Personal Financial Education Research Articles

Integrating a Personal Finance Workshop to Enhance Financial Literacy Among Senior Medical Students: A Single Institution's Experience.

Graduating medical students frequently start their training burdened with substantial financial debt and minimal savings, especially in comparison to their peers in other professional fields. A lack of financial literacy can result in increased debt, decreased job satisfaction and contribute to physician burnout. Enhancing financial education could improve both the financial stability and emotional well-being of future medical professionals. In this study, a basic personal finance workshop was conducted for 4th year medical students at a single institution. The aim of the study was to determine the impact of the personal finance workshop on improving financial literacy. An introduction to basic personal finance workshop was open to enrollment for all 4th year medical students at The Alpert Medical School at Brown University. A 40-question survey to evaluate financial literacy was administered to all participants before and 6-months after the workshop. The topics covered included student loan management, basics of retirement accounts, investing, budgeting, saving and consensus surrounding financial topics. The results were analyzed using student paired t-test and Chi-square test of independence. Overall, an improvement in financial literacy was reported 6 months after the personal finance workshop (62% vs 54%, p = 0.004). Students subjectively reported an increase in confidence in their personal finance knowledge (16% vs 44%) and general knowledge regarding retirement savings (7% vs 55%). More than 92% of students agreed or strongly agreed that a basic personal finance education should be included as part of the medical school curriculum. A personal finance workshop for medical students nearing graduation increases awareness and confidence in financial knowledge. The incorporation of basic financial education in the medical school curriculum may help young physicians establish better financial habits that will improve their financial wellbeing.

The Impact of Financial Education on Stress Among Orthopaedic Surgeons.

Financial stress has been an increasing area of concern for residents and attendings. The primary goal of this study was to determine the financial education level and differentiate financial outcome measures of orthopaedic surgery residents and attendings. A survey of all residents and attendings of the 201 Accreditation Council for Graduate Medical Education (ACGME)-accredited orthopaedic surgery programs in the United States. Total participation in the study was 118 residents (postgraduate year (PGY) 1-5), three fellows (PGY6), and 57 attending orthopaedic surgeons. A significant difference existed between average current financial stress scores between residents versus attending (2.32 vs 1.17), but not Doctor of Medicine (MD) versus Doctor of Osteopathic Medicine (DO) attendings (0.96 vs 1.67) and MD versus DO residents (2.25 vs 2.50). There was a significant difference in average future financial stress scores between residents and attendings (1.85 vs 1.44) and MD vs DO residents (1.61 vs 2.25) but no difference between MD vs DO attending (1.31 vs 1.63). Residents' confidence in financial knowledge compared to college graduates had a significantly negative Pearson coefficient with current financial stress score, while the attending group was not significant. Orthopaedic residents and attending physicians' financial stress levels are positively correlated with the amount of student debt they hold. Most residents who currently have no personal finance education offered in their residency would likely attend a personal finance course if offered. Decreasing the amount of debt held by residents, increasing their financial knowledge, and helping them develop good financial habits would likely lead to a decrease in financial stress.

Peningkatan Literasi Keuangan: Pendidikan Perencanaan Keuangan Personal di Kalangan Komunitas Guru SMK “Musyawarah Guru Mata Pelajaran (MGMP)” Kabupaten Malang

Financial literacy has been proven to have a positive effect on increasing economic welfare. Apart from that, financial literacy is also needed to mitigate the risk of crime or fraud which often occurs in the world of financial investment. Considering the importance of financial literacy, service activities through the personal financial planning education program are held to create people who are aware of the importance of financial planning. The activity was held for the community of vocational school teachers in Malang Regency (MGMP Malang). The results of the activity showed good enthusiasm from the participants. Participants felt they had gained new knowledge in the world of finance and planning. Changes in behavior and views about finances were also visible from what participants said after the training program

The Impact of a Personal Finance Education Course on Financial Confidence and Markers of Financial Stress among Medical Residents: A Longitudinal Pilot Study

The Impact of a Personal Finance Education Course on Financial Confidence and Markers of Financial Stress among Medical Residents: A Longitudinal Pilot Study

