Financial Capability Training and Coaching for Head Start and TANF Participants

Background and purpose: The development of financial education is essential for improving economic performance in needy families receiving assistance in Head Start and Temporary Assistance to Needy Families (TANF) programs. Consistent with ACF priorities (Financial Capability Brief, March 2015), the knowledge, skills, capacity and access to financial services are the necessary combination to build and manage financial resources effectively.  This study is based on a training model from Center for Social Development of the George Warren School of Social Work University of Washington at St. Louis (2014) and incorporates a coaching component.  Materials have been translated and adapted to Puerto Rico's cultural context. 

 

Methods: The study took place in the Caguas Region and consists of pre-and post-tests, seven workshops and follow-up coaching visits to the home.  Two groups of 20 participants were selected for each TANF and Head Start programs.  A selection was made of two groups from each, Head Start and TANF program.  An experimental group from each program received financial education and financial coaching during the period from January to May 2016, while another group, control, did not receive it.  Research instruments included a self-report survey, financial knowledge scale, pre- and post- financial workshop surveys, interviews and a satisfaction survey.  The general hypothesis was that Financial Education training and financial coaching has a positive effect on Head Start and TANF female-headed families' abilities to strengthen the family budget, savings and coverage of their financial needs.  A t test of paired samples was performed to evaluate the impact of the intervention model of workshops in the Experimental group and the Control group for each of the Head Start and TANF participants.

Results: The t test revealed a statistically significant difference in knowledge gained among Head Start Experimental Group participants in mean scores of the post-test.  The analysis among TANF Experimental group participants equally indicates statistically significant differences in the mean scores of post-test.  The findings of the Head Start and TANF Control groups, who did not participate in the intervention model workshops and subsequently it was hypothesized that no significant differences would prevail between pre and post-test.  The analysis of the statistics for the Head Start and TANF control groups reveals the absence of a statistically significant difference in the mean scores of post-test.  An Oneway ANOVA was performed to determine if there were significant differences between four (4) groups and the dependent variable of knowledge gained after participation in the training workshops where significant differences were revealed by the ANOVA procedure for the experimental groups. 

Conclusions and implications: Thus, by increasing knowledge and skills related to financial capabilities would strengthen the ability of families to plan a budget, save and manage money and effectively use the income they receive to cover the financial needs of the family.  This was the case with the present study. The training workshops utilized were essential for improving knowledge gained concerning financial capabilities in needy families receiving assistance in Head Start and Temporary Assistance to Needy Families (TANF) programs.