Impact of Financial Literacy Education on Student Savings Behavior in Urban High Schools

Project Abstract

This study investigates how financial literacy education influences the saving behaviors of students in urban high schools, examining whether structured curricular interventions, teacher-led instruction, and practical money-management activities translate into measurable changes in students’ saving attitudes, intentions, and actual saving practices. Drawing on a quasi-experimental design, the research compares cohorts exposed to a comprehensive financial literacy program with a matched control group receiving standard economics instruction over an academic year. The program integrates core concepts such as budgeting, goal setting, interest compounding, risk diversification, and the use of digital financial tools, augmented by experiential activities like classroom simulations, savings challenges, and parental engagement components. Data were collected through a mixed-methods approach, combining pre- and post-intervention surveys assessing financial knowledge, confidence, self-efficacy, and saving intentions; behavioral diary entries capturing weekly saving actions; and school financial records where available to triangulate self-reported behavior with observed patterns. Additionally, in-depth interviews and focus groups with students, teachers, and parents explore contextual factors, motivations, perceived barriers, and the social environment that shapes saving behavior in urban settings characterized by diverse socioeconomic backgrounds. The analysis employs hierarchical linear modeling to account for clustering at the classroom and school levels, and thematic analysis to interpret qualitative data, enabling a robust understanding of both the average treatment effects and the mechanisms driving change. Key findings indicate that students who participate in the financial literacy program demonstrate statistically significant improvements in financial knowledge and saving self-efficacy, with moderate but meaningful increases in planned saving intentions and the likelihood of enrolling in school-based savings programs. The greatest gains emerge among students who engage with practical budgeting tasks and real-world savings goals, particularly when reinforced by parental involvement and school policy supports such as automatic enrollment in savings clubs and opportunities for micro-saving transactions through school-led financial platforms. Variation analyses reveal that impact is moderated by prior financial socialization, parental financial behavior, and access to resources, suggesting that the effectiveness of classroom instruction is amplified when combined with infrastructural and community supports. The study discusses implications for curriculum design, teacher professional development, and policy considerations, highlighting the importance of aligning financial literacy content with culturally responsive pedagogy and urban experiential learning opportunities. It also identifies potential unintended effects, such as short-term transfer challenges and information overload, recommending gradual scaffolding, ongoing assessment, and integration with broader economic education goals. Overall, the research contributes to the evidence base linking financial literacy education to concrete saving behaviors and offers actionable recommendations for schools seeking to foster financially capable and savings-oriented students in urban contexts.

Project Overview

What This Project Is About

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A plain-language overview of how teaching financial literacy might influence how urban high school students save money and manage their finances, including basic concepts and practical activities they will experience.

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The Problem It Addresses

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Many students graduate with little money-management experience, which can lead to poor saving habits and financial stress. This project investigates whether targeted financial literacy instruction can improve students’ saving behavior and money choices.

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Objectives of the Project

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1. Explain key financial concepts in clear terms.
2. Assess changes in students’ saving intentions after instruction.
3. Measure actual saving behavior before and after the program.
4. Identify which activities most effectively promote saving.

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What You Will Do Step by Step

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1. Review simple theories of financial literacy and saving behavior.
2. Design a short, classroom-friendly curriculum module.
3. Collect baseline data on students’ saving attitudes and habits.
4. Deliver the module to a sample of students in urban schools.
5. Gather post-intervention data and compare results.
6. Analyze changes in attitudes and actual saving actions.
7. Discuss which parts of the module were most effective.
8. Suggest practical recommendations for schools and policymakers.

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Expected Outcome

Anticipated findings include increased saving intent, better knowledge of budgeting, and more frequent saving activities among participants, with insights on scalable approaches for urban schools.