Dissertationroughdraft6.13.21.docx

The Absence of Financial Literacy Taught in Schools using Qualitative Research Design

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 or 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Historical Content x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 or 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 or
Pilot Test x
Credibility and Transferability or 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

[Only include a list of tables if there are two or more tables. Use title case, defined as capitalizing key words, for table titles.]

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 key words, for figure titles.]

UNIVERSITY OF PHOENIX
January 2010
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Introduction

Education about financial literacy is an important subject that helps students to handle money at school and in the professional world. Students who acquire this knowledge are different from those without because they can make sound financial decisions while avoiding common financial mistakes. The mistakes most people make while attempting to meet their financial needs are associated with a lack of financial literacy (Amagir et al., 2018). Therefore, this current work (study) will focus on the gaps that manifest in the schools regarding financial education, their impacts and how they can be solved. 
Both the youth and the community as a whole enjoy the benefits of understanding and applying the principles of financial literacy. This principle gives the capability of making sound financial decisions. Teachings about this vital tool will help students become skillful and discrete when handling finances both in school and at home. A great future is created when students are equipped with the knowledge of 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 and that 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 and that 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 the use of 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 didactics that are practical 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. Both students and members (principals, administrators, teachers, housekeepers, secretaries, police officers, guidance counselors, cafeteria workers) of the school, hold some level of misconception about financial literacy.

Background of the Problem

Currently, many teens and youths are illiterate about financial management and statistics show that, financial illiteracy is an endemic issue the globe is battling with as youth struggle to be financially independent (Faulkner, 2017). A survey by the RAND Group in 2015 revealed that teens and youths power most of the country’s economy by about $91 billion, though financial management still remains a ubiquitous challenge for the youths (Amagir et al., 2018). Lack of financial literacy exposes many of them to unending financial management problems, developing poor money spending habits, and unsuccessfully managing their customer credit. Poor financial habits always lead to unwise spending amongst teens. According to Amagir et al., (2018), 20% of the three-quarters of the high school seniors with saving and/or saving accounts graduate with formal knowledge about formal finance. However, the fears of these youths getting into adulthood are that they do not understand the principles of saving, spending, earning, investing, or even balancing a checkbook (Faulkner, 2017). Hence, there is an increasing need for students to have financial literacy, which will help create some level of independency and a sense of self-sufficiency and responsibility. With financial literacy in place, students get to understand the basics of financial markets, investment choices, and financial budgeting. As a result, students will avert facing issues of debt, which is a phenomenal trend among the adult youths. It is not hard to acknowledge some financial management techniques, especially when interacting with well-informed and planned professionals. Therefore, students with financial literacy will hold discussions with well-learned and informed individuals because they will foresee risks and argue-justify matters at hand (Amagir et al., 2018). Since the financial status of individuals contributes to the economy, there is an increase need to polarize financial literacy within schools.

Problem Statement

The problem is that youth lack the knowledge of financial literacy. According to the article by Amagir et al., 2020, there is a large gap in terms of financial education among teens and youth. The article focused on 15-year old students in high school and realized a depth of knowledge. The revelations in the article call for urgency in introducing financial literacy programs in schools because financial literacy does not only rob youth and teens of their economic prosperity but it also robs the nation (Lusardi, 2019). Most young adults assume the necessity of financial education and therefore schools should move a step further to introduce the necessary financial education programs.

Purpose of the Study
The purpose of this study is to conduct a hybrid research, using both qualitative and quantitative approaches to explore the subject of financial literacy among youths and teenagers. The research will take place within the school district of Palm Beach County, Florida. The objectives of the study on financial literacy are:
1. To identify the gaps in the financial literacy education in the schools within Palm Beach County, Florida.
2. To determine the impacts of inadequate financial knowledge to the long term lives of the youths and teens, and how it hurts the state and federal economy.

Population and Sample

The information that will be used for developing the research topic will be gathered from interviews. The interviews will be conducted within the school district of Palm Beach County, Florida and will involve heads of schools and curriculum developers within the district. The information that will be used for developing the research topic will be gathered from interviews. The interviews will be conducted within the school district of Palm Beach County, Florida and will involve heads of schools and curriculum developers within the district. Principals from 20 schools around the district will be interviewed while only ten of the curriculum developers across the state of Florida will be interviewed. 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. Random sampling method will be used to select the twenty principals from the schools within the district. In addition, the curriculum developers that will be involved in the research will be selected by random sampling.

