A Case Study of National Financial Literacy Programs for Women

The purpose of this research study is to explore (case study) in-depth the pedagogy of financial literacy programs for women and how these programs address their educational needs. There is a need in society today for people to be financially literate considering the alarming increase in home foreclosures, bankruptcy rates, high consumer debt levels, and low savings rates (Anthes & Most, 2000; Delgadillo & Green, 2007). Much of this is a result of an inadequate understanding by individuals of how to effectively manage personal finances. Financial literacy provides “individuals with the knowledge, aptitude, and skill base necessary to become questioning and informed consumers of financial services and manage their finances effectively’’ (Mason & Wilson, 2000, p. 5). Despite an amplified need for financial literacy, research suggests that Americans in general lack the basic financial knowledge and are often poor managers of their personal finances (Anthes, 2004; Chen & Volpe, 2002). Low financial literacy, in particular, impacts women who, have a tendency to know less about financial management than men, are less likely to seek out financial education, and have less confidence about managing money (Goldsmith & Goldsmith, 2006; Lusardi & Mitchell, 2007). In addition, financial challenges women face are often a result of income disparities among the sexes, shorter employment tenure, fewer opportunities to save, the financial impact of care giving, and the fact that women are often financial enablers (Anthes & Most, 2000). A response to this lack of financial literacy has been a growing personal finance education industry. There are a host of financial education programs, predominantly nonformal, located in workplaces, community and faith-based organizations, cooperative extension agencies, community colleges, military services, and the private sector (Consumer Bank Association, 2005; Vitt et. al, 2000). Most research about these programs focus on who is participating, the impact on financial behaviors, and program evaluation. Although important, there has been little attention about the educational practices of the financial education programs (Braunstein & Welch, 2002) and most significantly their relationship to the pedagogical and personal finance needs of women. Furthermore, research has shown that when learning about investment practices women seem to have particular learning preferences, such as, for example, a partiality for learning with an expert and in concert with others (Hira & Loibl, 2007). Further compounding the challenge of educating women in personal finance is that the traditional approach of teaching finance, economics, and/or investment topics are often counter to these learning preferences. They are generally teacher-centered where the educator assumes the responsibility for developing and delivering the course content, using a didactic method, where the educator talks and learners listen, allowing little opportunity for interaction between learners and the teacher (Becker & Watts, 2000; Vihtelic, 1996). Furthermore, most financial literacy programs are “canned” with a standardized curriculum relying on the transmission of financial information. Recognizing the challenges women face in traditional financial literacy programs, research is needed to understand how national financial literacy programs specifically designed