A Descriptive Correlation Study of the Absence of Financial Literacy Taught in Schools

A Dissertation Presented in Partial Fulfillment

of the Requirements for the Degree

Doctor of Education

ABSTRACT

DEDICATION

[To be indented and completed upon full dissertation completion]

ACKNOWLEDGMENTS

[To be indented and completed upon full dissertation completion]

TABLE OF CONTENTS

Contents Page

List of Tables x

List of Figures x

Preface (optional) x

Chapter 1: Introduction x

Background of the Problem x

Problem Statement x

Purpose of the Study x

Population and Sample x

Significance of the Study x

Nature of the Study x

Research Questions/Hypotheses x

Theoretical Conceptual Framework x

Definition of Terms x

Assumptions, Limitations, and Delimitations x

Chapter 2: Literature Review x

Title Searches and Documentation x

Historical Content x

Current Content x

Theoretical Conceptual Framework Literature x

Methodological Literature x

Research Design Literature x

Conclusions x

Chapter Summary x

Chapter 3: Research Methodology x

Research Method and Design Appropriateness x

Research Questions/Hypotheses x

Population and Sample x

Informed Consent and Confidentiality x

Instrumentation x

Field Test Pilot Test x

Credibility and Transferability Validity and Reliability x

Data Collection x

Data Analysis x

Chapter Summary x

Chapter 4: Analysis and Results x

Research Questions/Hypotheses x

Data Collection x

Demographics x

Pilot Study x

Data Analysis x

Results x

Chapter Summary x

Chapter 5: Conclusions and Recommendations x

Research Questions/Hypotheses x

Discussion of Findings x

Limitations x

Recommendations for Leaders and Practitioners x

Recommendations for Future Research x

Chapter Summary x

References x

Appendix A: Title x

Appendix B: Title x

Appendix C: Title x

LIST OF TABLES

Table 1: Title x

Table 2: Title x

LIST OF FIGURES

Figure 1: Title x

Figure 2: Title x

[Only include a List of Figures if there are two or more figures. Use title case, defined as capitalizing keywords, for figure titles.]

UNIVERSITY OF PHOENIX

January 2010

v

Education about financial literacy is an important subject that could help students handle money at school and in the professional world. Students who acquire this knowledge are different from those without because they would make sound financial decisions to avoid common financial inaccuracies. As Amagir et al. (2018) discovered in their research, individuals who lack financial literacy make errors when paying their financial obligations. As a result, the emphasis of this study will be on the financial education gaps that exist in schools, the repercussions of these gaps, and possible remedies. This article provides concise and detailed information on research that focuses on the gap between financial education and its incorporation into schools.

As a result of their efforts, both informed young people and the global society gain from financial literacy instruction and adoption. According to Amagir et al. (2018), financial education is characterized as the capacity to make appropriate financial judgments in the face of adversity. Teaching children about financial education tools may assist them in developing more skills and judgment while dealing with money in school. A bright future is established when youngsters are educated about personal money and financial literacy (Amagir et al., 2018). With a financial education in place, the first thing students shall do before gambling with their money is to recall the essential concepts of financial management they will have learned from school. The main ticket towards living a debt-free life is being knowledgeable about financial management, which can only be achieved through lessons taught in classes. Youths have always manifested confidence in the way they use money, and in fact, most of them believe they are knowledgeable concerning the use of money. However, in real life, the youth struggle with planning their finances, which predisposes them to a life full of debts while they are still young (Amagir et al., 2018). This excessive confidence and state of awareness held by individuals are barriers that need to be cleared out through financial education.

There are different programs that a typical school should implement to help train and educate students on matters related to finance. However, most schools focus on programs that emphasize practical didactics and theory-based (Blue & Grootenboer, 2019). Most of these didactics are based on benefit plans, which do not fully cover the main concepts of financial literacy. The school's students and members (principals, administrators, teachers, housekeepers, secretaries, police officers, guidance counselors, cafeteria workers) hold some level of misconception about financial literacy.

