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“It’s All About Security to Me”: The Role of Environment in Youth Financial Literacy and Savings Behaviors

“It’s All About Security to Me”: The Role of Environment in Youth Financial Literacy and Savings... This qualitative study explores financial behavior and expectations in families of origin in addition to youth financial education and savings behaviors. The authors interviewed 14 youths, aged 17 to 19 years, whose families had low incomes, education levels, and savings rates and who participated in a youth-based financial education and dedicated savings program and present key themes and subthemes that were revealed during data analysis. Findings suggest that, rather than replicating the behavior of their parents and experiencing the same financial struggles, the youths interviewed were motivated by a desire to avoid these challenges. However, youths in this study also noted that they experienced social and economic barriers that their higher income peers did not. Policy, practice, and research implications of these findings are discussed. Keywords youth, savings, financial literacy, financial behavior, ecological systems relationships between financial education, family environ- Introduction ment, and financial behavior. Given many U.S. households’ lack of active participation in the financial market and the increasing sophistication of Literature Review financial products, legislators and market analysts suggest that access to financial education would increase financial Financial Literacy and Financial Education knowledge, improve financial decision making, and strengthen market participation (Greenspan, 2005; Mandell, Although limited, current findings suggest that youth finan- 2009; Willis, 2008). America’s recent credit and housing cial education can have positive effects on long- and short- crisis suggests that informed financial decision making may term measures (Masa et al., 2010). For example, a recent be important to a more stable national economy. In the past qualitative study exploring the perception of participants 15 years, financial education and Individual Development in a child savings program (Elliott, Sherraden, Johnson, Account (IDA) programs have been implemented to teach & Guo, 2009) indicated that children who saved in the adults and youth about savings and investments and to link program perceived “that savings is a way to help pay for them with the mainstream financial sector (Shobe & Sturm, college” (p. 1). In the short term, Masa et al. (2010) con- 2007). However, the majority of research in the area of IDA ducted a review of current literature on the associations programming has been conducted with adults. between youth savings and well-being and found significant Limited available research on youth suggests that high relationships between youth savings and increased school financial education is associated with improved (a) savings, income, and the development of other assets; financial decision making (Bernheim, Garrett, & Maki, (b) self-esteem and social group participation; (c) reproduc- 2001), whereas other data indicate that financial behavior tive and sexual health knowledge; (d) safe-sex behavior; and decision making are more directly influenced by one’s and (e) educational achievement. family of origin than by one’s formal financial education (Shim, Barber, Card, Xiao, & Serido, 2010). Youth savings rates, for example, are often closely related to their parents’ Juniata College, Huntingdon, PA, USA University of Arkansas, Fayetteville, USA savings behaviors (Chiteji & Stafford, 1999). Because the available literature is largely focused on outcomes, it is dif- Corresponding Author: ficult to understand the reasons for these competing find- Leah Hamilton, Department of Sociology, Anthropology, and Social Work, ings. This study seeks to fill this gap by exploring the 1700 Moore St., Good Hall, Juniata College, Huntingdon, PA 16652, USA perspectives of youth themselves and the important Email: Hamilton@juniata.edu 2 SAGE Open Given these potential benefits, efforts to increase youth acquire from their parents regarding wealth accumulation. savings and financial literacy are well placed. Nonetheless, In a qualitative study that explored past and current savings research on the effects of financial education curricula for experiences of a small sample (N = 10) of adult African youth is inconsistent (see McCormick, 2009). Positive American women, findings suggested that, for the majority results include those of Bernheim et al. (2001), whose study of women, parental role modeling and education regarding based on survey data collected by telephone from 2,000 savings played an integral role in their decision to save and young adults found a positive relationship between financial the manner in which they saved as a child, youth, and adult education training for youth during state-mandated compul- (Shobe & Christy-McMullin, 2007). sory schooling (1957-1982) and increased savings in adult- Still, minimal research has been conducted on the role of hood. In an effort to expand upon this research, Cole and low-income parents in shaping financial knowledge and Shastry (2008) used a representative national sample from decision making for their children (Chiteji & Stafford, 1999). the 2000 Public Use Census Data to examine the relationship Furthermore, researchers have not fully examined the ways between financial education and later financial market par- in which youth learn about and replicate their families’ ticipation. Their findings suggested that youth financial edu- behaviors related to financial decision making and savings. cation programs were not associated with financial market As stated by Shim et al. (2010), “although we do know that decisions for either attendees or their children; rather, the parents are the primary socialization agents in the process by findings suggest that these programs are both costly and which children learn how to function in the marketplace as ineffective. Instead, they found that increased financial mar- consumers and money managers, we have not clearly defined ket participation was related to increased educational the specific roles that parents play” (p. 1458). achievement and cognitive ability (e.g., higher test scores). In terms of financial knowledge retention, two different Current Study studies surveyed high school seniors and full-time college undergraduates who had participated in a high school money From an ecological systems perspective (Germain & management or personal finance course; neither study found Gitterman, 1981; Bronfenbrenner, 1989), the financial participants to have more financial knowledge than those behaviors of youth and young adults are best understood who did not participate in a course (Mandell, 2009; Mandell within the context of their environments. Bronfenbrenner & Klein, 2007). Interestingly, Mandell (2007) noted in a (1979) depicted human growth and development as an recent nonrandomized study on the use of a Googolplex@ interactional and nested process between multiple levels of school middle school pilot financial education project that environment, including the self and one’s immediate envi- students in lower grades gain financial knowledge from fun, ronment (microsystem), larger organizations such as schools interactive financial literacy education. (mesosystem), and broader cultural, political, and economic forces (macrosystem). In this view, human thought pro- cesses and behavior are best described as a product of these Family of Origin interactions. Disparate outcome data may be attributable to the lack of Financial education, then, though an amiable goal, may national standards, the absence of a set curriculum for finan- fall short of expectations if youth are not seen as part of an cial education (McCormick, 2009), or environmental factors interconnected whole. For this reason, we plan to extend outside the classroom. Recent scholarship suggests that par- Charles and Hurst’s (2003) suggestion to examine the role ent attitudes, behaviors, and role modeling play a much of parent financial behavior in shaping youth financial larger role than financial education curricula in shaping their knowledge, skills, and behaviors to also include the effects children’s financial knowledge and behaviors. For example, on youth savings. using a survey with 2,098 college students, researchers The aim of this descriptive, qualitative research project is found that those who received financial education in high to better understand the role of environment in youth finan- school had higher levels of financial knowledge, but the cial decision making and determine whether this may explain most important predictor of student financial behavior was previously mixed results on the efficacy of financial