Evaluations that aim to understand the effect of financial education on financial literacy and behavior are critical.
Well-defined evaluations can accurately measure outcomes of financial education programs. There is growing evidence that financial education does positively impact students’ learning and behavior. Authors Carly Urban and Christian Stoddard have researched the impact of financial education on college-financing behaviors. Authors Cynthia L. Harter and John R.R. Harter have studied the effectiveness of curriculum on financial learning for students. States can vary widely in their implementation, and mixed findings are often due to different approaches to program evaluation. It is important to understand what is working in financial education so that it can effectively improve the financial futures of the next generation.
Utah first required a one-semester financial literacy course in 2004, for the graduating class of 2008. Utah’s financial education website, Finance in the Classroom, provides background information on the legislative process of implementing financial education as a graduation requirement and integrating K–12 concepts with a “financial literacy passport.” A subsequent bill required assessments of all students. The State Board of Education coordinates administration of the assessment, which is aligned with their state standards. Additionally, Utah recently conducted an assessment of student financial literacy levels and found that individuals who had taken the personal finance course had higher levels of financial literacy than individuals in surrounding states. Findings from this report also helped inform possible improvements to the assessment. The report, Utah’s General Financial Literacy Graduation Requirement: A Program Review, is available through the Office of the State Auditor.
