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, 60 th Annual Program Meeting (Oct. 23-26, 2014).

2. Part 1 of Learning Objectives: Discuss: – Financial self-efficacy – 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…

5. Definitions (continued) 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)

6. Definitions (continued) 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: Discuss – 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 College students: 1)struggle with sound financially decision- making (Lusardi, Mitchell & Curto, 2009) 2)may be newly financially independent from their parents 3)are impacted by a struggling economy 4)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: 1)course design and redesign 2)development of unique classroom learning environments that support active learning, team-based learning, and entrepreneurial skill development 3)lab- and project-based capstone courses 4)faculty fellowships 5)peer-learning initiatives

14. Research Component 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: Discuss: – 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)

20. Financial Self-Efficacy Scale (FSES) (Lown, 2011) Exactly true Moderately true Hardly true Not at all true It is hard to stick to my spending plan when unexpected expenses arise It is challenging to make progress toward my financial goals When unexpected expenses occur I usually have to use credit When faced with a financial challenge, I have a hard time figuring out a solution I lack confidence in my ability to manage my finances I worry about running out of money in retirement

21. Financial Knowledge, Behavior, and Self-efficacy Scale (Danes & Haberman, 2007) Strongly disagree Somewhat disagree NeutralSomewhat agree Strongly Agree I understand the cost of buying on credit I know key questions to ask when shopping for auto insurance I know about investments (stocks, mutual funds, bonds, etc.) I know the difference between needs and wants Financial Knowledge

22. Financial Knowledge, Behavior, and Self-efficacy Scale (cont.) Strongly disagree Somewhat disagree NeutralSomewhat agree Strongly Agree I believe the way I manage my money will affect my future Almost never Not oftenNeithersometimesAlmost always I feel confident about making decisions that deal with money Financial Self-Efficacy

23. Financial Knowledge, Behavior, and Self- efficacy Scale (cont.) Financial BehaviorAlmost never Not often NeithersometimesAlmost always I track my expenses I compare prices when I shop I set aside money for future needs/wants I use a budget I repay the money I owe on time I make goals for managing my money I achieve my money management goals I discuss money management with my family Financial Behavior

24. Financial stability and financial capability in education and practice Micro – 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.) Macro – Welfare policies, state and federal laws on vulnerable consumer protections, auto and health insurance policies

25. Questions?

26. References 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.

27. References 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 AFCPE R 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.

28. Contact information Christine Callahan, PhD, LCSW-C – ccallahan@ssw.umaryland.edu Carolyn Tice, PhD – tice@umbc.edu Sally A. Hageman, MSW – shageman@ssw.umaryland.edu