My Finance Coach's financial education programme

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

Description of the programme

My Finance Coach is a non-profit financial education provider that was founded in Munich, Germany in 2010. The organisation aims to improve and increase the financial literacy of children and young people.

The organisation developed a financial education programme that aimed to increase financial knowledge among students that were likely to have lower prior levels. The programme was targeted to students aged 13-15 from 32 ‘lower stream’ German high schools (that is, those that focus predominantly on vocational training), with face-to-face training delivered by volunteer 'finance coaches' (employees of sponsor companies). The programme comprised three 90-minute training modules, usually delivered over one week, on:

• Shopping: Aims of advertising; awareness of impulsive vs deliberate shopping decisions; distinguishing needs from wants.
• Planning: Budgeting (income and expenditure); one-off vs repeat costs; planning for future expenditure.
• Saving: Different types of saving products; trade-off between risk, liquidity and return depending on an individual’s needs.

The study

The study used a pre and post measurement, which was completed by just over 600 students from 27 treatment classes and 11 control group classes. Researchers collected the post measurement three weeks after the intervention, and there was a student participation rate of 85 per cent.

Multivariate difference-in-difference regression analysis controlled for treatment vs control group, baseline scores, a range of relevant demographic and socio-economic characteristics, and numeracy and cognitive skills.

The use of trained volunteers to deliver the programme rather than teaching personnel, together with allocating treatment and control at the school level, helped to limit any contamination effects.

Key findings

Financial behaviour:

• Self-control as measured through self-reported impulsive purchases decreased by 21 per cent. After controlling for other factors, students with lower numeracy had a higher tendency to make impulsive purchases post intervention (although it is not reported whether this was also true pre intervention).

Financial capability (mindset):

• Students’ ‘interest in financial matters’ improved by 20 per cent. There was no evidence the intervention affected that girls  differently from boys, although girls started from a lower baseline which persisted after the training.
• Financial confidence as measured through self-reported financial knowledge improved in the treatment group by 21 per cent relative to the control group. Girls again started from a lower base and improved less than boys following the intervention.

Financial capability (ability):

• Students’ understanding of risk, as measured through correct assessment of the risks of financial products, increased by 12 percentage points.

The study measured further aspects of knowledge and behaviours but found that they had not significantly improved. These included students’: intention to save; understanding of the aims of advertisers; understanding of the ongoing costs of owning a mobile phone; ability to have just enough money to get through to the end of the week; and extent of saving in the last four weeks.

Points to consider

Methodological considerations:

• The programme was mandatory for all students and delivered to whole classes within the normal school timetable.
• The study sought informed consent from parents for their child to take part in a survey (ostensibly unlinked to any educational programme).
• Readers should take some caution in interpreting the results, due to potential social desirability effects, and missing information about the characteristics of students who either did or did not complete their classes.

Full report

My Finance Coach's financial education programme- full report