings were presented according to respondent demographic

characteristics. The next tables summarized the data findings of the Money Smart survey

mailed to participants.

Overall, there was a satisfactory return of the mailed surveys. After receiving the

returned surveys, there was a clear indication that some of the participants did not

complete the entire survey. After consolidating the results, there was not a clear

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indication of why some participants completed the survey while others did not. The only

indicator would be the fact that the survey was mailed out prior to a major holiday and

some participants either forgot or just did not have time to complete the survey. Data

were compiled into tables for a more detailed analysis beginning with Table 3, which

described the demographics. Tables 4, 5, and 6 respectively presented the responses from

Parts I, II, and III of the Money Smart survey dealing with participant savings,

borrowing, and program perceptions respectively.

Table 3

Part I: Demographics Surveys completed 36 72%

Surveys not completed 6 17%

Marital status Married 15 42%

Single 11 31% Divorced 7 19% Widowed 3 8% Gender

Male 16 44% Female 20 56% Education level

No high school 4 11% High school 28 78% Some college 9 25% College graduate 5 14% Graduate school 0 0% Note: Data derived from the Money Smart survey. See Appendix B.

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Part I: Demographics Employment status

Full-time 20 56%

Part-time 9 25%

Unemployed 7 19%

Income level

Under $4,999 3 8%

$5,000 to $9,999 10 28%

$10,000 to $19,999 12 33%

$20,000 to $29,999 4 11%

Over $30,000 7 19%

Note: Data derived from the Money Smart survey. See Appendix B. (N = 36)

As can be seen in Table 3, only 72% of the respondents returned completed

surveys, whereas only 17% did not return completed surveys. The surveys were mailed

out and the established return date coincided with the Thanksgiving holidays. It was

identified that the original deadline might have an impact on response rates. Because of

this fact, data collection did not end until after the holidays, thus giving participants more

time to return their surveys.

Table 3 also highlighted the data compiled based on surveys returned and whether

they were completed or not completed. The data were presented according to respondent

age category where (N = 36) represents total surveys returned and completed, while (N =

50) represents the total surveys mailed out to participants. Table 3 also noted that of the

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total surveys returned only 44% of the respondents were male and only 56% of the

respondents were female. The survey responses were broken down according to age

categories. Based on the surveys returned the age categories 25 to 34 and 35 to 44

accounted for 34% of total respondents separately.

Marital status identified that only 42% of the respondents were married, 31%

were single, 19% responded as being divorces, and only 8% of the respondents were

widowed. The survey responses were further broken down according to age categories.

Based on the surveys returned the age categories 25 to 34 accounted for 31% or the

majority of completed surveys returned. Education levels indicated that only 11% of the

respondents did not graduate high school, 78% graduated high school, 25% had some

college, 14% were college graduates, and 0% had a graduate degree. The survey

responses were further broken down according to age categories. Based on the surveys

returned the age category 25 to 34 accounted for 39% or the majority of completed

surveys returned.

Employment status indicated that 56% of the respondents worked full-time, 25%

worked part-time, and 19% did not currently work. The survey responses were further

broken down according to age categories. Based on the surveys returned the age category

25 to 34 accounted for 25% or the majority of completed surveys returned, with the 35 to

44 age category following with 14% of completed surveys returned. Income levels were

indicated, only 19% of the respondents earned approximately $30,000, 28% earned less

than $10,000, 33% earned less than $20,000, and 11% earned less than $30,000. The

survey responses were further broken down according to age categories. Based on the

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surveys returned the age category 25 to 34 accounted for 28% or the majority of

completed surveys returned earning the most.

The next set of data summarized respondent answers to questions asked in Part 1

and Part 2 of the Money Smart Survey. These sections assessed each respondent’s

financial profile, financial behavior, program view, and potential behavior outcomes as a

result of completing the program. Each question was outlined with a corresponding table

of results. The data were consolidated and reported according to total responses presented

in the returned surveys. The results were also consolidated according to age category;

however, written descriptions were utilized to further capture detailed data according to

age categories.

As can be seen in the Table 4, respondents indicating whether or not they had a

savings and checking account is significantly diverse. As can be seen, 58% had savings

accounts while 42% did not have a savings account. As can be seen, 72% of the

respondents had a checking account, versus 28% reporting they have not checking

account. The high number of checking accounts could be connected to the fact that more

people use debit/ATM cards versus writing paper checks.

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Table 4

Part I: Saving and Checking

Do you have a savings account? Yes 21 58%

No 15 42%

Do you have a checking account? Yes 26 72%

No 10 28%

Where do you cash your checks? Payday lender 2 6%

Grocery store 6 17% Bank/credit union 17 47% Convenience store 1 3% Employer 2 6% Other 8 22%

How much do you pay to cash your checks per month? $0 18 50%

$1.00–$4.99 4 11% $5.00−$9.99 3 8% $10.00−$19.00 0 0% $20.00−$29.00 2 6% More than $30.00 0 0%

Monthly checks written 0 27 75%

1−2 5 14% 3−5 2 6% 5+ 1 3%

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Monthly deposits

0 6 17%

1−2 23 64%

3−5 4 11%

5+ 3 8%

Monthly withdrawals

0 0 0%

1−2 3 8%

3−5 18 50%

5+ 15 42%

If you do not have a checking account how do you pay your bills?

Cash 8 22%

Money order 10 28%

Credit card 7 19%

Other 9 25%

Do you wire money?

Yes 12 33%

No 24 67%

Do you borrow money?

Yes 29 81%

No 7 19%


As can be seen in Table 4, 3% of the respondents cashed their checks at convenience

stores, 17% at grocery stores, while 6% utilized their employers to cash their checks. This

is a rural area and many do not have access to vehicles so these results are not surprising.

The data also indicated that 47% utilize banks/credit unions while 6% utilized payday

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lenders. This is one of the behaviors that the Money Smart curriculum attempts to help

consumers change. The curriculum educates participants about the costs associated with

using a bank/credit union versus payday lenders. The remaining respondents 22%

indicated they use other sources the cash their checks. It is likely that these other sources

are friends or the participants have the funds placed on prepaid PayPal cards such as the

Walmart green dot MoneyPak and others.

When referring to paying to cash checks, 7% of the respondents indicated they

pay more than $20.00 to cash their checks per month. This is most likely due to lack of

transportation or bank accounts. Only 11% pay more than $5.00 to cash their checks

while 15% pay less than $5.00. The majority of the respondents, 67% indicated they pay

no fees to cash their checks. This most likely is contributed to having bank/credit union

accounts where they utilized direct deposit options to cash their checks. Also most public

assistance recipients are required to have a bank account to receive their benefits. No

respondents indicated they pay more than $30.00 per month to cash their checks.

As can be seen in Table 4, 3% of the respondents still write less than 5 checks per

month, 6% indicated they write less than three checks per month, 14% indicated they

only write 1 to 2 checks per month. The writing of checks is most likely due to those

respondents not having a bank/credit union checking account. A high number of

respondents, 75% indicated they write no checks per month. This could possibly be

linked to the high number of consumers utilizing debit/ATM cards versus writing paper

checks to pay their bills on a monthly basis.

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As can be seen in Table 4, 42% of the respondents indicated they make greater

than five monthly withdrawals per month, 50% indicated they make greater than 3

monthly withdrawals, 8% indicated they make at least 1 monthly withdrawal, and no

respondents indicated they do not make monthly withdrawals. The results are likely due

to recipients having their paychecks, benefits checks, and other monetary gifts deposited

by others. After the deposits are made the income is immediately utilized to pay bills and

purchase other necessities on a monthly 8% of the respondents indicated they make

greater than five monthly deposits per month, 11% indicated they make greater than 3

monthly deposits, 64% indicated they make at least one monthly deposit per month, and

17% indicated they do not make monthly deposits per month. Survey response indicate

this is likely due to recipients having their paychecks, benefits checks, and other

monetary gifts deposited by others.

The next set of data in Table 5 summarized respondent answers to questions

asked in Part I and Part II of the Money Smart Survey. These sections assessed each

respondent’s financial profile, financial behavior, program view, and potential behavior

outcomes as a result of completing the program. Each question was be outlined with a

corresponding table of results. The data were consolidated and reported according to total

responses presented in the returned surveys. The results are also consolidated according

to age category; however, the written descriptions further captured detailed data

according to age category.

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Table 5 Part II: Borrowing Money Who do you borrow money from?

Family and Friends 21 58% Payday Lenders or Title Loan Company 7 19% Rent-to-Own Center 6 17% Credit Cards 7 19% Bank 10 28% Other 9 25% I Do Not Borrow Money 2 6%

What are you borrowing money for? To Pay Bills (groceries, rent, utilities) 26 72%

For Furniture, Appliances, TV, VCR, stereo 10 28% For an Education 15 42% For a House 6 17% Other 16 44% I Do Not Borrow Money 2 6%

Do you know the interest rate on your loans? Yes 19 53%

No 7 19% I'm Not Sure 10 28%

I know how to open up a checking account Yes 23 64%

No 6 17% I'm Not Sure 5 14% Note: Data derived from the Money Smart survey. See Appendix B. (N = 36)

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Part II: Borrowing Money I know how to write a check

Yes 20 56% No 7 19% I'm Not Sure 3 8%

I know how to use an ATM/Debit card Yes 33 92%

No 3 8% I know the cost of having a bank account

Yes 10 28% No 22 61% I'm Not Sure 3 8%

I know how much it costs to borrow money from a bank

44% Yes 21 58% No 7 19% I'm Not Sure 6 17%

I know what an APR (annual percentage rate) is Yes 14 39%

No 19 53% I'm Not Sure 3 8% Yes 23 64% No 6 17% I'm Not Sure 5 14% Note: Data derived from the Money Smart survey. See Appendix B. (N = 36)

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The question of borrowing money and respondent borrowing behaviors/habits

was discussed in subsequent figures. When responding to the subject of borrowing

money, 3% of the respondents indicated they do not borrow money, 16% indicated they

borrow from credit cards, 11% indicated they borrow from payday lenders, 10%

indicated they borrow from rent-to-own centers, 15% indicated they borrow from other

sources, 16% indicated they borrow from banks/credit unions, and the majority, 34% of

respondents, indicated they borrow money from family and friends.

There are factors that may explain the survey responses to this question. Some

respondents may not have access to traditional lending institutions such as banks and

credit unions to borrow money. Some respondents may have poor credit and are unable to

borrow money. Some respondents may have filed bankruptcy in the past and are unable

to borrow money. These are only assumptions based on respondent indicators and my

past experience as Financial Counselor. One of the ultimate goals of the Money Smart

financial program is to help respondents change behaviors in regards to their borrowing

habits. If the respondents choose not to change behavior, they at least know the potential

outcomes associated with their borrowing choices.

As can be seen in Table 5, the majority, 35% of respondents, indicated they

borrow money to pay bills, purchase groceries, pay rent, and utilities, 20% indicated they

borrow money for educational purposes, 8% indicated they borrow money to purchase a

home or pay initial rent and deposits, 13% indicated they borrow money to purchase

appliances, furniture, TVs, VCRs, and stereo equipment, and 21% indicated they borrow

money for other reasons. Survey responses are most likely due to the respondent’s

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economic situation, coupled with whether or not they have experienced a job loss or

layoff. With the loss of jobs, some consumers are increasingly finding themselves unable

to paying bills and may opt to borrow money to pay for day-to-day living expenses. Only

3% of the respondents indicated they do not borrow money.

On the questions regarding interest rates, 53% of the respondents indicated they

knew the interest rates on their loans, 39% of the respondents indicated they do not know

the interest rates on their loan accounts while 8% indicated they are not sure of the loan

rates. Responses are most likely due to consumers being more focused on how month

monthly payments are versus how much it would cost them to borrow money. These

responses influenced the Money Smart financial literacy program to educate respondents

on knowing how much it cost to borrow money over time. It is not known if knowing the

costs would actually change consumer behavior in all respondents; however, it could help

them make more informed choices when borrowing money.

As can be seen in Table 5, 67% of the respondents know how to open up a

checking account, 18% of the respondents indicated they do not know how to open up a

checking account, and 15% of the respondents indicated they were not sure how to open

up a checking account. Survey responses are most likely due to the fact most consumers

do not associate the use of a debit/ATM cards with checking accounts. Usually the

debit/ATM process is marketed to consumers as separate banking products and can be

confusing to those consumers not having financial knowledge about banking activities.

When it came to writing checks, the majority, 67% of the respondents, indicated they

know how to write checks, 23% indicated they do not know how to write checks, while

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10% of the respondents indicated they are not sure how to write checks. These responses

are most likely due to the increased use of debit/ATM cards by consumers to pay bills

and make everyday purchases. Lending institution are changing every day due to the

increased use of technology and most are encouraging consumers to pay bills online

using bill pay services or by debit/ATM.

The questions regarding ATM/Debit card uses indicated only 8% of the

respondents indicated they do not know how to use an ATM/Debit card, while the

majority, 92% of respondents, indicated they do know how to use an ATM/Debit card.