Significance of the Study

The study on financial literacy is very important to an individual, the state and the US national government. The economy of the US depends much on proper financial planning. If the youth are equipped with the relevant knowledge about how to manage funds, it is a plus for the economy of the US and for the state of Florida because proper financial education leads to informed financial planning which prompts economic development (Amagir et al., 2018). Further, the study of financial literacy gaps in the schools will help the policymakers in curriculum development to plan on introducing holistic financial literacy programs in these schools (Bakar and Bakar, 2020). These programs will benefit the teens and the youth as they will be able to acquire immense knowledge on financial management, which will help them become responsible citizens and parents financially (Amagir et al., 2018). The study on financial illiteracy is aimed to pioneer more research into the field of financial literacy.

Nature of the Study

The qualitative method of research will be applied in studying the research question on financial literacy. The research design method will be used to collect, compare and interpret different information that will be collected through interviews (Hennink et al., 2020). The qualitative method has been considered appropriate because data for the study will be collected through interviews and qualitative research design is applied in instances where data has been collected through interviews or observations. A narrative method of data analysis will be used to analyze the collected data (Hennink et al., 2020). Narratives will include analyzing the words or stories shared during the interviews or make conclusions about the gaps in financial education within the school district of Palm Beach County, Florida.
The advantage of using qualitative research in analyzing financial literacy in education is that it has the power to generate enough content required to answer the research questions on financial literacy (Hennink et al., 2020). Secondly, the use of qualitative data will ensure that the information provided is specific to the field of education. Lastly, the qualitative approach is a subjective method of research and thus, will answer the question on why there is financial illiteracy among the youths and teens in the US (Hennink et al., 2020). The limitation of the research method is that it will not address how these problems evolved or came into existence.
To answer the research questions on financial literacy, a qualitative research method shall be used. The qualitative method is most relevant for this study because it shall provide contexts and an overview of financial literacy in schools. An ethnographic qualitative research method shall be used. Ethnography will be used in the study because it will allow first-hand information to be collected. Direct observation and questionnaire interviews shall be used to collect information which will be used in answering the research questions (Jamshed, 2014). The participants will answer interview questions on the state of financial literacy in their schools and what they believe are implications of lack of financial literacy (Jamshed, 2014). A grounded method of qualitative research design shall be used. The grounded method shall be effective in this case because it will allow the information collected from financial literacy to be interpreted from a neutral perspective (Khan, 2014). In other words, the grounded method will ensure that the study and its findings focus on the collected data rather than the knowledge of the researcher on financial literacy.
The qualitative research method shall be used in answering questions on financial literacy because it will lead to deep insights about financial literacy and its impacts on teenagers and youths. Also, the qualitative research method will save money because information shall be collected through interviews and direct observations. The main setback is that, even though the grounded method shall be used to analyze the data, the factor of bias is hard to overcome. Therefore, the findings and conclusions on financial literacy in schools and how it affects youth and teenagers may not be accurate due to the bias factor.

Research Questions

There shall be three research questions. The questions are:
1. What are the gaps in financial education among the schools in the Palm Beach County, Florida?
2. What have been the impacts if any, of financial illiteracy to the youth and teens within the state?
3. What should be done, and by who, to address the gaps witnessed in financial education among schools in Florida and nationally?

Theoretical Framework

College students in the United States continue to struggle with massive debt. A majority of adults live from paycheck to paycheck, implying that there are a vast majority of financially illiterate persons. Entrepreneurs in the economy are extremely disappointed with the lack of preparation and financial savvy of recent graduates and prospective candidates. The concept of financial literacy is just a normal unit for most students. It is a theory that seems hard to apply. Students are learning to pass the examination, only to live beyond their monthly income, cannot purchase a home, cannot subscribe to a monthly insurance plan, and cannot even save for retirement due to the lump sum debt (Draper, 2019).
It is estimated that 44% of Americans can’t cover a $400 emergency without debt. 56% of Americans have less than $10,000 in savings for their retirement (FederalReserve, 2018). Some of these skills should be taught by parents to their children; however, many parents live in great debt. If students are not learning financial skills at home, then it is expected that financial illiteracy will be a norm for many persons. Schools should only facilitate what is being taught at home. According to a Champlain College national report on financial literacy, 27 states received a “C” or lower grade. While students learn mathematics in schools, most schools are not required to teach finance-related curriculum like the concept of compound interest and how to complete a tax return. Teaching personal finance is not just the responsibility of learning institutions as it is not just effective to teach personal finance in a condensed format and expect significant results. Students are required to plan their finances right from the issue of pocket money. The behavior should be applied in a manner that enables students to apply what they learn in school. It will go a long way in improving financial literacy in schools (Kirkham, 2016).

