Financial Literacy in SchoolA Descriptive Correlation Study o

Financial Literacy in School:
A Descriptive Correlation Study of the Absence of Financial
Literacy Taught in Schools
A Dissertation Presented in Partial Fulfillment
of the Requirements for the Degree
Doctor of Education

ABSTRACT
DEDICATION
[To be indented and completed upon full dissertation
completion]
ACKNOWLEDGMENTS
[To be indented and completed upon full dissertation
completion]
TABLE OF CONTENTS
Contents
Page
List of Tables x
List of Figures x
Preface (optional) x
Chapter 1: Introduction x
Background of the Problem x
Problem Statement x
Purpose of the Study x
Population and Sample x
Significance of the Study x
Nature of the Study x
Research Questions/Hypotheses x
Theoretical or Conceptual Framework x
Definition of Terms x
Assumptions, Limitations, and Delimitations x

Chapter 2: Literature Review x
Title Searches and Documentation x
Historical Content x
Current Content x
Theoretical or Conceptual Framework Literature x
Methodological Literature x
Research Design Literature x
Conclusions x
Chapter Summary x
Chapter 3: Research Methodology x
Research Method and Design Appropriateness x
Population and Sample x
Informed Consent and Confidentiality x
Instrumentation x
Field Test orPilot Test x
Credibility and Transferability or Validity and Reliability
x
Data Collection x
Data Analysis x
Chapter Summary x
Chapter 4: Analysis and Results x
Data Collection x
Demographics x
Pilot Study x
Data Analysis x
Results x
Chapter Summary x
Chapter 5: Conclusions and Recommendations x
Discussion of Findings x
Limitations x
Recommendations for Leaders and Practitioners x
Recommendations for Future Research x
Chapter Summary x

References x
Appendix A: Title x
Appendix B: Title x
Appendix C: Title x
LIST OF TABLES
Table 1: Title x
Table 2: Title x
[Only include a list of tables if there are two or more tables.
Use title case, defined as capitalizing keywords, for table
titles.]
LIST OF FIGURES
Figure 1: Title x
Figure 2: Title x
[Only include a List of Figures if there are two or more figures.
Use title case, defined as capitalizing keywords, for figure
titles.]
UNIVERSITY OF PHOENIX
January 2010
v
Introduction
Education about financial literacy is an important subject that
could help students handle money at school and in the
professional world. Students who acquire this knowledge are
different from those without because they would make sound
financial decisions to avoid common financial inaccuracies. As
Amagir et al. (2018) discovered in their research, individuals

who lack financial literacy make errors when paying their
financial obligations. As a result, the emphasis of this study
will be on the financial education gaps that exist in schools, the
repercussions of these gaps, and possible remedies. This article
provides concise and detailed information on research that
focuses on the gap between financial education and its
incorporation into schools.
As a result of their efforts, both informed young people and the
global society gain from financial literacy instruction and
adoption. According to Amagir et al. (2018), financial education
is characterized as the capacity to make appropriate financial
judgments in the face of adversity. Teaching children about
financial education tools may assist them in developing more
skills and judgment while dealing with money in school. A
bright future is established when youngsters are educated about
personal money and financial literacy (Amagir et al., 2018).
With a financial education in place, the first thing students shall
do before gambling with their money is to recall the essential
concepts of financial management they will have learned from
school. The main ticket towards living a debt-free life is being
knowledgeable about financial management, which can only be
achieved through lessons taught in classes. Youths have always
manifested confidence in the way they use money, and in fact,
most of them believe they are knowledgeable concerning the use
of money. However, in real life, the youth struggle with
planning their finances, which predisposes them to a life full of
debts while they are still young (Amagir et al., 2018). This
excessive confidence and state of awareness held by individuals
are barriers that need to be cleared out through financial
education.
There are different programs that a typical school should
implement to help train and educate students on matters related
to finance. However, most schools focus on programs that
emphasize practical didactics and theory-based (Blue &
Grootenboer, 2019). Most of these didactics are based on
benefit plans, which do not fully cover the main concepts of

financial literacy. The school's students and members
(principals, administrators, teachers, housekeepers, secretaries,
police officers, guidance counselors, cafeteria workers) hold
some level of misconception about financial literacy.
Background of the Problem
Large numbers of children and teenagers have ongoing money
management challenges as a result of a lack of financial
knowledge and comprehension. Therefore, individuals establish
awful money habits and become unable to efficiently manage
their funds in the future. When it comes to young people,
inadequate budgets are usually often the result of bad financial
habits, which are driven by a lack of financial literacy.
According to Amagir et al., it is projected that 20 percent of
high school seniors who participate in savings programs or open
savings accounts will graduate with financial discipline and
literacy skills (2018). Their concern is that as their children get
older, they will be unable to comprehend the fundamentals of
saving, spending, and earning money, as well as the
fundamentals of checking and balancing their checkbooks and
bank accounts (Faulkner, 2017). Education in financial literacy
is becoming more important for children as they learn to be
self-sufficient, take responsibility, be independent, and be
accountable for their actions.
Students who have received financial education have a basic
awareness of the financial markets, investment opportunities,
and financial planning after completing the program. Student
debt, which is becoming a more serious issue for young people
as the years pass, will be avoided as a result of this. Financial
management methods are clearly identifiable, especially when
dealing with specialists who are well-informed and well-
prepared, while some financial management strategies are more
difficult to detect. Because they will anticipate dangers and
argue-justify issues relevant to their academic endeavors,
financially savvy students are more likely to engage in a dispute
with educated and informed persons (Amagir et al., 2018). Since
individual financial well-being has a huge impact on the