educa- parent financial behavior (Shim et al., 2010). In addition, tion. To this end, this study seeks to capture the perspectives researchers using the Panel Study of Income Dynamics and experiences of the 14 youths who participated in an IDA (PSID) found that bank account and stock ownership for a savings program and to present the key themes and sub- sample of 1,933 adults (25-54 years old) was influenced by themes that reflect their perspectives and experiences, rela- parental account ownership (Chiteji & Stafford, 1999). tive to (a) financial decision making in the family of origin; Furthermore, Chiteji and Stafford (2000) also found that (b) savings successes, challenges, and expectations in the children’s exposure to family asset development helps explain family of origin; and (c) their perceptions of the IDA experi- future financial knowledge and asset development for later ences. We also plan to examine past and current savings generations. The authors used the term parental learning behaviors and future savings aspirations of the youths in this effect to describe the fundamental knowledge children study. This study will remain descriptive in nature as we seek Hamilton et al. 3 a deeper understanding of the personal experiences of par- perspectives of his or her family’s economic situation and ticipants (Rubin & Babbie, 2001). financial behaviors. For example, who makes financial Due to the limited availability of research in this area, it decision in the family, how does the family manage fiscally, was necessary to engage in a small scale, exploratory study. the saving and financial patters and behaviors the child per- Previous qualitative research has found this model useful. ceives within his or her family (e.g., spending and savings For example, Shobe and Christy-McMullin (2007) used a patterns, what does the family save for, what does the family small sample of 10 participants to explore the influence of spend on, how does the family make decisions about sav- parental role modeling and education in savings behavior ings and spending; what rules do the parents voice and what among African American women. rules do they enforce relative to savings and spending); the child’s reflections of economically challenging times and how the child perceived the family functioned during such Method times; the child’s account of the parent’s history of home Background and Protocol ownership and savings, child’s account of family’s social support network and resources, and child’s account of mes- Students were recruited from the “Cash for College” IDA sages his or her parents give about savings and education; savings program, which is sponsored by a large economic the child’s account of whether money matters are discussed development nonprofit agency in northwest Arkansas. Cash openly in his or her immediate family. The third group of for College offers an 8-hr financial literacy course to high questions explored the child’s perspective on his or her school students and 4:1 matched dedicated Individual financial behaviors and patterns prior to joining the IDA Development Savings Accounts (IDAs). Students are program and since joining the idea program. For example, required to deposit at least US$250 into their IDA accounts how he or she acquired money before and post IDA, what over the course of 1 year, at which point the program con- does he or she do with the money earned, where do they tributes an additional US$1,000. Funds from this program keep their money (e.g., bank, piggy bank, give it to parents can only be withdrawn for higher education expenses, to keep); the child’s thoughts and feelings about money and including tuition, fees, books, and supplies. The program is savings; future orientation relative to savings and spending open to students whose families have annual earned incomes (goals regarding home ownership, business ownership, within 200% of the federal poverty guidelines. asset purchases etc.); strategies they have used to work Prior to the interviews, a research proposal was submitted toward financial goals, challenges they have encountered in to the University of Arkansas Institutional Review Board for trying to save or achieve a financial goal, success stories approval. Students and their parents were provided with a relative to savings and finances; and savings goals. The last letter explaining the purpose of the study (including potential group of questions explored the child’s thoughts, experi- risks and benefits and the voluntary nature of the study) and ence, and feelings related to the IDA program. For example, an informed consent form. Students aged 18 and above were how they learned about the program, what interested them allowed to sign consent forms themselves; however, minor in the program, accounts of success and challenges relative students required written parental consent. to experiences in the program, accounts of how the program In each interview, the researchers explained that some works, suggestion for program improvements, accounts of questions were of a sensitive and personal nature. Each par- other aspects of the program and what if anything they ticipant was given the option to skip any question he or she gained from the other aspects (e.g., financial literacy), per- wished. All participants were given US$25 following the ceptions of why IDAs were created, and the child’s percep- interview. This amount was chosen so as to show gratitude tion of the effects IDA participation could have for other for the participants’ time without being coercive (Berg, children and families. 2008). Participant names were replaced with a code number and no identifying information was associated with tran- Study Participants scripts or interview notes. The audio-recorded interviews lasted between 30 min Fourteen students, ranging in age from 17 to 19 (with a mean and 1.5 hr and were later transcribed. The interview guide age of 17 years 11 months), were interviewed regarding their included open-ended questions grouped in four main areas. savings experiences, strategies, and perspectives (see Table The first area included questions to capture demographics 1 for demographic details). Utilizing a purposive sampling relative to the child such as his or her race/ethnicity, age, strategy (Berg, 2008), we derived our sample from youths gender, housing composition, primary caregiver, employ- participating in an IDA program in northwest Arkansas. All ment status, and whether they have a savings or checking youths who participated in the IDA program between account other than the IDA and the child’s account of demo- February and July 2010 were asked to participate in this graphics relative to his or her family (parent’s employment study. Study participants included 4 males (29%) and 10 status, family’s income and type of employment held by females. Eight of the sample (57%) self-reported their race parents). The second group of questions explored the child’s as non-Hispanic Caucasian, 4 (21%) as Asian American, 1 4 SAGE Open Table 1. Demographic Data Data Analysis % n The data analysis involved two main phases. The first phase Gender used the Statistical Package for the Social Sciences (SPSS) Female 71.4 10 software to descriptively analyze the demographic informa- Male 28.6 4 tion. Because we were interested in exploring the students’ Race perceptions of their family background relative to their moti- Caucasian 57.1 8 vations for IDA participation, we selected thematic analysis Latino 7.1 1 for the second and central phase of analysis. Thematic Asian American 21.4 3 analysis is common in qualitative methods as it focuses on Biracial 14.3 2 capturing the depth of central themes and allows the data to Primary caregiver be organized around such themes (Marks & Yardley, 2004). Mother 35.7 5 All transcripts were reviewed by two members of the Father 28.6 4 research team, who independently reviewed each transcript Both parents 7.1 1 in search of data responses related to family background and Grandparents 7.1 1 motivation for IDA participation to generate a first round of Other 21.4 3 subthemes relative to the two primary themes. Using a con- Employment stant comparative method (Merriam, 1998), the two mem- Full-time 14.3 2 bers met on several occasions to discuss and compare their Part-time 64.3 9 individual findings and to ensure research consistency. Unemployed 21.4 3 Analysis of each narrative involved a sentence-by-sentence Family housing review, seeking and identifying open codes (Ryan & Bernard, Rent 85.7 12 2000). During the earlier round of analysis, open coding Own 14.3 2 identified potential themes and short segments of text were Government assistance Receiving 28.6 4 color-coded according to their connection to the two prede- Not receiving 64.3 9 termined themes (Ryan & Bernard, 2000). On the right-hand Unknown 7.1 1 side of the