Financial education with Hong Kong junior secondary ethnic minority students

Abstract

Despite the prevailing problem of poverty among Hong Kong ethnic minorities, defined as those of non-Chinese ethnicity, there had been little research into improving their situations through financial education. Using a theoretical framework developed from the Theory of Planned Behaviour and the Transtheoretical Model, this Study investigated the financial lives of Hong Kong junior secondary ethnic minority students to design and evaluate financial education with them.

81 students from one local school took part in this one-year multiphase mixed-methods research involving three phases: baseline, intervention, and follow-up. The students were divided into an intervention and a control group. At the baseline, all students completed a pre-survey questionnaire, followed by individual interviews with the intervention group. Findings informed design of 12 financial education lessons that were taught to the intervention group twice weekly over six weeks, with 1 recap lesson two months later. The control group received no intervention. Lessons were audio-recorded, student work collected, and feedback surveys and focus group interviews done. At the follow-up, both groups answered a post-survey questionnaire.

Data was analysed using thematic, content, and statistical analyses to examine the students’ budgeting strategies, financial attitudes, and saving, spending and money talk behaviours. There were no statistically significant differences at baseline, with reports of poor budgeting and generous sharing behaviours. Goal-setting and perspective-taking were identified as key aspects for improving their budgeting and social conscientiousness.

At the follow-up, the intervention group showed positive findings of statistically significant increase in more complete budgeting strategies, supported by qualitative reports of improved saving and spending. The negative changes of statistically significant decreases in the control group’s attitude of social conscientiousness to return help when using their families’ money and in frequency of money talk with family were prevented in the intervention group. However, there were no statistically significant changes in the saving behaviours of either group, while the intervention group showed statistically significant change towards increased borrowing and spending behaviours.

The financial lives of the ethnic minority students could be understood as a function of their family and social lives, cultures, and religious beliefs. It was difficult for some to save as money was considered a common family resource to be shared. Their sharing with relatives and friends was influenced by a strong culture of collectivism to support social ties. Religious beliefs encouraged giving to charity and greater acceptance of their financial situations.

Tailoring of the lessons to the students’ financial beliefs and behaviours contributed to the Study’s effectiveness. For these students, financial education that promotes individual pursuit of wealth and happiness would misalign with their values. Instead, a culturally responsive financial education should take a family and community approach by considering cultural and religious beliefs and practices, and by using social goals to motivate achievement of financial freedom for self and others. Findings from this Study add to the developing field of cultural finance to understand effects of culture on financial decision-making, and provide recommendations to complement existing Hong Kong government interventions for improving the lives of the ethnic minorities.