Students’ Perspectives of Transdisciplinary Financial Literacy Education in Ontario

In increasingly uncertain economic times, education curricula around the world are changing to include the topic of financial literacy for students. This article reports the findings of a financial literacy study that examined the perspectives of students on their experiences with transdisciplinary teaching and learning of personal financial literacy. In this study, 344 post-secondary students reflected on their educational experiences in Ontario secondary schools by completing a quantitative survey composed of questions and self-assessments related to personal financial literacy curricula. While students felt that personal financial literacy education was important, they felt that there was a need for more knowledge and understanding in secondary school. Further, survey data identified variations in the personal financial literacy education students received that was linked to the stream (advanced or general) students were enrolled in. The findings are discussed, with particular attention to how students’ perspectives can inform policy and curriculum design moving forward.

College student interest in personal finance education

This study investigates demand for investing in financial literacy while in college using survey responses from a cross-section of students at a medium-size, private university. Results indicate that student interest in personal finance education is largely a function of perceived return, time cost, financial independence, and gender where female students have relatively more interest. Income, patience in consumption, credit experience, numerical ability, and other factors are not consistently significant to demand. The results support offering learning opportunities for individual personal finance topics in addition to a personal finance course.

Upgrading financial education by adding Python‐based personalized financial projection: A randomized control trial

AbstractResearch has shown that even though standardized financial education has gained prevalence to promote financial literacy over the past decade, it has had little effect on personal financial planning. The present study used a randomized control trial to examine the effectiveness of a Python‐based personalized financial projection on young working adults in Hong Kong, to examine if and how this approach improves their financial planning. Participants assigned to the experiment group received standardized financial education and Python‐based financial projections, while those in the control group only received standardized financial education. The assessment based on the two‐wave data showed that Python‐based financial projection promoted future time perspectives, reduced temporal discounting, and improved financial planning via the full mediation of promoting financial attitudes. Although numerous applications for personal financial planning exist (such as Wallet, Walnut, Monefy, and Money View), our Python‐based financial projection stands out as the pioneering solution tailored for the hands‐on manipulation of programming code to effectively manage personal finances. Our findings suggest a new track to upgrade personalized financial projection and standardized financial education and contribute generously to the development of personal finance education. Practitioner notesWhat is already known about this topic Standardized financial education promotes objective financial knowledge. Standardized financial education has a limited effect on personal financial planning. Classical personalized financial projection promotes personal financial planning, but the effect is small. What this paper adds Introduction of a novel Python‐based personalized financial projection by manipulating projection code. The evidence that Python‐based personalized financial projection more strongly improves personal financial planning, compared to the classical personalized financial projection. The evidence why Python‐based personalized financial projection can improve personal financial planning. Implications for practice and/or policy Facilitating engagement of young working adults with personalized finance planning through the use of a Python‐based intervention. Integrating Python‐based personalized financial projection into standardized financial education in the school setting. Using Python as the platform to design more topic‐specific financial education module.

The Impact of Financial Literacy on the Decision to use a Mobile Payment Application: a Case Study of Households that Have Just Escaped Poverty in Hanoi

Purpose: To study and quantify the impact of financial literacy on the decision to use a mobile payment application. Case study of households that have just escaped poverty in Hanoi. Theoretical framework: The foundation for building a theoretical framework is the content of personal finance knowledge in this study, including (i) financial knowledge, (ii) financial attitudes, (iii) financial skills and (iv) financial behavior. Financial literacy is assessed using a combination of objective multiple-choice questions and self-assessment. Methods: The study is based on survey data collected through a structured online questionnaire for newly lifted household heads, as well as secondary data collected from respondents' profiles. Research data were collected from 186 responses using convenient non-probability sampling technique and analyzed by descriptive statistics, ANOVA analysis and Binary Logistic regression analysis. ANOVA analysis showed a statistically significant relationship between the groups of subjects in terms of personal financial knowledge (in both self-assessment method and objective test method). Results and conclusions: Binary Logistic regression results show that the main variables that positively affect the probability of a new household head out of poverty include Personal Financial Knowledge, Personal Financial Behavior, Gender, Status Occupation and Education Level. Financial attitudes and Religion have a negative impact on the ability of household heads to decide to use mobile payment applications. Finding implication: The findings will contribute to differences in financial knowledge and financial behavior. Financial behavior in this study is considered as the decision to use mobile payment service of Hanoi households who have just escaped poverty. We also looked at the effects of gender, age, occupation, religion, marital status, family role, and years out of poverty. Uniqueness/value: The research results are the basis for proposing governance implications as well as policy recommendations to improve the personal financial knowledge of newly-escaped household heads, encouraging them to use the service. mobile payment services, thereby helping them achieve their goals of economic recovery and sustainable development.