Survey responses indicated that increases in banking technology most likely has had an

impact on consumer banking activities. Most consumers have an ATM/Debit card and are

familiar with using them to pay bills and make purchases. Only 29% of the respondents

indicated they know the cost of having a bank account, 8% indicated they are not sure of

the costs of having a bank account, while the majority, 63% of respondents, indicated

they do not know the cost of having a bank account. These results indicated that some

consumers fail to ask the necessary questions when opening a savings or checking

account. It is also likely that consumers do not compare banks and fees when opening up

a bank account.

As can be seen in Table 5, the majority of respondents, 62% know how much it

costs to borrow money from a bank, 20% of the respondents indicated they do not know

how much it costs to borrow money from a bank, while 18% of respondents indicated

they are not sure of how much it costs to borrow money from a bank. The survey

responses strongly indicated some consumers lack the financial knowledge of how

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banking institutions work. When it came to interest rates, 39% of respondents do know

what an APR (annual percentage rate) is, however the majority, 53% of respondents,

indicated they do not know what an APR (annual percentage rate) is, while 8% of

respondents indicated they do not know what an APR (annual percentage rate) is. The

survey responses indicated that some consumers may get confused and think the APR

(annual percentage rate) is the same as the interest rate (cost of borrowing money) on a

loan.

As can be seen in Table 5, 19% of the respondents indicated they do not borrow

money while 81% of the respondents indicated they do borrow money. As can be seen in

Table 5, 33% of the respondents indicated they utilize wiring services while 67% of the

respondents indicated they did not use these services. It is most likely that these

respondents did not want to pay the fees associated with sending money quickly. These

fees can range from $9.00 to $49.00 depending upon the amount of funds being wired. It

is likely that those respondents who were willing to pay the additional fees for the wiring

services deemed that sending the funds was of urgency. Most companies have quick

collect polices that allow the utilization of Western Union/MoneyGram to pay mortgages,

car payments, utilities, send money to other bank accounts, and pay other bills. As can be

seen in Table 5, 29% of the respondents indicated they use money orders, 24% indicated

they use cash, 21% indicated they use credit cards, while 26% of the respondents

indicated other. These responses are most likely contributed to those respondents and

their access to transportation. Most neighborhoods have places that sell money orders and

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provide access to Western Union/MoneyGram services. The next set of data summarized

respondent answers to questions asked in Part II of the Money Smart Survey.

Table 6

Program Outcomes

Strongly Agree Agree

Not sure Disagree

Strongly Disagree

Because of the financial literacy program I am more financially knowledgeable

43% 57% 0% 0% 0%

Because of the financial literacy program, I feel I can manage my finances better

64% 22% 11% 3% 0%

I feel that I can use what I learned in this program on my own

57% 43% 0% 0% 0%


As seen in Table 6, analysis of nonparametric statistics were calculated using a

chi-square test with a 95% confidence level (p < 0.05). Chi-square was calculated with

the use of the Excel statistical software based on 4 degrees of freedom and a 5- column

Likert scale (1 = strongly agree, 2 = agree, 3 = not sure, 4 = disagree, and 5 = strongly

disagree). Chi square test results for each of the three survey items above yielded the

following results:

Q1: Because of the financial literacy program, I feel I can manage my finances

better indicated results were significant, χ2 (4, N = 36) = 56.50, p < .05. The chi-square

test rejects the null hypothesis.

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Q2: Because of the financial literacy program I am more financially

knowledgeable indicated the results were significant, χ2 (4, N = 36) = 48.72, p < .05. The

chi-square test rejects the null hypothesis.

Q3: I feel that I can use what I learned in this program on my own indicated

results were significant, χ2 (4, N = 36) = 56.50, p < .05. The chi-square test rejects the

null hypothesis.

In response to RQ2: What is the difference between actual responses for


result of participating in the financial literacy program?, it is therefore concluded that

there is a difference between the actual responses for knowledge gain and hypothesized

(equally distributed) responses for knowledge gain as a result of participating in the


As can be seen in Table 6, respondents demonstrated a favorable perception of

the financial literacy program with a 43% strongly agree and 57% agree response rate.

The responses indicated that respondents strongly agree that the program increased their

financial knowledge levels with 57% strongly agreeing and 43% agree respectively.

Respondents also responded favorably to the possibility of using their new found

financial literacy skills to manage their finances. As can be seen in Table 6, respondents

had mixed responses in reference to their ability to use the information on their own.

These responses indicated 64% strongly agreed while 22% agreed, 11% not sure, and 3%

disagreeing with the question. These responses are likely due to respondent perceptions

of being in a position to actually apply the information to their current situations.

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Evidence of Quality and Procedures to Assure Accuracy and Credibility

As soon as data from the surveys was received from the survey participants, it

was screened for accuracy. During my initial screening, I asked the following questions:

1. Are the responses legible/readable?

2. Are all important questions answered?

3. Are the responses complete?

4. Is all relevant contextual information including the data, time, place, and

researcher information correct?

Although assuring that the data collection process does not guarantee accuracy, it

did help assure the overall quality of subsequent analyses. This occurred because the

researcher was able to receive feedback about his/her own biases.

Procedures for Determining Validity

A consent form was mailed with the initial survey packet to all participants. The

participants were instructed on the study requirements and informed to sign and kept the

consent form for their records. The participants were also informed that the Money Smart

survey was a pre-established survey validated by the Federal Deposit Insurance

Corporation (FDIC) in their 2003 financial literacy study. Additional validity testing

occurred prior to the survey being mail. The survey was piloted by financial literacy

counselors working in the field.

Procedures for Dealing with Discrepant Cases

During research, there is always the potential to deal with discrepant cases. If

discrepant data were discovered, I would have examined all of the supporting and

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discrepant data to make an assessment on whether or not to make changes to the

conclusion of the study. For this study, all potential personal biases of the researcher were

identified and those discrepant findings were reported. This allowed the reader to

evaluate and draw his/her own conclusion.

Limitations/Assumptions

A potential limitation to this program evaluation was that the rural minority adults

participating in the survey may have difficulty understanding the survey. Due to these

limitations the survey asked targeted questions at to the participant’s education levels and

whether or not they completed high school. If the participants did not understand the

questions on the survey, they may not have indicated the right response to the

corresponding questions and this would skew the data and final results of the project

study. It may also be difficult for these adults to understand the financial topics they are

not familiar with, but need to know in order to successfully navigate their financial lives.

The participants had to have a basic understanding of financial matters in order to

comment on the survey questions. If the participants lacked this basic understanding or

knowledge they would again cause the data and final results to be skewed. Members of

this population group may be considered vulnerable consumers. Vulnerable consumers

have difficulty in obtaining or assimilating information needed to make decisions

regarding those goods or services, if any, to buy. They may also suffer a greater loss of

welfare than other consumers from making an in-appropriate buying decision. Some rural

minorities may also have more financial knowledge than they realize, but they may not

be able to articulate it in a way that is comprehensible to outside observers.

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There are a few assumptions made in regards to this study. Although this study is

limited to past program participants, there was an assumption as to whether or not the

participants could fully comprehend the survey and the language it was written in.

Additional assumptions included whether or not the financial literacy program

participants could read and did they fully comprehend the questions in the survey.

Because of these assumption, as the researcher I offered the participants the opportunity

to have the survey questions read aloud to those participants. The survey was also

available in additional languages and was made available based on program information

about the participant’s language preferences.

Research Questions and Outcomes

All of the project research questions were formatted to be answered as a result of

the data collected from the Money Smart Survey. Financial education is universally

assumed to affect knowledge and behavior, yet its impacts remain relatively untested.


regarding the financial literacy program offered by Financial Empowerment? According

to the survey results, 43% of the program participants strongly agreed the program was

effective; while, 57% agreed that the program was effective. Out of the all participants

surveyed none indicated the program was not effective. These results indicated the

perceptions of the stakeholders and program participants was favorable; however,

literature supports the fact that research on the effectiveness of financial education was

relatively new, and thus limited.

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According to the statistical chi square tests, the null hypotheses H01 can be

accepted and it is therefore concluded that there is no difference between the actual

responses for knowledge gain and hypothesized (equally distributed) responses for

knowledge gain as a result of participating in the financial literacy program.

Research Question 3: Does the program provide students with a realistic

experience to prepare them for future financial responsibilities? The findings in this

project study suggest that information transferred during this course had a modest effect

on behaviors requiring self-control, including savings and borrowing money. This was

according to the 57% of participants strongly agreeing they gained more knowledge as a

result of taking this course. Another 43% stated they agreed that they also gained more

knowledge as a result of participating in the program. Although savings potentially

comes at the expense of greater borrowing, there was no evidence that participants took

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on additional debt. There was however, some evidence that participants engaged in

stronger budgeting practices following their participation in the program.

Summary

Community organizations have made great efforts to establish financial education

programs within the local community to help minority adult men and women acquire

essential consumer financial skills to improve their overall quality of life. However, these

adults may not take advantage of the services offered. Scholars suggested that improving

quality of life is connected to offering financial education to those families who

otherwise would not have access. Financial Education Programs (FEP) were established

to help families gain the financial skills needed to improve their current economic state.

The TTM theory best explains why adults learn because it was a theory of changing what

we believe in relation to dramatic life events. It is learning that goes beyond just getting

hold of content knowledge, or learning equations, memorizing mathematical formulas. It

is a valuable process for adults to learn to think for themselves, through re-defining what

we have to come to know through life experiences (Merriam et al., 2007). The things that

our culture, religions, and personalities may prompt us towards, without engaging or

questioning how we know what we know. This concludes Section 2 and leads into

section three and a discussion of the project.

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Section 3: The Project

Introduction

I conducted a program evaluation of the Financial Empowerment literacy course

offered at a local church in Tattnall County, Georgia. Evaluating the Money Smart

program, gaining program insight, and professional development were the focus of this

project to assist stakeholders and instructors who provided instruction to financial literacy

students. The project also examined the elements of the program that could assist

stakeholders with understanding the low participation rates for the course. The

curriculum used for this evaluation was part of the Money Smart program and could not

be changed; however, suggestions for improvement were submitted to the FDIC after the

project completion. The professional-development presentation training for this project

study utilized technology so stakeholders and instructors could learn, apply, and

implement their training within their classroom. This project also assessed the financial

literacy course by measuring participants’ financial knowledge, financial confidence, and

financial behavior changes after participating in the course.

A Money Smart Survey was the data collection tool I used to gather data for this

study. I categorized the findings of this quantitative project study according to the three

guiding questions explored during this program evaluation. The first question addressed

student and stakeholder perceptions of the financial literacy course. The second question

addressed whether the program provided students with a realistic experience and

prepared them for future financial responsibilities. The third question addressed whether

these minority adult learners, with limited or no financial literacy skills, gained financial

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knowledge and understanding as a result of taking this course. The initial question

showed that the students believed the course was did prepare them for future financial

responsibilities and the second questions showed students gain knowledge and

understanding as a result of taking the financial course.

These results were demonstrated throughout the results of the Money Smart

survey taken by the participants. Section 3 of this paper contains the final project

discussion and review of the literature addressing this study. The goals of the proposed

project, rationale of why the project was chosen, implementation, project evaluation, and

implications for social change are also included in Section 3.

Description and Goals

Description

The loss of jobs, loved ones, and physical injuries can be life-changing events that

transforms how the world is viewed. The emphasis of this program was on providing

rural minority’s financial education that helped them to make better-informed decisions.

The goal of the financial literacy program was to motivate these adults to make a decision

to accept the loss of income or look at learning new skills so that he/she could move past

the loss. The overall objective was to provide a personal financial literacy program

specifically targeted to this segment of the population that addressed gaps in education

related to financial literacy involvement.

This project centered on whether the existing financial literacy program possessed

all of the components needed to inspire rural adults to take advantage of the program.

Improving the program would only assist these families with developing the necessary

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skills and behavioral changes needed to become successful in this current economic

environment. The desired results of this project were to provide powerful insight from

these rural families on the challenges they face regarding community-based financial

education program participation and the effectiveness of these programs. If the results

lean toward the curriculum influencing program participation and behaviors, the

appropriate changes will be suggested. Because the Money Smart curriculum cannot be

changed at the local level all changes and recommendations have to be forwarded to the

FDIC on a suggestion form. After this form is received, the FDIC will respond based on

the project results and recommendations. If the FDIC does not accept the changes or

recommendations, the local organization will have to seek other alternative ways to

improve the curriculum. If the FDIC accepts the changes, this information would then be

integrated into the locally offered financial education program with the ultimate outcome

of empowering minority families.

Program participants expressed on the survey that the program did provide them

with the skills needed to do better in their everyday financial endeavors. This information

assisted with the desired outcome of this project in that it would inform the FDIC,

researchers, policymakers, stakeholders, and educators about the beliefs and perceptions

of the minority family participating in community-based financial education programs.

