Microsoft Word Ed Horwitz Post Dissertation Fina docx

 Implications 
 
Retirement savings and income projection calculations for retirement are among the most 
financially complex calculations individual Americans will encounter (Bayer, Bernheim, & 
Scholz, 2008). The movement towards self-directed employer retirement plans (e.g. 401(k)) has 
shifted the responsibility of identifying the proper savings levels and projecting future retirement 
benefits increasingly to the employee, who may lack the basic financial understanding needed for 
proper calculations and decisions (Lusardi, 2008). While many pension plan providers and 
investment service providers have tools to help project and simplify some of these calculations, 
basic understanding of financial concepts is still needed for proper decision making. This added 
responsibility and complexity of the financial knowledge and skills needed by employees is a 
clear call for more effective financial education programs. 

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The development of effective worksite financial education programs should be based in 
educational theory and embody the framework for financial literacy. The results of these essays 
help to establish the links in the financial literacy framework and specifically the important 
foundational link between financial education and financial literacy. Historical literature falls 
short, in many cases, of supporting causation related to the education program because of 
inconsistent use of terms, measures, and methodology, and a predominance of one-time or 
remedial education programs.  (Huston, 2010; Martin, 2007). More rigorous testing methods 
utilized in this research were intended to help clarify historical results and establish much needed 
baselines from which to build future research for comprehensive forms of financial education 
programs. 
 
When taking into account the medium effect size associated with the results of the financial 
education program on changes in financial literacy and financial well-being, some may question 
whether the time and cost associated with providing a worksite comprehensive financial 
education program is worthwhile. The results of essays one and two indicated evidence of 
increased financial literacy leading to specific action and resulting in changes to financial 
behavior. The decision to first address credit card debt after the recognition of adequate and 
comfortable retirement savings levels, and to manage household finances through monthly cash 
flow budgeting, represents potentially meaningful changes to those participants’ financial well-
being. If an employer’s goal was to provide a financial education program to improve the well-
being of their employees, evidence suggests these efforts are worthwhile despite the presence of 
a medium statistical effect size of the program. However, expectations need to be understood that 
not all employees may experience the same individual outcomes, and that some levels of 
financial well-being may initially be negative due to a greater overall financial awareness.     

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