Background of the Problem

Large numbers of children and teenagers have ongoing money management challenges as a result of a lack of financial knowledge and comprehension. Therefore, individuals establish awful money habits and become unable to efficiently manage their funds in the future. When it comes to young people, inadequate budgets are usually often the result of bad financial habits, which are driven by a lack of financial literacy. According to Amagir et al., it is projected that 20 percent of high school seniors who participate in savings programs or open savings accounts will graduate with financial discipline and literacy skills (2018). Their concern is that as their children get older, they will be unable to comprehend the fundamentals of saving, spending, and earning money, as well as the fundamentals of checking and balancing their checkbooks and bank accounts (Faulkner, 2017). Education in financial literacy is becoming more important for children as they learn to be self-sufficient, take responsibility, be independent, and be accountable for their actions.

Students who have received financial education have a basic awareness of the financial markets, investment opportunities, and financial planning after completing the program. Student debt, which is becoming a more serious issue for young people as the years pass, will be avoided as a result of this. Financial management methods are clearly identifiable, especially when dealing with specialists who are well-informed and well-prepared, while some financial management strategies are more difficult to detect. Because they will anticipate dangers and argue-justify issues relevant to their academic endeavors, financially savvy students are more likely to engage in a dispute with educated and informed persons (Amagir et al., 2018). Since individual financial well-being has a huge impact on the economy, it is more vital than ever to polarize financial knowledge inside educational institutions.

The research demonstrates that an alarmingly significant proportion of individuals are prone to spiraling debt and financial traps. This fact is because the existing educational system devotes little to no time studying such concepts (Aboagye & Jung, 2018). This idea is because a sizable proportion of teens and adolescents cannot make appropriate financial judgments. This fact is because educational institutions have a learning gap. Due to their incapacity to grasp how certain financially complex situations work, people make judgments that unintentionally jeopardize their financial prospects (Aboagye & Jung, 2018).

It is necessary to comprehend the burden that it alleviates and how it helps to the growth of a nation or family To implement financial education successfully,. Due to the fact that prudent financial management results in increased benefits for a family and the avoidance of debt and associated instruments (Aboagye & Jung, 2018). This might be seen as an investment in human capital, with the objective of ensuring that the necessary choices are made to ensure that financial commitments are properly understood. As the modern world has become increasingly difficult in terms of how it conducts business and enterprise, it is critical to have a basic grasp of financial education (Aboagye & Jung, 2018).

One of the most critical components of education is the policies that school boards enact, as well as the availability of education to all children. This is because while deciding whether to include financial literacy teaching in school curricula, one of the factors to examine is the long-term benefit that such education will give (Faulkner, 2017). The lack of this education has resulted in a lack of awareness about the extent to which financial choices should be considered while planning for the future, as well as the long-term ramifications of such choices. Understanding our own knowledge and behavior is one of the most fundamental ways in which we can predict which actions to avoid and which to engage in in order to make acceptable judgements (Aboagye & Jung, 2018). To gain such benefits, it is critical to acquire the necessary information and to take focused action.

Positive attitudes and self-confidence are also useful when confronted with financial troubles. This is because they play a critical role in ensuring that decisions are made in a rational manner and are not based on inaccurate or misleading information. Obviously, this can only be accomplished via vigilance and ensuring that decisions made reflect both short- and long-term advantages (Faulkner, 2017). As a consequence, present and future financial choices made with financial education in mind may contribute to a decrease in the number of financial errors made throughout maturity and adolescence, which would benefit everyone.

Problem Statement

According to the thesis statement, the topic of the research paper is the issue of financial illiteracy among young people. The research paper will be written in the third person. Compared to past generations, a greater proportion of teens and young people now lack the financial discipline that should have been taught in financial education courses in the first place. Financial education for teens and young people, according to Amager et al. (2020), is notably inadequate in the United States. It is necessary to build financial literacy programs in schools because children and teenagers who do not have financial literacy do not have economic wealth, and the country as a whole does not profit from their lack of understanding (Lusardi, 2019). Because the vast majority of young people do not appreciate the need of financial education, schools should take further steps to guarantee that students have access to critical financial education programs.

Purpose of the Study

The purpose of this study is to use a mixed-methods approach to data gathering to finish research on the subject of financial literacy among adolescents and teenagers. The examination will take place inside a school system in the Florida county of Palm Beach. The objectives of the study are:

1. To identify the gaps in the financial literacy education in the schools within Palm Beach County, Florida.

2. To determine the long-term consequences of insufficient financial education for youths and teens within Palm Beach County, Florida.

