Impact of Financial Literacy Education on Graduation Rates and Economic Decision-Making Among Final-Year Economics Education Students

Project Abstract

This study investigates the impact of financial literacy education on graduation rates and economic decision-making among final-year economics education students, addressing a critical gap between theoretical financial concepts and their practical application in student lives and professional readiness. The research adopts a mixed-methods design, combining a quasi-experimental quantitative approach with qualitative insights to capture both measurable outcomes and nuanced perceptions. A sample of undergraduate economics education students in their final year was selected from three comparable universities, with two institutions implementing a structured financial literacy curriculum as the treatment group while the control group continued with the standard syllabus. Graduation rates, time-to-degree, and academic performance in financial economics-related courses were tracked for a two-year period to assess academic persistence and success. Quantitative data were collected through institutional records, standardized assessments of financial literacy, and specially designed instruments to gauge risk literacy, budgeting behavior, debt management, and retirement planning attitudes. The financial literacy intervention comprised modules on budgeting and saving, credit and debt management, interest compounding and investment basics, consumer protection, and financial planning for employment and entrepreneurship, delivered through interactive lectures, simulations, case studies, and reflective journaling. Pre- and post-intervention surveys measured changes in financial knowledge, confidence, and decision-making competencies. Qualitative data were gathered via focus group discussions and semi-structured interviews with students, tutors, and campus financial advisers to explore perceived relevance, usability, and barriers to applying financial concepts in daily life and future teaching practice. Analytical techniques include difference-in-differences estimation to identify causal effects on graduation-related outcomes, along with multivariate regression controlling for socio-demographic factors, prior academic performance, and baseline financial literacy. Effect sizes will be complemented by intention-to-treat analyses to address potential non-compliance. For decision-making, a composite index of financial decision quality will be constructed from task-based simulations and scenario analyses, with hierarchical linear modeling used to account for clustering within universities and courses. The study also employs thematic analysis of qualitative data to reveal how educational experiences shape student agency, financial self-efficacy, and the transfer of financial literacy to classroom instruction and student financial behavior beyond graduation. Expected findings include a significant positive impact of financial literacy education on graduation persistence and a measurable improvement in economic decision-making competencies, particularly in budgeting, debt management, and short- and long-term planning. The research aims to contribute to curriculum policy by demonstrating the value of integrating financial literacy into teacher education programs, inform teacher training on practical financial pedagogy, and provide scalable models for similar higher education settings. Potential limitations such as differential institutional support, self-selection biases, and short follow-up duration are acknowledged, with mitigation strategies including robust matching, sensitivity analyses, and triangulation across data sources. Overall, the study seeks to illuminate how financial literacy instruction can enhance academic outcomes and empower future educators to model prudent economic behavior for their students.

Project Overview

What This Project Is About

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A plain-language overview of how financial literacy skills might affect students’ choices about saving, spending, and understanding financial risks, and how these skills could relate to completing their degree on time. The project investigates whether teaching practical money skills helps final-year economics education students graduate on time and make smarter economic decisions.

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The Problem It Addresses

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Many students enter final-year programs with limited money management knowledge, which can lead to stress, loan issues, and poorer academic outcomes. There is a need to understand if financial literacy education can improve graduation rates and everyday economic choices for future teachers of economics.

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Objectives of the Project

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1. Assess current levels of financial literacy among final-year economics education students.
2. Introduce a practical financial literacy module and compare outcomes.
3. Measure changes in graduation readiness and plans after the module.
4. Examine effects on budgeting, saving, and debt management behaviors.
5. Provide recommendations for incorporating financial literacy into teacher education.

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What You Will Do Step by Step

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1. Review existing research on financial literacy and student outcomes.
2. Design a simple, time-bound financial literacy module tailored for education students.
3. Administer pre- and post-surveys to assess knowledge and behaviors.
4. Track progress toward graduation and collect qualitative feedback.
5. Analyze data to see if there are meaningful changes in outcomes.
6. Discuss findings and limitations, and suggest implementation steps.

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Expected Outcome

An evidence-based sense of whether financial literacy education helps students finish their studies on time and make better financial decisions, with practical steps for program design in teacher education.