transcript, codes or categories were written. During the later stages of analysis, axial coding was com- pleted. This phase of the analysis involved identifying rela- (7%) as Latino, and 2 (14%) as biracial (in both cases, tionships among codes and collapsing these codes into core Caucasian and Native American). categories. Finally, selective coding occurred, in which Participants were also asked about family housing and broader, more inclusive categories were formulated as sub- household composition. Two of the students (14%) lived themes of the broader themes. with their families in rental housing; the remaining 86% lived in owner-occupied housing. The average household Trustworthiness size for participants was four members (with a range of 2-9 members), with an average of 1.5 minors living in the home Several measures have been taken in an effort to improve (with a range of 0-6 children). When asked about the family the trustworthiness of our findings (Lincoln & Guba, 1985). member who serves as their primary caregiver, five students For instance, each participant was informed of confidential- (36%) reported their mother, four reported their father (28%), ity to facilitate his or her comfort in responding and to one student (7%) reported both parents, one student (7%) improve credibility. Confidentiality was reiterated before reported her grandparents, and three students (21%) reported youths were asked their opinions of the program. another type of caregiver. Four students (29%) reported that Furthermore, findings were triangulated theoretically by their household was currently receiving some type of gov- comparing our results with previous research. To expand ernment support (e.g., food stamps, disability insurance, transferability and dependability, we have attempted to Women, Infants and Children [WIC], Temporary Assistance describe our processes in detail. Finally, two authors coded to Needy Families [TANF]). the interviews separately and then compared themes in an Finally, students were asked about their personal employ- effort to decrease bias and create greater confirmability ment and financial behavior. Two youths (14%) worked full- (Lincoln & Guba, 1985). time, nine (64%) worked part-time, and the remaining three did not work. These findings may be somewhat skewed as Findings some students were interviewed during the school year, but several others were interviewed during the summer, when This study sought to capture the key themes that emerged employment practices might change. Five of the students from the participants’ accounts of financial decision making (36%) had personal checking accounts, and only four (28%) in their family of origin, the challenges and successes rela- had a savings account outside of their IDA account. tive to savings and the participants’ experiences within the Hamilton et al. 5 IDA program. The following section presents the primary courses. Prior to beginning the program, most of the youths themes and subthemes that were revealed. had never had any sort of financial education. Most reported enjoying the courses, but were primarily motivated to enter the program by the availability of matching funds. One stu- Financial Decision Making in the Family of Origin dent said, “I think it’s very beneficial because I learned a lot Money is a stressful subject. Most of the youths in this study about things I didn’t know.” Several students reported that expressed that money was “stressful” for their families and the classes encouraged them to continue saving. When asked was often “difficult to come by” or “pretty tight.” Families about the overall benefit of the program, one student said, often had to prioritize expenses, putting mortgage/rent, utili- “It’s a good way to motivate savings.” A few of the youths, ties, and auto insurance ahead of savings for the future. Many however, wished for more hands-on learning methods. students reported that even covering basic expenses could be Saving. Most of the youths in this study had begun saving difficult. One said, “I can’t go certain places because we before beginning the program and intended to continue sav- don’t have enough gas money, and we can’t buy certain ing after meeting their US$250 goal. One reported, “I’m things like food because we don’t have enough and we have going to have my own savings account.” Another said, “I just to pay for bills.” Speaking about her mother, another stated, heard about monetary bonds and savings bonds. I’ll look at “If she gets behind on anything . . . [it’s] probably the rent, them.” Some of the students wanted to continue saving for because she wants to keep the electricity running. She can college, and others hoped to purchase a car with their future usually talk to the landlord.” savings. When asked, all of the students saw themselves as Something unexpected is always coming up. With such tight future homeowners. budgets, many of the youths reported that unexpected Still, many of the students experienced their own barriers expenses, such as a car repair or a life event (divorce, death to savings. Several contributed to the family in times of in the family), often created a financial emergency for the financial strain. A student with several younger brothers and family. For example, one participant said, “When my parents sisters stated, “For the past few months I’ve been helping got divorced . . . we were low on food and clothes and we had out, so I haven’t really had money, just to feed everyone and to stay at my uncle’s house for a while.” Another reported, myself. . . . But I’ve been trying my hardest to get a lot of “We used to have an auto care business too and because of hours . . . and try to put money away.” Another said, “We the economy . . . [it] went down, plus my brother got cancer.” kind of all help a little bit. My sister works and helps.” Other students reported that illness, death, and increases in The majority of students interviewed were employed and gas prices had caused significant financial crises for their paying for many of their personal expenses such as car insur- families. To deal with financial emergencies, families used ance, food, clothing, and cell phone bills. Most reported that various coping strategies. Some families would “go in the they avoided “unnecessary” spending. One noted that she hole,” “tighten the budget,” or get a “second job.” Several of tried “to focus on what I need and not what I want.” Another the participants reported that their families borrowed money stated, “When I cash my check, I automatically save and that from extended family to cover lean times. way I don’t waste any because I don’t have it.” When asked about their reasons for saving money, most of the youths saw it as security from the type of financial instability experi- Savings Success, Challenges, and Expectations enced in their families. One said, “It feels really good to in the Family of Origin save. It makes me feel like I have . . . peace of mind.” Another No models for savings but lots of encouragement to save. saw her savings as “something I can use in emergency cir- Most of the youths reported that their families had no sav- cumstances so I’m not completely lost. I like foundation.” ings of their own, and only two families had established Finally, a third student explained that saving “means I sleep, retirement accounts. Furthermore, very few students could really. I become incredibly sick and stressed when I don’t think of a time when their families spoke of saving for the feel secure. It’s all about security to me and not worrying.” future or for a specific goal. All of the youths, however, reported that their parents encourage them to save. Discussion and Implications Education matters. Most families placed a high priority on higher education, with the hope that it would culminate in Family Economic Situation employment. One student, expressing a common response, stated, “My mom really wants me to go to college. . . . She wants Family financial status. In discussing their families’ finan- me to have a good job.” Among all the youths in this study, pay- cial situations, the majority of the youths in our study noted ing for college was a financial concern for the family. that their families were currently experiencing a great deal of financial difficulty. Several even commented that their families found it difficult to meet basic expenses for Perception of the IDA Experience food, clothing, and shelter and, as a result, had to prioritize Financial education. As discussed, students in this IDA pro- which expenses (e.g., electricity vs. rent) were more impor- gram are also required to attend a series of financial literacy tant. When youths provided reasons for their economic 6 SAGE Open difficulties, it became clear that an economic crisis or two care. IDA research has demonstrated that low- and moder- played an