1. WORKPLACE FINANCIAL
EDUCATION AND RETIREMENT
SAVINGS BEHAVIOR
Carmen Menjivar

2. • Introduction
• Theoretical Framework
• Statement of the Problem
• Purpose of the Study
• Review of the Literature
• Questions/Hypotheses
• Research Design
• Study Limitations
• Significance of the Study
• References
Agenda

3. Workplace Financial Education
An understanding of fundamental financial management
concepts and designing personal budgets and savings
plans. (The Federal Reserve)
To provide enough information to make make informed
decisions with investment alternatives.
(e.g. interventions, workshops, brochures & newsletters)
(Prawitz and Cohart (2014))

4. Theoretical Framework
• Cognitive Behavioral Therapy:
• Exploring patterns of thinking that
lead to self-destructive actions and
the beliefs that direct these
thoughts.
• Cognitive behavioral therapists are
problem-focused, and goal-
directed in addressing the symptom.
Cognitive
Triad Theory
Thoughts
What you
think
Behavior
How you
act
Emotions
How you
feel

5. Statement of the problem
The effects of the generational
poverty cycle:
Poverty
Low income
family
Financial stress
Offspring: high
levels of toxic
stress

6. Purpose of the study
Decrease financial stress within the low SES population
and increase savings behavior and lead them to better
financial decision-making.
Extending current approaches to workplace financial
education by providing a more effective alternative
To investigate the use of an employee needs focus
approach with the incorporation of CBT

7. Review of the Literature
Prawitz and Cohart (2014) investigated changes in financial behaviors after the introduction of an employee-
needs-driven workplace financial education program was provided. Participants were 1.8 times more likely
than non-participants to budget, 1.9 times more likely to undergo asset allocation assessment, and 1.6 times
more likely to increase retirement contributions.
Hira and Loibl (2005) examined the relationship between workplace financial education and workplace
satisfaction. Employees who participated in workplace financial education understand personal finances
better and they also realize the significance of financial literacy in regards to their future financial expectations.
Employees who gain a great amount of literacy in financial matters and confidence in their future finances,
they are more likely to be satisfied with and supportive of their company.
Gonyea (2007) conducted a study focusing on lower-wage workers using a survey, which indicated that
strong predictors of retirement savings behavior included greater financial literacy, greater job stability,
stronger workforce attachment, and higher income. Employer-sponsored pension plans were the most
frequently used savings option.
Edmiston, Gillett, and McGrath, McGrath (2009) conducted a study that indicates higher participation and
contributions to voluntary savings plans when employers offer retirement seminars. The findings
indicated that employees who were most strongly affected were those who were not highly compensated. Also,
the frequency of seminars correlates to savings behavior. The study also indicated that financial education
leads to improved financial decisions, a decrease for requests on 401k loans and pay advances;
increased use of flexible spending accounts; increased 401k participation and contributions

8. Research Question & Hypothesis
Question:
Will workplace financial
education change low
income employee’s savings
behavior?
H1:
The employee group who
receives no financial
intervention will make no
changes in their savings
behavior
H2:
The employee group that
receives an organization
focused approach to
financial education will
slightly change their savings
behavior
H3:
The employee group that
receives an employee needs
focused approach with CBT
will make significant
changes in their savings
behavior

9. Research Design
Method:
• Research Design - This will be an 18 month long experiment with a follow up period of 0, 3, 9, 12, 15,
18, where the control group gets the pamphlet or brochure and the experimental groups will get
interventions during the first, second, third and fourth meetings, the following two months will strictly be
for follow up.
• The participants will be assigned randomly, using a single measure before and after each meeting.
• IV: employees receive a pamphlet or brochure with financial information
IV: employees receive financial intervention that is organization focused
IV: employees receive financial intervention that is employee needs focused with a CBT approach
DV: amount of funds in employee savings accounts
• Population/Study Participants – 200 participants, who are between the ages of 18 to 65 and low
income earners, falling within the brackets that were displayed earlier.
Procedure:
• The control group will receive a pamphlet or a brochure with financial information. The second group
will be involved in an intervention that is organization focused. The third group will receive financial
education that is employee needs focused with a CBT approach
• Measures: To measure baselines the study will be conducted with the use of a Likert-type rating scale
questionnaire for the following questions: confidence in retirement, their confidence with financial
literacy, confidence with financial management, their level of control over their finances, and the final
question will ask the employee to circle the bracket of savings funds in which they fall at the current
time.
• Data Analysis Plan – Using ANOVA, to measure between the three groups groups.