The FDIC and community stakeholders would be the targeted audience for all

recommendation and suggestions to program improvement. The information from the

project would assist researchers with making decisions as to, which aspects of financial

education they would need to further study. The policymakers would benefit from this

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project because they would then have more definitive study information to help with

making future financial policies that benefit rural adults. The stakeholders benefit from

this study because they would be able to offer financial education that specifically targets

the needs of rural adults within their communities. The educators would benefit from this

study because they would have greater insight into the connections between the

curriculum and the outcomes of the rural adult student after participating in the program.

The assessment of the financial literacy programs could possibly facilitate enhancements

to other existing financial literacy program designs. In addition, evaluation of financial

literacy programs can provide sponsors with information needed to regulate and adjust

these programs to better accommodate those minority families that utilized the programs.

The project could possibly assist other schools with low graduation rates and

achievement gaps in financial literacy improve their current learning environments.

Project Goals

The primary goal of the Money Smart program was to provide individuals with

the necessary information to evaluate and make their own financial decisions. The project

data supported the fact that the Money Smart program was effective and meet the needs

of those rural adults who participated in the course. The only change recommended was

changing the delivery format and time frame in, which the program was offered. The

Money Smart program consisted of a set of 10 instructor-led training modules that cover

a number of key financial topics including: general banking services, how to choose and

maintain a checking and savings account, how to budget your money, the importance of

saving, and how to obtain and use credit effectively. The program takes approximately 2

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weeks to complete. Most modules last approximately 60 minutes, and a few topics

require more time. To date, program participants have included welfare-to-work

participants, Spanish-speaking immigrants, Chinese immigrants, public housing residents

in Chicago, and community college students. Between May 2002 and February 2003,

data were collected from 408 program participants. It will be recommended to the local

stakeholder invest in a pilot study and offer the course through an online format that

would be aligned with stated program goals. If the pilot is a success, then offering the

course through online format could possibly strengthen the participation rates for the

program.

Another goal of this program evaluation was to increase use of existing

community-based financial literacy programs and better meet the needs of minority

adults living in rural communities. As stated earlier, recommendations from this project

would benefit policymakers because they would then have more definitive study

information to help with making future financial policies that benefit rural adults. The

stakeholders would benefit from this study because they would be able to offer financial

education that specifically targeted the needs of rural adults within their communities.

The educators would benefit from this study because they would have greater insight into

the connections between the curriculum and the outcomes of the rural adult student after

participating in the program. In addition, researchers would benefit from this project

because they would have solid study information to add to existing data and this would

save them time and money by eliminating the need to study data that were already

studied.

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Rationale

Project Genre Rationale

The motivation for this project was stakeholder and student perceptions and

interactions while participating in the Financial Empowerment financial literacy course.

Stakeholders were concerned because the students were not participating in the course as

they had desired when they decided to offer the course. They were also concerned the

participants needed to gain the necessary financial skills that would change current

behaviors when dealing with money. The data-collection results indicated that the

participants believed they acquired the necessary financial literacy skills to help them in

everyday life and that they were satisfied with the program and its presentation. The

outcome of this project would allow stakeholders an opportunity to teach and remediate

until students are successful in gaining the skills needed to change financial behavior.

Project Content Rationale

The purpose of this study and project was to assess a financial literacy program

that specifically addressed the modifications needed to increase student participation and

ensure the program assisted with gaining the needed financial literacy skills needed to

function in everyday life. The study and project also would be a guide that provided

instructors and stakeholders with more remediation time, as well as to provide teachers

with technical resources they can implement and provide better financial instruction to

their students. The study and project also wanted to assess the behavioral outcomes of

those that participated in the financial literacy course. Any suggested improvements to

the FDIC regarding the Money Smart curriculum would target these areas within the

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Money Smart course to assist instructors so they would be confident in modifying the

current pacing guide, provide experiences to instructors to suit the current learning levels

of their students, and provide instructors with the current knowledge so they can make

correct instructional choices.

Review of the Literature

I accomplished saturation for this literature review by inserting important

keywords into Internet search sites. The keywords I used to complete this task were:

remediation, financial literacy, Money Smart, professional development, and future

trends. I also used the electronic databases through the Walden University Library

website, such as EBSCOhost, Education Research Complete, ERIC, and ProQuest. I

utilized all of these resources to locate current research related to my project study.

Financial education was commonly assumed to affect knowledge and behavior,

yet its effects remain relatively untested. In 2010, very low-income families in a

subsidized housing program were randomly assigned to a mandatory financial education

program and tracked for 12 months. This project study illustrated the methodological

issues that aroused in social experiments with small samples, including attrition and self-

report bias. The findings suggested that information transfers alone could have at least

modest effects on behaviors requiring self-control, including savings (Collins, 2010).

The project addressed critical gaps in the literature and provided an overview of

the current state of financial education and program evaluation. Using quantitative data

collected from financial literacy program participants in Tattnall County, this project

provided insight into what can be done to conduct more effective program evaluations.

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Angela, Palmer, Koralalage, and Scherpf (2006) noted “research indicated that

many financial education providers still do not have a basic level of evaluation capacity

and are unable to identify program outcomes and design effective evaluation

instruments” (p. 208). It was difficult to propose a national evaluation strategy without a

basic understanding of current evaluation capacity and of the critical gaps in program

evaluation. In addition, there has been little discussion about the challenges facing

financial professionals and educators who are on the "front lines" delivering and

evaluating programs (Angela et al., 2006, p. 220).

In 2003, the Office of Financial Education of the U.S. Department of the Treasury

(2004, 2006) suggested eight key elements regarding the content, delivery, impact, and


developers. The eight elements state that a successful program:

• Is tailored to its target audience, taking into account its language, culture,

age and experience.

• Is focused on basic savings, credit management, home ownership, and/or

retirement planning.

• Is offered through a local distribution channel that makes effective use of

community resources and contacts.

• Follows up with participants to reinforce the message and ensure that

participants are able to apply the skills taught.

• Establishes specific program goals and uses performance measures to

track progress toward meeting those goals.

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• Demonstrates a positive impact on participant’s attitudes, knowledge, or

behavior through testing, surveys, or other objective evaluation.

• Can be easily replicated on a local, regional, or national basis to have

broad impact and sustainability.

• Is built to last as evidenced by factors such as continuing financial

support, legislative backing, or integration into an established course of

instruction (2006).

The above eight key elements regarding the content, delivery, impact, and


developers were utilized to guide the development of this project.

One of the elements of a successful program is that the program should be tailored

to its target audience, taking into account its language, culture, age and experience

(2006). This is the reason Financial Empowerment used the FDIC Money Smart program

as a model when offering the financial literacy program. The FDIC launched Money

Smart as a nationwide initiative in September of 2001. The curriculum was designed to

help adults enhance their money management skills, understand basic financial services

offered by the financial mainstream, and build financial confidence to use banking

services effectively. Money Smart was also designed to provide financial institutions with

a tool to assist in community outreach and economic development. The Money Smart

curriculum consisted of 10 modules: (a) Bank On It: an introduction to bank services, (b)

Borrowing Basics: an introduction to credit, (c) Check It Out: how to choose and keep a

checking account, (d) Money Matters: how to keep track of your money, (e) Pay Yourself

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First: why you should save, save, save, (f) Keep It Safe: your rights as a consumer, (g) To

Your Credit: how your credit history will affect your credit future, (h) Charge It Right:

how to make a credit card work for you, (i) Loan To Own: know what you’re borrowing

before you buy, and (j) Your Own Home: what home ownership is all about. The

curriculum was available in both an instructor-led version and a computer-based

instruction (CBI) version. For this project, all sites used the instructor-led version. The

instructor-led curriculum was available in six languages (English, Spanish, Chinese,

Korean, Vietnamese, Russian), as well as Braille and large print. Only the English and

Spanish language versions were used to develop the survey (FDIC, 2001).

Another aspect of an effective program was the program ddemonstrated a positive

impact on participant’s attitudes, knowledge, or behavior through testing, surveys, or

other objective evaluation (2006). The transtheoretical model of change (TTM) was

originally developed to explain how individuals progress from one stage of behavior

change to a higher stage when trying to prevent a negative health behavior or forming a

new positive health behavior (Burke, 2011; Prochaska, DeClemente, & Norcross, 1992;

Prochaska, & Velicer, 1997; Prochaska et al., 1994). More recently, the TTM has been

applied to other fields of study, including financial behavior studies, and has also been

used to help determine the effectiveness of financial education programs. Lyons and

Neelakantan (2008) argued that the TTM may not be an appropriate measure of financial

behaviors because standards for financial behaviors have not been ascertained. Although

it was easier to conclusively identify positive health-related behaviors than positive

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financial behaviors, the TTM can still be a valuable framework for financial educators

regarding how to help consumers improve their financial behaviors (Burke, 2011).

Xiao et al. (2008) used the TTM to develop specific strategies to help motivate

employees to make positive financial behavior changes based on their readiness to

change. For individuals in the precontemplation stage, increasing awareness or raising

consciousness about financial risks and the benefits of change are strategies that may help

to motivate them to progress to a higher stage. Similarly, one strategy for helping those in

the contemplation stage was to convince them that the benefits of changing outweigh the

costs. Strategies used in the preparation stage include empowering people to make an

action plan and encouraging them to take small steps to build confidence.

People in the action stage benefit from both behavioral and cognitive strategies,

such as reinforcement management and positive thinking. Finally, supportive strategies,

like having a plan to cope with setbacks, would be most beneficial for individuals who

have reached the maintenance stage (Xiao et al., 2008). The TTM categorization helped

to expand beyond merely savers and non-savers and provided more insight about

individuals’ saving intentions as well as behaviors. Gutter et al. (2007) found that marital

status, age, preference (e.g., time horizon and risk tolerance), and other financial sources

(e.g., net worth, job tenure, cash reserve, and employer match) were all significantly

related to participation in defined contribution plans as categorized by the TTM

framework.

Another aspect of an effective program is that it can be easily replicated on a

local, regional, or national basis to have broad impact and sustainability (2006). To

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examine financial behavior change of Individual Development Account (IDA)

participants, Shockey and Seiling (2004) also used the TTM. Six money management

behaviors were identified that could enable participants to begin or increase their savings,

including: setting financial goals, using a spending plan, tracking spending, reducing

debt, setting aside money, and saving money. A readiness assessment for these six

behaviors was administered to participants to determine their stage of behavior change

before and after completing the four-week financial education classes. On average, they

found that all six of the money management behaviors improved. Participants were at the

preparation stage for all of the money management behaviors except for reducing debt;

participants were at the action stage on debt reduction. Shockey and Seiling (2004)

concluded that the TTM was applicable for evaluation of financial education programs.

The eight steps of an effective program also stated that a good program is built to

last as evidenced by factors such as continuing financial support, legislative backing, or

integration into an established course of instruction (2006). Xiao et al. (2004) assessed

the readiness of consumers to get out of credit card debt when they were already having

credit card problems. The TTM framework was used to compare individuals’ readiness to

change their debt habits. In addition to the stages of change, other key constructs of the

TTM were used, including decisional balance, processes of change, and self-efficacy.

Xiao et al. found that behavioral changes could involve multiple stages. Consumers in the

first three stages of change (e.g., precontemplation, contemplation, and preparation) were

comparable to each other while individuals in the last two stages (e.g., action and

maintenance) were also similar. This information can be beneficial for financial

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counselors and educators as they seek to tailor their programs and resources to more

appropriately suit the needs of consumers. The TTM has been used in a number of

projects related to participants’ change in financial behavior. The TTM was implemented

to better target individuals for financial education based on their readiness for change

(Xiao et al., 2008). The literature demonstrated how the TTM has been used to classify

individuals according to their stage of behavior change (Burke 2011; Gutter et al., 2007;

Lown, 2007; Xiao et al., 2004).

Project Description

Program evaluation, gaining program insight, and professional development was

the focus of this project with the intent of assisting stakeholders and instructors who

provided instruction to financial literacy students. The professional-development

presentation training for this project study utilized technology so stakeholders and

instructors could learn, apply, and implement their training within their classroom. The

resources necessary to complete this training would consist of locations that are computer

accessible, iPads, wireless capability, and a projector. To present the information, I

utilized a PowerPoint presentation, group activities, and discussions.

Needed Resources, Existing Supports, and Potential Barriers

To accomplish this program evaluation brief, I needed to schedule time during the

quarter when the stakeholders were holding their board meeting. The 3-hour presentation

occurred during the 3rd quarter board meeting for the 2015 year. Permission to complete

this presentation was requested and granted from the pastor of the church, and the

presentation date was added to the calendar. In the event that the board meeting did not

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occur, the presentation and training would be scheduled for the next quarter board

meeting. The potential barriers for this project were scheduling a 3- hour session to talk

about project outcomes in addition to holding the regular scheduled board meeting,

reserving the computer lab facilities, and the additional responsibilities of requesting that

all board members be present for the presentation and training. If the stakeholders/board

members do not deem this training as important or beneficial to improving academic

achievement, they would not put forth their best effort because they may have considered

it to be a waste of their time. Another potential barriers for the professional-development

presentation and training might have been that regularly scheduled board meeting might

take precedence, the computer lab might not have been available, and participating

stakeholders/board members could have lacked motivation.