Financial Leadership Skills Training: Can a Hybrid Didactic/Interactive Exercise Model Fill a Gap in Graduate Medical Education?

Background With recent healthcare changes, competition for financial resources is increasing. Graduate medical education (GME) programs do not routinely prepare residents to understand the complexity of financial decisions that affect their practice. At our institution, we designed new sessions to explore personal and departmental financial education in our yearly Radiation Oncology (RO) leadership course. Methods Over the past five years, we have been piloting a longitudinal leadership course for our RO medical and physics residents, integrating a hybrid didactic/interactive exercise approach. The core RO faculty consists of the course director, the residency directors, and department leadership. The course structure includes an introduction to understanding how resource allocation is determined at the institutional level as well as a personal finance component. We recruited the RO Vice Chair, RO Department Administrator, and the MD, MBA Chair of the Vacancy Review Committee at our institution to teach these concepts over three sessions. The first was a didactic introduction to departmental finance by our Vice Chair to prepare attendees for the second interactive session, in which residents worked through a pro forma to determine the feasibility of hiring a new departmental faculty member. The final session was led by our MD, MBA colleague who taught residents how hiring decisions are made and explained what happens to the pro forma at the institutional level. The third session integrated an interactive exercise focusing on personal finance skills. Results At the end of the series, the ten resident attendees were informally surveyed regarding how effective and worthwhile the three finance sessions were. The verbal feedback regarding the curriculum was uniformly positive. All ten residents, including the physics resident, indicated that these classes were helpful and filled a gap in the current GME curriculum. Further feedback analysis noted that additional interactive exercises should be prioritized to reinforce understanding of these financial concepts. Discussion Financial education is lacking in most GME training programs. Targeted instruction for both personal and departmental financial decisions was well received in this novel course at our institution. Further studies are needed to determine effectiveness and optimal integration of financial leadership skill development in the GME setting. Future directions could be to determine the best balance of didactic instruction and interactive exercises to enhance resident understanding of these financial topics. With recent healthcare changes, competition for financial resources is increasing. Graduate medical education (GME) programs do not routinely prepare residents to understand the complexity of financial decisions that affect their practice. At our institution, we designed new sessions to explore personal and departmental financial education in our yearly Radiation Oncology (RO) leadership course. Over the past five years, we have been piloting a longitudinal leadership course for our RO medical and physics residents, integrating a hybrid didactic/interactive exercise approach. The core RO faculty consists of the course director, the residency directors, and department leadership. The course structure includes an introduction to understanding how resource allocation is determined at the institutional level as well as a personal finance component. We recruited the RO Vice Chair, RO Department Administrator, and the MD, MBA Chair of the Vacancy Review Committee at our institution to teach these concepts over three sessions. The first was a didactic introduction to departmental finance by our Vice Chair to prepare attendees for the second interactive session, in which residents worked through a pro forma to determine the feasibility of hiring a new departmental faculty member. The final session was led by our MD, MBA colleague who taught residents how hiring decisions are made and explained what happens to the pro forma at the institutional level. The third session integrated an interactive exercise focusing on personal finance skills. At the end of the series, the ten resident attendees were informally surveyed regarding how effective and worthwhile the three finance sessions were. The verbal feedback regarding the curriculum was uniformly positive. All ten residents, including the physics resident, indicated that these classes were helpful and filled a gap in the current GME curriculum. Further feedback analysis noted that additional interactive exercises should be prioritized to reinforce understanding of these financial concepts. Financial education is lacking in most GME training programs. Targeted instruction for both personal and departmental financial decisions was well received in this novel course at our institution. Further studies are needed to determine effectiveness and optimal integration of financial leadership skill development in the GME setting. Future directions could be to determine the best balance of didactic instruction and interactive exercises to enhance resident understanding of these financial topics.

