Abstract
This study examines effective financial education teaching skills among a group of elementary school teachers using a specially designed composite financial literacy score. Data were collected via a 31-hour training program. The aggregate score considers financial self-efficacy, subjective financial knowledge, and financial behavior. We find that this score is correlated with net worth, personal finance training and teaching personal finance. In addition, our findings suggest a direct relationship between financial self-efficacy, subjective financial knowledge, and financial satisfaction with higher levels of positive financial behavior. These results contribute to a growing body of literature on financial knowledge since Puerto Rico is usually not included in this type of research in the U.S.
References
Allgood, S., & Walstad, W. B. (2016). The effects of perceived and actual financial literacy on financial behaviors. Economic Inquiry, 54(1), 675–697. https://doi.org/10.1111/ecin.12255
Asiseh, F., & Williams, V. (2015). A descriptive study of financial literacy preparedness of teachers in North Carolina. International Journal of Education and Human Developments, 1(2), 1–8. https://ijehd.cgrd.org/index.php/56-artical/87-vol-1-no-2-september-2015
Bandura, A. (1993). Perceived self-efficacy in cognitive development and functioning. Educational Psychologist, 28(2), 117–148. https://doi.org/10.1207/s15326985ep2802_3
Bansilal, S., Mikhwanazi, T., & Mahlabela, P. (2012). Mathematical literacy teachers’ engagement with contextual tasks based on personal finance. Perspectives in Education, 30(3), 98–109. https://www.ajol.info/index.php/pie/article/view/81921
Bates, A. B., Latham, N., & Kim, J. (2011). Linking preservice teachers’ mathematics self-efficacy and mathematics teaching efficacy to their mathematical performance. School Science and Mathematics, 111(7), 325–333. https://doi.org/10.1111/j.1949-8594.2011.00095.x
Bialowas, S. (2018). Subjective vs. objective assessment of financial literacy – do beliefs meet reality? Journal of Insurance, Financial Markets and Consumer Protection, 29(3), 27–36. https://www.researchgate.net/publication/330203089
Blazar, D., & Kraft, M. A. (2017). Teacher and teaching effect on students’ attitudes and behaviors. Educational Evaluation and Policy Analysis, 39(1), 146–170. https://doi.org/10.3102/0162373716670260
Boy Scouts of America. (2003). Personal Management [Pamphlet]. Merit Badge Series. https://www.troop109nj.com/app/download/5843784/Personal+Management+Merit+Badge+Pamphlet.pdf
Brewton, K. E., & Danes, S. M. (2011, November 16-18). One for all? An examination of whether students interact with one financial planning curriculum differently based on their personal characteristics [Paper presentation]. Association for Financial Counseling and Planning Education, Jacksonville, FL. https://www.afcpe.org/wp-content/uploads/2019/05/2011-Proceedings-Final.pdf
Compen, B., De Witte, K., & Schelfhout, W. (2019). The role of teacher professional development in financial literacy education: a systematic literature review. Educational Research Review, 26, 16–31. https://doi.org/10.1016/j.edurev.2018.12.001
De Beckker, K., Compen, B., De Bock, D., & Schelfhout, W. (2019). The capabilities of secondary school teachers to provide financial education. Citizenship, Social and Economic Education, 18(2), 66–81. https://doi.org/10.2139/ssrn.3409835
De Moor, L., & Verschetze, L. (2017). Student teachers’ capacity and willingness to teach financial literacy in Flanders. Journal of Financial Counseling and Planning, 28(2), 313–321. http://doi.org/10.1891/1052-3073.28.2.313
Departamento de Educación de Puerto Rico [Puerto Rico Department of Education]. (2022). Estándares de Contenido y Expectativas de Grado Estudios Sociales [Social Studies Grade Level Content Standards and Expectations]. https://dedigital.dde.pr/pluginfile.php/145107/mod_resource/content/4/Programa%20de%20Estudios%20Sociales_Estándares%20y%20Expectativas%202022.pdf
Deng, H.-T., Chi, L.-C., Teng, N.-Y., Tang, T.-C., & Chen, C.-L. (2013). Influence of financial literacy on teachers on financial education teaching in elementary schools. International Journal of e-Education, e-Management, and e-Learning, 3(1), 68–73, https://doi.org/10.7763/ijeeee.2013.v3.195
Farinella, J., Bland, J., & Franco, J. (2017). The impact of financial education on financial literacy and spending habits. International Journal of Business, Accounting and Finance, 11(1), 1–12.