10. Limitations
Social desirability may skew
the data for the last question in
the questionnaire regarding
savings
amount
Due to the repeated meetings
required for the study, attrition
may occur

11. Significance of the Study
If its effective
• This will be another tool to help break the poverty cycle, increase
financial control and decrease financial stress for the low SES
population
Also means that CBT and a focus on employee-needs
• Is an approach to be implemented when providing financial
education to employees
If there are no significant findings
• Other measures need to be investigated to aid this population

12. References
• Claes, R., & Loo, K. (2011). Relationships of proactive behaviour with job-related affective well-being and anticipated retirement
age: An exploration among older employees in Belgium. European Journal Of Ageing, 8(4), 233-241. doi:10.1007/s10433-011-
0203-[BC1] 7
• Calnan, M. (2014). 52% do not provide financial education for employees[BC2] . Lawyer (Online Edition), 5.
• [BC3] 2010). Aging and Financial Planning for Retirement: Interdisciplinary Influences Viewed Through a Cross-Cultural
Lens. International Journal Of Aging & Human Development, 70(1), 1-38. doi:10.2190/AG.70.1.a
• Hill, T. M. (2010). Why Doesn't Every Employer Have a Phased Retirement Program?. Benefits Quarterly, 26(4), 29-39.
• Prawitz, A. D., & Cohart, J. (2014). Workplace financial education facilitates improvement in personal financial
behaviors. Journal Of Financial Counseling And Planning, 25(1), 5-26.
• Hira, T. K., & Loibl, C. (2005). Understanding the Impact of Employer-Provided Financial Education on Workplace
Satisfaction. Journal Of Consumer Affairs, 39(1), 173-194. doi:10.1111/j.1745-6606.2005.00008.x
• Kim, J., Kwon, J., & Anderson, E. A. (2005). Factors Related to Retirement Confidence: Retirement Preparation and Workplace
Financial Education. Financial Counseling And Planning, 16(2), 77-89.
• Joo, S., & Grable, J. E. (2000). Improving employee productivity: The role of financial counseling and education. Journal Of
Employment Counseling, 37(1), 2-15.
• Joo, S., & Grable, J. E. (2005). Employee Education and the Likelihood of having a Retirement Savings Program.Financial
Counseling And Planning, 16(1), 37-49.
• Loibl, C., & Hira, T. K. (2005). Self-directed Financial Learning and Financial Satisfaction. Financial Counseling And
Planning[BC5] , 16(1), 11-21.
• Gonyea, J. G. (2007). Improving the retirement prospects of lower-wage workers in a defined-contribution world. Families In
Society, 88(3), 453-462.
• Gale, W., Harris, [BC6] B., & Levine, R. (2012, January 1). Raising Household Saving: Does Financial Education Work?
Retrieved April 15, 2015, from http://www.ssa.gov/policy/docs/ssb/v72n2/v72n2p39.html
• Edmiston, K. D., Gillett-Fisher, M. C., & McGrath, M. (2009). Weighing the Effects of Financial Education in the
Workplace. [BC7]
• Benefits of Workplace Comprehensive Financial Education. (n.d.). Retrieved April 15, 2015, from
http://www.extension.umn.edu/family/personal-finance/about/benefits[BC8] /
• Cozby, P., & Bates, S. (2012). Single-Case, Quasi-Experimental, And Developmental Research. In Methods in behavioral
research (12th ed., p. 231). New York, NY: McGraw Hill Education.