Exploring the Impacts of Financial Education on Behaviour Change in Personal Finance Management: Evidence from the PUFin Educational Programme “Managing My Money”
The impacts of educational interventions towards behaviour change have been disputed in previous studies (Hensley, 2015; Collins & Holden, 2014; Hopley, 2003). This study investigated whether financial interventions result in a change in financial behaviour. It also examined the role of educational interventions in contributing to the financial well-being (FWB) of citizens through obtaining desirable behaviour change and strengthening financial capability. The participants in the study have taken part in the “Managing My Money” course (MMM). This study examined if they had made a change in their behaviour, as a result of taking part in this course.
The literature review covers the theories explaining the relationship between educational interventions, behaviour change, financial capability and FWB using a range of behaviour change models, such as the “Five Stages of Change” model (Prochaska et al., 1992; Prochaska & DiClemente, 1983). A positivist approach was chosen to measure behaviour change. A survey method was applied and enriched with data from open-ended questions (Easterby-Smith et al, 2008). The deductive analysis of the open-ended responses provided a clearer picture of actual behaviour change and financial capability of students before and after the course.
This research makes an empirical contribution to the behaviour change literature. It provides evidence showing the effect of financial education towards behaviour change in personal finance (Prochaska & Di Clemente, 1992; Collins & Holden, 2014; Darnton, 2008). This research also supports previous studies that an educational intervention does not always result in behaviour change (SeiLing and Shockey, 2006), but helps to prepare people to make a change. In addition, it uncovered factors that constrained people in making a change, such as knowledge and low-income (Bell & Lerman, 2005; Lyons, 2005). A conceptual framework of the relationship between educational intervention; behaviour change, financial capability and well-being is outlined. The study has implications for social marketers, where a programme of personal financial education, should be developed to promote positive behaviour change, in particular for low-income individuals to encourage an improvement in the FWB of society