Population and Sample

Data acquired from interviews will be utilized in writing a thesis for the study subject. Principals from 20 schools around the district will be interviewed, while only ten of the curriculum developers across Florida will be interviewed. According to Amagir et al. (2018), the school district of Palm Beach County, Florida, has about 180 schools, and a principal leads each school, so that means only 11.1% of the principals will be involved. A random sampling method will select the twenty principals from among the district's schools. Furthermore, the curriculum developers who will participate in the research will be randomly selected from a pool of candidates.

Significance of the Study

The study on financial literacy is very important to individuals, the state, and the U.S. national government. The economy of the U.S. depends much on proper financial planning. Suppose the youth are equipped with the relevant knowledge about managing funds. In that case, it is a plus for the economy of the United States and Florida because proper financial education leads to informed financial planning, which prompts economic development (Amagir et al., 2018). The study of financial literacy gaps in schools will also assist policymakers in curriculum development in planning to introduce comprehensive financial literacy programs in these institutions of higher learning (Bakar and Bakar, 2020). The financial education programs are intended to benefit teens and young adults by providing them with extensive knowledge about money management, which will enable them to become financially responsible citizens and parents (Amagir et al., 2018).

To pave the way for future research in financial literacy, a financial illiteracy study is being conducted. Students understand the fundamentals of financial markets, investment options, and financial budgeting when financial literacy is taught to them. Consequently, students will avoid being burdened by debt, which is becoming an increasingly common occurrence among young adults. It is not difficult to recognize certain financial management tactics, particularly when engaging with experts who are well-informed and well-prepared. Consequently, students who have financial literacy will engage in debates with well-educated and informed persons since they will anticipate dangers and argue-justify issues relevant to their studies (Amagir et al., 2018). Because the financial well-being of people has an impact on the economy, there is a greater need to polarize financial literacy inside educational institutions.

Nature of the Study

To collect, compare, and analyze the various types of information gathered via interviews, the qualitative research approach will be employed (Hennink et al., 2020). Because information will be gathered via interviews and observations, the qualitative technique is the most suited. The information will be investigated using a narrative data analysis design, which will be implemented (Hennink et al., 2020). As stated by the researchers, the narratives will comprise an examination of the words or experiences shared during the interviews in order to identify any gaps in financial education within the Palm Beach County School System in the state of Florida.

A big benefit of using qualitative research to assess financial literacy in education is the ability to produce the volume of material necessary to answer the study questions on the topic of financial literacy (Hennink et al., 2020). For the second time, using qualitative data will prove that the knowledge offered is exclusive to the qualitative sector of financial education. Finally, since qualitative research is a subjective sort of investigation, it will provide a solution to the issue of why financial illiteracy is so prevalent among adolescents and teenagers in the United States (Hennink et al., 2020).

It answers the study's questions on financial literacy by using a qualitative research approach. Due to the fact that qualitative technique will give background and an overview of financial literacy in schools, it is the most appropriate methodology to utilize for this research project. The design will be influenced by the findings of ethnographic research. This is due to the fact that it enables for the gathering of first-hand knowledge. Direct observation and questionnaire interviews will be utilized to gather information for this project (Jamshed, 2014). The participants will respond to interview questions on the level of financial literacy in their schools, as well as the consequences, in their opinion, of a lack of financial awareness on the part of the participants.

In order to address concerns concerning financial literacy, qualitative research methods should be used since they will provide in-depth insights into financial literacy and its effects on teens and young adults. Aside from that, since information will be gathered via interviews and direct observations, the qualitative research approach will be more cost effective. It is difficult to overcome the issue of bias in data analysis, even if the grounded technique will be utilized to do so. This is the most significant disadvantage. Consequently, owing to prejudice, the results and conclusions on financial literacy in schools and how it impacts kids and teens may not be true in their conclusions.

Research Questions

There are three research questions.

1. What are financial illiteracy gaps found in financial education among Palm Beach County, Florida?

2. What are the evident effects of financial illiteracy on the youth and teens within the state?

3. What actions should address the financial illiteracy disparities in financial education seen in Florida and nationwide schools?