integral role, at times, in impacting their current ate-income individuals can and do save when opportunities financial difficulties. For example, youths mentioned the are provided. Therefore, though it would be easy to conclude economic recession, resulting unemployment, gas prices, from this research that certain individuals have a proclivity to car repairs, illness, divorce, and death of a loved one as save, this would be an erroneous assumption. What we need unexpected economic crises they had experienced. to examine in further research studies is the underlying moti- Family savings for future assets. Given that none of the vating factor for savings in some individuals versus others. heads of household in this study had money in savings, they As Sherraden (1991) pointed out, even some middle- and engaged in several short- and long-term strategies to help upper-income individuals choose not to engage in dedicated make ends meet. Some of the strategies they used, including retirement savings plans, even if it is in their long-term borrowing money and going into debt, tend to create longer financial best interests to do so. term financial burdens; other approaches, such as taking a Meaning of savings. Interestingly, the emotional benefits of second job and tightening their budget, offer fewer long- savings appear to have a larger impact on youth than the sav- term difficulties. ings themselves. In terms of what saving means to them, Turning to long-term goals, not surprisingly, youths noted youths noted that they wanted to avoid following in their that their parents and caregivers would like them to go to parents’ footsteps. Instead, they were willing to avoid unnec- college. However, because their families did not have sav- essary spending and learn more about different forms of ings for this purpose, other than the IDA, many saw postsec- asset development (e.g., savings, home ownership, invest- ondary education as a great financial concern. ments) so that they could achieve financial security and have These findings suggest that opportunities are needed for peace of mind. These findings fit with previous research that low-income individuals and families to set aside funds to suggests that it is not the amount of the asset that has the address financial crises. Although the youths in our study highest benefit for individuals and their families but the were participating in an IDA dedicated savings program, ownership of the asset itself (Sherraden, 1991). their parents were not. It may, therefore, be beneficial for Barriers to saving. Despite their participation in the pro- parents as well as youths to participate in an asset develop- gram, the youths were not immune to experiencing barriers ment program so that families can survive economic crises to saving. Given that they all resided in low-income house- without getting into further debt. holds, many youths reported that they often had to give their earnings and potential savings to help offset household costs related to food, rent, and clothing. Some youths also had Youth Economic Situation their own personal expenses, including car payments and Financial literacy. The overall sentiment from participants cell phone bills, which reduced potential savings. was that they enjoyed taking the financial literacy courses; These financial barriers to savings cannot be taken lightly, several noted that this was the first time in their lives that as youth know that if they do not contribute to the household they had had access to this important information. In addi- expenses, their basic needs will go unmet. Thus, the sugges- tion to the attainment of financial literacy knowledge, the tion that IDAs need to be offered to both youth and adults in youths also noted the intangible benefits of the economic lit- the household is an important one. In this way, families can eracy classes, including the support and encouragement they meet their basic needs and, perhaps, save for future eco- received from the instructor and each other. When asked for nomic crises. suggestions regarding how the classes could be improved, Clearly, the financial behavior of youth is critically inter- several youths suggested adding “hands-on” economic liter- twined with the family environment. Any well-meaning acy learning opportunities. This feedback is in keeping with efforts at financial education will be thwarted if youth have findings from Johnson and Sherraden (2007), who suggested barriers to savings that their higher income peers do not, that, though financial education is important for young chil- such as contributing to the household income and paying for dren and youth, “financial capability”—or the ability to their own necessities such as clothing and car insurance. receive financial education and to participate in economic Future policy and programming will need to consider the life through actions and behaviors—is ideal. The authors holistic needs of low-income families, providing financial suggested that providing hands-on banking experiences for support and education for both parents and youth. Future youth helps them link knowledge to behaviors. research should investigate the effect of such multigenera- Savings behaviors. When asked about their previous expe- tional programming. riences with saving, the majority of participants reported that they had engaged in savings behaviors prior to joining the Limitations IDA program. Thus, it may be that youth with savings expe- riences are more motivated to join an IDA program than While these results are compelling, it is important to mention other youth. that they are limited by our method of sampling. Because However, because the youth did not all have prior savings we surveyed youth who were voluntarily participating in experience, it is important to interpret these findings with a savings and financial education program, a significant Hamilton et al. 7 self-selection effect was created (Lincoln & Guba, 1985). As Johnson, E., & Sherraden, M. S. (2007). From financial literacy a result, saving might be more important to these students to financial capability among youth. Journal of Sociology & than to their peers who chose not to participate in the pro- Social Welfare, 34, 119-146. gram. The goal of this qualitative research is not, however, to Lincoln, Y., & Guba, E. (1985). Naturalistic inquiry. Newbury create generalizability. We have instead attempted to create Park, CA: SAGE. an in-depth description of this particular phenomenon to Mandell, L. (2007). Teaching new dogs old tricks. Credit Union maximize potential transferability for future research. Magazine, 73, 4A-5A. Mandell, L. (2009, January). The impact of financial education in Declaration of Conflicting Interests high school and college on financial literacy and subsequent The author(s) declared no potential conflicts of interest with financial decision making. Paper presented at the American respect to the research, authorship, and/or publication of this Economic Association Meetings, San Francisco, CA. article. Mandell, L., & Klein, L. S. (2007). Motivation and financial lit- eracy. Financial Services Review, 16, 105-116. Funding Marks, D. F., & Yardley, L. (2004). Research methods for clinical The author(s) received no financial support for the research and/or and health psychology. London, England: SAGE. authorship of this article. Masa, R., Sherraden, M. M., Zou, L., Ssewamala, F., Johnson, L., Anson, D., . . .Sherraden, M. (2010). Youth savings around the References world: Youth characteristics, savings performance, and poten- Berg, B. (2008). 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Retrieved from http://0-web.ebscohost.com.library. Leah Hamilton is an Assistant Professor and Social Work Field uark.edu/ehost/detail?vid=3&;hid=103&sid=5d882d48- Education Director at Juniata College in Huntingdon, PA. She e9f3-4454-8af3-36e0537a6e58%40sessionmgr104- received a PhD in Public Policy from the University of Arkansas in bib23up#bib23up 2011. Germain, C., & Gitterman, A. (1981). The life model of social work practice. New York, NY: Columbia University Press. Marcia Shobe is a Professor of Social Work at the University of Greenspan, A. (2005). The importance of financial education today. Arkansas. She is serves as Co-Principal Investigator of a long Social Education, 69, 64-66. range, multi-state analysis of Individual Development Accounts. 8 SAGE Open Yvette Murphy-Erby is a Professor of Social Work at the Kameri Christy is a Professor of Social Work at the University of University of Arkansas. She serves as Director of the School of Arkansas. She is serves as Co-Principal Investigator of a long Social Work at the University of Arkansas. range, multi-state analysis of Individual Development Accounts. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png SAGE Open SAGE

