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A pilot study examining the perceived effectiveness of financial education in high school and the effect on personal financial behavior of the young generation

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  • Brian Tung

    (The Hang Seng University of Hong Kong, Hong Kong, China)

Abstract

Promoting financial literacy, a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions, is now being regarded by the private, public and civil stakeholders as an essential long-term human capital investment. In particular, the young generation nowadays are exposed to active promotion of financial services. In cities with high tertiary education popularization rate, the young generation had become a target segment of retailers and other sectors such as banking and finance, because of their higher consumption and finance potential after graduation. However, the lack of financial literacy and the insufficient awareness of the risks of overspending may lead the youths making poorly-informed personal financial decisions which will have a knock-on effect in their future. A pilot study is conducted to investigate whether there is difference between teachers’ and students’ perception of the effectiveness of financial education in high schools and the needs to provide personal finance education programmes at higher education institutions. Preliminary hypotheses testing was conducted to explore the relationship between age, personal financial knowledge and personal finance behavior of the high school and tertiary level students. Validated measurement scale items are adopted, and Hong Kong is chosen for the investigation. The results revealed that students and other stakeholders share the same view about financial education programmes effectiveness and the needs of such training at higher education level. While taking financial education training could enhance financial literacy, doing so seems not a good predictor of financial behavior, so as the age and financial literacy level. The experience of this pilot study and the implication of these preliminary findings can support the design of a fuller scale of research by informing policy makers, education sectors and social science on the needs to identify possible factors affecting the financial behavior of the young generation, and to design highly target and well-specified programme to support them to manage financial matters for the well-being of the individuals as well as the society.

Suggested Citation

  • Brian Tung, 2019. "A pilot study examining the perceived effectiveness of financial education in high school and the effect on personal financial behavior of the young generation," Journal of Advances in Humanities and Social Sciences, Dr. Yi-Hsing Hsieh, vol. 5(2), pages 54-65.
    • Handle: RePEc:apb:jahsss:2019:p:54-65
    DOI: 10.20474/jahss-5.2.1
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    References listed on IDEAS

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    1. Sumit Agarwal & John C. Driscoll & Xavier Gabaix & David I. Laibson, 2007. "The age of reason: financial decisions over the lifecycle," Working Paper Series WP-07-05, Federal Reserve Bank of Chicago.
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