Definition of Terms

College Students refers to a pupil enrolled in a college or university. College students pursue degrees, diplomas, or even masters. College students face several issues while in schools, such as family expectations, relationship issues, depression, and financial issues.

Paycheck to Paycheck is used to define a person who would not meet financial errands without a job. Persons existing paycheck to paycheck mostly devote their earnings to spend. Some countries use a paycheque in place of a paycheck.

Financial Literacy entails understanding and effectively using various financial skills, including personal financial management, budgeting, and investing. Financial literacy is the basis of the association with money, and it is an enduring erudition voyage (Lusardi, 2019).

Entrepreneurs are an originator, challenger, and driver. They are the persons who create something new. It can be a corporation, an initiative, or a business. They combine land, labor, and capital in an investment (Kirkham, 2016).

Financial Savvy
is a person that is well conversant in dealing with expenses, credit, and other money matters. At the same time, this term can mean many different things to different people; the overall idea of being savvy financially emphasizes one notion, hereby maintaining a healthy financial standing through proper planning and budgeting (Kirkham, 2016).

Personal Finance is a term that covers the concepts of managing money, saving, and investing. It also includes banking, budgeting, mortgages, investments, insurance, retirement planning, and tax planning. An illustration of personal finance knows how to budget, balance a checkbook, obtain funds for major purchases, save for retirement, plan for taxes, purchase insurance and make investments (Lusardi, 2019).

Assumptions

The notion that financial information can supernumerary for low levels of financial literacy rests on the supposition that less well-informed persons face higher footraces regarding the assortment and dispensation of information and thereby save more on data and search costs when revolving to an advisor. The assumption disregards literature from the study of adult teaching, psychology and behavior change, and the socio-cultural factors that disturb learners (Lusardi, 2019).
Another assumption seems to be that anybody with complications connected to money must have insufficiency in financial knowledge, or the problems would not have happened. The answer is to offer knowledge in individual accountability for one’s achievements and disappointments, which is a vital part of American philosophy. Another supposition is the anticipation that education in financial substances will surge individual’s literateness and, by allowance, advance their monetary well-being. This assumption disregards non-fiction from the study of adult education mindset and behavior variation (Lusardi, 2019).

Limitations

Basing on the discussion under the dissertation, research states that public-choice researchers sought innovative approaches to curb opportunistic behaviors in the absence or limitation of government regulation. Smith capitalism has been criticized by socialist economists. According to ethics scholars, public trust in American business leadership is eroding. Researchers linked a transgression of leadership ethics to a loss of confidence. A research study’s limitations are flaws that could prevent the findings from being generalized to other populations. A time constraint was one of the study’s limitations. The investigation focused primarily on historical data from 2005 to 2010. Gross profit margin and after-tax profit margin were used to assess economic success. These financial ratios are generated using data from the income statements of the business under consideration. Furthermore, the financial records and regulatory reports that were archived may have been unreliable. As a result, another study restriction was the possibility of incorrect data leading to inaccurate results. The cause-and-effect relationship between variables is reflected in a causal explanation. Statisticians who use a multivariate model get a better estimate of the criterion and predictor variables than those who use a single-variable analytical perspective. The ability of descriptive-correlation researchers to infer causality is restricted. The use of correlation by statisticians does not indicate causality (Hennink, 2020). However, quantitative researchers must determine the sources of a variable’s variation in to analyze it scientifically. Because the qualitative technique is a subjective research method, it will provide an answer to the question about why there is financial illiteracy amongst teens and youths in the United States. The research method’s limitation is that it does not address how these issues began or came to be.

Delimitations

The purpose of research delimitations is to define where a study’s scope ends. The study’s boundaries will be established. An example is a situation where thousands of securities are listed on three stock exchanges. Even though the study examined a sample of 74 financial services companies classified as SIC 6211, the demographic and industry classification might restrict the generalizability of the findings to other firms in other countries. The purpose of utilizing qualitative research to analyze financial literacy in education is that it has the ability to provide enough content to address the financial literacy research questions. Using qualitative data will help ensure that the information presented is relevant to the area of education.

