The Socioeconomic Impacts of Financial Literacy Programs on Credit Card Utilization and Debt Management among Millennials and Gen Z Consumers

Abstract

This study aims to determine the impact of a financial literacy program on the socioeconomic behavior of participants. Specifically, it seeks to identify changes in credit card utilization and debt management reported by Millennials and Gen Z participants after attending a workshop. Analysis is guided by two primary research questions: 1) Do financial literacy programs significantly and positively affect credit card utilization (e.g., lowering utilization, increasing monthly payments, closing accounts) within the first year after being administered? 2) Do financial literacy programs significantly and positively impact behaviors tied to the management of credit card debt within the first year after being administered (e.g., increasing payments, closing accounts)? Research technique is two-fold. Baseline non-experimental secondary survey data is drawn from a nationally representative internet survey of 2001 adults administered in October 2019 and the panel survey data collected in November 2020. The panel survey, which included credit union members, was completed twelve months post-baseline interview. A conference call was arranged with the credit union that assisted in the development and offering of a financial literacy program. The call included enrollment and credit union member participation numbers, the program's focus, recruitment and session design, and the motivation of students who elect to participate. Segments of the baseline survey, panel survey, and financial literacy program design and logic model attend the conference call frames analysis and subsequent final discussion. The variety and specificity of the different phases and overall array of issues are both a testament to the extremely recondite and dynamic subject under investigation.