Moving Into Action: Application of the Transtheoretical Model of Behavior Change to Financial Education

Abstract

This study used the Transtheoretical Model of Behavior Change to assess change in financial behavior over a four-week period among participants enrolled in an IDA financial education program. All six money management behavior means increased (moving to a higher level). The biggest change occurred in Setting Aside Money for Unplanned Spending and the smallest in Reducing Debt. On average, participants were in Action for Reducing Debt prior to beginning the classes, while they were in Preparation for all other behaviors. Participants who advanced at least one stage are expected to double their chances of taking action on their new behavior.