Impact of financial literacy programs on high school students’ economic decision-making and savings behavior

Project Abstract

This study investigates the effect of financial literacy programs on high school students’ economic decision-making and savings behavior, aiming to determine whether structured financial education can enhance prudent money management, long-term planning, and risk-aware decision processes among adolescents. Employing a mixed-methods design, the research combines a quasi-experimental approach with qualitative insights to capture both measurable outcomes and the contextual factors shaping learning transfer. A sample of 1,200 students from four public high schools was assigned to intervention and control groups, with the intervention comprising a 12-week, standards-aligned curriculum delivered by trained teachers and supplemented by digital simulations, peer-led discussions, and parental engagement activities. Data were collected at three points pre-intervention, immediately post-intervention, and a six-month follow-up, using a battery of validated instruments to assess financial knowledge, attitudes toward money, budgeting skills, saving propensity, and decision-making under risk. The quantitative analysis employed difference-in-differences models and multilevel regression to account for school-level clustering and potential confounders such as socioeconomic status, parental financial socialization, and baseline numeracy. The qualitative strand included focus groups with students, interviews with teachers, and classroom observations to explore mechanisms of learning, engagement, and the transfer of classroom concepts to real-life financial choices. Findings indicate a statistically significant improvement in financial knowledge and budgeting skills among the intervention group relative to the control group, with effect sizes that are medium in magnitude and sustained at six months. More notably, students exposed to the program demonstrated greater savings intentions, higher self-reported monthly saving rates, and more frequent use of saving instruments, even after controlling for demographics and prior savings behavior. The greatest gains occurred among students from lower-income households and those with limited prior financial experience, suggesting that early intervention can mitigate inequities in financial capability. The study also reveals nuanced results in economic decision-making improved cost-benefit evaluation, increased consideration of long-term consequences, and a reduction in impulsive spending tendencies. However, the persistence of some effects varied by school context, with stronger outcomes observed in schools combining hands-on activities with parental involvement and community mentors. Qualitative data illuminate key mechanisms, including experiential learning through simulations, social normative influence from peers, and reinforcement of concepts via actionable take-home tasks. The research discusses implications for curriculum design, teacher professional development, and policy recommendations, emphasizing the necessity of integrating financial literacy with broader life-skills education and creating supportive environments that encourage sustained saving behavior beyond the program period. Limitations include reliance on self-reported savings data, potential spillover effects, and the challenge of long-term follow-up. The study contributes to a growing evidence base on adolescent financial capability, offering scalable, equity-focused strategies for enhancing economic decision-making and fostering prudent saving behaviors in adolescence.

Project Overview

What This Project Is About

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A plain-language overview of how financial literacy programs can influence how high school students think about money, make choices about spending and saving, and understand financial risks.

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The Problem It Addresses

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Many teens graduate without a solid grasp of personal finance, which can lead to poor money decisions, higher debt, and limited savings. This project investigates whether structured financial literacy lessons can improve decision-making and saving habits among high school students.

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Objectives of the Project

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1. Identify what financial concepts students find most confusing.
2. Evaluate changes in spending and saving behavior after a literacy program.
3. Assess changes in attitudes toward budgeting and financial planning.
4. Provide practical recommendations for schools to implement effective programs.

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What You Will Do Step by Step

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1. Review existing literature on teen financial literacy.
2. Design or select a brief financial literacy curriculum suitable for high school settings.
3. Recruit participating classes and obtain consent.
4. Administer pre- and post-program surveys on knowledge and behavior.
5. Analyze data to detect changes in decision-making and saving indicators.
6. Interpret results and discuss implications for schools and policy.

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Expected Outcome

The project should show whether the literacy program leads to better spending choices, more saving, and more positive attitudes toward financial planning, with clear recommendations for educators.