Impact of Financial Literacy Education on High School Students’ Economic Decision-Making Skills: A Quasi-Experimental Study

Project Abstract

This study evaluates the effects of a structured financial literacy education (FLE) program on high school students’ economic decision-making abilities, using a quasi-experimental design with matched treatment and control groups across three urban high schools. The intervention spanned twelve weeks and integrated interactive modules on budgeting, saving, credit, debt management, interest compounding, risk assessment, and consumer rights, delivered through a blend of classroom instruction, digital simulations, and project-based learning. Data were collected at three points pre-intervention, immediately post-intervention, and a three-month follow-up to assess the durability of effects. The primary outcomes measured included monetary decision-making proficiency, financial attitude shifts, intention to engage in prudent financial behaviors, and self-reported financial confidence, complemented by behavioral indicators such as participation in savings clubs and the use of budgeting apps. A validated instrument adapted from established financial literacy scales and economic behavior indices was employed, with reliability coefficients surpassing 0.85 across dimensions. Analytic strategies combined propensity score matching to ensure equivalence between groups on demographics and baseline competencies, repeated-measures ANOVA to examine temporal changes, and hierarchical linear modeling to control for classroom clustering and school-level variance. Results indicate that students exposed to the FLE program demonstrated statistically significant improvements in economic decision-making skills relative to the control group (p < .01), characterized by improved budgeting literacy, enhanced understanding of opportunity costs, and more accurate risk-reward evaluations in simulated scenarios. These gains persisted at the three-month follow-up, though with a modest attenuation, suggesting partial retention and the potential influence of extracurricular reinforcement. Secondary findings revealed positive shifts in financial attitudes and intentions, with increased propensity to engage in saving and deliberate spending, and enhanced self-efficacy in financial matters. Subgroup analyses uncovered stronger effects among students from lower socioeconomic backgrounds and those with initially lower baseline financial knowledge, highlighting the program’s potential for reducing financial capability gaps. The study also examined implementation fidelity, uncovering that higher teacher engagement, availability of digital tools, and structured alignments with the existing curriculum were associated with larger effect sizes. Economically meaningful impact was observed in students’ decision patterns within simulated markets and life events, aligning with behavioral finance theories that emphasize experiential learning and feedback loops. Limitations include non-random assignment, potential Hawthorne effects, and reliance on self-reported measures for some outcomes. The findings support integrating comprehensive FLE into secondary education as a lever to strengthen economic decision-making competencies, with implications for policymakers, educators, and curriculum developers seeking scalable, equity-enhancing strategies in economic education. Recommendations for future research include longitudinal tracking into post-secondary outcomes, exploration of dosage and mode of delivery, and integration with parent and community financial literacy initiatives.

Project Overview

What This Project Is About

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This project looks at how teaching basics of money management and economic thinking to high school students influences the way they make everyday financial choices. It compares students who receive a focused financial literacy program with those who do not, to see if knowledge translates into better money decisions.

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The Problem It Addresses

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Many young people enter adulthood with limited money skills, leading to poor budgeting, debt, and risky financial behavior. There is a gap in understanding whether school-based financial literacy programs actually improve real-life decision making.

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Objectives of the Project

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1. Determine if a financial literacy program changes students' budgeting practices.
2. Assess changes in decision-making confidence when faced with money-related tasks.
3. Identify which topics (saving, spending, borrowing) have the strongest impact.
4. Explore any differences by gender or socio-economic background.

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What You Will Do Step by Step

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1. Review prior studies and design a quasi-experimental setup with intervention and comparison groups.
2. Develop or adapt a concise financial literacy curriculum suitable for high schoolers.
3. Administer baseline surveys on knowledge and decision-making attitudes.
4. Deliver the program to the intervention group over a set period.
5. Collect follow-up data and compare changes between groups.
6. Analyze data using simple statistics to detect meaningful differences.
7. Discuss findings in light of practical classroom implications.
8. Prepare a final report and prepare recommendations for schools.

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Expected Outcome

Anticipated results include improved financial knowledge, greater budgeting accuracy, and more prudent short-term financial decisions among participants. The study should offer evidence on whether school-based programs yield lasting behavioral changes and inform curriculum design.