1.Building Financial Self-Efficacy with Social Work Students: Helping Themselves, Helping Others
Christine Callahan, PhD, LCSW-C
Carolyn Tice, PhD
Sally A. Hageman, MSW
Council on Social Work Education, 60th Annual Program Meeting (Oct. 23-26, 2014).
2.Part 1 of Learning Objectives:
The differences between financial knowledge, financial capability, and financial self-efficacy
Financial social work—term coined by Reeta Wolfsohn of the Center for Financial Social Work
3.Umbrella Definition of Financial Capability
Financial capability refers to the degree of knowledge, skills, behaviors, available resources, and attitudes that a person possesses and can access in her/her community in order to make the wisest choices possible regarding personal finances (Birkenmaier, 2013; Sherraden, M.S., 2010)
4.“Financial capability…combines a person’s ability to act with their opportunity to act….To be financially capable, people must be more than financially literate; they must also have access to financial products and services that allow them to act in their best financial interest. Together, ability and opportunity contribute to a person’s financial functioning in ways that lead to improved financial well-being and life chances.” (p. 3 from Financial Capability and Asset Development, 2013)
Margaret Sherraden’s definition of financial capability…
Financial stability: promotion of improved financial well-being in individuals, families, and communities
Financial literacy: skills and knowledge involved in understanding financial concepts and terms in order to make sound decisions (Despard & Chowa, 2010; Huston, 2010)
Financial self-efficacy: behaviors and motivations that one has in order to translate knowledge into meaningful change, even when change is difficult and problems seems insurmountable (Postmus et al., 2013)
7.Part 2 of Learning Objectives:
premise behind work-shops
structure of the work-shops
funding source to support the work-shops
relationship of work-shops to social work practice, policy and research
8.Premise Behind Work-Shops
struggle with sound financially decision-making (Lusardi, Mitchell & Curto, 2009)
may be newly financially independent from their parents
are impacted by a struggling economy
will often work with people who need assistance with income eligibility and entitlements (Hawkins & Kim, 2011)
9.Structure of the Work-Shops
Work-shops are an educational intervention to help students learn about financial issues and to develop their sense of financial self-efficacy.
The educational intervention consists of six work-shops and seminars on financial capability and financial self-efficacy.
10.Structure of the Work-Shops (continued)
The work-shops include elements on:
the integration of financial capability and self-efficacy with social work practice
how to support clients experiencing financial hardship
applying social work theory and concepts to practice
11.Structure of the Work-Shops (continued)
examining ethical and social justice issues and implications
assessing financial well-being
awareness of relevant social welfare policies e.g., unemployment, health insurance, minimum wage
12.Funding Source to Support the Work-Shops
The work-shops integrate with and build upon the work of the Financial Literacy Working Group on the University of Maryland, Baltimore County (UMBC) campus.
The project also connects with the University of Maryland School of Social Work, Baltimore and its Financial Social Work Initiative (FSWI).
13.Funding Source to Support the Work-Shops (continued)
UMBC has established The Hrabowski Fund for Innovation to permanently endow the initiatives launched with support from a Carnegie grant.The Hrabowski Fund ion enables the President’s Office to invest in:
course design and redesign
development of unique classroom learning environments that support active learning, team-based learning, and entrepreneurial skill development
lab- and project-based capstone courses
Study approved by the IRBs at UMBC (coordinating IRB) and UMB
Research question generally revolves around whether or not students’ sense of financial self-efficacy improves as a result of exposure to work-shops and these topics, info, different practice settings, understanding clients’ needs better
Pre- and post-test; focus group at end
15.Relationship of Work-Shops to Social Work Practice, Policy and Research
Apply social work ethical principles to guide professional practice (EPAS 2.1.2)
Apply critical thinking to inform and communicate professional judgments (EPAS 2.1.3)
Advance human rights and social economic justice (EPAS 2.1.5)
Engage in research informed practice and practice-informed research (EPAS 2.1.6)
16.Relationship of Work-Shops to Social Work Practice, Policy and Research
Apply knowledge of human behavior in the social environment (EPAS 2.1.7)
Engage in policy practice to advance social and economic well-being and to deliver effective social work services (EPAS 2.1.8)
Engage, assess, intervene, and evaluate with individuals, families, groups, organizations and communities (EPAS 2.1.10 (a)-(d))
17.Part 3 of Learning Objectives:
measures and surveys on evaluating financial knowledge
link macro and micro issues related to financial stability and financial capability in education and practice
18.Measures/Surveys to assess financial knowledge
The Financial Self-Efficacy Scale (FSES):
developed to assess behavioral components of managing finances and to help educators and counselors better understand their students’ and clients’ psychological reasons behind financial management.
survey was validated in a sample of 726 university employees; alpha reliability = .76
Lower scores indicate better financial self-efficacy (Lown, 2011).
19.Measures/Surveys to assess financial knowledge
Financial Knowledge, Behavior, and Self-efficacy Scale:
5,329 male and female high school students attended a financial planning course by the National Endowment for Financial Education (NEFE) High School Financial Planning Program (HSFPP).
questions about how money was acquired, saved, spent, and communicated within the family system were asked
knowledge and self-efficacy questions were asked to evaluate earlier stages of the learning process (Danes & Haberman, 2007)
21.Financial Knowledge, Behavior, and Self-efficacy Scale (Danes & Haberman, 2007)
22.Financial Knowledge, Behavior, and Self-efficacy Scale (cont.)
23.Financial Knowledge, Behavior, and Self-efficacy Scale (cont.)
24.Financial stability and financial capability in education and practice
Social workers may serve financially vulnerable populations and should be educated on how to address financial concerns that may come up with clients (such as budgeting, credit, debt, etc.)
Welfare policies, state and federal laws on vulnerable consumer protections, auto and health insurance policies
Birkenmaier, J., Kennedy, T., Kunz, J., Sander, R., & Horwitz, S. (2013). The role of social work in financial capability: Shaping curricular approaches. In J. Birkenmaier, M. Sherraden, & J. Curley (Eds.), Financial capability and asset development: research, education, policy, and practice (pp. 278-301). New York, NY: Oxford University Press
Danes, S. M. & Haberman, H.R. (2007). Teen financial knowledge, self-efficacy, and behavior: A gendered view. Journal of Financial Counseling and Planning,18(2), 48-60.
Despard, M. & Chowa, G. A. N. (2010). Social workers’ interest in building individuals’ financial capabilities. Journal of Financial Therapy, 1, 23-41.
Hawkins, R.L., & Kim, E.J. (2001). The socio-economic empowerment assessment: Addressing poverty and economic distress in clients. Clinical Social Work Journal, 40. doi: 10.1007/s10615-011-0335-4.
Huston, S. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296-316.
Lusardi, A., Mitchell, O., & Curto, V. (2009). Financial literacy among the young: Evidence and Implications for consumer policy (Working Paper series 15352). Cambridge, MA: National Bureau of Economic Research.
Lown, J. (2011). 2011 outstanding AFCPER conference paper: Development and validation of a financial self-efficacy scale. Journal of Financial Counseling and Planning, 22(2), 54-63.
Postmus, J., Plummer, S.B., McMahon, S., & Zurlo, K. (2013). Financial literacy: Building economic empowerment with survivors of violence. Journal of Family and Economic Issues, 34(3), 275-284. doi: 10.1007/s10834-012-9330-3
Sherraden, M. (2010). Financial capability: What is it, and how can it be created? (CSD Working Paper 10-17). St. Louis, MO: Washington University, Center for Social Development.
Christine Callahan, PhD, LCSW-C
Carolyn Tice, PhD
Sally A. Hageman, MSW