Description of the programme

• Finances 50+ aims to improve participants’ financial behaviours and attitudes and encourage them to set financial goals. It was launched in 2012 in six cities across the US, and is ongoing. The training covers: budgeting and goal setting, taking charge of credit and debt, and developing a savings plan and protecting assets. It is delivered as three 90-minute interactive workshops.
• Workshops are delivered in community settings and are relatively small (usually 5-15 people) so as to foster dialogue with a focus on practical, ‘hands on’ learning. Following the workshops, participants are offered the opportunity to work with Money Mentors for additional support and motivation.
• The programme is run by the American Association of Retired People (AARP) and the Charles Schwab Foundation who work with partner organisations to train employees and volunteers to facilitate the workshops.
• During the study period the financial capability workshops were administered by 11 organisations between September 2012 and December 2013. Over this period, approximately 2,775 people participated in the programme. The majority of the participants were on low incomes.

The study

An impact evaluation of the programme was carried out by AARP in 2012 - 2013. This study involved three surveys of participants - a baseline survey, a three-month follow-up survey and a six month follow-up survey. The study used the Financial Management Behaviour Scale (FMBS) to measure financial behaviour change. The study did not involve a comparison group.

Key findings

The evaluation found that positive outcomes were achieved in relation to:

• participants reported a decrease in levels of anxiety related to their finances, with the proportion saying they were ‘very worried’ about money dropping from 22% to 14% after six months.

• of the 16 financial behaviours measured, there were significant improvements in nine behaviours after both three and/or six months, including:
• reviewing credit card statements;
  • prioritising debt re-payments and reducing levels of debt;
  • reducing spending and/or increasing earnings; and,
  • saving.

• the programme was also successful in encouraging participants to set financial goals. Only 42% of participants had a financial goal at the beginning of the study, compared to 63% by the six-month follow-up.

Points to consider

• A key aspect of the training was that participants developed their own action plan based on financial goals that were established.
• The absence of a comparison group means that it is not possible to draw firm causal links between the programme and the outcomes measured.

Full report

American Association of Retired People's 'Finance's 50+' - full report