Financial Literacy in Plastic Surgery Training: Importance and Current Status.

Medical training is known to impose financial burden on trainees, which has been shown to contribute to burnout, even possibly compromising patient care. Financial literacy allows for management of financial situations affecting professional and personal life. The authors aimed to evaluate the financial status and knowledge among plastic surgery residents. A survey regarding finances and financial literacy of plastic surgery residents was sent to all the current accredited U.S. residency programs. The same survey was distributed internally. A descriptive analysis was performed, and multiple Fisher exact tests and a t test evaluated comparisons. Eighty-six residents were included. Most trainees had a student loan (59.3%), with 22.1% having loans more than $300,000. A majority had at least one personal loan debt other than educational (51.1%). Residents with more debt were significantly less likely to pay off their balances monthly. A total of 17.4% of trainees had no plan for how to invest their retirement savings, whereas 55.8% reported not knowing how much they need to save to retire. One in five trainees did not feel prepared to manage personal finances/retirement planning after graduation, a majority had no formal personal finance education in their curriculum, and 89.5% agreed that financial literacy education would be beneficial. Our institutional data largely mirrored national data. Many residents are lacking in financial knowledge, despite most having significant debt. Additional financial literacy education is needed in plastic surgery training. Curricula development at an institutional or national society level are possible paths toward a coordinated response to this need.

Assessing the Impact of a Personal Finance Elective Course on Student Attitudes and Intentions

Objective. To address the need for personal finance education in our school of pharmacy, a finance elective was developed to help students make well-informed choices related to student loan repayment, budgeting, and planning for retirement. Personal finance education could be beneficial to help students improve their future financial well-being.Methods. A mixed-methods research design was used to determine the impact of the course. Retrospective data were collected and analyzed. Data included pre- and post-assessments, assignments, posts from discussion boards, and a follow-up questionnaire. Qualitative data were analyzed through in vivo coding, and quantitative data were analyzed using dependent t tests.Results. Qualitative analysis revealed two themes: students came to feel that personal finance was something that could be managed proactively, and they felt empowered to create a financial plan that included strategies for budgeting, paying off student loans and other debt, saving, and investing. Quantitative analysis of five of the 10 assessment questions with matching counterparts in the pre- and post-assessment showed significant differences. Most students who responded to the follow-up questionnaire had completed activities or planned to complete activities related to making changes to their personal finance habits.Conclusion. Pharmacy students are entering the workforce with high incomes but saddled with debt. A personal finance elective course has the potential to equip students with the knowledge needed to be financially successful. Schools of pharmacy should work toward offering professional development to students to assist them in learning about personal finance due to the high cost of obtaining a pharmacy degree and likelihood of entering the workforce with debt.

Financial Inclusion in Tanzania Determinants, Barriers, and Impact

Financial inclusion is vital in economic development as it empowers families and communities to meet basic needs, such as nutritious food, clean water, housing, education, and healthcare. Financial inclusion is also a tool for hedging against extreme weather events, disasters, and health crises such as the COVID-19 pandemic. Moreover, access to financial services has the potential to alleviate poverty, reduce income inequality, and stimulate economic growth and development. However, there is limited literature regarding the impact of financial inclusion at the household level. According to the latest World Bank Global Findex, the number of financially included adults has risen substantially in Tanzania due to the introduction of mobile money and baking financial inclusion. Based on Tanzania World Bank's Global Findex micro-data set for 2011, 2014, and 2017 surveys, this study uses the ordered probit regression model with endogenous treatment assignment to evaluate factors influencing financial inclusion and estimate the impact of financial inclusion on income in Tanzania. The available literature guided us in selecting the independent variables to include in the financial inclusion and impact models. The applied model allows for correcting for self-selection bias and endogenous effects associated with financial inclusion and income. Self-selection bias can occur when individuals choose whether to participate in a program based on their socioeconomic and demographic circumstances. Due to self-selection, participants often differ from nonparticipants in ways significant to the research, leading to a biased sample, which affects the generalizability of the research results. The results show that formal education and lack of money are the most crucial factor influencing financial inclusion and exclusion. Moving from financial exclusion to inclusion increased the probability of being in the higher income brackets. Personal finance education programs geared towards the most vulnerable groups would improve financial inclusion and income in Tanzania. Results from this study indicate that financial inclusion has a positive impact on income, and thus, it is crucial to enhance the scope coverage via more extensive and swift channels, such as mobile money and baking. Enhanced financial inclusion in Tanzania will lead to higher and quicker integration of the excluded community members into formal financial systems, thereby maximizing the effects of financial inclusion on the poor and the country's economic growth.