“It’s All About Security to Me”: The Role of Environment in Youth Financial Literacy and Savings Behaviors

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Abstract

This qualitative study explores financial behavior and expectations in families of origin in addition to youth financial education and savings behaviors. The authors interviewed 14 youths, aged 17 to 19 years, whose families had low incomes, education levels, and savings rates and who participated in a youth-based financial education and dedicated savings program and present key themes and subthemes that were revealed during data analysis. Findings suggest that, rather than replicating the behavior of their parents and experiencing the same financial struggles, the youths interviewed were motivated by a desire to avoid these challenges. However, youths in this study also noted that they experienced social and economic barriers that their higher income peers did not. Policy, practice, and research implications of these findings are discussed. Keywords youth, savings, financial literacy, financial behavior, ecological systems relationships between financial education, family environ- Introduction ment, and financial behavior. Given many U.S. households’ lack of active participation in the financial market and the increasing sophistication of Literature Review financial products, legislators and market analysts suggest that access to financial education would increase financial Financial Literacy and Financial Education knowledge, improve financial decision making, and strengthen market participation (Greenspan, 2005; Mandell, Although limited, current findings suggest that youth finan- 2009; Willis, 2008). America’s recent credit and housing cial education can have positive effects on long- and short- crisis suggests that informed financial decision making may term measures (Masa et al., 2010). For example, a recent be important to a more stable national economy. In the past qualitative study exploring the perception of participants 15 years, financial education and Individual Development in a child savings program (Elliott, Sherraden, Johnson, Account (IDA) programs have been implemented to teach & Guo, 2009) indicated that children who saved in the adults and youth about savings and investments and to link program perceived “that savings is a way to help pay for them with the mainstream financial sector (Shobe & Sturm, college” (p. 1). In the short term, Masa et al. (2010) con- 2007). However, the majority of research in the area of IDA ducted a review of current literature on the associations programming has been conducted with adults. between youth savings and well-being and found significant Limited available research on youth suggests that high relationships between youth savings and increased school financial education is associated with improved (a) savings, income, and the development of other assets; financial decision making (Bernheim, Garrett, & Maki, (b) self-esteem and social group participation; (c) reproduc- 2001), whereas other data indicate that financial behavior tive and sexual health knowledge; (d) safe-sex behavior; and decision making are more directly influenced by one’s and (e) educational achievement. family of origin than by one’s formal financial education (Shim, Barber, Card, Xiao, & Serido, 2010). Youth savings rates, for example, are often closely related to their parents’ Juniata College, Huntingdon, PA, USA University of Arkansas, Fayetteville, USA savings behaviors (Chiteji & Stafford, 1999). Because the available literature is largely focused on outcomes, it is dif- Corresponding Author: ficult to understand the reasons for these competing find- Leah Hamilton, Department of Sociology, Anthropology, and Social Work, ings. This study seeks to fill this gap by exploring the 1700 Moore St., Good Hall, Juniata College, Huntingdon, PA 16652, USA perspectives of youth themselves and the important Email: Hamilton@juniata.edu 2 SAGE Open Given these potential benefits, efforts to increase youth acquire from their parents regarding wealth accumulation. savings and financial literacy are well placed. Nonetheless, In a qualitative study that explored past and current savings research on the effects of financial education curricula for experiences of a small sample (N = 10) of adult African youth is inconsistent (see McCormick, 2009). Positive American women, findings suggested that, for the majority results include those of Bernheim et al. (2001), whose study of women, parental role modeling and education regarding based on survey data collected by telephone from 2,000 savings played an integral role in their decision to save and young adults found a positive relationship between financial the manner in which they saved as a child, youth, and adult education training for youth during state-mandated compul- (Shobe & Christy-McMullin, 2007). sory schooling (1957-1982) and increased savings in adult- Still, minimal research has been conducted on the role of hood. In an effort to expand upon this research, Cole and low-income parents in shaping financial knowledge and Shastry (2008) used a representative national sample from decision making for their children (Chiteji & Stafford, 1999). the 2000 Public Use Census Data to examine the relationship Furthermore, researchers have not fully examined the ways between financial education and later financial market par- in which youth learn about and replicate their families’ ticipation. Their findings suggested that youth financial edu- behaviors related to financial decision making and savings. cation programs were not associated with financial market As stated by Shim et al. (2010), “although we do know that decisions for either attendees or their children; rather, the parents are the primary socialization agents in the process by findings suggest that these programs are both costly and which children learn how to function in the marketplace as ineffective. Instead, they found that increased financial mar- consumers and money managers, we have not clearly defined ket participation was related to increased educational the specific roles that parents play” (p. 1458). achievement and cognitive ability (e.g., higher test scores). In terms of financial knowledge retention, two different Current Study studies surveyed high school seniors and full-time college undergraduates who had participated in a high school money From an ecological systems perspective (Germain & management or personal finance course; neither study found Gitterman, 1981; Bronfenbrenner, 1989), the financial participants to have more financial knowledge than those behaviors of youth and young adults are best understood who did not participate in a course (Mandell, 2009; Mandell within the context of their environments. Bronfenbrenner & Klein, 2007). Interestingly, Mandell (2007) noted in a (1979) depicted human growth and development as an recent nonrandomized study on the use of a Googolplex@ interactional and nested process between multiple levels of school middle school pilot financial education project that environment, including the self and one’s immediate envi- students in lower grades gain financial knowledge from fun, ronment (microsystem), larger organizations such as schools interactive financial literacy education. (mesosystem), and broader cultural, political, and economic forces (macrosystem). In this view, human thought pro- cesses and behavior are best described as a product of these Family of Origin interactions. Disparate outcome data may be attributable to the lack of Financial education, then, though an amiable goal, may national standards, the absence of a set curriculum for finan- fall short of expectations if youth are not seen as part of an cial education (McCormick, 2009), or environmental factors interconnected whole. For this reason, we plan to extend outside the classroom. Recent scholarship suggests that par- Charles and Hurst’s (2003) suggestion to examine the role ent attitudes, behaviors, and role modeling play a much of parent financial behavior in shaping youth financial larger role than financial education curricula in shaping their knowledge, skills, and behaviors to also include the effects children’s financial knowledge and behaviors. For example, on youth savings. using a survey with 2,098 college students, researchers The aim of this descriptive, qualitative research project is found that those who received financial education in high to better understand the role of environment in youth finan- school had higher levels of financial knowledge, but the cial decision making and determine whether this may explain most important predictor of student financial behavior was previously mixed results on the efficacy of financial educa- parent financial behavior (Shim et al., 2010). In addition, tion. To this end, this study seeks to capture the perspectives