Harnessing the Power of Technology to Enhance Financial Literacy Education and Financial Well‐Being: A Literature Review
Wendy L. Way, Professor and Associate Dean
Nancy Wong, Professor
Prepared for presentation at the P
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Financial Literacy Research Consortium Conference
November 18, 2010
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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The research reported herein was performed pursuant p
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to a grant from the U.S. Social Security Administration (SSA) funded as part of the Financial Literacy Research Consortium. Consortium
The opinions and conclusions expressed are solely those The
opinions and conclusions expressed are solely those
of the author(s) and do not represent the opinions or policy of SSA or any agency of the Federal Government or of the of the University of Wisconsin System, including Center for Financial Security.
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Background
2. Purpose
3. Review
4. Recommendations
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Background: Project Need
d P j tN d
• Growing
Growing number of technology
number of technology‐based
based resources for financial education
• Little attention given to WHY technology‐
Little attention given to WHY technology
based tools/strategies might be expected to improve financial literacy education outcomes
improve financial literacy education outcomes or financial well‐being
• Need to develop guidelines for theory‐based N d d l
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practice and further research
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Background
2. Purpose
3. Review
4. Recommendations
Project Purposes
• R
Review theories of human behavior and their i th i
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relevance to personal finance education research and development
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• Examine theory‐based educational affordances that might be offered by technology‐based resources to support personal finance teaching and learning Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Background
2. Purpose
3. Review
4. Recommendations
Project Purposes
• C
Create an integrative model for using t
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educational and behavioral theory to harness th
the potential of technology‐based tools for t ti l f t h l
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designing financial education interventions and nurturing financial well‐being
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• Derive implications for further research on utilizing technology to advance personal finance education and well‐being
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Behavior Theories Reviewed
Behavior Theories Reviewed
• Numerous frameworks available
• Suggest points of intervention for financial education using an ecological perspective
education using an ecological perspective
• Represent insights on factors that influence behavior at the individual interpersonal
behavior at the individual, interpersonal, community/organization, and system/policy levels
• May be complementary, suggesting use of more than one at a time
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Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Sample Behavior Theories by Level of Sample
Behavior Theories by Level of
Intervention
• Individual
• Theory of Reasoned Action/Theory of Planned Behavior
• Transtheoretical Model of Change
• Interpersonal
• Social Cognitive Theory
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y
• Social Networks and Social Support (e.g., Social Capital)
(e.g., Social Capital)
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Sample Behavior Theories by Level of Sample
Behavior Theories by Level of
Intervention
• Community/Organization
• Diffusion of Innovations
Diffusion of Innovations
• Community Organizing and Community Building
• Systems/Policy
• Social Marketing
• Choice Architecture (Behavioral Economics)
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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Affordances of Technology: New Resources to Support Learning
• The Internet – global system of computer networks that carry g
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information and resources and facilitate communication (e.g., webpages, email, instant messaging, video conferencing)
• Web 2.0 – web applications that facilitate interactive information sharing and collaboration on the World Wide g
Web as opposed to passive viewing of content (Web 1.0); e.g., social media (Facebook, LinkedIn, Twitter), video sharing sites (YouTube) multiplayer gaming (World of Warcraft) virtual
(YouTube), multiplayer gaming (World of Warcraft), virtual learning environments (Blackboard, WebCT, Moodle)
Draft: Not for Dissemination.
SSA
FLFC 19-F-10003-5-01, University of
Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Affordances of Technology: Access Aff
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and Motivation • Technology holds promise of expanding access to personal finance education by providing
to personal finance education by providing flexibility in how, when, and where learning occurs (mode, pace, place)
occurs (mode, pace, place)
• Technology can support motivation to learn by providing a sense of competence autonomy
providing a sense of competence, autonomy, and belongingness (self‐determination) as well as ‘flow’
well as flow or immersion/fun
or immersion/fun
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Affordances of Technology: Learning Tasks and Processes
Learning Tasks and Processes
• An
An important distinction: learning from important distinction: learning from
versus learning with technology
• ‘Learning
Learning with
with’ perspective more consistent perspective more consistent
with constructivist learning and human behavior theories
behavior theories Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Affordances of Technology: ff d
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Learning Tasks and Processes
Learning Tasks and Processes
• ‘Learning with’ perspective characterized by l
learning activities that are: more authentic, less h
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formal, involve others, provide for reflection, and give learners control.
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• Games and simulations offer special potential for d l i fi
developing financial management expertise by i l
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nurturing situated understanding, effective social practices shared values and powerful identities
practices, shared values, and powerful identities.
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Access and Vulnerability
• Lack of access to technology may /
y
create/reinforce financial vulnerability
• Access = not just having appropriate hardware but also capacity to make
hardware but also capacity to make meaningful use of it
– Knowing how define information needs and Knowing how define information needs and
identify and evaluate internet‐based financial information
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Access and Vulnerability
Access and Vulnerability
– Having access to learning opportunities (including materials) that support diverse needs – age/life cycle stage, language and literacy differences, cultural bg, learning styles, web accessibility lt l b l
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guidelines – and eschew gender and pedagogical biases
– Having encouragement and support for informal (self‐directed)
(self
directed) and not just educator
and not just educator‐directed
directed learning
– Having access to well‐prepared personal finance g
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educators
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
R
Recommendations for Practice
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• Consider
Consider theoretical bases related to human theoretical bases related to human
behavior, human learning, and motivation in education as key foundations for selecting and
education as key foundations for selecting and designing technology‐based PF education interventions.
interventions
• Consider the potential for self‐directed as well as educator directed learning in designing PF d t di t d l
i i d i i PF
education resources and strategies
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Recommendations for Practice
• Expand preparation for personal finance p
education practitioners
• Beware the technological mindset!
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Recommendations for Further R
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Research
• Do not confuse application of theory to technology‐based PF education with testing of
technology‐based PF education with testing of theory
• Expand translational research efforts and E
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create a ‘what works’ clearinghouse of theory‐
and research‐based evidence about PF d
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education tools, resources, strategies
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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1. Overview
2. Purpose
3. Review
4. Recommendations
Recommendations for Further R
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f F th
Research
• Investigate how social media are contributing to self‐directed and incidental learning about financial matters
• Examine how educators are learning to use technology‐based financial education tools and strategies
Draft: Not for Dissemination.
SSA FLFC 19-F-10003-5-01, University of Wisconsin
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Wendy L. Way
Professor and Assoc. Dean for Undergraduate and Graduate Academic Programs
S h l fH
School of Human Ecology E l
University of Wisconsin‐Madison 2412 Sterling Hall
475 N Charter St
475 N Charter St
Madison, WI 53706 (608) 262‐1963
wlway@wisc.edu
Nancy Wong
Assoc. Professor and Director, Center for Retailing Excellence
School of Human Ecology
University of Wisconsin‐Madison
310 Middleton Bldg.
1305 Linden Drive
Madison, WI 53706
(608) 265‐5954
http://cfs wisc edu/
http://cfs.wisc.edu/
nywong@wisc.edu
@ i
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