Examining the Effectiveness of Financial Literacy Education in Texas Public Schools: A Case Study of Four High School Graduates

Background: In the past two decades, policy makers across the United States have made a push to increase public education’s role in Financial Literacy Education (FLE). This is no different in the state of Texas with the most notable push occurring in 2013 with the Texas Legislature’s House Bill 5. The Bill made substantial changes to curriculum and graduation requirements. Some of the changes to the curriculum included the requirement of FLE. After five years of implementation, Texas and the nation’s student loan debt continues to rise while the financial literacy of high school graduates seems to remain stagnate. Purpose: The purpose of this study was to identify the gaps in knowledge, misinformation, and the barriers university students in Texas face when navigating the financial means to enter and complete a bachelor’s degree. I explored the students’ development of financial literacy, the perceived effectiveness of the students’ K-12 public education in Texas, the influence of the students’ parents in making financial decisions for higher education, and the students’ perceptions of their abilities to navigate this process. Research Questions: What are the gaps in knowledge of financial literacy university students in Texas face when navigating the financial means to enter and complete a bachelor’s degree? What are the financial barriers university students in Texas face when navigating the financial means to enter and complete a bachelor’s degree? Methods: A multiple case study of four Texas high school graduates was used to achieve this goal. Data was collected through semi-structured interviews. Audio recordings and field notes were used. A thorough review of national standards in K-12 personal finance education, Texas State Board of Education Rules, and Texas Essential Knowledge and Skills also informed this study. Results: The data was coded and categorized where five themes emerged: (a) The effectiveness of public k-12 education on FLE, (b) The influence of educators within k-12 public education on FLE, (c) The influence of family on FLE, (d) The awareness of FLE in higher education, and (e) An awareness of personal FL. A cross comparison of the cases showed a general lack of effectiveness from their K-12 education and a lack of influence from their K-12 educators regarding FLE. Family and family friends were the biggest source of influence on their FLE. Participants were not aware of a personal finance course being offered at their university but were receptive to the idea of taking it in order to increase their financial literacy. Conclusion: The results of this study suggest that the changes to K-12 curriculum by HB5 have not been effective in increasing finical literacy. Educational leaders need to seek ways to increase the depth and rigor of FLE or change the curriculum to have a greater focus on FLE. The awareness by students of FLE on K-12 and university campuses is also lacking. Promoting FLE increases equity among students as “financial literacy is the final rung on the ladder of civil rights” (Hayes, 2012, p. 9).Educational Leadership and Policy Studies, Department o