Proposal for Implementation

The professional development presentation/ training was planned to occur during

the 3rd quarter board meeting, which was the first week of October. Because the regular

board meeting lasts for 2 hours, I requested that this training be placed on the agenda for

6 p.m. that evening. I presented the evaluation presentation during a 3-hour session. I

utilized a PowerPoint presentation and handed each stakeholder/board member a PDF

copy of the presentation that encouraged them to participate and interact in the

discussion. The first hour of the discussion helped the stakeholders/board members to

understand the need for financial training based on current records of the program

attendance rosters. The second hour of the discussion focused on presenting the findings

of the survey and helping the stakeholders/board members understand the data results. It

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was during this discussion that tools and strategies that specifically targeted the areas of

student weakness indicated during the data analysis.

In addition, stakeholders/board members indicated they gained understanding into

the program and the potential outcomes for the program. It was also during this time

period the stakeholders/board members started to review the current Money Smart

Program and determined, which modules of the program needed remediation. The third

hour of the presentation focused on discussing the potential need of conducting a

community needs assessment to determine the best days to offer the financial literacy

program. This was one of the areas survey participants pointed out as a potential reason

for the low participation rates. Overall, the presentation went well and the

stakeholders/board members agreed to enter the presentation into the minutes, schedule

an additional meeting to focus on implementation of the findings, and work on a course

delivery plan that would be implemented later that year.

Project Evaluation Plan

The evaluation strategy involved effectively communicating negative and or

sensitive information and or findings. It was critical that the findings be reported in a

manner promoted problem-solving so that stakeholders would not take a defensive

position. The strategy was to present the positive findings and then list any negative

findings. As part of the professional development plan I asked several questions to

determine how to report the findings. The first question was who needed to be informed

about the evaluation findings and for what reason. It was determined that the stakeholders

needed this evaluation to build awareness of the financial literacy program and to

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determine if the program was effective in changing the behaviors of rural adults taking

the course. The next question asked what outside entities would need to see the results

and recommendations of the project. It was determined that any recommendation or

suggestions regarding the curriculum would be directed towards the FDIC Money Smart

program. This would allow the agency to review the project findings and evaluate

potential changes to the curriculum. The next question focused on who would be

involved in the decision-making and for what reason. The evaluation strategy targeted the

church and program stakeholders at the local level because this was their program and

their request for the program evaluation.

Because this project focused on a financial literacy program that was already

implemented I conducted this program evaluation that focused on student outcomes after

participating in the financial course. The stakeholders requesting this program evaluation

were interested in providing a financial program to rural adults in efforts of improving

these adults’ economic outcomes. They are interested in those rural adults using the

financial program and how the program can motivate these adults to participate in and

change their attitudes towards personal finances (Spaulding, 2008, p. 12). An outcomes-

based program evaluation asks if an organization was conducting the appropriate

program activities needed to bring about the verified outcomes for the program

participants. Outcomes are benefits that minority adults gain from participation in the

financial literacy program. Outcomes are usually in terms of enhanced learning,

knowledge, perceptions/attitudes, skills, and or conditions.

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Because I implemented a goals-based project, I utilized a summative performance

indicator to determine whether the participants’ knowledge and skills acquired during the

course demonstrated proficiency. The United Way of America’s website (2013) provides

an excellent overview of outcomes-based evaluation, including introduction to outcomes

measurement, a program outcome model, why to measure outcomes, use of program

outcome findings by agencies, eight steps to success for measuring outcomes, examples

of outcomes and outcome indicators for various programs and the resources needed for

measuring outcomes (United Way, 2013).

An outcome-based survey program evaluation was one of many evaluation

methods that can identify whether or not a program has been successful. The outcome-

survey based program evaluation also focuses on the results of services that were

intended from the outset of the program. It was different from other forms of evaluation

that evaluate a program after it was over and attempts to assess what happened during the

course. These evaluations are and assisted with planning a project, and a practical way to

identify what the results of the program would be. Summative or outcome-based

evaluation occurs at the end of the course or program. Program participants might not

have much time give thorough evaluations after the program ends. According to Suskie

(2009), “the key drawback of outcomes program assessments was that they occurred at

the end of the course or program, students may not receive any feedback other than

possibly and overall grade or certificate of completion” (p. 23). I discovered that during

this program evaluation I was not able to discuss the findings with the actual course

participants to gain additional insight as to their perceptions.

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Implications Including Social Change

Local Community

The overall consequences of this project study were to raise student participation

rates and to gain valuable insight into the Money Smart financial literacy program from

the perspective of stakeholders and students. The program evaluation project increased

stakeholder/board members’ awareness and understanding of how to teach the Money

Smart curriculum and what to do to increase student perceptions of value in regards to the

program. The short-term change for this project was stakeholder/board members

receiving the resources to make changes to the financial literacy program. Additionally, it

provided insight into the participant’s knowledge levels and perceptions of the program

and its effectiveness. This project provided an understanding of whether or not the

students increased the skills and knowledge needed to change behavior and what changes

were needed to make the program more effective.

The implications for positive social change included assisting the community with

research data that helped improve financial assistance and education programs within the

community. By participating in this project and completing the survey, the responses

helped evaluate whether or not existing financial literacy programs are helping

participants gain the necessary financial literacy skills needed to change their long-term

financial behaviors. The community would ultimately benefit from this financial data, as

there was limited data on whether or not financial literacy programs are effective. The

implications for positive social change also included program participants gaining the

necessary financial literacy skills needed thus empowering these adults and their families

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to change their long-term financial behaviors. Positive social change implications

resulting from this project also included increasing the knowledge levels of educators,

program developers, and other researchers who are seeking understanding into effective

ways of increasing utilization rates in financial education programs among rural minority

families.

Far-Reaching

Currently, there are gaps in the study of financial literacy program evaluation and

this study could help fill current gaps. This project informed researchers, policymakers,

and educators about the beliefs and perceptions of the minority family participation in

community-based financial education programs. The assessment of the financial literacy

programs facilitated enhancements to the existing financial literacy program designs and

other financial services offered to this rural community.

This project has three primary implications. First, offering financial education can

have positive effects on savings and credit outcomes among very minorities living in

rural communities. Financial education can also lead to improvements in program

participant’s own understanding of financial issues. If increasing savings levels and

improving credit outcomes are public goals, then financial literacy programs can only

enhance public programs and policy. However, it was hoped that the information gained

from this project would help the greater community by providing insight into the

financial literacy program and determining if the program helped participants gain the

necessary financial literacy skills needed to change long-term financial outcomes.

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Conclusion

A personal goal for this project study was to provide stakeholders/board members

with the necessary resources so those students participating in the financial literacy

program could be successful. The minority adults that participate in the financial literacy

program come to the program with numerous financial issues—they often lack basic

needs, have behavioral and emotional issues, and are lacking necessary prerequisite

money skills to be successful. These issues affect how students learn and the pace at,

which they learn the concepts of the program.

This study was an attempt to provide stakeholders/board members and instructors

with the tools necessary to help close the achievement gap for this subgroup of rural

minority students. This project provided stakeholders/board members with multiple

resources that targeted those with deficits in their money skills. Specifically, these

resources assisted the stakeholders/board members and instructors in providing

instruction to students and also engaging students so they will become empowered to take

control of their learning and succeed in money matters.

It was important to point out that while this project provided considerable insight

into the effectiveness of the Money Smart program, it was also limited in the following

respects. First, attrition from the program and missing information on several surveys

considerably reduced the sample size. In the end, only 36 of the participants completed

both parts of the survey. The problems associated with the use of small sample sizes in

this project was particularly acute in its inability to collect enough data to effectively

evaluate the program.

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As a consequence, the results of the project data are in some cases driven by the

responses of only a few individuals. Thus, while the findings provide some evidence that

the Money Smart program succeeded in increasing participant financial literacy levels,

one needs to be cautious and not regard these findings as conclusive. This study will,

however, hopefully provide the inspiration that will motivate other communities to

explore different strategies when offering financial education. We have concluded

Section 3 of this project and now transition on to Section 4, which provides a reflection

of the research and the project deliverable, as well as my own experiences as a

researcher.

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Section 4: Reflections and Conclusions

Project Strengths and Limitations

Introduction

In Section 1 of this project study, I identified a problem with rural adults not

participating in a financial literacy program offered in the community. The problem

indicated a clear need for financial education among this population of rural adults;

however, they would not participate in the program. The next step was to conduct a

program evaluation of the existing financial literacy program to determine whether these

adults were obtaining the necessary financial literacy skills needed to be successful.

As I reviewed the data, different trends started to emerge. In some areas, the

program participants gained high levels of financial skills, whereas in other areas, they

did not gain any new skills. The data trends showed that the financial literacy program

was successful and that participants gained new financial knowledge according to those

skills closely associated with their current financial environment.

After the data were collected and analyzed, I shared the results with the

stakeholders of Mt. Zion Outreach. To solve the problem, a modification was made in

relationship to the frequency and times when the program was offered to these adults.

These adjustments to the frequency and delivery of the financial program was accepted

and implemented as a result of this project study.

Project Strengths

The foremost strength of this project study was directly related to the Money

Smart financial literacy curriculum offered by the Federal Deposit Insurance Corporation

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(FDIC) and the stakeholders who desired to offer financial education to the community.

The church stakeholders have an established relationship with the community and those

rural adults living there. They have a great desire to see these adults’ live full and

successful lives. They are conscious of each program participant’s strengths, weaknesses,

and perceived potential.

These stakeholders are constantly offering life skill courses to empower these

rural adults. The church leaders were willing to assess the current financial program in

efforts to make it better for those participating adults. The changes to the program have

been implemented; however, it would take time to assess if the changes are successful

and has an impact on participation rates and overall effectiveness.

Project Limitations

The most significant limitation of this project was the perceptions of participating

adults, their perceived importance, and their perceived value of needing financial literacy

education. Another potential limitation was getting these program participants to answer

the questions truthfully because members of this population group may be considered

vulnerable consumers. The final potential limitation was that some rural minorities may

also have more financial knowledge than they realize, but they may not be able to

articulate it in a way that was comprehensible to outside observers.

Recommendations for Alternative Approaches

A limitation of this project was it specifically targeted the perceptions of those

participating adults about the perceived importance of financial literacy skills. A potential

limitation to this program evaluation was the potential that the rural minority adults

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participating in the survey may have difficulty understanding the survey. Another

potential limitation was getting these program participants to answer the questions

truthfully because members of this population group may be considered vulnerable

consumers. Vulnerable consumers have difficulty in obtaining or assimilating

information needed to make decisions regarding, which goods or services, if any, to buy.

They may also suffer a greater loss of welfare than other consumers from making an in-

appropriate buying decision and do not want to share this information with other.

The final potential limitation was that some rural minorities may also have more

financial knowledge than they realize, but they may not be able to articulate it in a way

that was comprehensible to outside observers. The potential remediation for this

limitation was to demonstrate to these minorities, through the use of pretests that they

have more financial knowledge than previously thought.

The data analysis I collected for this project also identified and supported the

identification of the problem. I designed this study to evaluate the financial literacy

program and to offer suggestions as to how to make the program more desirable to

minority adults in rural communities. This program evaluation looked at the current

financial literacy skills of program participants and compared these levels to program

participant financial literacy levels after completing of the program. The program was

adjusted to meet the needs of future students that may participate in the training.

Scholarship, Project Development and Evaluation, and Leadership and Change

I learned that scholarship was a constant process of learning that comes from

understanding as a result of research. This was amazing because at the beginning of the

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project I did not have a comprehensive understanding of the concept of scholarship. This

project study embodied the concept of scholarship by the identification of a problem,

researching current research-based, peer-reviewed articles on this issue, and

implementing a research project to solve the problem. Sometimes stakeholders do not

have the full understanding of programs they desire to implement. Most identify a

potential program and made attempts to solve the program. There was no prior research

involved other than examining the existing program and identifying potential needs that

should be addressed. Stakeholders needed to see the importance of financial training and

how it directly related to improving the overall quality of life for those living in their

communities.

To begin my project study, I examined materials from the Walden library website

and read all articles relevant to this project and took comprehensive notes. During this

process, I kept reflective notes in a journal. Reviewing the journal periodically allowed

me an opportunity to review and make connections to the current research. In addition to

using the Walden library site, I completed course readings from the research of Lodico,

Spaulding, Voegtle (2006), Creswell (2008), and others. After completion of the

literature review and asking multiple questions to my chairperson, I made the decision to

conduct a program evaluation for my project. After examining current research,

identification of the problem, and the formation of a hypothesis, I determined that

doctoral students need to consistently seek help and guidance in order to become

academically successful.

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Project Development and Evaluation

The most important characteristic of completing a project study was to narrow the

focus and identify a specific problem occurring. During the process of the project

development and evaluation, I realized that during this process I possessed more skills in

the area of project development and evaluation that previously thought. I realized that I

used this process in my training environment almost every day. I had to review the

standards that needed to be trained, planned an interactive learning activity to teach that

standard, and then assessed the students to determine whether they become skilled at the

desired standard. I then used that same data to determination my future training.