An Investment in Knowledge: Personal Finance Education for Medical Students.

The financial burden of pursuing a medical education continues to grow, with the average medical student now owing over $240,000 in total student loan debt by the time they graduate. This burden peaks at a time when trainees are making some of the most consequential decisions of their careers. Additionally, many students are simultaneously making important financial decisions related to personal aspirations, all before a drastic change in earning potential once they begin practicing as attending physicians. Medical trainees' financial stress is linked to specialty choice, mental quality of life, and physician burnout, with additional implications of such stress for patient health and safety.1- 3 Despite these issues, there are few examples of medical schools providing direct personal finance education to their students. Given the lack of personal finance education opportunities for medical students, the authors designed and implemented a medical student-specific personal finance curriculum at their home institution in conjunction with the Association of American Medical Colleges' (AAMC) Financial Information, Resources, Services, and Tools program. The curriculum, which is primarily delivered through interactive lectures, covers topics ranging from the basics of saving and investment to clinicians' potential future roles as administrators and innovators. The authors (1) present details regarding the creation of their personal finance education program; (2) invite fellow medical trainees and their respective institutions to start their own personal finance education programs or add similar curriculum to their health sciences coursework; and (3) call for recommendations by the American Medical Association (AMA) and AAMC in support of formal personal finance instruction for medical students on a national level.

Mechanics of Finance- Personal Finance advisory firm: “Finance Friend”

Abstract: The purpose of this study is to understand the importance of personal finance planning to be financially sound and well equipped for the uncertainty. According to the findings of this study, the ignorance of personal finance is to the pinnacle. This isn't just to set up family spending plan yet additionally to save, contribute as well as plan for our retirement. The meaning of financial management, its significance, the steps that each person can take to plan and manage their finances, and the awareness of financial management are all discussed in this writing. In addition to educating readers on how to plan and manage each individual's finances for their benefit today and in the future, which indirectly contributes to the development of the nation, the purpose of this writing is to raise awareness of the significance of personal finance planning and management. The impact of personal finance education on financial knowledge, attitudes, and actions is the subject of much debate. Our research also reveals that discussing money with friends, income, work experience, year/field of study, and family financial socialization were all important factors in influencing financial knowledge, attitudes, and behavior. We're not saying that formal financial education isn't important; rather, we're saying that its role in changing people's attitudes and behaviors should be carefully considered if that's its goal. The objective was to describe the financial knowledge, attitudes, and experiences of residents to inform the design of a personal finance curriculum.

Categorization of personal financial education practices

Financial education provides people with knowledge and skills to manage money. The omission of the practice in individuals can generate economic problems in the personal, family and even their social environment. The study is qualitative with a descriptive scope and was based on the theory of social representations. The investigation was carried out with students of the Public Accountant career. The purpose was to recover the representations and social practices to propose a classification of the application of these. The results obtained from these applied instruments show that students excluded from their economic practices the resources of personal financial education, spend more than they receive and sometimes do not know the total amount of their income, savings are not part of their economy. The proposal contains 5 levels of classification of personal social practices about the knowledge and administration of economic resources that they have or intend to have in the future.

Systematic review of personal finance training for physicians and a proposed curriculum

BackgroundMany physicians complete medical school and graduate medical education (GME) burdened by high debt and financial illiteracy. This places them at increased risk for ill-informed financial decisions, which can result...

