Evaluation of Financial Literacy Development of High School Students: A Longitudinal Mixed Methods Study

Study’s purpose for this mixed method, longitudinal study was twofold: (a) to investigate how utilizing a competency-based financial planning curriculum affects financial knowledge acquisition and behaviour change in the short-term considering students’ social environment (b) to examine what long-term financial behaviour patterns are exhibited over the year following the learning infusion as students make major life transitions. An integrated theoretical approach included Social Constructivism, Family Financial Socialization Theory and Theory of Planned Behaviour. Baseline knowledge, self-efficacy and behaviour data collected before the learning infusion was compared to end-of-study scores. Focus group interviews provided insight into precursors of behaviour change, such as attitudes, beliefs, perceived control and intentions. Four Internet interviews during the year following the learning infusion captured incentives and barriers of behaviour change over time. Findings included: 1) As a result of completion of the competency-based learning infusion, students developed a better foundation of financial knowledge and an understanding of the importance of healthy financial behaviours which significantly influenced their attitudes and intentions regarding healthy financial behaviours. 2) Family interactions and relationships affect students’ financial socialization at major turning points in life. 3) Students need to perceive a specific financial behaviour as relevant, desirable and feasible in their social environment, as well as perceive themselves as capable of such behaviour. (4) Social environment (e.g. SES, planning horizon) of students is a crucial factor in determining what kind of purposive financial socialization a student experiences and what long-term effect it has on the demonstration of healthy financial behaviours.