researchers using the Panel Study of Income Dynamics and experiences of the 14 youths who participated in an IDA (PSID) found that bank account and stock ownership for a savings program and to present the key themes and sub- sample of 1,933 adults (25-54 years old) was influenced by themes that reflect their perspectives and experiences, rela- parental account ownership (Chiteji & Stafford, 1999). tive to (a) financial decision making in the family of origin; Furthermore, Chiteji and Stafford (2000) also found that (b) savings successes, challenges, and expectations in the children’s exposure to family asset development helps explain family of origin; and (c) their perceptions of the IDA experi- future financial knowledge and asset development for later ences. We also plan to examine past and current savings generations. The authors used the term parental learning behaviors and future savings aspirations of the youths in this effect to describe the fundamental knowledge children study. This study will remain descriptive in nature as we seek Hamilton et al. 3 a deeper understanding of the personal experiences of par- perspectives of his or her family’s economic situation and ticipants (Rubin & Babbie, 2001). financial behaviors. For example, who makes financial Due to the limited availability of research in this area, it decision in the family, how does the family manage fiscally, was necessary to engage in a small scale, exploratory study. the saving and financial patters and behaviors the child per- Previous qualitative research has found this model useful. ceives within his or her family (e.g., spending and savings For example, Shobe and Christy-McMullin (2007) used a patterns, what does the family save for, what does the family small sample of 10 participants to explore the influence of spend on, how does the family make decisions about sav- parental role modeling and education in savings behavior ings and spending; what rules do the parents voice and what among African American women. rules do they enforce relative to savings and spending); the child’s reflections of economically challenging times and how the child perceived the family functioned during such Method times; the child’s account of the parent’s history of home Background and Protocol ownership and savings, child’s account of family’s social support network and resources, and child’s account of mes- Students were recruited from the “Cash for College” IDA sages his or her parents give about savings and education; savings program, which is sponsored by a large economic the child’s account of whether money matters are discussed development nonprofit agency in northwest Arkansas. Cash openly in his or her immediate family. The third group of for College offers an 8-hr financial literacy course to high questions explored the child’s perspective on his or her school students and 4:1 matched dedicated Individual financial behaviors and patterns prior to joining the IDA Development Savings Accounts (IDAs). Students are program and since joining the idea program. For example, required to deposit at least US$250 into their IDA accounts how he or she acquired money before and post IDA, what over the course of 1 year, at which point the program con- does he or she do with the money earned, where do they tributes an additional US$1,000. Funds from this program keep their money (e.g., bank, piggy bank, give it to parents can only be withdrawn for higher education expenses, to keep); the child’s thoughts and feelings about money and including tuition, fees, books, and supplies. The program is savings; future orientation relative to savings and spending open to students whose families have annual earned incomes (goals regarding home ownership, business ownership, within 200% of the federal poverty guidelines. asset purchases etc.); strategies they have used to work Prior to the interviews, a research proposal was submitted toward financial goals, challenges they have encountered in to the University of Arkansas Institutional Review Board for trying to save or achieve a financial goal, success stories approval. Students and their parents were provided with a relative to savings and finances; and savings goals. The last letter explaining the purpose of the study (including potential group of questions explored the child’s thoughts, experi- risks and benefits and the voluntary nature of the study) and ence, and feelings related to the IDA program. For example, an informed consent form. Students aged 18 and above were how they learned about the program, what interested them allowed to sign consent forms themselves; however, minor in the program, accounts of success and challenges relative students required written parental consent. to experiences in the program, accounts of how the program In each interview, the researchers explained that some works, suggestion for program improvements, accounts of questions were of a sensitive and personal nature. Each par- other aspects of the program and what if anything they ticipant was given the option to skip any question he or she gained from the other aspects (e.g., financial literacy), per- wished. All participants were given US$25 following the ceptions of why IDAs were created, and the child’s percep- interview. This amount was chosen so as to show gratitude tion of the effects IDA participation could have for other for the participants’ time without being coercive (Berg, children and families. 2008). Participant names were replaced with a code number and no identifying information was associated with tran- Study Participants scripts or interview notes. The audio-recorded interviews lasted between 30 min Fourteen students, ranging in age from 17 to 19 (with a mean and 1.5 hr and were later transcribed. The interview guide age of 17 years 11 months), were interviewed regarding their included open-ended questions grouped in four main areas. savings experiences, strategies, and perspectives (see Table The first area included questions to capture demographics 1 for demographic details). Utilizing a purposive sampling relative to the child such as his or her race/ethnicity, age, strategy (Berg, 2008), we derived our sample from youths gender, housing composition, primary caregiver, employ- participating in an IDA program in northwest Arkansas. All ment status, and whether they have a savings or checking youths who participated in the IDA program between account other than the IDA and the child’s account of demo- February and July 2010 were asked to participate in this graphics relative to his or her family (parent’s employment study. Study participants included 4 males (29%) and 10 status, family’s income and type of employment held by females. Eight of the sample (57%) self-reported their race parents). The second group of questions explored the child’s as non-Hispanic Caucasian, 4 (21%) as Asian American, 1 4 SAGE Open Table 1. Demographic Data Data Analysis % n The data analysis involved two main phases. The first phase Gender used the Statistical Package for the Social Sciences (SPSS) Female 71.4 10 software to descriptively analyze the demographic informa- Male 28.6 4 tion. Because we were interested in exploring the students’ Race perceptions of their family background relative to their moti- Caucasian 57.1 8 vations for IDA participation, we selected thematic analysis Latino 7.1 1 for the second and central phase of analysis. Thematic Asian American 21.4 3 analysis is common in qualitative methods as it focuses on Biracial 14.3 2 capturing the depth of central themes and allows the data to Primary caregiver be organized around such themes (Marks & Yardley, 2004). Mother 35.7 5 All transcripts were reviewed by two members of the Father 28.6 4 research team, who independently reviewed each transcript Both parents 7.1 1 in search of data responses related to family background and Grandparents 7.1 1 motivation for IDA participation to generate a first round of Other 21.4 3 subthemes relative to the two primary themes. Using a con- Employment stant comparative method (Merriam, 1998), the two mem- Full-time 14.3 2 bers met on several occasions to discuss and compare their Part-time 64.3 9 individual findings and to ensure research consistency. Unemployed 21.4 3 Analysis of each narrative involved a sentence-by-sentence Family housing review, seeking and identifying open codes (Ryan & Bernard, Rent 85.7 12 2000). During the earlier round of analysis, open coding Own 14.3 2 identified potential themes and short segments of text were Government assistance Receiving 28.6 4 color-coded according to their connection to the two prede- Not receiving 64.3 9 termined themes (Ryan & Bernard, 2000). On the right-hand Unknown 7.1 1 side of the transcript, codes or categories were written. During the later stages of analysis, axial coding was com- pleted. This phase