Financial Certification: A Study of the Impact on Professionals' Financial Literacy Levels and Competency

Abstract

A study was undertaken to determine if obtaining professional certification in financial counseling and education has any impact on the personal financial literacy skills and competency of these individuals. The study found that participation in a professional certification program had a measurable impact on an individual's financial literacy level, study participants demonstrated an increase in their financial literacy on average by 12% from pre-certification assessment scores. The study also found a 25% increase by study participants in their confidence to answer student or client questions about financial topics. Additionally, 89% of the participants indicated that they felt more confident in their understanding of debt management options and 74% indicated an increase in their understanding of different retirement planning options. These results were an increase of 117% and 89% respectively as compared to their precertification evaluation results. This study indicates that the materials participants study and the process of preparing for professional certification in the field of financial counseling and education had a direct effect on participants’ own financial literacy and competency. There were noticeable increases between pre-certification assessment and evaluation scores and post certification assessment and evaluation scores, regardless of the professional's academic achievement, ethnicity, gender, or professional and financial experience.