Psychological Self-Sufficiency and Financial Literacy among Low-Income Participants: An Empowerment-Based Approach to Financial Capability

Hong, Philip Young P.; Wathen, Maria V.; Shin, Alanna J.; Yoon, Intae; Park, Jang Ho

doi:10.1007/s10834-022-09865-w

Cited by 4 publications

(7 citation statements)

References 54 publications

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“…Their findings suggest that enhancing psychological self-sufficiency can lead to improved financial literacy and, consequently, better financial outcomes. This study highlights the importance of considering psychological empowerment in financial education programs, particularly for vulnerable populations (Hong et al, 2022).…”

Section: Psychological Theories Underpinning Financial Behaviorsmentioning

confidence: 83%

“…This research highlights the broader implications of financial literacy, extending beyond traditional financial decisions to encompass health-related behaviors (Khan et al, 2021). Hong et al (2022) investigate the concept of psychological self-sufficiency and its relationship with financial literacy among low-income participants. They adopt an empowerment-based approach to financial capability, emphasizing the role of psychological factors in financial literacy and decision-making.…”

Section: Psychological Theories Underpinning Financial Behaviorsmentioning

confidence: 99%

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Behavioral economics in U.S. financial literacy programs: A comprehensive review - Evaluating the role of psychology-driven strategies in enhancing understanding and responsible financial behaviors among citizens

Bamidele Segun Ilugbusi,

Olawale Adisa

2024

Int. J. Sci. Res. Arch.

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This study critically evaluates the integration of behavioral economics into U.S. financial literacy programs, focusing on the enhancement of understanding and promotion of responsible financial behaviors. The main objective is to explore how psychology-driven strategies can improve financial decision-making and literacy. Employing a systematic literature review and content analysis methodology, the study analyzes data from academic journals, government reports, and industry publications, focusing on literature published between 2013 and 2023. Key findings indicate that the incorporation of behavioral economics principles, such as understanding cognitive biases and heuristics, significantly enhances the effectiveness of financial literacy programs. Personalization of financial education to individual needs and the use of behavioral nudging techniques are identified as effective strategies in promoting responsible financial behaviors. The study also highlights the challenges and opportunities in the field, particularly the need for financial education to adapt to technological advancements and evolving economic landscapes. Strategic recommendations include developing comprehensive curricula that integrate behavioral insights, tailoring programs to diverse demographic groups, leveraging technology for engaging and accessible education, and conducting ongoing research to inform teaching methodologies and policy-making. Lastly, the study underscores the importance of integrating behavioral economics into financial literacy programs. It suggests that a multifaceted approach, combining innovative educational practices, technology, and continuous research, is crucial for fostering a financially literate society capable of making informed and responsible financial decisions. The study provides a foundation for future research in the field, encouraging further exploration and academic discourse.

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Section: Psychological Theories Underpinning Financial Behaviorsmentioning

confidence: 83%

Section: Psychological Theories Underpinning Financial Behaviorsmentioning

confidence: 99%

Behavioral economics in U.S. financial literacy programs: A comprehensive review - Evaluating the role of psychology-driven strategies in enhancing understanding and responsible financial behaviors among citizens

Bamidele Segun Ilugbusi,

Olawale Adisa

2024

Int. J. Sci. Res. Arch.

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“…Researchers have also found in TIP content a host of neurobiological activates that strengthen neuroplasticity, executive functioning, and emotional regulation in its neural integration process (Hong & Hong, 2019). The TIP intervention and its program theory have found their adaptation in the areas of fatherhood (Hong et al, 2021a), substance use prevention and treatment (Hong et al, 2021b), financial capability and literacy (Hong et al, 2022b), health promotion (Hong, 2021), and youth empowerment (Hong, Hong, & Choi, 2020a).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The theory within the black box of the TIP intervention is called Financial Psychological Self-Sufficiency (F-PSS; Hong et al, 2022b). Before describing this theoretical model, we would like to recognize that this model addresses individuals in the context of their environment, while not directly targeting environmental change.…”

mentioning

confidence: 99%

Transforming Impossible into Possible (TIP) for Financial Capability: Application of Practice-Based Program Theory and Measures in Intervention Design

Hong

Shin

Wathen

et al. 2023

Research on Social Work Practice

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Purpose: Financial knowledge often does not translate into financial well-being. This study looks at how knowledge might be converted to well-being for people living in low-income environments, based on a theory called Financial PSS. Methods: The study tests the validity of the two scales that make up Financial PSS: Perceived Financial Barriers and Financial Hope. Then it examines how these measures along with an intervention measure called TIP are associated with financial capability. Results: Results validated the Perceived Financial Barrier Scale and Financial Hope Scale. Next, the study found that the Perceived Financial Barriers Scale and the Financial Hope Scale are associated with financial capability, as is the TIP score. Conclusions: The study concludes that Financial PSS as a newly applied practice-based theory should be further tested. Workforce providers could integrate financial education and empowerment-based F-PSS process models and see a positive impact on their placement and retention outcomes.

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“…PSS-I has been found to strengthen career pathways and financial capability in workforce development programs delivered by Workforce Innovation and Opportunity Act one-stop career centers and other contracted job readiness training programs (Hong, Holland et al, 2023;Hong, O'Brien et al, 2019;Hong, Wathen, Shin, Yoon, & Park, 2022). Also, PSS-I has been applied and tested among the summer youth employment program participants and was found to explain what may be inside the "black box" of how vulnerable youth become empowered to reach their goals .…”

Section: Pss-i and Tip: Supply Side Theory And Interventionmentioning

confidence: 99%

Transforming Opportunities into Productivity (TOP): A New Social Development Model for Social Transformation

Hong

2023

Social Development Issues

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Transforming Opportunities into Productivity (TOP) is a human-social development approach for human-centered business hiring and employee engagement practice— mainly targeting, but not limited to, for-profit, non-profit, and public organizations that employ low-income, low-skilled workers. Applying the New Social Development paradigm (Mohan, 2022) in the context of developing an inclusive labor market system, TOP advances the core psychological self-sufficiency (PSS-I) theory that guides the implementation of the Transforming Impossible into Possible (TIP) program at the individual level—the supply side of the labor market. Psycho-social sufficiency (PSS-O) theory provides the foundation for TOP in application to the demand-side organizational development tool designed to interlock with TIP to create an inclusive workplace culture of worker engagement, inclusion, connection, development, and growth. TOP has the potential to play an instrumental role in creating system change by keeping TIP as the organizing principle for social innovation and social transformation in the 4th industrial revolution.

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Psychological Self-Sufficiency and Financial Literacy among Low-Income Participants: An Empowerment-Based Approach to Financial Capability

Cited by 4 publications

References 54 publications

Behavioral economics in U.S. financial literacy programs: A comprehensive review - Evaluating the role of psychology-driven strategies in enhancing understanding and responsible financial behaviors among citizens

Behavioral economics in U.S. financial literacy programs: A comprehensive review - Evaluating the role of psychology-driven strategies in enhancing understanding and responsible financial behaviors among citizens

Transforming Impossible into Possible (TIP) for Financial Capability: Application of Practice-Based Program Theory and Measures in Intervention Design

Transforming Opportunities into Productivity (TOP): A New Social Development Model for Social Transformation

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