Microsoft Word Ed Horwitz Post Dissertation Fina docx

 Empirical Model 
 
An assessment of financial literacy (FL), pre and post educational program delivery, was 
conducted to understand the association between variables. The empirical model for the research 
is expressed as follows: 
ΔFL = F(DC+FA+FC+PE(n)+C) 
Demographic characteristics (DC), familial characteristics (FA), and financial 
characteristics (FC) were used and expressed in the model.   
 
 
 
The dependent variable, change from the pretest to posttest financial literacy scores, was 
assessed by a composite measure (FL). The sub-components of financial literacy, basic financial 
knowledge (BFK), and sophisticated application of knowledge (SAK), are shown in the 
following model. 
 
ΔFL = (FL
t1
) - (FL
t0
) 
FL
 t1
 = [(BFK
t1
) + (SAK
 t1
)]  
FL
 t0
 = [(BFK
t0
) + (SAK
 t0
) 
 
The sub-components of financial literacy, basic financial knowledge (BFK) and 
sophisticated application of knowledge (SAK), were assessed using two groups of questions as 
follows: 
 
 
BFK = (BFK
1
) + (BFK
2
) + (BFK
3
) + (BFK
4
) + (BFK
5
) + (BFK
6
) + (BFK
7
) 
 
 
SAK = (SAK
1
) + (SAK
2
) + (SAK
3
)  

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The variable for participation in the financial education program (PE) was used in the 
model to represent those who have participated in the financial education program. The number 
of classes attended in the PE will be represented in the model as (n).  
 Data Analysis 
To address the first research question, a t-test was used to see if the average change in 
financial literacy scores was significantly greater among the participant group versus the control 
group. The second research question also used a t-test to determine if the average change in 
financial literacy scores among participants who attended a higher number of classes was 
significantly greater than participants who attended a fewer number of classes. Research question 
three focuses on participation in the education program and changes in financial literacy scores, 
taking into consideration the characteristic differences between the participant and control 
groups. The research seeks to more clearly understand if participation in the education program 
really matters, controlling for the age, ethnicity, education level, marital status, gender, income, 
and net worth differences between the two groups. This analysis will provide better 
understanding of the effectiveness of the financial education program by controlling for the 
differences in makeup of the participant group as compared to the control group, helping to 
further clarify the results of the t-tests performed in question one.  
Consistent with the financial literacy framework, a series of subjective questions were 
asked pertaining to changes in behaviors and beliefs since the beginning of the educational 
program. The data collected 90 days following the program conclusion will provide a self-
reported measure of changed behaviors and beliefs among participant responders. 

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