Description of the programme

The intervention encouraged a group of 221 Ohio State University students to reflect on their core values and long-term goals, through a psychological intervention called ‘values affirmation’. The intervention was designed to reduce students’ stress levels and self-doubt in their academic abilities. The intervention explored to what extent values affirmation was associated with improved numeracy. It also considered whether, by improving numeracy, values affirmation led to improved outcomes in personal finance and other areas, such as health-related behaviours and engagement with STEM subjects.

The study

This study was undertaken by the Department of Psychology at Ohio State University in Columbus, Ohio. Undergraduate students taking a psychology statistics course were divided into two groups: an intervention group (112 students receiving training in values affirmation), and a control group (109 students not receiving the training). Both groups were surveyed at the beginning and at the end of the academic term. The survey results were analysed using descriptive statistics.

The research aimed to understand whether values affirmation improved objective numeracy, (defined as the ability to comprehend and use mathematical concepts), and subjective numeracy, (defined as self-assessed ability and preference for numbers). The study hypothesis held that improving numeracy can enhance decision-making. This in turn can lead to better outcomes associated with personal finance, such as having adequate retirement savings, avoiding risky loans and repaying credit cards in full. Therefore, the study aimed to assess whether a causal link exists between numeracy and financial (and other) outcomes.

Key findings

The study identified the following key findings:

• The students who participated in the values affirmation intervention reported a statistically significant improvement in objective numeracy (p<0.01).
• The subjective numeracy outcome was broken down into:
• perceived mathematical abilities, in which the intervention group reported a small but statistically significant improvement (p=.03), and
  • preference for numbers, on which the intervention had no significant effect.

• This study claims it provides the first known evidence to support a causal link between numeracy and financial literacy and health related behaviours.
• Financial literacy remained the same in the intervention group (p=.02), while it declined in the control group (p<.01).
• The intervention had no significant effect on financial outcomes, measured as respondents’ knowledge about their own financial situation and their financial behaviours. The intervention group reported poorer financial outcomes than the control group, both before and after the intervention. A possible explanation for poorer outcomes among the intervention group is that values affirmation may have improved financial outcomes by enhancing numeracy, but at the same time it may have reduced perceived financial stress, making these students less careful with their finances.
• White respondents, both in the intervention and in the comparison groups, reported better financial outcomes than all other ethnic groups at the beginning of the study. Whilst these had declined for all respondents at the end of the study, the change was less for white respondents than for other ethnic groups.

• Health-related behaviour remained unchanged for the intervention group and worsened for the control group.
• Values affirmation was associated with improved STEM outcomes, including: an increase in student intentions to enrol in further maths courses, an increase in the number of participants completing more intensive maths courses in the two years following the intervention, and achieving better grades.

Points to consider

• The sample size for the study was quite small (221 students), therefore the findings should be interpreted with some caution.
• Participants in the target group had poorer financial behaviours and knowledge than those in the comparison group, both at the beginning and at the end of the study, suggesting potential bias in the sample.

• The sample of University students were more highly educated that the general population and therefore were likely to have higher numeracy skills, casting doubts on the generalisability of the findings. However, values affirmation effects are usually stronger amongst more vulnerable populations, suggesting that the approach might have a greater impact on other groups.
• The sample was 75% female, therefore the findings might be particularly applicable to a female population.