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learn$ave Project: Final ReportBox 2.2Impacts of financial education on behaviourIn their review of available evidence, Hogarth, Beverly, and Hilgert,(2003) find that, while there is a positive link between financialknowledge and financial behaviour, financial education is not the onlyway of acquiring such knowledge. People may learn from family, friendsand personal financial experiences: they can gain financial knowledge bymerely saving and by learning from others.Survey research in the United Kingdom has found that levels of financialliteracy are very low across the population. As a result, at least oneleading researcher has concluded that it is unreasonable to expectlarge changes in response to public investments in short-term financialliteracy interventions (Kempson, 2007). In the U.S., Lyons (2006)has suggested that behavioural models adapted from mental health andaddictions treatment might be helpful in understanding the link betweenfinancial education and financial behaviour. It is proposed that individualsmove from being unaware that a change in behaviour is needed, topondering such a change, to planning for such a change until they beginto take concrete steps in the fourth and fifth stages by practicing andfinally solidifying new behaviours. Lyons suggests that financial educationprograms may move individual clients somewhere further along thefive-stage continuum, for example from contemplating a change infinancial behaviour to planning or even practicing. However, she cautions,it may be unrealistic to expect one program to turn the tide for someoneunaware that new financial habits are even needed, transforming theminto someone with exemplary and lasting financial skills.issuing monthly account statements (mentioned above)and help in accessing matching credits as part of theprocess of cashing out. As part of the account statementand support in the cash out process, participants alsoreceived periodic letters from the local delivery agencyalerting them when they were eligible to withdrawmatching credits, reminding them of the number ofmonths left to save and, later, the approaching time limitto cash out any remaining savings credits. This basic levelof service was considered to be the minimum necessaryto move participants through the stages of the projectand could be considered comparable in most respectsto services from a financial institution on self-managedsavings or registered investment accounts.A higher level of case management support wasavailable to participants in the learn$ave-plus group andthe non-experimental groups. This assistance consistedof encouragement to meet savings targets, assistance toidentify and address problems in meeting those targets,more frequent written reminders regarding programtargets and deadlines and referrals to appropriateagencies to deal with personal or household challengesthat were disclosed to case management staff (forexample addictions counselling, mental health challenges,basic literacy needs or employment counselling). Casemanagers maintained contact with an assigned pool ofparticipants but the size of the caseload varied significantlyfrom one site to another.As part of this more intensive level of service, casemanagers were expected to undertake a quarterly reviewof participants’ saving activities, attendance at financialmanagement training sessions, and progress towardgoals. If a participant was having difficulty in any of theseareas (including if they had not made a deposit in theprevious three months), the case manager contacted himor her by telephone or personal letter to discuss reasonsfor their inability to save as well as to explore possiblesolutions. As well, participants outside the control andlearn$ave-only groups were free to contact their casemanager on their own at any time on issues related totheir learn$ave participation. As mentioned earlier, theKitchener-Waterloo site opted, as part of their programdesign, to offer as well in-house mental health services(individual counselling) within the enhanced casemanagement services.Program operationsRecruitment, orientation and group assignmentAccording the project design, learn$ave was intendedto be as inclusive as possible to the greatest numbers oflow-income working-age adults who might benefit fromreturning to school. There was no sampling frame ormaster or administrative list from which to randomly orsystematically draw prospective participants. The localdelivery agencies were charged with the task of recruitingparticipants from the general population. Spaces werefilled in the project as eligible persons learned about it,elected to apply and were accepted on a first-come-firstservedbasis. Those who were recruited not only had tomatch the participant eligibility criteria but also selfselectfor the project on the basis of whether or not they(a) were interested in furthering their formal learningand (b) were willing to save toward such a goal. Thismeans that the program interventions were not testedon a random sample of low-income working age adultsbut rather on a convenience sample made up of a groupof eligible volunteers who had some interest (at the timeof applying) in either savings or education as a means toimprove their well-being.The recruitment and related processes are portrayed inFigure 2.1 and described below.Social Research and Demonstration Corporation Chapter 2 | 15