Theoretical Framework

According to Champlain (2019), University of California, Berkeley students are still battling to pay off enormous sums of student debt. The great majority of individuals live paycheck to paycheck, which implies that most people are financially illiterate in some form. In today's environment, business owners are particularly disappointed with the lack of preparation and financial awareness of fresh graduates and potential recruits. For most kids, financial literacy is simply another subject in their class. Champlain (2019) confirms that students are preparing to pass the exam only to live over their monthly pay, are unable to purchase a house, are unable to enroll in a monthly insurance plan, and are unable to even prepare for retirement as a consequence of the lump sum debt (Champlain, 2019). 44 percent of Americans are predicted to be unable to afford a $400 emergency bill without acquiring debt. Sixty-six percent of Americans have less than $10,000 saved for retirement (Axelrod et al., 2018). Some of these abilities should be taught to children by their parents; unfortunately, many parents are saddled with significant debt.

Financial illiteracy is anticipated to become the norm for a big part of the population if youngsters are not taught financial skills at home. Several scholars, notably Axelrod et al. (2018), argue that schools should simply supplement what parents teach their children. According to a financial literacy assessment, 27 states earned a "C" or below on the scale. Although most schools are mandated to teach mathematics, they are not compelled to teach children finance-related content such as the idea of compound interest or how to prepare a tax return (Champlain, 2019). Teaching personal finance in a condensed style and expecting major outcomes is doable and successful, in addition to being a duty of educational institutions. Students who are learning to save their pocket money should behave in a manner that helps them put what they have learned in school into practice. This is owing to its huge influence on developing financial literacy in schools (Kirkham, 2016).

Definition of Terms

According to Lusardi (2019), college students are those who are presently enrolled in a postsecondary educational institution of higher learning. They are mostly interested in academic programs. They will face several financial constraints throughout their stay in the field while studying. Due to financial constraints, college students are more prone to experience depression and stress than the general population.

Financial literacy is the capacity to grasp and effectively use several financial competencies, such as personal financial management, budgeting, and investing. A solid financial foundation is the cornerstone of every financial relationship, and it is a constant learning adventure (Lusardi, 2019).

Kirkham (2016) defines discipline as "a way of behavior that demonstrates a desire to follow the rules or accept orders." While most people link discipline with social habits, according to some sources, it may also pertain to how you manage your money. Financial discipline is the ability to regulate your spending and saving following the financial objectives you've set for yourself in financial management. It is decided by your ability to stay on track with your spending and saving. –

According to Lusardi (2019), Curriculum developers are elementary, middle, and high school instructors who construct instructional ways to help pupils improve their learning ability. They are in charge of devising instructional strategies for pupils in grades K-12. These instructional coordinators create school program guidelines to ensure that schools are aware of the norms and rules that they are obligated to follow. Educators may also advise teachers on enhancing their classroom management skills, assisting teachers in developing classroom teaching materials, and checking class texts to ensure that the content fits academic requirements.

According to Kirkham (2016), financial budgeting is the process of calculating how much money you will make over a certain period and planning how much you will spend, save, and borrow during that time: If you want to pay off your mortgage sooner rather than later, financial planning is essential.

Assumptions

The idea that financial information is excessive for people with low levels of financial literacy is based on the premise that less well-informed people face greater footraces when it comes to information collection and distribution and, as a result, save more money on data and search costs when they turn to an advisor. The belief is founded on a misunderstanding of adult education, psychology, and behavior change research, as well as the socio-cultural factors that lead learners to struggle (Lusardi, 2019).

Another assumption seems to be that someone suffering from financial troubles must lack financial ability; otherwise, the issues would not have happened. The solution is to educate people about individual responsibility for successes and failings, which is an important component of American philosophical philosophy and practice. Another theory is that education in financial subjects will boost people's literacies and, consequently, their financial well-being as a result of this permit. As a consequence of this assumption, non-fiction is omitted from the adult education mindset and behavior variance study (Lusardi, 2019).

Limitations

Establishing the dialogue on the premise that an enquiring approach to discovering gaps in the education system is influenced by what is discovered and what is not discovered is a realistic assumption. Before the examination starts, it highlights the research's limits by concentrating on teaching rather than the reasons that create such changes in educational systems. Several ways may be used to ensure an accurate understanding of the subject. The first step is to recognize that the ultimate authority for these gaps lies with the system to establish a clear separation between the education system and the policies.