Likewise, I implemented the same steps for the development and implementation

of my project. Once I determined the student’s greatest issues was how they perceived

the value of financial education, I formulated a plan to provide support to church

stakeholder offering suggestions, as a result of this project, to correct this problem. My

next consideration was how to go about solving the identified problem. I started to

explore different avenues of how to accomplish this task. During the process, I continued

to read current research-based literature regarding different professional-development

project designs.

From that point emerged the research questions, which had to correlate to and

correct the specific problem. Using this information, I started to plan the structure,

keeping in mind the backward design of what I wanted to achieve. The solution, which

was a result of the data collection and analysis, had to be practical, effective, and useful

to the financial literacy program. I created a professional development project with an

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evaluation survey instrument. Throughout this process, I realized that each step of this

project required a great deal of planning and attention to detail.

Leadership and Change

Having been a leader for almost 25 years, while serving in the military and

working for the federal government, I have learned that leadership and change sometimes

conflict. I know that as a leader you have to lead from the front and know when to

motivate those you lead when it comes to change. To enact positive change, leaders must

experience and share a common goal with their peers. Because I have provided financial

education in the classroom, I have developed a wealth of information about how students

learn and what motivates them to want to learn. I worked with a team of financial

counselor and educators and we all shared a common passion for our students and their

overall financial well-being. This association allowed me the opportunity to create an

educational learning philosophy within my work and classroom environments that

accepted, identified, and worked as a team to implement change.

Reflection on Importance of the Work

The project I decided to take on was a program evaluation that would identify

potential issues with the current program and offer suggestions to church stakeholder that

would inspire change within rural adults. Since the Money Smart curriculum could not be

changed, this project focused on how to assess student learning and motivate them to

want to change their views regarding the importance of financial management. This task

was easy for me, because I had to take the financial literacy class prior to teaching the

course. This was the initial step to work out any potential issues with the curriculum.

118

The next step was to sit in the place of an adult learner and anticipate any issues

these adults might have while taking the course. Having this perspective made it easy to

suggest changes to the financial literacy program with the intent of motivating adults to

learn and take control of their financial outcomes. For many of the students this would be

a big step, especially for those adults that do not like to make changes to how they view

money and the importance of financial literacy.

After I had planned potential changes to the program, multiple revisions of

PowerPoint slides and notes were prepared to ensure I did not miss any critical steps to

implementing change within the program. This process also helped me get to know the

inner working of the project and help convey project outcomes to church stakeholders.

The process of completing this program evaluation gave me the opportunity to become

more proficient in the process of research and data analysis.

As an individual, I have grown because I pushed myself and independently

accomplished this task. As an educational leader, I have demonstrated that I am capable

of completing long-term, multifaceted tasks to solve educational problems. This project

has empowered me to continue to review, study, and become a member of the leadership

team within my community that would continue to seek new ways of enacting positive

social change.

Analysis of Self as Scholar

I learned that I had a lot to learn about becoming a scholar. Now that I have

completed the project, I am confident in doing a self-analysis of my abilities as a Scholar.

As a Walden scholar, I have learned that prior planning, research and past coursework

119

interconnect. This foundational support has led up to and includes the completion of this

project study. My early courses forced me to become an online student, manage time

effectively, and learn how to ask specific questions. In addition, I have learned how to

locate, access, and utilize the Walden library website. I have also learned how to identify

an educational problem, locate current peer-reviewed literature, formulate a hypothesis,

and write research questions that specifically target an educational problem. I have also

learned how to conduct research, interact with and learn from participants, and analyze

data.

A prominent theme emerged during the analysis of the data. I learned that I had a

great deal to learn about myself and being a scholar. I learned that I did not have a firm

grasp of the concept until I completed this project study. This program evaluation led to

an even more effective financial literacy program that encourages rural adults to change

negative financial behaviors and acquire more positive financial behaviors. This process

allowed me to become more confident in my ability to be a scholar, someone that has a

passion for positive social change in the lives of rural adult learners.

Analysis of Self as Practitioner

During this process, I have learned much about myself as a practitioner. I have

been leading, teaching, and training for over 25 years. During the past three years, I have

become actively engaged in learning about and solving educational problems that are

evident within my community. Throughout this doctoral journey, I have learned how to

research and provide strategies to solve educational issues that were present within those

adults that lived and worked in my community. I have also learned that the role of

120

practitioner if very vital to positive social change within my community. I now discuss

educational issues with church and community leaders on a regular basis. I have learned

that there was a need to help stimulate change, especially in the financial lives of rural

communities. This journey has allowed me the opportunity and has encouraged me to

become a leader within my community.

Analysis of Self as Project Developer

Throughout this process, I have grown socially and professionally. When I started

the Walden Higher Education and Adult Learning program, I saw an opportunity for me

to fulfill a lifelong dream. I have always wanted to teach at an institution of higher

learning and thought this program would help me achieve that dream. Obtaining this

degree was a personal goal and would be a major accomplishment for me and my family.

There are no educators in my family and I would be the first. In today’s educational

culture, the foremost task that most communities face was educating those adults that

might have the means to seek higher learning.

As an educator, I learned how to review the latest findings of educational research

and future trends, which related to increased expectations for student learning. I have also

learned how to solve educational problems within my community by implementing

strategies that I have learned about through this process. Learning all these aspects has

allowed me the opportunity to become a better person in the area of teaching and

program evaluation. I learned that project developers are instrumental in aiding change

for adult learners.

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The Project’s Potential Impact on Social Change

Local Community

The implications for positive social change include assisting the community with

research data that would help improve financial assistance and education programs within

the community. By participating in this project and completing the survey, the responses

helped evaluate whether or not existing financial literacy programs are helping

participants gain the necessary financial literacy skills needed to change their long-term

financial behaviors. The community will ultimately benefit from this financial data, as

there is limited data on whether or not financial literacy programs are effective.

The implications for positive social change include program participants gaining

the necessary financial literacy skills needed thus empowering these adults and their

families to change their long-term financial behaviors. Positive social change

implications resulting from this project include increasing the knowledge levels of

educators, program developers, and other researchers who are seeking understanding into

effective ways of increasing utilization rates in financial education programs among rural

minority families. Social change could occur for those rural minority families as

organizations working to develop and implement evidence-based programs that interrupt

the cycle of non-utilization among rural minority families.

Far-Reaching

Currently, there are gaps in the study of financial literacy program evaluation and

this study could help fill current gaps. This project would inform researchers,

policymakers, and educators about the beliefs and perceptions of the minority family

122

participation in community-based financial education programs. The assessment of the

financial literacy programs could possibly facilitate enhancements to existing financial

literacy program designs and other financial services offered to rural communities.

This project has three primary implications. First, offering financial education can

have positive effects on savings and credit outcomes among very minorities living in

rural communities. Financial education can also lead to improvements in program

participant’s own understanding of financial issues. If increasing savings levels and

improving credit outcomes are public goals, then financial literacy programs can only

enhance public programs and policy. However, it was hoped that the information gained

from this project would help the greater community by providing insight into the

financial literacy program and determining if the program helped participants gain the

necessary financial literacy skills needed to change long-term financial outcomes.

Implications, Applications, and Directions for Future Research

The purpose of this project was to evaluate an existing financial literacy program

and evaluate its effectiveness. This process has educated me in how to conduct, and

analyze research data to identify a problem. In addition, I also conducted a data analysis

that led to the necessary changes in the current program delivery that would hopefully

motivate rural adults to participate in the program. The goal of this project was to reach a

community of rural adults and ultimately enhance their financial literacy skills. The hope

was that this project study would provide an opportunity and incentive for rural adults to

take full advantage of community financial literacy programs. Doing so would not only

123

change their current financial outcomes but give them the skills necessary to change their

current economic situations. My expectation was that all communities begin to take an

active role in offering financial literacy programs that produce positive social outcomes.

Additional future research in the form of program evaluations can be useful in

financial literacy because of the gaps in research. This program evaluation has the ability

to contribute to future research in efforts to demonstrate that effective financial literacy

programs have the potential to positively impact the lives of rural adults. The direction of

future research depends on what goal we are seeking. If the goal was to improve financial

literacy in rural minorities, the direction of that research would have to focus on

improving financial education programs. Financial education would have to be look upon

as a critical life skill that was needed just like reading and writing skills to function in

society.

Finally, existing research on financial literacy was not consistent when drawing

conclusions about the effectiveness of financial literacy programs. It was hoped that this

project study would help fill the gap in existing financial literacy effectiveness research

by documenting the perceptions of rural minority adults and their perceptions on the

value of financial literacy programs. Current policy focuses on increasing financial

education, however: there was no consistent research to prove the existing programs are

even making an impact with minorities in rural communities.

Conclusion

In Section 4, I have discussed my project’s strengths, limitations, and

recommendations for the financial literacy program offered by Money Smart. This

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section also included an examination of scholarship, project development and evaluation,

and my reflections of myself as a scholar, practitioner, and project developer. In addition

to my growth as a scholar, the second most important aspect of this study was its effect

on social change. Both of these facets are a part of me as an individual, teacher, lifelong

learner, and educational problem solver.

125

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Appendix A: The Program Evaluation Report

Nonprofit Financial Literacy Program for Adults Living in Rural

Communities Evaluation Report

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Table of Contents

List of Tables .......................................................................................................................v

List of Figures .................................................................................................................... vi

Executive Summary .............................................................................................................1

Purpose of the Study ......................................................................................................2

Review of the Literature ................................................................................................2

Methodology ........................................................................................................................3

Research Design and Approach .....................................................................................3

Conceptual Framework ........................................................................................... 3

Evaluation Methodology ......................................................................................... 3

Participants .....................................................................................................................4

Measures for Ethical Protection of Participants...................................................... 4

Data Collection ..............................................................................................................5

Data Analysis .................................................................................................................5

Criteria for Selecting Participants ................................................................................. 5

Data Analysis Results ..................................................................................................69

Research Questions and Outcomes ..........................................................................7

Conclusion ...................................................................................................................27

References ..........................................................................................................................28

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List of Tables

Table 1. Descriptive Statistics …………………………………………………………….8

Table 2. Chi-Square Frequencies.………………………...………………………………8 Table 3. Chi- Square Test Results ……….…….…………………………………………8

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Executive Summary

Introduction of Problem

The local problem of whether the Financial Empowerment personal financial

literacy program effectively addressed rural students’ needs was the focus of this study.

Consumer research has indicated that financially uneducated adults who live in rural

areas often make poor financial decisions that plague them for decades. As a result of

increased home foreclosures, student loan defaults, and bankruptcies, policymakers at the

state and federal level, business leaders, academic communities, and non-profit agencies

identified a need for quality financial education programs. This program evaluation used

quantitative descriptive data to capture the perceptions of the program participants

(Creswell, 2002, 2003; Creswell et al., 2003). The success of rural adult learners

surviving future economic downturns is critical, and existing financial literacy programs

must be custom-made to meet the literacy needs of these learners.

Financial Empowerment is a local faith-based nonprofit organization that

provides a wide range of personal financial education classes as part of its financial

literacy program. The goal of the course is to teach rural adults personal finance skills

that transform their current economic situations. The program offered is 5 weeks long and

consists of eight personal finance modules. Each module lasts for approximately 2 hours

once per week. The Money Smart curriculum consists of ten modules: (a) Bank On It: an

introduction to bank services, (b) Borrowing Basics: an introduction to credit, (c) Check

It Out: how to choose and keep a checking account, (d) Money Matters: how to keep

track of your money, (e) Pay Yourself First: why you should save, save, save, (f) Keep It

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Safe: your rights as a consumer, (g) To Your Credit: how your credit history will affect

your credit future, (h) Charge It Right: how to make a credit card work for you, (i) Loan

To Own: know what you’re borrowing before you buy, and (j) Your Own Home: what

home ownership is all about. The curriculum is available in both an instructor-led version

and a computer-based instruction (CBI) version. For this study, all sites used the

instructor-led version. The instructor-led curriculum is available in six languages

(English, Spanish, Chinese, Korean, Vietnamese, Russian), as well as Braille and large

print. Only the English and Spanish language versions were used to develop the survey

(FDIC, 2001).

Purpose

The purpose of this study was to examine the effectiveness of one financial

literacy program created for financially uneducated adults living in a rural community, as

measured by participants’ perceptions, understanding of financial concepts, and financial

behavior changes after program completion. The organization implemented a new

financial management course for adults living in the rural community of Tattnall County

in Georgia in 2011. Implementation has been quite expensive, involving the purchase of

instructional materials and computer software, and faculty training. The organization

would like to study the effectiveness of the new financial management program, looking

at issues such as the effect on student participation rates, student academic progress,

student satisfaction with the program, and program implementation issues.

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Review of Literature

An exhaustive review of the literature between 2001 and 2016 in several specified

databases using the keywords revealed limited research on financial literacy for rural

adults. The database searches revealed limited scholarly articles on financial literacy.

