Evaluating Financial Education Programs

Abstract

Universities and colleges have a vested interest in the personal financial health of their students and alumni. Somewhat alarming to university administrators is the well-documented lack of financial knowledge by college students. In this chapter, we summarize current efforts to document the impact and efficacy of financial education in terms of improved financial knowledge and practices among college students. Generally, we find these evaluation efforts to be lacking, mimicking the research reported in the wider (non-college-age population) financial education arena. As a response, we propose a general framework for evaluation of financial education programs operating on campuses. Universities and colleges are poised to conduct cutting-edge research demonstrating program impact. Conducting a comprehensive evaluation study is not easy, and it is not expected of all college and university financial education programs. However, with a combination of desirable experimental conditions, motivated stakeholders, research expertise, and incentives to share results, higher education professionals are in a unique position to push the financial education literature forward by showing what works, and what does not, in financial education.