This study uses qualitative research approaches to identify present gaps in financial education, which entails gathering first-hand information rather than depending only on existing literature. Because there are only a limited number of interviews that may be adequately inferred and assessed in terms of financial literacy understanding, the number of interviews accessible is limited. As a consequence of the need to develop narratives from a set number of interviews to gather information on the gaps, there will be a skewed point of view (Skagerlund et al., 2018). Consequently, the information will be confined to this specific group of persons who do not fulfill any established requirements or have experience in a weak financial education system.

Furthermore, the limited scope of the theoretical framework to focus on college students as a genuine aspect of lack of financial education limits the extent to which there is a gap. This is because students are provided with academic opportunities, which they end up repaying when they are employed (Skagerlund et al., 2018). The huge number of default and struggling payments is due to the increasing unemployment rate and, therefore, a lack of means to ensure the utilization of such education (Aboagye & Jung, 2018). It biases the study to show only the failing students who did not have any education in addition to those who may have had opportunities to learn and benefit from extra-curricular financial education programs.

Delimitations

The purpose of research restrictions is to clearly define where the scope of a study ends in terms of financial education and the gap in Florida schools. The study's limitations will include measuring the Degree of trust in information and if it can be effectively used to create strong financial literacy for young learners. There is virtually little academic material relating to financial thinking and dialogue accessible to pupils.

To investigate financial literacy in education, qualitative research is being employed since it can provide adequate information to answer the financial literacy study questions. The use of qualitative data will make it simpler to ensure that the information provided is relevant to education (Aboagye & Jung, 2018). The limitations of this study are that it only allows for the assessment of various educational materials and does not consider the rules in place to ensure that the standards and content taught in schools are up to grade.

Summary

Currently, only a few schools include financial literacy materials as part of their curriculum. This may be due to the way policy is formed and implemented in universality and harmonization in learning. The research will also look at whether or not there is trustworthy and genuine information on financial literacy in schools and whether or not enough procedures have been put in place to promote it. The qualitative research technique was used in this study, and a narrative approach was used to appropriately derive the results of the investigation, which was successful.

The research is particularly interested in finding out what options are available to guarantee that the financial education gap in Florida schools is closed. Furthermore, it is intended to identify the consequences of a lack of financial literacy among youngsters in Florida's educational institutions. After identifying the financial gaps in financial literacy education in Palm Beach County, which was previously determined. With clearly obvious discrepancies in educational attainment in the schools, academic policies must be put in place to guarantee that adequate education is provided throughout the county's educational institutions.

Literature Review

The bulk of financial choices made by graduates may be attributed to a lack of financial literacy. This includes comparing the typical adult's ability to cover financial crises. Theoretically, this debate aims to assess the level of financial literacy among youngsters and the Degree to which it is taught in schools. Various scholars have said that lack of financial knowledge leads to young people making unwise judgments. Amagir et al. (2018) evaluate the school curriculum's financial literacy for adolescents and children. They emphasized the disparity in financial education and how inadequate financial literacy is taught to youngsters (Amagir et al., 2018).

Financial education may be introduced in schools in numerous ways. First, ensuring that the educational system adequately explains how financial choices and information are made. Authors have suggested numerous approaches to introduce education into the curriculum appropriately. One of the most prevalent methods is to ensure pupils have such chances (Amagir et al., 2018). This helps youngsters establish and grasp the basic building blocks of financial education. After confirming the presence of a basic curriculum element, the education system's effectiveness is assessed. Educating children and adolescents about money has enhanced their financial attitudes and knowledge. They do so because they create and shape perceptions of money and its use in the contemporary world (Amagir et al., 2018).

According to Hastings et al. (2013), low financial education is linked to unfavorable credit financial behaviors. High debts, foreclosures, and unpleasant mortgage options are examples. This trend has been proven to affect adults and even youngsters and adolescents who lack financial knowledge. Several experts have stated that an increasing percentage of families are in danger of debt owing to bad financial decisions (Aboagye & Jung, 2018).

Titles Search and Documentation

Research techniques are an important approach for gathering and debating information to make an educated choice. This is because the information being gathered may include a variety of settings and scenarios that need different types of analysis and judgments (Aboagye & Jung, 2018). In research, three basic approaches are used: the qualitative research technique, the quantitative research technique, and the combined method. All of these kinds of research have applications and are used in many sorts of research, and the emphasis of this discussion will be on the examination of the various types of research techniques. We may get a new perspective on the …