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Workplace financial education and change in financial knowledge: A quasi-experimental approach (Horwitz et al., 2021)

Review Guidelines

Absence of conflict of interest. 

Citation

Horwitz, E., Seay, M. C., Archuleta, K. L., & Anderson, S. G. (2021). Workplace financial education and change in financial knowledge: A quasi-experimental approach. Journal of Financial Counseling and Planning, 32(3), 449-463. https://doi.org/10.1891/JFCP-19-00082

Highlights

  • The study's objective was to examine the impact of a workplace financial education program on financial knowledge. 
  • The study used a nonexperimental design to compare the outcomes of employees who participated in the program to employees who did not participate. Using survey data, the authors conducted statistical tests to analyze differences in outcomes between the two groups.  
  • The study found that financial education in the workplace was significantly associated with an increase in financial knowledge.  
  • This study receives a low evidence rating. This means we are not confident that the estimated effects are attributable to the workplace financial education program; other factors are likely to have contributed. 

Features of the Study

The study used a nonexperimental design to assess the impact of a workplace financial education program. Two companies offered a financial education program to all employees for a one-time reimbursed fee of $150. Company A offered the program in 2013 and Company B offered the program in 2014. The program group consisted of 46 employees, 10 from Company A and 36 from Company B. Program participants attended classes once a week over a 10-week period. The comparison group consisted of non-participants identified by employers and received a financial education booklet in lieu of classes. The comparison group consisted of 56 employees, 7 from Company A and 49 from Company B. The study sample was predominantly female, and a plurality of employees had incomes between $38,521 and $101,582. However, the comparison group members had a lower percentage of bachelor’s degree recipients than the program group. 

The authors administered a 50-question survey to participants and non-participants within 72 hours of the program start (pre-survey) and end (post-survey). The survey questions assessed financial knowledge, financial satisfaction, money beliefs, and money behaviors. The survey response rate was 100%. The authors conducted statistical analyses to compare differences in outcomes between program participants and non-participants.  

Findings

Knowledge and skills for financial decision making 

  • The study found a significant relationship between the financial education program and increased overall financial knowledge scores.  

Considerations for Interpreting the Findings

The authors did not account for other factors that could have affected the difference between the treatment and comparison groups, such as race/ethnicity. Also, the groups were significantly different in age, but the authors did not control for the differences in the analyses. These preexisting differences between the groups—and not the financial education program—could explain the observed differences in outcomes. Therefore, the study is not eligible for a moderate causal evidence rating, the highest rating available for nonexperimental designs. 

Causal Evidence Rating

The quality of causal evidence presented in this study is low because the authors did not ensure that the groups being compared were similar before the intervention. This means we are not confident that the estimated effects are attributable to financial education in the workplace; other factors are likely to have contributed.  

Reviewed by CLEAR

April 2024

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