Impact of Personal Finance Education

Personal Finance, Military Families February 06, 2017 Print Friendly and PDF

 

Peng, T.-C., Bartholomae, S., Fox, J. & Cravener, G. (2007). The impact of personal finance education delivered in high school and college courses. Journal of Family and Economic Issues, 28(2), 265-284.

Brief Description: This study investigated the impacts of personal finance education delivered in high school and college. Outcomes of interest were investment knowledge and household savings rates measured years after the financial education was delivered. A web-based survey was taken by 1,039 alumni from a large Midwestern university. The alumni were asked about taking a personal finance course, their financial experiences, and their income and inheritances.

Implications: The findings suggest that participation in a college level personal finance course is associated with more investment knowledge, but not so for taking a high school course. Experience with financial instruments, especially investment assets, appeared to explain more of their investment knowledge and savings rates. Financial experiences were positively associated with savings rates. This study lends support to the need for financial education during college. Also, having more experience in managing their finances may increase savings behavior.

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This work is supported by the USDA National Institute of Food and Agriculture, New Technologies for Ag Extension project.