Money Management International's workplace financial education

1. Description of the programme
2. The study
3. Key findings
4. Points to consider

Description of the programme

The aim of the intervention was to examine the effectiveness of a financial education programme delivered in the workplace.

A needs assessment was undertaken across the workforce prior to the programme beginning to determine the specific topics to be taught. Following this, the employer collaborated with the financial education provider Money Management International to develop a year-long programme of educational initiatives addressing the areas identified by the needs assessment.

The financial topics covered by the programme fell into two categories: basic financial management and retirement/investment strategies.

Specific initiatives were delivered according to theme and ran for a number of sessions over a course of weeks (e.g. ‘Money Basics’ – 6 hours divided between 90 minute sessions & the ‘Spotlight Series’ – ten 60 minute courses). Courses were offered both during and outside of working hours).

Both online information and face-to-face on-site group workshops were offered by Money Management to the participant publishing company employees. 97% of participants took part in the financial education workshops focused on retirement; 68% of participants completed financial education workshops that covered basic money management concepts.

The financial education programme was measured in terms of its impact on:

• Perceived financial wellbeing
• Savings ratios (the proportion of income not spent)
• Frequency of negative financial behaviours
• Likelihood of change among the following actions: budgeting, reviewing asset allocation strategies, retirement contributions, obtaining or updating life insurance plans, and obtaining or updating estate planning documents

The study

One independent impact evaluation of the programme, done by Prawitz & Coharthas in 2010/11, been published. The evaluation used a quasi-experimental design which included a comparison group of employees who did not participate in the financial education programme. Statistical methods were used to minimise the impact of any differences between the profile of the two groups. Pre-testing and post-testing was undertaken for both participants and the comparison group. Pre-test data were collected in April and May 2010, and post-test data were collected around a year later.

Key findings

The evaluation (which involved a quasi-experimental design with pre and post-programme measurement and a comparison group of employees who did not participate in the programme) found positive impacts in relation to the following outcomes:

Financial wellbeing:

• Participants’ financial wellbeing scores (measured using the eight item Personal Financial Wellness Scale), increased after the programme. However the comparison group’s scores also increased over this period and the difference between the two groups’ increases was not statistically significant.

Financial behaviour:

• Participants in the programme were nearly twice as likely as non-participants to have started or updated a budget.
• While saving ratios increased among both programme participants and non-participants, a slightly higher increase was observed among those who received the financial education.
• There was a decrease of 32% in negative financial behaviours (eg. late bill payment) amongst the participants.
• Employees who took part in the programme were more than one and a half times more likely to report having increased their retirement contributions than the non-participants.

Points to consider

• The needs assessment conducted prior to the study helped increase interest and participation in the programme. This financial education was tailored according to the needs assessment results and the programme was therefore driven by employee needs rather than employer needs.
• Each participant who completed the pre-test received a personalised report with a financial wellness score and customised action plan. The employer also provided an incentive to participate in the pre-test by offering Wellness Points toward an insurance premium discount for completion of the pre-test survey questionnaire.

Full report

Full research report