Different points of view were presented to predict the relationship of the present study to

previous research on financial literacy. Considering the local level problems with adults

not participating in financial literacy education programs, and the local communities’

desire to increase training participation for rural minority adults to become more

financially literate, local financial education program’s most significant and relevant

flaws were reviewed.

Evaluation Design and Conceptual Framework











knowledge, learning equations, or memorizing mathematical formulas. It is a valuable

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process for adults to learn to think for themselves, through redefining what they have to

come to know through life experiences (Merriam et al., 200 7). In this case, participating

in the financial literacy program should assist the students in gaining new financial skills,

thus changing overall financial behaviors.

Evaluation Methodology











knowledge, learning equations, or memorizing mathematical formulas.

Participants

Data were collected once Walden University and the evaluation site received IRB

approval. Walden University’s approval number for this study is 11-14-14- 0164758.

During this study, I surveyed past financial literacy attendees from the rural community

of Tattnall County, Georgia. There were a total of 50 attendees that completed the class.

This population consisted of rural adults living in the Southeastern region of Tattnall

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County Georgia in the United States. The program evaluation used purposeful sampling

to identify past financial literacy program participants. According to Creswell (2008), the

use of standardized sampling helps identify individuals or sites based on membership in a

subgroup that has defining characteristics. This study focused on attendees living in a

rural community who have attended the financial literacy class offered by Financial

Empowerment.

A pre-established informed consent form developed by Walden University was

utilized for this study (See Appendix B). The form stated that the participants are

guaranteed certain rights, agreed to be involved in the study, and acknowledged that their

rights were protected. The confidentiality of participants was protected by numerically

coding each returned questionnaire and keeping the responses confidential. During the

cataloging process, the surveys sheets were processed and the information obtained from

each survey was recorded using Microsoft Excel as the primary tool for data analysis.

After the data was processed, the data was then placed in an Excel spreadsheet and saved

for later review by this researcher.

Research Questions

All of the project research questions were formatted to be answered as a result of

the data collected from the Money Smart Survey. Financial education is universally

assumed to affect knowledge and behavior, yet its impacts remain relatively untested.


regarding the financial literacy program offered by Financial Empowerment?

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Research Question 3: Does the program provide students with a realistic

experience to prepare them for future financial responsibilities

Data Analysis and Research Question Outcomes

Analysis of nonparametric statistics were calculated using a chi-square test with a

95% confidence level (p < 0.05). Chi-square was calculated with the use of the Excel

statistical software based on 4 degrees of freedom and a 5- column Likert scale (1 =

strongly agree, 2 = agree, 3 = not sure, 4 = disagree, and 5 = strongly disagree). Chi

square test results for each of the three survey items above yielded the following results:

Q1: Because of the financial literacy program, I feel I can manage my finances

better indicated results were significant, χ2 (4, N = 36) = 56.50, p < .05. The chi-square

test rejects the null hypothesis.

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Q2: Because of the financial literacy program I am more financially

knowledgeable indicated the results were significant, χ2 (4, N = 36) = 48.72, p < .05. The

chi-square test rejects the null hypothesis.

Q3: I feel that I can use what I learned in this program on my own indicated

results were significant, χ2 (4, N = 36) = 56.50, p < .05. The chi-square test rejects the

null hypothesis.

In response to RQ2: What is the difference between actual responses for


result of participating in the financial literacy program?, it is therefore concluded that

there is a difference between the actual responses for knowledge gain and hypothesized

(equally distributed) responses for knowledge gain as a result of participating in the


The remaining survey results have been placed into a PowerPoint slides for

further review. The initial slides describe the demographic findings, while remaining

slides are in chart form to illustrate the descriptive data findings.

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Data Analysis and Research Question Outcomes Table 1 Descriptive Statistics N Mean Std. Deviation Minimum Maximum RQ1 36 7.20 9.654 1 23 RQ2 36 7.20 10.826 1 26 RQ3 36 7.20 12.256 1 29 Table 2 Chi-Square Test Frequencies

a. 3 cells (100.0%) have expected frequencies less than 5. The minimum expected cell frequency is 7.2. b. Based on 1 sampled tables with starting seed 2000000. Table 3 Chi-Square Test Results Knowledge Test Results Data RQ1 RQ2 RQ3 Chi-square (Χ2) value 56.50 48.72 56.50 Critical Value 9.49 9.49 9.49 Reject Null Hypothesis Yes Yes Yes Sig. 0.05 df 4

Satisfaction Observed

NExpected

N ResidualObserved

NExpected

N ResidualObserved

NExpected

N ResidualStrongly agree 15 7.2 7.8 23 7.2 15.8 21 7.2 13.8Agree 21 7.2 13.8 8 7.2 0.8 15 7.2 7.8Not sure 0 7.2 -7.2 4 7.2 -3.2 0 7.2 -7.2Disagree 0 7.2 -7.2 1 7.2 -6.2 0 7.2 -7.2Strongly disagree 0 7.2 -7.2 0 7.2 -7.2 0 7.2 -7.2Total 36 36 36 36 36 36

RQ1 RQ2 RQ3

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Program Outcomes

This project centered on whether the existing financial literacy program possessed

all of the components needed to inspire rural adults to take advantage of the program.

Improving the program would only assist these families with developing the necessary

skills and behavioral changes needed to become successful in this current economic

environment. The desired results of this project were to provide powerful insight from

these rural families on the challenges they face regarding community-based financial

education program participation and the effectiveness of these programs. If the results

lean toward the curriculum influencing program participation and behaviors, the

appropriate changes will be suggested. Because the Money Smart curriculum cannot be

changed at the local level all changes and recommendations have to be forwarded to the

FDIC on a suggestion form. After this form is received, the FDIC will respond based on

the project results and recommendations. If the FDIC does not accept the changes or

recommendations, the local organization will have to seek other alternative ways to

improve the curriculum. If the FDIC accepts the changes, this information would then be

integrated into the locally offered financial education program with the ultimate outcome

of empowering minority families.

Program participants expressed on the survey that the program did provide them

with the skills needed to do better in their everyday financial endeavors. This information

assisted with the desired outcome of this project in that it would inform the FDIC,

researchers, policymakers, stakeholders, and educators about the beliefs and perceptions

of the minority family participating in community-based financial education programs.

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The FDIC and community stakeholders would be the targeted audience for all

recommendation and suggestions to program improvement. The information from the

project would assist researchers with making decisions as to, which aspects of financial

education they would need to further study. The policymakers would benefit from this

project because they would then have more definitive study information to help with

making future financial policies that benefit rural adults. The stakeholders benefit from

this study because they would be able to offer financial education that specifically targets

the needs of rural adults within their communities. The educators would benefit from this

study because they would have greater insight into the connections between the

curriculum and the outcomes of the rural adult student after participating in the program.

The assessment of the financial literacy programs could possibly facilitate enhancements

to other existing financial literacy program designs. In addition, evaluation of financial

literacy programs can provide sponsors with information needed to regulate and adjust

these programs to better accommodate those minority families that utilized the programs.

The project could possibly assist other schools with low graduation rates and

achievement gaps in financial literacy improve their current learning environments.

Conclusion

The primary goal of the Money Smart program was to provide individuals with

the necessary information to evaluate and make their own financial decisions. The project

data supported the fact that the Money Smart program was effective and meet the needs

of those rural adults who participated in the course. The only change recommended was

changing the delivery format and time frame in, which the program was offered. The

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Money Smart program consisted of a set of 10 instructor-led training modules that cover

a number of key financial topics including: general banking services, how to choose and

maintain a checking and savings account, how to budget your money, the importance of

saving, and how to obtain and use credit effectively. The program takes approximately 2

weeks to complete. Most modules last approximately 60 minutes, and a few topics

require more time. To date, program participants have included welfare-to-work

participants, Spanish-speaking immigrants, Chinese immigrants, public housing residents

in Chicago, and community college students. Between May 2002 and February 2003,

data were collected from 408 program participants. It will be recommended to the local

stakeholder invest in a pilot study and offer the course through an online format that

would be aligned with stated program goals. If the pilot is a success, then offering the

course through online format could possibly strengthen the participation rates for the

program.

Another goal of this program evaluation was to increase use of existing

community-based financial literacy programs and better meet the needs of minority

adults living in rural communities. As stated earlier, recommendations from this project

would benefit policymakers because they would then have more definitive study

information to help with making future financial policies that benefit rural adults. The

stakeholders would benefit from this study because they would be able to offer financial

education that specifically targeted the needs of rural adults within their communities.

The educators would benefit from this study because they would have greater insight into

the connections between the curriculum and the outcomes of the rural adult student after

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participating in the program. In addition, researchers would benefit from this project

because they would have solid study information to add to existing data and this would

save them time and money by eliminating the need to study data that were already

studied. The project study found that age and work experience were positively related to

financial literacy. Moreover, income levels positively correlated with survey respondent’s

satisfaction with the financial literacy program. The findings also indicated that survey

respondents with high level of education displayed higher financial literacy levels than

non-educated respondents. Survey results varied with age, education levels, marriage

status, gender, employment status, and income levels. Thus, the results were not strong

enough to definitely identify any potential changes needed to improve the financial

literacy program.

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Slide 1: Appendix A: The Project

Slide 2 Introduction This project assessed the Financial Empowerment Literacy Course by measuring participants’ financial knowledge, financial confidence, and financial behavior changes after participating in the course. Overall participant satisfaction with the course was also examined. The three guiding research questions that explored the effectiveness of the financial program were “What are the perceptions of stakeholders and students regarding the financial literacy program offered by Financial Empowerment and does the program provide students with a realistic experience to prepare them for future financial responsibilities?” and “Are minority adult learners, with limited or no financial literacy skills, gaining financial knowledge and understanding skills as a result of participating in the program?” The project findings are conveyed in the next section. Slide 3 Project Description The loss of jobs, loved ones, and physical injuries can be life-changing events that transforms how we view the world. The emphasis is providing rural minorities’ financial education that allows them to make better-informed decisions. The goal of the financial literacy program is to motivate these adults to make a decision to accept the loss of income or look at learning new skills so that he/she can move past the loss. The overall objective is to provide a personal financial literacy program specifically targeted to this segment of the population that addresses gaps related to financial literacy involvement. This project centered on whether the existing financial literacy program has all the components needed to inspire rural adults to take advantage of the program. Improving the program can assist these families with developing the necessary skills and behavioral changes needed to become successful in this current economic environment. The results of this project will hopefully provide powerful insight from these rural families on the challenges they face regarding community-based financial education program participation and the effectiveness of these programs. Program participants were asked to complete three two parts of the Money Smart survey. Of the 50 mailed surveys, 36 responded while 14 did not respond. Of the 36 returned surveys, 30 completed all sections of the survey while 6 left some questions blank. Most of the questions left blank pertained to those questions about annual income and how many family members resided in the home. The remaining survey findings will be presented according to respondent demographic characteristics. Slide 4 Project Goals The goal of this program evaluation is to increase utilization of existing community based financial literacy programs and better meets the needs of minority adults living in rural communities. This information will then be integrated into the financial education program with the ultimate outcome of empowering minority families. This project will inform researchers, policymakers, and educators about the feelings and perceptions of the minority family participating in community-based financial education programs. The assessment of the financial literacy programs could possibly facilitate enhancements to other existing financial literacy program designs. In addition, evaluation of financial literacy programs can provide sponsors with information needed to regulate and adjust these programs to better accommodate those minority families utilizing the programs.

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The project could possibly assist other schools with low graduation rates and achievement gaps in financial literacy improve their current learning environments. Slide 5 Project Implementation Because this project focused on a financial literacy program that was already implemented the program evaluation focused on student outcomes after participating in the financial course. The stakeholders requesting this program evaluation are interested in providing a financial program to rural adults in efforts of improving these adults’ economic outcomes. They are interested in those rural adults using the financial program and how the program can motivate these adults to participate in and change their attitudes towards personal finances (Spaulding, 2008, p. 12). An outcomes-based program evaluation asks if an organization is conducting the appropriate program activities needed to bring about the verified outcomes for the program participants. Outcomes are benefits that minority adults gain from participation in the financial literacy program. Outcomes are usually in terms of enhanced learning, knowledge, perceptions/attitudes, skills, and or conditions. The United Way of America’s website (2013) provides an excellent overview of outcomes-based evaluation, including introduction to outcomes measurement, a program outcome model, why to measure outcomes, use of program outcome findings by agencies, eight steps to success for measuring outcomes, examples of outcomes and outcome indicators for various programs and the resources needed for measuring outcomes (United Way, 2013). Slide 6 Project Outcomes Project Outcomes will be further discussed in conjunction with the Project Analysis

Slide 7 Data Analysis Results Program participants were asked to complete three two parts of the Money Smart survey. Of the 50 mailed surveys, 36 responded while 14 did not respond. Of the 36 returned surveys, 30 completed all sections of the survey while 6 left some questions blank. Most of the questions left blank pertained to those questions about annual income and how many family members resided in the home. The remaining survey findings will be presented according to respondent demographic characteristics.