Fernandes, D., Lynch, J. G., & Netemeyer, R. G. (2014). Financial literacy, financial education, and downstream financial behaviors. Management Science, 60(8), 1864–1883. https://doi.org/10.1287/mnsc.2013.1849
Field, A. (2005). Discovering Statistics using SPSS. CA Sage Publications, Inc.
Financial Industry Regulatory Authority Investor Education Foundation. (2018). National Financial Capability Study Questionnaire. https://finrafoundation.org/sites/finrafoundation/files/NFCS-2018-State-by-State-Qre.pdf.
Financial Industry Regulatory Authority Investor Education Foundation. (2021). About the National Financial Capability Study. https://finrafoundation.org/knowledge-we-gain-share/nfcs/about-nfcs
Fuchs, C., & Diamantopoulos, A. (2009). Using single-item measures for construct measurement in management research. Die Betriebswirtschaft, 69(2), 195–210. https://temme.wiwi.uni-wuppertal.de/fileadmin/_migrated/content_uploads/fuchs_diamantopoulos_2009.pdf
García, N., Grifoni, A., Lopez, J. C., & Mejia, D. (2013). Financial education in Latin America and the Caribbean: rationale, overview and way forward. OECD Working Papers on Finance, Insurance, and Private Pensions, 33, OECD Publishing. https://doi.org/10.1787/5k41zq7hp6d0-en
Glen, S. (n.d). Kaiser-Meyer-Olkin (KMO) Test for Sampling Adequacy. StatisticsHowTo. https://www.statisticshowto.com/kaiser-meyer-olkin/
Gobierno de Puerto Rico [Government of Puerto Rico]. (2019). Informe Final de la Resolución 188 del Senado de Puerto Rico [Final Report of Resolution 188 from the Senate of Puerto Rico]. https://sutra.oslpr.org/osl/sutra/anejos/126432/rs0188i-final.doc
Groneman-Hite, N., Slocombe, T. E., Railsback, B., & Miller, D. (2011). Personal finance education in recessionary times. Journal of Education for Business, 86(5), 253–257. https://doi.org/10.1080/08832323.2010.511304
Hensley, B. J. (2015). Enhancing links between research and practice to improve consumer financial education and well-being. Journal of Financial Counseling and Planning, 26(1), 94–101. https://doi.org/10.1891/1052-3073.26.1.94
Hoover, M., Mosvold, R., Ball, D. L., & Lai, Y. (2016). Making progress on mathematical knowledge for teaching, The Mathematics Enthusiast, 13(1), 3–13. https://doi.org/10.54870/1551-3440.1363
Jaadi, Z. (2022). A step-by-step explanation of principal component analysis (PCA). Built in. https://builtin.com/data-science/step-step-explanation-principal-component-analysis
Kaiser, T., & Menkoff, L. (2017). Does financial education impact financial literacy and financial behavior, and if so, when? The World Bank Economic Review, 31(1), 611–630. https://doi.org/10.1093/wber/lhx018
Lee, J. M., Park, N., & Heo, W. (2019). Importance of subjective financial knowledge and perceived credit score in payday loan use. International Journal of Financial Studies, 7(3), 53–74. https://doi.org/10.3390/ijfs7030053
Lind, T., Ahmed, A., Skagerlund, K., Strömbäck, K., Västfjäll, D., & Tinghög, G. (2020). Competence, confidence, and gender: the role of objective and subjective financial knowledge in household finance. Journal of Family and Economic Issues, 41, 626–638. https://doi.org/10.1007/s10834-020-09678-9
Lown, J. M. (2011). Development and validation of financial self-efficacy scale. Journal of Financial Counseling and Planning, 22(2), 54–63. https://doi.org/10.1037/t69132-000
Mandell, L. (2008). Financial literacy of high school students. In J. J. Xiao (Ed.), Handbook of consumer finance research (pp. 165–183). Springer. https://doi.org/10.1007/978-0-387-75734-6_10
McDonald, P. (2018). Observing, planning, guiding: How an intentional teacher meets standards through play. Young Children, 73(1). https://www.naeyc.org/resources/pubs/yc/mar2018/observing-planning-guiding