of the analysis involved identifying rela- (7%) as Latino, and 2 (14%) as biracial (in both cases, tionships among codes and collapsing these codes into core Caucasian and Native American). categories. Finally, selective coding occurred, in which Participants were also asked about family housing and broader, more inclusive categories were formulated as sub- household composition. Two of the students (14%) lived themes of the broader themes. with their families in rental housing; the remaining 86% lived in owner-occupied housing. The average household Trustworthiness size for participants was four members (with a range of 2-9 members), with an average of 1.5 minors living in the home Several measures have been taken in an effort to improve (with a range of 0-6 children). When asked about the family the trustworthiness of our findings (Lincoln & Guba, 1985). member who serves as their primary caregiver, five students For instance, each participant was informed of confidential- (36%) reported their mother, four reported their father (28%), ity to facilitate his or her comfort in responding and to one student (7%) reported both parents, one student (7%) improve credibility. Confidentiality was reiterated before reported her grandparents, and three students (21%) reported youths were asked their opinions of the program. another type of caregiver. Four students (29%) reported that Furthermore, findings were triangulated theoretically by their household was currently receiving some type of gov- comparing our results with previous research. To expand ernment support (e.g., food stamps, disability insurance, transferability and dependability, we have attempted to Women, Infants and Children [WIC], Temporary Assistance describe our processes in detail. Finally, two authors coded to Needy Families [TANF]). the interviews separately and then compared themes in an Finally, students were asked about their personal employ- effort to decrease bias and create greater confirmability ment and financial behavior. Two youths (14%) worked full- (Lincoln & Guba, 1985). time, nine (64%) worked part-time, and the remaining three did not work. These findings may be somewhat skewed as Findings some students were interviewed during the school year, but several others were interviewed during the summer, when This study sought to capture the key themes that emerged employment practices might change. Five of the students from the participants’ accounts of financial decision making (36%) had personal checking accounts, and only four (28%) in their family of origin, the challenges and successes rela- had a savings account outside of their IDA account. tive to savings and the participants’ experiences within the Hamilton et al. 5 IDA program. The following section presents the primary courses. Prior to beginning the program, most of the youths themes and subthemes that were revealed. had never had any sort of financial education. Most reported enjoying the courses, but were primarily motivated to enter the program by the availability of matching funds. One stu- Financial Decision Making in the Family of Origin dent said, “I think it’s very beneficial because I learned a lot Money is a stressful subject. Most of the youths in this study about things I didn’t know.” Several students reported that expressed that money was “stressful” for their families and the classes encouraged them to continue saving. When asked was often “difficult to come by” or “pretty tight.” Families about the overall benefit of the program, one student said, often had to prioritize expenses, putting mortgage/rent, utili- “It’s a good way to motivate savings.” A few of the youths, ties, and auto insurance ahead of savings for the future. Many however, wished for more hands-on learning methods. students reported that even covering basic expenses could be Saving. Most of the youths in this study had begun saving difficult. One said, “I can’t go certain places because we before beginning the program and intended to continue sav- don’t have enough gas money, and we can’t buy certain ing after meeting their US$250 goal. One reported, “I’m things like food because we don’t have enough and we have going to have my own savings account.” Another said, “I just to pay for bills.” Speaking about her mother, another stated, heard about monetary bonds and savings bonds. I’ll look at “If she gets behind on anything . . . [it’s] probably the rent, them.” Some of the students wanted to continue saving for because she wants to keep the electricity running. She can college, and others hoped to purchase a car with their future usually talk to the landlord.” savings. When asked, all of the students saw themselves as Something unexpected is always coming up. With such tight future homeowners. budgets, many of the youths reported that unexpected Still, many of the students experienced their own barriers expenses, such as a car repair or a life event (divorce, death to savings. Several contributed to the family in times of in the family), often created a financial emergency for the financial strain. A student with several younger brothers and family. For example, one participant said, “When my parents sisters stated, “For the past few months I’ve been helping got divorced . . . we were low on food and clothes and we had out, so I haven’t really had money, just to feed everyone and to stay at my uncle’s house for a while.” Another reported, myself. . . . But I’ve been trying my hardest to get a lot of “We used to have an auto care business too and because of hours . . . and try to put money away.” Another said, “We the economy . . . [it] went down, plus my brother got cancer.” kind of all help a little bit. My sister works and helps.” Other students reported that illness, death, and increases in The majority of students interviewed were employed and gas prices had caused significant financial crises for their paying for many of their personal expenses such as car insur- families. To deal with financial emergencies, families used ance, food, clothing, and cell phone bills. Most reported that various coping strategies. Some families would “go in the they avoided “unnecessary” spending. One noted that she hole,” “tighten the budget,” or get a “second job.” Several of tried “to focus on what I need and not what I want.” Another the participants reported that their families borrowed money stated, “When I cash my check, I automatically save and that from extended family to cover lean times. way I don’t waste any because I don’t have it.” When asked about their reasons for saving money, most of the youths saw it as security from the type of financial instability experi- Savings Success, Challenges, and Expectations enced in their families. One said, “It feels really good to in the Family of Origin save. It makes me feel like I have . . . peace of mind.” Another No models for savings but lots of encouragement to save. saw her savings as “something I can use in emergency cir- Most of the youths reported that their families had no sav- cumstances so I’m not completely lost. I like foundation.” ings of their own, and only two families had established Finally, a third student explained that saving “means I sleep, retirement accounts. Furthermore, very few students could really. I become incredibly sick and stressed when I don’t think of a time when their families spoke of saving for the feel secure. It’s all about security to me and not worrying.” future or for a specific goal. All of the youths, however, reported that their parents encourage them to save. Discussion and Implications Education matters. Most families placed a high priority on higher education, with the hope that it would culminate in Family Economic Situation employment. One student, expressing a common response, stated, “My mom really wants me to go to college. . . . She wants Family financial status. In discussing their families’ finan- me to have a good job.” Among all the youths in this study, pay- cial situations, the majority of the youths in our study noted ing for college was a financial concern for the family. that their families were currently experiencing a great deal of financial difficulty. Several even commented that their families found it difficult to meet basic expenses for Perception of the IDA Experience food, clothing, and shelter and, as a result, had to prioritize Financial education. As discussed, students in this IDA pro- which expenses (e.g., electricity vs. rent) were more impor- gram are also required to attend a series of financial literacy tant. When youths provided reasons for their economic 6 SAGE Open difficulties, it became clear that an economic crisis or two care. IDA research has demonstrated that low- and moder- played an integral role, at times, in impacting their current ate-income individuals can and do save when opportunities financial