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Slide 8 Project Results Slide 9 Table 1 Returned Surveys

Respondent Age Category Returned Completed % Returned Surveys (Not Completed) %

18-24 7 14% 0 0%

25-34 14 28% 1 3%

35-44 9 18% 3 8%

45-54 5 10% 1 3%

55-64 1 2% 1 3%

36 72% 6 17%

As can be seen in Table 3, only 72% of the respondents returned completed surveys while only 17% did not return completed surveys.

Slide 10 Table 2 Returned Surveys by Gender Male % Female %

18-24 3 8% 4 11%

25-34 6 17% 8 22%

35-44 6 17% 3 8%

45-54 1 3% 4 11%

55-64 0 0% 1 3%

16 44% 20 56%

As can be seen in table 4, of the total surveys returned only 44% of the respondents were male and only 56% of the respondents were female. The survey responses were broken down according to age categories. Based on the surveys returned the age categories 25-34 and 35-44 accounted for 34% of total respondents separately.

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Slide 11 Table 3 Returned Surveys by Marital Status Married % Single % Divorced % Widowed %

18-24 3 8% 2 6% 2 6% 0 0%

25-34 5 14% 6 17% 3 8% 0 0%

35-44 3 8% 3 8% 2 6% 1 3%

45-54 4 11% 0 0% 0 0% 1 3%

55-64 0 0% 0 0% 0 0% 1 3%

15 42% 11 31% 7 19% 3 8%

As can be seen in table 5, of the total surveys returned, only 42% of the respondents were married, 31% were single, 19% responded as being divorces, and only 8% of the respondents were widowed. The survey responses were further broken down according to age categories. Based on the surveys returned the age categories 25-34 accounted for 31% or the majority of completed surveys returned. Slide 12 Table 4 Returned Surveys by Education Levels No High

School % High

School % Some

College % College

Graduate % Graduate

School %

18-24 1 3% 6 17% 1 3% 0 0% 0 0%

25-34 0 0% 14 39% 6 17% 3 8% 0 0%

35-44 1 3% 5 14% 2 6% 1 3% 0 0%

45-54 1 3% 3 8% 0 0% 1 3% 0 0%

55-64 1 3% 0 0% 0 0% 0 0% 0 0%

4 11% 28 78% 9 25% 5 14% 0 0%

As can be seen in table 6, of the total surveys returned, only 11% of the respondents did not graduate high school, 78% graduated high school, 25% had some college, 14% were college graduates, and 0% had a graduate degree. The survey responses were further broken down according to age categories. Based on the surveys returned the age category 25-34 accounted for 39% or the majority of completed surveys returned.

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Slide 13 Table 5 Returned Surveys by Employment Status

Full-Time % Part-time % Currently Not Working %

18-24 3 8% 4 11% 0 0%

25-34 9 25% 2 6% 3 8%

35-44 5 14% 3 8% 1 3%

45-54 3 8% 0 0% 2 6%

55-64 0 0% 0 0% 1 3%

20 56% 9 25% 7 19%

As can be seen in table 7, of the total surveys returned, 56% of the respondents worked full-time, 25% worked part-time, and 19% did not currently work. The survey responses were further broken down according to age categories. Based on the surveys returned the age category 25-34 accounted for 25% or the majority of completed surveys returned, with the 35-44 age category following with 14% of completed surveys returned. Slide 14 Table 6 Returned Surveys by Income Levels Under

$4,999 % $5,000 to

$9,999 % $10,000 to

$19,999 % $20,000 to

$29,999 % Over

$30,000 %

18-24 0 0% 4 11% 3 8% 0 0% 0 0%

25-34 2 6% 3 8% 5 14% 0 0% 4 11%

35-44 1 3% 2 6% 2 6% 1 3% 3 8%

45-54 0 0% 1 3% 1 3% 3 8% 0 0%

55-64 0 0% 0 0% 1 3% 0 0% 0 0%

3 8% 10 28% 12 33% 4 11% 7 19%

As can be seen in table 8, of the total surveys returned, only 19% of the respondents earned over $30,000, 28% earned under $10,000, 33% earned under $20,000, and 11% earned under $30,000. The survey responses were further broken down according to age categories. Based on the surveys returned the age category 25-34 accounted for 28% or the majority of completed surveys returned earning the most. Slide 15 Survey Results Parts I & II • The next set of data will summarize respondent answers to questions asked in Part I and Part II of

the Smart Money Survey. These sections will assess each respondent’s financial profile, financial behavior, program view, and potential behavior outcomes as a result of completing the program.

• Each survey question will be outlined with a corresponding chart of results.

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Slide 16 • As can be seen in Figures 4 and 5 respectively, respondents indicating whether or not they had a

savings and checking account is significantly diverse. As can be seen, only 58% had savings accounts while only 42% did not have a savings account. As can be seen, only 72% of the respondents had a checking account versus 28% reporting they have not checking account. The high number of checking accounts could be connected to the fact that more people use debit/ATM cards versus writing paper check.

Figure 4: Percentage of those respondents Figure 5: Percentage of those respondents with and without saving accounts (N = 36) with and without checking accounts (N = 36).

Slide 17 • As can be seen in Figure 6, only 3% of the respondents cashed their checks at convenience stores,

17% at grocery stores, while 6% utilized their employers to cash their checks. This is a rural area and many do not have access to vehicles so these results are not surprising.

• The data also indicated that only 47% utilize banks/credit unions while 5% utilized payday lenders. This is one of the behaviors that the Money Smart curriculum attempts to help consumers change. The curriculum educates participants about the costs associated with using a bank/credit union versus payday lenders.

• The remaining respondents 22% indicated they use other sources the cash their checks. It is likely that these other sources are friends or the participants have the funds placed on prepaid PayPal cards such as the Walmart green dot MoneyPak and others.

Figure 6: Where respondents cash their checks (N = 36).

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Slide 18

• As can be seen in Figure 7, only 7% of the respondents indicated they pay more than $20.00 to cash their checks per month. This is most likely due to lack of transportation or bank accounts. Only 11% pay more than $5.00 to cash their checks while 15% pay less than $5.00.

• The majority of the respondents indicated they pay no fees to cash their checks. This most likely is contributed to having bank/credit union accounts where they utilized direct deposit options to cash their checks.

• Also most public assistance recipients are required to have a bank account to receive their benefits. No respondents indicated they pay more than $30.00 per month to cash their checks.

Figure 7: How much respondents pay to cash their checks, (N = 36). Slide 19 • As can be seen in Figure 8, only 3% of the respondents still write less than 5 checks per month, 6%

indicated they write less than 3 checks per month, 14% indicated they only write 1 to 2 checks per month.

• The writing of checks is most likely due to those respondents not having a bank/credit union checking account.

• The high number of respondents that indicated they write no checks per month can be linked to the high number of consumers utilizing debit/ATM cards versus writing paper checks to pay their bills on a monthly basis.

Figure 8: Monthly written checks (N = 36).

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Slide 20 • As can be seen in Figures 9 and 10 respectively, Only 42% of the respondents indicated they make

greater than 5 monthly withdrawals per month, 50% indicated they make greater than 3 monthly withdrawals, 8% indicated they make at least 1 monthly withdrawal, and no respondents indicated they do not make monthly withdrawals. The results are likely due to recipients having their paychecks, benefits checks, and other monetary gifts deposited by others.

• After the deposits are made the income is immediately utilized to pay bills and purchase other necessities on a monthly only 8% of the respondents indicated they make greater than 5 monthly deposits per month, 11% indicated they make greater than 3 monthly deposits, 64% indicated they make at least 1 monthly deposit per month, and 17% indicated they do not make monthly deposits per month. Survey response indicate this is likely due to recipients having their paychecks, benefits checks, and other monetary gifts deposited by others.

Figure 9: Percentage of those respondent Figure 10: Percentage of respondent monthly withdrawal activity (N = 36) monthly deposit activity (N = 36)

Slide 21

• As can be seen in Figures 11 and 12 respectively, as can be seen only 29% of the respondents

indicated they use money orders, 24% indicated they use cash, 21% indicated they use credit cards, while 26% of the respondents indicated other. These responses are most likely contributed to those respondents and their access to transportation.

• Most neighborhoods have places that sell money orders and provide access to Western Union/MoneyGram services.

• As can be seen only 33% of the respondents indicated they utilize wiring services while 67% of the respondents indicated they did not use these services. It is most likely that these respondents did not want to pay the fees associated with sending money quickly. These fees can range from $9.00 to $49.00 depending upon the amount of funds being wired.

• It is likely that those respondents that were willing to pay the additional fees for the wiring services deemed that sending the funds was of urgency. Most companies have quick collect polices that allow the utilization of Western Union/MoneyGram to pay mortgages, car payments, utilities, send money to other bank accounts, and pay other bills.

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Figure 11: Percentage of respondents without Figure 12: Percentage of respondents that wire checking accounts and their payment methods (N = 36) money (N =36).

Slide 22 • As can be seen in Figure 13, only 19% of the respondents indicated they do not borrow money while

81% of the respondents indicated they do borrow money.

• The question of borrowing money and respondent borrowing behaviors/habits will be discussed in subsequent charts.

Figure 13: Borrowing Money (N =36). Slide 23

• As can be seen in Figure 14, only 3% of the respondents indicated they do not borrow money, 11%

indicated they borrow from credit cards, 11% indicated they borrow from payday lenders, 10% indicated they borrow from rent-to-own centers, 15% indicated they borrow from other sources, 16% indicated they borrow from banks/credit unions, and the majority, 34% of respondents, indicated they borrow money from family and friends.

• There are assumptions that may explain the survey responses to this question: Some respondents may not have access to traditional lending institutions such as banks and credit unions to borrow money. Some respondents may have poor credit and are unable to borrow money. Some respondents may have filed bankruptcy in the past and are unable to borrow money.

• These are only assumptions based on respondent indicators and my past experience as Financial Counselor. One of the ultimate goals of the Money Smart financial program is to help respondents change behaviors in regards to their borrowing habits. If the respondents choose not to change behavior, they at least know the potential outcomes associated with their borrowing choices.

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Figure 14: Who respondents borrow money from (N =36).

Slide 24 • As can be seen in Figure 15, the majority, 35% of respondents, indicated they borrow money to pay

bills, purchase groceries, pay rent, and utilities, 20% indicated they borrow money for educational purposes, 8% indicated they borrow money to purchase a home or pay initial rent and deposits, 13% indicated they borrow money to purchase appliances, furniture, TVs, VCRs, and stereo equipment, and 21% indicated they borrow money for other reasons.

• Survey responses are most likely due to the respondent’s economic situation, coupled with whether or not they have experienced a job loss or layoff. With the loss of jobs, some consumers are increasingly finding themselves unable to paying bills and may opt to borrow money to pay for day-to-day living expenses. Only 3% of the respondents indicated they do not borrow money.

Figure 15: What respondents borrow money for (N =36).

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Slide 25

• As can be seen in Figure 16, 53% of the respondents indicated they knew the interest rates on their loans, only 19% of the respondents indicated they do not know the interest rates on their loan accounts while 28% indicated they are not sure of the loan rates. Responses are most likely due to consumers being more focused on how month monthly payments are versus how much it will cost them to borrow money.

• These responses influenced the Money Smart financial literacy program to educate respondents on knowing how much it cost to borrow money over time. It is not known if knowing the costs will actually change consumer behavior in all respondents; however, it could help them make more informed choices when borrowing money.

Figure 16: Monthly written checks. Slide 26 • As can be seen in Figure 17, only 67% of the respondents know how to open up a checking account,

18% of the respondents indicated they do not know how to open up a checking account, and 15% of the respondents indicated they were not sure how to open up a checking account.

• Survey responses are most likely due to the fact most consumers do not associate the use of a debit/ATM cards with checking accounts.

• Usually the debit/ATM process is marketed to consumers as separate banking products and can be confusing to those consumers not having financial knowledge about banking activities.

Figure 17: Respondent knowledge on how to open up a checking account (N = 36).

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Slide 27 • As can be seen in Figure 18, the majority, 67% of the respondents, indicated they know how to

write checks, only 23% indicated they do not know how to write checks, while only 10% of the respondents indicated they are not sure how to write checks.

• These responses are most likely due to the increased use of debit/ATM cards by consumers to pay bills and make everyday purchases.

• Lending institution are changing every day due to the increased use of technology and most are encouraging consumers to pay bills online using bill pay services or by debit/ATM.

Figure 18: Respondent knowledge of how to write checks (N = 36). Slide 28 • As can be seen in Figure 19, only 8% of the respondents indicated they do not know how to use an

ATM/Debit card, while the majority, 92% of respondents, indicated they do know how to use an ATM/Debit card.

• Survey responses indicated that increases in banking technology most likely has had an impact on consumer banking activities.

• Most consumers have an ATM/Debit card and are familiar with using them to pay bills and make purchases.

Figure 19: Respondent knowledge of how to use an ATM/Debit card (N = 36).