Personal finance education mandates and student loan repayment

This paper estimates the impact of requiring high school students to complete personal finance education on federal student loan repayment behavior after college. I merge student loan borrowing and repayment data from the College Scorecard with data from the Integrated Postsecondary Education Data System on counts of high school graduates enrolling in college from different states. I estimate the causal effect of personal finance education mandates by relating the change in the share of university students subject to a state mandate to changes in university cohort student loan outcomes. I find only students with higher-income parents respond by adjusting borrowing, reducing median balances by 7%. By contrast, first-generation and low-income borrowers bound by mandates did not significantly adjust borrowing, but were nonetheless more likely to pay down balances. Repayment improvements are in part due to better understanding of the terms governing federal student loans. State mandates that incorporate career research alongside personal finance education are associated with better student loan repayment than those focused only on personal finance education.

Credit record overconfidence and alternative financial service use

PurposeThe purpose of this paper is to study the effect of credit record overconfidence on the use of alternative financial services (AFSs).Design/methodology/approachUsing data from the 2018 National Financial Capability Study (NFCS), the authors estimate logistic regressions on the use of at least one AFS by adding a credit record confidence variable that captures deviations between self-assessments of credit record management and the number of reported behaviors that would negatively affect aspects of a Fair Isaac Corporation (FICO) score.FindingsThe authors find that respondents with credit record overconfidence have over two times higher odds (123.9%) of using AFS than the odds of respondents with financial knowledge overconfidence (46.8%), relative to their reference categories. When compared directly, those with only credit record overconfidence have 32.6% higher odds of using AFS than those with only financial knowledge overconfidence.Practical implicationsThe results provide implications for education programs, not only for vulnerable groups at higher risk for AFS use but also for those with cognitive biases, such as credit record overconfidence. Potential solutions include personal financial education that includes debiasing and behavioral techniques for overconfidence.Originality/valueThis paper studies, for the first time, the effect of deviations between actual and perceived credit record management on AFS use.

Personal bankruptcy and consumer credit delinquency: The case of personal finance education

Given the increasing complexities of the financial markets as well as a shift away from employer/government sponsored pensions to individuals managing their retirement funds, personal finance education is an important tool in order to navigate the evolving and complex financial environment. In this paper, I examine the impact of personal finance education on credit delinquency. Prior studies show that financial literacy affects financial decisions such as savings, retirement planning, wealth accumulation and stock market participation. Using U.S data on personal bankruptcy and consumer credit delinquency rates, I show that personal finance education is important in reducing personal bankruptcy as well as consumer credit delinquency rates. Furthermore, personal finance education does not appear to moderate the impact of gambling legislation on personal bankruptcy or consumer credit default.

Money Management and Difficulties among Laboratory High School Students

This study assessed the level of personal financial literacy of Kalinga State University Laboratory High School students and aimed to determine student's finance opinions, decisions, practices, and financial challenges. Researchers used statistical tools like frequency count and simple mean to analyze the obtained data through a structured questionnaire distributed to 298 respondents. The study revealed a need for students to improve their finance knowledge for the better. Areas that need improvement include knowledge on the inflation rate, the distinction between depository accounts, saving and borrowing options that give the lowest and highest interest rates. More than most students do not have savings accounts, and less than half of them maintain very detailed financial records. Almost the majority of the students experience running out of money before the next allowance arrives. As a result, they borrow from relatives, friends, and acquaintances and borrow cash even with interest. The findings support the need for personal financial literacy education, significantly extending help on areas where students are less knowledgeable. The recommendation includes the development of Information, Education, and Communication (IEC) material distributed to improve students' financial literacy and strengthen more good economic behavior. Also, the Student Affairs and Placement Services office of the University should link with institutions that offers part-time jobs. Likewise, it should provide student organizations financial assistance to implement income-generating projects, thereby running out of money before the next allowance arrives would be addressed. Lastly, a laboratory cooperative with BIBAK Multi-Purpose Cooperative as the mother cooperative needs to be organized to solve students' problems on saving and borrowing money.