Summary

The number of regulatory infractions is on the rise (SEC, 2011b). Greater transparency of publicly traded corporations has been identified as a must, and regulators are working on new anti-corruption policies. Evidence of the impact of regulatory compliance or misconduct on economic performance has been overlooked in present empirical research (Suparno, 2018). Financial executives can use the findings to support policy reform by better knowing the interaction between regulatory compliance and economic performance. With theoretical framework, the meaning and comprehension can be revealed as well as hidden. This can help everyone see old events in new ways, but it can also blind us to some aspects of the phenomenon or distort the phenomenon by filtering out essential facts. The financial regulatory system played a role in the 2008 financial crisis and the failure of several American financial institutions that followed (Suparno, 2018).

References

Amagir, A., Groot, W., Maassen van den Brink, H., & Wilschut, A. (2018). A review of financial-literacy education programs for children and adolescents. Citizenship, Social and Economics Education, 17(1), 56-80.
Amagir, A., Groot, W., van den Brink, H. M., & Wilschut, A. (2020). Financial literacy of high school students in the Netherlands: knowledge, attitudes, self-efficacy, and behavior. International Review of Economics Education, 34, 100185. https://doi.org/10.1016/j.iree.2020.100185
Blue, L. E., & Grootenboer, P. (2019). A praxis approach to financial literacy education. Journal of curriculum studies, 51(5), 755-770.
Cieslick, J., & van Stel, A. (2017). Explaining university students’ career path intentions from their current entrepreneurial exposure. Journal of Small Business and Enterprise Development, 24(2), 313-332
Daveramsey.com (2019). Should Financial Literacy Be Taught in More Schools [Blog post]. Retrieved from
https://www.daveramsey.com/blog/should-financial-literacy-be-taught-in-schools

Draper, S. (2019). Why Financial Literacy in Schools matter today for the workforce of Tomorrow. Retrieved from https://www.forbes.com/sites/forbescommunicationscouncil/2019/12/16/why-financial-literacy-in-schools-matters-today-for-the-workforce-of-tomorrow/?sh=7765a940110c

Dyer, S.P.; Lambeth, D.T.; Martin, E.P. Effects of multimodal instruction on personal finance skills for high school students. J. Sch. Educ. Technol. 2016, 11, 1–1
Faulkner, A. E. (2017). Financial literacy education in the United States: Exploring popular personal finance literature. Journal of Librarianship and Information Science, 49(3), 287-298.
Federal Reserve Bank of New York. Quarterly Report on Household Debt and Credit; Federal Reserve Bank: New York, NY, USA, 2016; pp. 1–33
FederalReserve (2018). Federal Reserve Board issues report on the economic well-being of U.S. Households. Retrieved from https://www.federalreserve.gov/newsevents/pressreleases/other20180522a.htm

Hennink, M. M., Hutter, I., & Bailey, A. (2020). Qualitative research methods. SAGE Publications Ltd.
Jamshed, S. (2014). Qualitative research method-interviewing and observation. Journal of Basic and Clinical Pharmacy, 5(4), 87. https://doi.org/10.4103/0976-0105.141942

URL: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4194943/

Khan, S. N. (2014). Qualitative Research Method: Grounded Theory. International Journal of Business and Management, 9(11). https://doi.org/10.5539/ijbm.v9n11p224

Kirkham E. (2016). 1 in 3 Americans has saved $0 for retirement. Retrieved from https://money.com/retirement-savings-survey/

Lusardi, A. (2019). Financial literacy and the need for financial education: evidence and implications. Swiss Journal of Economics and Statistics, 155(1). https://doi.org/10.1186/s41937-019-0027-5
Lusardi, A.; Tufano, P. Debt literacy, financial experiences, and overindebtedness. J. Pension Econ. Finance. 2015, 14, 332–368.
Rajh, E., Budak, J., Ateljević, J., Davčev, L., Jovanov, T., & Ognjenović, K. (2016). Entrepreneurial intentions in selected Southeast European countries. EIZ Working Papers, (9), 5-27.
Nova. (2018). Financial education stalls, threatening kids’ future economic health. Cnbc.Com. https://www.cnbc.com/2018/02/08/financial-education-stalls-threatening-kids-future-economic-health.html
Suparno, S. & Saptono, A. (2018). Entrepreneurship education and its influence on financial literacy and entrepreneurship skills in college. Journal of Entrepreneurship Education, 21(4), 1-11

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