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Slide 29 • As can be seen in Figure 20, only 29% of the respondents indicated they know the cost of having a

bank account, only 8% indicated they are not sure of the costs of having a bank account, while the majority, 63% of respondents, indicated they do not know the cost of having a bank account.

• These results indicated that some consumers fail to ask the necessary questions when opening a savings or checking account.

• It is also likely that consumers do not compare banks and fees when opening up a bank account.

Figure 20: Respondent Knowledge of the cost of having a bank account (N = 36). Slide 30 • As can be seen in Figure 21, the majority of respondents, 62% know how much it costs to borrow

money from a bank, only 20% of the respondents indicated they do not know how much it costs to borrow money from a bank, while only 18% of respondents indicated they are not sure of how much it costs to borrow money from a bank.

• The survey responses strongly indicate some consumers lack the financial knowledge of how banking institutions work.

Figure 21: Respondent knowledge of the cost of borrowing money from banks (N =36).

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Slide 31 • As can be seen in Figure 22, 39% of respondents do know what an APR (annual percentage rate) is,

however the majority, 53% of respondents, indicated they do not know what an APR (annual percentage rate) is, while only 8% of respondents indicated they do not know what an APR (annual percentage rate) is.

• The survey responses indicate that some consumers may get confused and think the APR (annual percentage rate) is the same as the interest rate (cost of borrowing money) on a loan.

Figure 22: APR (annual percentage rate) Knowledge (N = 36).

Slide 32 • The next set of data will summarize respondent answers to questions asked in Part II of the Smart

Money Survey. These sections will assess each respondent’s perspective of whether or not they experienced changes in their financial behaviors as a result of taking the financial literacy course. Each question will be outlined with a corresponding chart of results.

• The results are organized according to respondent age categories listed on the survey. Responses for these results are based on the total number of program participants that responded to the Money Smart survey (N = 36).

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Slide 33 Overall Program Evaluation Perceptions • As can be seen in Figure 23, 24, and 25 respectively, respondents demonstrated a favorable

perception of the financial literacy program.

• The responses indicated that respondents strongly agree that the program increased their financial knowledge levels.

• Respondents also responded favorably to the possibility of using their new found financial literacy skills to manage their finances.

Figure 23: Are respondents more financially knowledgeable as a result of the program? (N =36). Slide 34 • As can be seen in figure 24, respondents had mixed responses in reference to their ability to use the

information on their own.

Figure 24: Are respondents comfortable they can manage their finances better? (N = 36).

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Slide 35 • These responses are likely due to respondent perceptions of being in a position to actually apply the

information to their current situations.

Figure 25: Are respondents comfortable using what they have learned on their own? (N = 36). Slide 36 Project Implementation

Financial Empowerment is a non-profit corporation offering minority adults living in rural Tattnall County, Georgia financial solutions to their current economic situation. This program evaluation focused on their perceptions of the existing financial education program facilitated by Financial Empowerment. Over 50 percent of all survey respondents agreed that, as a result of participating in the program, they were more financially knowledgeable, were able to manage their finances better, and were able to use what they learned on their own. To measure overall program impact, Money Smart participants were asked to check the response that best indicated how much they agreed with the following three statements: 1. “Because of this program, I am more financially knowledgeable.” 2. “Because of this program, I feel I can manage my finances better.” 3. “I feel that I can use what I learned in this program on my own.” In addition, over half reported that they strongly agreed with all three impact statements, with the highest proportion of respondents strongly agreed that they could use what they learned on their own. It is important to acknowledge that these findings may be due to the fact that those who were the most satisfied with the program were those who did not drop out of the program. Changes will be implemented in phases over the next year because the current program schedules have already been published. These changes will then be integrated into the financial education program with the ultimate outcome of improving the financial literacy program with the ultimate outcome of improving participation and satisfaction rates of those rural adults wanting to take future financial literary courses.

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Slide 37

Conclusion

The study of adult perception of education can play an important role in adult literacy and financial education because it allows the adult to play a vital role in the development and improvement financial programs. Because this project evaluated an existing financial literacy program, the data analysis was utilized to update and change some of the program objectives. The major implementation to this program involved the changes that focused structuring the program to meet the needs of those participating in it. It is important to point out that while this project provided considerable insight into the effectiveness of the Money Smart program, it is was also limited in the following respects. First, attrition from the program and missing information on several surveys considerably reduced the sample size. In the end, only 36 of the participants completed both parts of the survey. The problems associated with the use of small sample sizes in this project was particularly acute in its inability to collect enough data to effectively evaluate the program. As a consequence, the results of the project data are in some cases driven by the responses of only a few individuals. Thus, while the findings provide some evidence that the Money Smart program succeeded in increasing participant financial literacy levels, one needs to be cautious and not regard these findings as conclusive.

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PowerPoint Presentation

• Evaluated the Money Smart Program from the perspective of the program participant.

• Disseminated a survey to former program participants with the intent of gauging how much information participants learned.

• Assessed survey participant responses to see if they found the financial literacy training beneficial.

• Assessed survey participant responses in correlation to their perception of the financial literacy program.

Assessment and Evaluation

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• Evaluated the Money Smart Program from the perspective of the program participant.

• Disseminated a survey to former program participants with the intent of gauging how much information participants learned.

• Assessed survey participant responses to see if they found the financial literacy training beneficial.

• Assessed survey participant responses in correlation to their perception of the financial literacy program.

Conclusion: Recap of Project Assessment and Evaluation

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Appendix B: Survey Instrument

Money Smart Survey ID Number ___________ Thank you for taking the time to respond to this survey for my study on financial literacy in rural communities. This survey will take approximately 13 minutes of your time to complete. Your answers are very important, because they will help to better meet the financial needs of the community and improve financial assistance programs within the community. Should you choose to respond to this survey, your information and responses will be kept confidential. Your responses will be used only for evaluation purposes for this study and will be safeguarded in a tamper-proof safe. Please do not put your name or any identifying information on this survey. Survey Evaluation Form – Part I Information on Your Current Banking Activities: 1. Do you currently have a checking account? ____ yes ____no How many checks do you usually write in a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not have a checking account How many deposits do you usually make in a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not have a checking account 2. Do you have a savings account? ____ yes ____no How many accounts do you have? ____ 1 ____ 2 ____ 3 or more ____ I do not have a savings account

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How many deposits do you usually make in a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not have a savings account How many withdrawals do you usually make in a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not have a savings account 3. If you do not have a checking or savings account, why not? (Check all that apply) ____ Don’t have enough money ____ Don’t trust banks ____ Poor credit history and banks won’t let me open an account ____ Banks don’t have convenient hours or locations ____ Don’t like dealing with banks, prefer currency exchanges ____ Don’t write enough checks ____ Don’t have a social security number ____ Don’t have a ITIN number ____ Don’t have a photo ID (example, driver’s license) ____ Bank fees/costs are too high ____ Don’t want the government to know how much money I have ____ other Where do you cash your checks? (Check all that apply) ____ currency exchange or payday lender ____ grocery store ____ bank or credit union ____ convenience store (example, liquor store or gas station) ____ employer ____ other How much do you pay to cash your checks per month? ____ $0 ____ $1.00 - $4.99

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____ $5.00 - $9.99 ____ $10.00 - $19.99 ____ $20.00 - $29.99 ____ more than $30.00 4. If you do not have a checking account, how do you pay your bills? (Check all that apply) ____ cash ____ money order ____ credit card ____ other 5. Do you wire money? ____ yes ____no How often do you wire money per month? ____ 1-2 times ____ 3-5 times ____ more than 5 times ____ I do not wire money 6. Do you borrow money? ____ yes ____no Who do you borrow money from? (Check all that apply) ____ family and friends ____ payday lender or title loan company ____ rent-to-own center ____ credit cards ____ bank ____ other ____ I do not borrow money What are you borrowing money for? (Check all that apply) ____ to pay the bills (groceries, rent, utilities) ____ for furniture, appliances, TV, VCR, stereo ____ for a car ____ for an education ____ for a house ____ other ____ I do not borrow money Do you know the interest rate on your loans?

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____ yes ____ no ____ I’m not sure Please check the best response for each statement: 7. I know how to open a checking account. ____ yes ____ no ____ I’m not sure 8. I know how to write a check. ____ yes ____ no ____ I’m not sure 9. I know how to use an ATM/debit card. ____ yes ____ no ____ I’m not sure 10. I know the cost of having a bank account. ____ yes ____ no ____ I’m not sure 11. I have compared the costs of using a bank versus a currency exchange. ____ yes ____ no ____ I’m not sure 12. I know how much it costs to borrow money from a bank. ____ yes ____ no ____ I’m not sure

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13. I know what an APR (annual percentage rate) is. ____ yes ____ no ____ I’m not sure ID Number ___________ Survey Evaluation Form – Part II Information about the Financial Empowerment Literacy Program: Please check the response that best indicates how much you agree with each statement: 1. Because of this program, I am more financially knowledgeable. ____ strongly agree ____ agree ____ I am not sure ____ disagree ____ strongly disagree 2. Because of this program, I feel I can manage my finances better. ____ strongly agree ____ agree ____ I am not sure ____ disagree ____ strongly disagree 3. I feel that I can use what I learned in this program on my own. ____ strongly agree ____ agree ____ I am not sure ____ disagree ____ strongly disagree Information on Your Future Banking Activities: 4. After participating in this program, do you plan to open a bank account? ____ yes, because ____no, because ____no, because I already have an account

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5. If so, what type of account do you plan to open? (Check all the apply) ____ savings account ____ checking account ____ other ____ I do not plan on opening an account ____ I already have an account 6. If you open a bank account, how many deposits do you plan to make a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not plan on opening an account ____ I already have an account 7. How many checks do you think you will write a month? ____ 0 ____ 1-2 ____ 3-5 ____ more than 5 ____ I do not plan on opening a checking account ____ I already have a checking account 8. Do you plan to borrow money from a bank? ____ yes, because ____no, because Some Information About You: 9. What is your age? ____ under 25 ____ 25 to 34 ____ 35 to 44 ____ 45 to 54 ____ 55 to 64 ____ 65 or over 10. How much schooling have you finished?

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____ less than high school graduate ____ high school ____ some college ____ college (B.A. or B.S. degree) ____ graduate school 11. What is your gender? ____ male ____ female 12. What is your marital status? ____ single ____ divorced/separated ____ widowed ____ married 13. How many people live in your household? ____ 14. How many of these are children under age 18? ____ 15. What is your current work status? ____ working part-time ____ working full-time ____ not currently working 16. What is your annual household income from work, aid, and all other sources? ____ under $4,999 ____ $5,000 to $9,999 ____ $10,000 to $19,999 ____ $20,000 to $29,999 ____ over $30,000

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Appendix C: Cover Letter Date: Subject: Money Smart Survey/Questionnaire My name is Lisa Collazo and I am a doctoral student conducting a study entitled, " Financial Literacy and Minorities Living in Rural Communities: Evaluation of a Non-Profit Financial Literacy Program." Based upon your past participation in a financial literacy program, I am inviting you to provide feedback on your participation experiences. Enclosed in this mailing you will find a Money Smart Survey/Questionnaire requesting your feedback. The purpose of this study is to evaluate a financial literacy program facilitated by Financial Empowerment at the Mt. Zion Outreach Ministry in Glennville, Georgia. Although Financial Empowerment offered the financial program, they are not the organization that is conducting this study. This study will ask for your opinion on the importance of the program and whether or not it was helpful in changing your long-term financial behavior. The survey will also ask your opinion as to whether or not your financial literacy skills improved as a result of participating in the program. This feedback will greatly assist the Community in offering effective financial education and services. It takes approximately 13 minutes to complete the survey/questionnaire. It is important for you to understand that there are no direct personal benefits for your participation in this study. However, the community in, which you reside may benefit from your participating. Your input is valuable because it will help the community improve financial literacy programs and offer better financial support. Your contribution will also help provide meaningful information to increase understanding of how you perceived the program and to better coordinate future financial literacy education programs within the community as a whole. The risks associated with this study are minimal. The survey will ask some sensitive questions regarding income levels and this may have the potential to cause some discomfort or embarrassment. The survey will be anonymous and there will be no way to link your responses back to you. At any time during your participation in the survey you can choose to not respond to those questions that may cause you any discomfort. Please note that by filling out this survey and returning the questionnaire in the enclosed stamped envelope, you are certifying that you are at least 18 years old, and you are giving your free and voluntary consent to be a participant in this study. You are, of course, free to choose not to participate, and you have the right to refuse to answer any particular question for whatever reason without prejudice. However, I ask that you carefully answer as many of the questions as possible. All your responses will remain anonymous. All research reports will only contain data in forms that do not permit individual responses to be identified. If you choose not to participate in this study, please discard the enclosed materials. Let me thank you in advance for the time and effort required to fill out the questionnaire and to assure you that your participation will be kept confidential and will be greatly appreciated. Sincerely, Lisa L. Collazo

Documents

Nonprofit Financial Literacy Program for Adults Living in Rural Communities