Microsoft Word Ed Horwitz Post Dissertation Fina docx

Chapter 3 - Paper Two: The Effectiveness of a Comprehensive 
Financial Education Program on Changing Financial Well-Being 
 Introduction 
Millions of Americans suffer from low levels of financial literacy, making it difficult to 
understand basic economic concepts required for budgeting, saving, and financial decision 
making (Lusardi, 2008). The inability to understand and apply financial concepts increases the 
likelihood of making poor financial decisions (Martin, 2007). Representative historical research 
has well documented the associations between financial literacy and various related financial 
behaviors (Chen & Volpe, 2002; Hilgert, Hogarth, & Beverly, 2003; Lusardi & Mitchell, 2007a, 
2007b; Robb & Woodyard, 2011; Yoong, 2010, Martin, 2007). However, far less attention has 
been given to how financial education and financial literacy impact our financial well-being.  
 
An individual’s level of financial literacy comes from their human capital level consisting 
of financial knowledge, confidence, and ability to understand and make financial planning 
decisions, leading to an overall higher level of financial well-being (Huston, 2010).
 
Other 
influences, such as behavioral biases and beliefs, can also directly affect financial behavior as 
well as financial well-being. Positive financial behaviors contribute to financial satisfaction, 
which in turn contributes to overall life satisfaction (Xiao, Tang, & Shim, 2009). Therefore, an 
individual who is more likely to make better financial decisions and engage in positive financial 
behavior is also more likely to have higher financial well-being, and be happier in general. 
Historical research suggests that individuals with higher levels of financial literacy have a greater 
likelihood of engaging in positive financial behaviors and make fewer sub-optimal financial 
decisions (Robb & Woodyard, 2011; Martin, 2007).   

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Guided by historical research, it is posited that increasing financial literacy by utilizing 
financial education will be associated with increased overall human capital and ultimately affect 
financial well-being (Huston, 2010). Literature generally views financial satisfaction as a sub-
construct of overall well-being, and is posited to also include financial well-being (Campbell, 
1981). The purpose of this research is to better understand the effectiveness of financial 
education on changing financial well-being. To that end, the following research questions are 
posed: 
1.    What is the association between participation in a worksite comprehensive financial 
education program and change in savings satisfaction? 
2.    What is the association between participation in a worksite comprehensive financial   
education program and change in income worry?  
3.    What is the association between participation in a worksite comprehensive financial 
education program and change in expense worry? 
4.    What is the association between participation in a worksite comprehensive financial 
education program and change in debt worry? 
5.    What is the association between participation in a worksite comprehensive financial 
education program and change in retirement savings confidence? 
6.    What is the association between participation in a worksite comprehensive financial 
education program and change in comfortable retirement confidence? 
7.    What is the correlation between changes in financial literacy and changes in financial 
well-being among participants of a worksite comprehensive financial education 
program? 
 

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