- Description of the programme
- The study
- Key findings
- Points to consider
Description of the programme
- Finances 50+ aims to improve participants’ financial behaviours and attitudes and encourage them to set financial goals. It was launched in 2012 in six cities across the US, and is ongoing. The training covers: budgeting and goal setting, taking charge of credit and debt, and developing a savings plan and protecting assets. It is delivered as three 90-minute interactive workshops.
- Workshops are delivered in community settings, and are relatively small (usually 5-15 people) so as to foster dialogue with a focus on practical, ‘hands on’ learning. Following the workshops, participants are offered the opportunity to work with Money Mentors for additional support and motivation.
- The programme is run by the American Association of Retired People (AARP) and the Charles Schwab Foundation who work with partner organisations to train employees and volunteers to facilitate the workshops.
- During the study period the financial capability workshops were administered by eleven organisations between September 2012 and December 2013. Over this period, approximately 2,775 people participated in the programme. The majority of the participants were on low incomes.
The study
One impact evaluation of the programme, carried out by AARP in 2012 - 2013, has been published. This study involved three surveys of participants - a baseline survey, a three month follow-up survey and a six month follow-up survey. The study used the Financial Management Behaviour Scale (FMBS) to measure financial behaviour change. The study did not involve a comparison group.
Key findings
The evaluation (which involved pre and post-measurement of participants) found that positive outcomes were achieved in relation to:
- Financial wellbeing: participants’ reported a decrease in levels of anxiety related to their finances, with the proportion saying they were ‘very worried’ about money dropping from 22% to 14% after six months.
- Financial behaviour: of the 16 financial behaviours measured, there were significant improvements in nine behaviours after both three and/or six months, including:
- reviewing credit card statements
- prioritising debt re-payments and reducing levels of debt
- reducing spending and/or increasing earnings
- saving.
- Financial capability (Mindset): the programme was also successful in encouraging participants to set financial goals. Only 42% of participants had a financial goal at the beginning of the study, compared to 63% by the six months follow-up.
Points to consider
- A key aspect of the training was that participants developed their own action plan based on financial goals that were established.
- The absence of a comparison group means that it is not possible to draw firm causal links between the programme and the outcomes measured.
Full report
American Association of Retired People’s ‘Finance’s 50+’ - full report