Nejad, M. G., & Javid, K. (2018). Subjective and objective financial literacy, opinion leadership, and the use of retail banking services, International Journal of Bank Marketing, 36(4), 784–804. https://doi.org/10.1108/IJBM-07-2017-0153
Nunes, A. F., Monteiro, P. L., & Nunes, A. S. (2020). Factor structure of the convergence insufficiency symptom survey questionnaire. PLoS ONE 15(2), e0229511. https://doi.org/10.1371/journal.pone.0229511
O’Brien, M. & Blue, L. (2018): Towards a positive pedagogy: designing pedagogical practices that facilitate positivity within the classroom. Educational Action Research, 26(3), 365–384. https://doi.org/10.1080/09650792.2017.1339620
Organization for Economic Co-operation and Development (OECD). (2017). G20/OECD INFE report on adult financial literacy in G20 countries. https://www.oecd.org/daf/fin/financial-education/G20-OECD-INFE-report-adult-financial-literacy-in-G20-countries.pdf
Owusu, G. M. Y. (2023). Predictors of financial satisfaction and its impact on psychological wellbeing of individuals. Journal of Humanities and Applied Social Sciences, 5(1) 59–76. https://doi.org/10.1108/jhass-05-2021-0101
Robb, C. A., & Woodyard, A. S. (2011). Financial knowledge and best practice. Journal of Financial Counseling and Planning, 22(1), 60–70, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2061308
Sawatzki, C. M., & Sullivan, P. A. (2017). Teachers’ perceptions of financial literacy and the implications for professional learning. Australian Journal of Teacher Education, 42(5). https://doi.org/10.14221/ajte.2017v42n5.4
Susilowati, N., Latifah, L., & Jariyah, I. A. (2017). College student financial behavior: an empirical study on the mediating effect of attitude toward money. American Scientific Publishers, 23(8), 7468–7472. https://doi.org/10.1166/asl.2017.9500
Schindler, K. A. (2014). Examining the capacity and preparation of teachers for teaching personal finances in Puerto Rico (Publication No. 3639242) [Doctoral dissertation, Kansas State University]. ProQuest Dissertations Publishing. http://hdl.handle.net/2097/18228
Tang, N., Baker, A., & Peter, P. (2015). Investigating the disconnect between financial knowledge and behavior: the role of parental influence and psychological characteristics in responsible financial behavior in young adults. The Journal of Consumer Affairs, 49(2), 376–406. https://doi.org/10.1111/joca.12069
Topa, G., Hernández-Solís, M., & Zappalá, S. (2018) Financial management behavior among young adults: The role of need for cognitive closure in a three-wave moderated mediation model. Frontiers in Psychology, 9, 1–10. https://doi.org/10.3389/fpsyg.2018.02419
Wagner, J., & Walstad, W. B. (2018). The effects of financial education on short-term and long-term financial behaviors. The Journal of Consumer Affairs, 53(1), 234–259. https://doi.org/10.1111/joca.12210
Washington Educator Skills Tests. (2023). Understanding your test results. Pearson Education, Inc. https://www.west.nesinc.com/PageView.aspx?f=GEN_UnderstandingYourTestResults.html
Way, W. L., & Holden, K. C. (2009). Teachers’ background and capacity to teach personal finance: results of a national study AFCPE. Journal of Financial Counseling and Planning, 20(2), 64–92.
Webb, F. J. (2011). Measurement in practice. In J. E. Grable, K. L. Archuleta, & R. Roudi-Nazarinia (Eds.), Financial planning and counseling scales (pp. 1–12). Springer. https://doi.org/10.1007/978-1-4419-6908-8
Xiao, J. J., & O'Neill, B. (2016). Consumer financial education and financial capability. International Journal of Consumer Studies, 40(6) 712–721. http://dx.doi.org/10.1111/ijcs.12285
![Creative Commons License](http://i.creativecommons.org/l/by-nc-sa/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright (c) 2023 Fórum Empresarial