difficulties. For example, youths mentioned the are provided. Therefore, though it would be easy to conclude economic recession, resulting unemployment, gas prices, from this research that certain individuals have a proclivity to car repairs, illness, divorce, and death of a loved one as save, this would be an erroneous assumption. What we need unexpected economic crises they had experienced. to examine in further research studies is the underlying moti- Family savings for future assets. Given that none of the vating factor for savings in some individuals versus others. heads of household in this study had money in savings, they As Sherraden (1991) pointed out, even some middle- and engaged in several short- and long-term strategies to help upper-income individuals choose not to engage in dedicated make ends meet. Some of the strategies they used, including retirement savings plans, even if it is in their long-term borrowing money and going into debt, tend to create longer financial best interests to do so. term financial burdens; other approaches, such as taking a Meaning of savings. Interestingly, the emotional benefits of second job and tightening their budget, offer fewer long- savings appear to have a larger impact on youth than the sav- term difficulties. ings themselves. In terms of what saving means to them, Turning to long-term goals, not surprisingly, youths noted youths noted that they wanted to avoid following in their that their parents and caregivers would like them to go to parents’ footsteps. Instead, they were willing to avoid unnec- college. However, because their families did not have sav- essary spending and learn more about different forms of ings for this purpose, other than the IDA, many saw postsec- asset development (e.g., savings, home ownership, invest- ondary education as a great financial concern. ments) so that they could achieve financial security and have These findings suggest that opportunities are needed for peace of mind. These findings fit with previous research that low-income individuals and families to set aside funds to suggests that it is not the amount of the asset that has the address financial crises. Although the youths in our study highest benefit for individuals and their families but the were participating in an IDA dedicated savings program, ownership of the asset itself (Sherraden, 1991). their parents were not. It may, therefore, be beneficial for Barriers to saving. Despite their participation in the pro- parents as well as youths to participate in an asset develop- gram, the youths were not immune to experiencing barriers ment program so that families can survive economic crises to saving. Given that they all resided in low-income house- without getting into further debt. holds, many youths reported that they often had to give their earnings and potential savings to help offset household costs related to food, rent, and clothing. Some youths also had Youth Economic Situation their own personal expenses, including car payments and Financial literacy. The overall sentiment from participants cell phone bills, which reduced potential savings. was that they enjoyed taking the financial literacy courses; These financial barriers to savings cannot be taken lightly, several noted that this was the first time in their lives that as youth know that if they do not contribute to the household they had had access to this important information. In addi- expenses, their basic needs will go unmet. Thus, the sugges- tion to the attainment of financial literacy knowledge, the tion that IDAs need to be offered to both youth and adults in youths also noted the intangible benefits of the economic lit- the household is an important one. In this way, families can eracy classes, including the support and encouragement they meet their basic needs and, perhaps, save for future eco- received from the instructor and each other. When asked for nomic crises. suggestions regarding how the classes could be improved, Clearly, the financial behavior of youth is critically inter- several youths suggested adding “hands-on” economic liter- twined with the family environment. Any well-meaning acy learning opportunities. This feedback is in keeping with efforts at financial education will be thwarted if youth have findings from Johnson and Sherraden (2007), who suggested barriers to savings that their higher income peers do not, that, though financial education is important for young chil- such as contributing to the household income and paying for dren and youth, “financial capability”—or the ability to their own necessities such as clothing and car insurance. receive financial education and to participate in economic Future policy and programming will need to consider the life through actions and behaviors—is ideal. The authors holistic needs of low-income families, providing financial suggested that providing hands-on banking experiences for support and education for both parents and youth. Future youth helps them link knowledge to behaviors. research should investigate the effect of such multigenera- Savings behaviors. When asked about their previous expe- tional programming. riences with saving, the majority of participants reported that they had engaged in savings behaviors prior to joining the Limitations IDA program. Thus, it may be that youth with savings expe- riences are more motivated to join an IDA program than While these results are compelling, it is important to mention other youth. that they are limited by our method of sampling. Because However, because the youth did not all have prior savings we surveyed youth who were voluntarily participating in experience, it is important to interpret these findings with a savings and financial education program, a significant Hamilton et al. 7 self-selection effect was created (Lincoln & Guba, 1985). As Johnson, E., & Sherraden, M. S. (2007). From financial literacy a result, saving might be more important to these students to financial capability among youth. Journal of Sociology & than to their peers who chose not to participate in the pro- Social Welfare, 34, 119-146. gram. The goal of this qualitative research is not, however, to Lincoln, Y., & Guba, E. (1985). Naturalistic inquiry. Newbury create generalizability. We have instead attempted to create Park, CA: SAGE. an in-depth description of this particular phenomenon to Mandell, L. (2007). Teaching new dogs old tricks. Credit Union maximize potential transferability for future research. Magazine, 73, 4A-5A. 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A., & Christy-McMullin, K. (2007). Building capital for sity of Michigan, Population Studies Center at the Institute for the future: Savings experiences of African American women. Social Research. Social Development Issues, 29, 27-41. Cole, S., & Shastry, G. K. (2008). If you are so smart, why aren’t Shobe, M. A., & Sturm, S. L. (2007). Youth individual development you rich? The effects of education, financial literacy and cogni- accounts: Retirement planning initiatives. Children & Schools, tive ability on financial market participation (Working Paper 29, 172-181. No. 09-071). Cambridge, MA: Harvard Business School. Willis, L. E. (2008). Against financial-literacy education. Iowa Law Elliott, W., Sherraden, M. S., Johnson, L., & Guo, B. (2009). Young Review, 94, 197-285. children’s perceptions of college and savings: Potential role of child development accounts (CSD Working Papers No. 09-53). Bios St. Louis, MO: Washington University, Center for Social Devel- opment. Retrieved from http://0-web.ebscohost.com.library. Leah Hamilton is an Assistant Professor and Social Work Field uark.edu/ehost/detail?vid=3&;hid=103&sid=5d882d48- Education Director at Juniata College in Huntingdon, PA. She e9f3-4454-8af3-36e0537a6e58%40sessionmgr104- received a PhD in Public Policy from the University of Arkansas in bib23up#bib23up 2011. Germain, C., & Gitterman, A. (1981). The life model of social work practice. New York, NY: Columbia University Press. Marcia Shobe is a Professor of Social Work at the University of Greenspan, A. (2005). The importance of financial education today. Arkansas. She is serves as Co-Principal Investigator of a long Social Education, 69, 64-66. range, multi-state analysis of Individual Development Accounts. 8 SAGE Open Yvette Murphy-Erby is a Professor of Social Work at the Kameri Christy is a Professor of Social Work at the University of University of Arkansas. She serves as Director of the School of Arkansas. She is serves as Co-Principal Investigator of a long Social Work at the University of Arkansas. range, multi-state analysis of Individual Development Accounts.

Journal

SAGE Open – SAGE

Published: Dec 21, 2012

Keywords: youth; savings; financial literacy; financial behavior; ecological systems

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