economy, it is more vital than ever to polarize financial
knowledge inside educational institutions.
The research demonstrates that an alarmingly significant
proportion of individuals are prone to spiraling debt and
financial traps. This fact is because the existing educational
system devotes little to no time studying such concepts
(Aboagye & Jung, 2018). This idea is because a sizable
proportion of teens and adolescents cannot make appropriate
financial judgments. This fact is because educational
institutions have a learning gap. Due to their incapacity to grasp
how certain financially complex situations work, people make
judgments that unintentionally jeopardize their financial
prospects (Aboagye & Jung, 2018).
It is necessary to comprehend the burden that it alleviates and
how it helps to the growth of a nation or family To implement
financial education successfully,. Due to the fact that prudent
financial management results in increased benefits for a family
and the avoidance of debt and associated instruments (Aboagye
& Jung, 2018). This might be seen as an investment in human
capital, with the objective of ensuring that the necessary
choices are made to ensure that financial commitments are
properly understood. As the modern world has become
increasingly difficult in terms of how it conducts business and
enterprise, it is critical to have a basic grasp of financial
education (Aboagye & Jung, 2018).
One of the most critical components of education is the policies
that school boards enact, as well as the availability of education
to all children. This is because while deciding whether to
include financial literacy teaching in school curricula, one of
the factors to examine is the long-term benefit that such
education will give (Faulkner, 2017). The lack of this education
has resulted in a lack of awareness about the extent to which
financial choices should be considered while planning for the
future, as well as the long-term ramifications of such choices.
Understanding our own knowledge and behavior is one of the
most fundamental ways in which we can predict which actions

to avoid and which to engage in in order to make acceptable
judgements (Aboagye & Jung, 2018). To gain such benefits, it is
critical to acquire the necessary information and to take focused
action.
Positive attitudes and self-confidence are also useful when
confronted with financial troubles. This is because they play a
critical role in ensuring that decisions are made in a rational
manner and are not based on inaccurate or misleading
information. Obviously, this can only be accomplished via
vigilance and ensuring that decisions made reflect both short-
and long-term advantages (Faulkner, 2017). As a consequence,
present and future financial choices made with financial
education in mind may contribute to a decrease in the number of
financial errors made throughout maturity and adolescence,
which would benefit everyone.
Problem Statement
According to the thesis statement, the topic of the research
paper is the issue of financial illiteracy among young people.
The research paper will be written in the third person.
Compared to past generations, a greater proportion of teens and
young people now lack the financial discipline that should have
been taught in financial education courses in the first place.
Financial education for teens and young people, accordi ng to
Amager et al. (2020), is notably inadequate in the United States.
It is necessary to build financial literacy programs in schools
because children and teenagers who do not have financial
literacy do not have economic wealth, and the country as a
whole does not profit from their lack of understanding (Lusardi,
2019). Because the vast majority of young people do not
appreciate the need of financial education, schools should take
further steps to guarantee that students have access to critical
financial education programs.
Purpose of the Study
The purpose of this study is to use a mixed-methods approach to
data gathering to finish research on the subject of financial
literacy among adolescents and teenagers. The examination will

take place inside a school system in the Florida county of Palm
Beach. The objectives of the study are:
1. To identify the gaps in the financial literacy education in the
schools within Palm Beach County, Florida.
2. To determine the long-term consequences of insufficient
financial education for youths and teens within Palm Beach
County, Florida.
Population and Sample
Data acquired from interviews will be utilized in writing a
thesis for the study subject. Principals from 20 schools around
the district will be interviewed, while only ten of the curriculum
developers across Florida will be interviewed. According to
Amagir et al. (2018), the school district of Palm Beach County,
Florida, has about 180 schools, and a principal leads each
school, so that means only 11.1% of the principals will be
involved. A random sampling method will select the twenty
principals from among the district's schools. Furthermore, the
curriculum developers who will participate in the research will
be randomly selected from a pool of candidates.
Significance of the Study
The study on financial literacy is very important to individuals,
the state, and the U.S. national government. The economy of the
U.S. depends much on proper financial planning. Suppose the
youth are equipped with the relevant knowledge about managing
funds. In that case, it is a plus for the economy of the United
States and Florida because proper financial education leads to
informed financial planning, which prompts economic
development (Amagir et al., 2018). The study of financial
literacy gaps in schools will also assist policymakers in
curriculum development in planning to introduce comprehensive
financial literacy programs in these institutions of higher
learning (Bakar and Bakar, 2020). The financial education
programs are intended to benefit teens and young adults by
providing them with extensive knowledge about money
management, which will enable them to become financially
responsible citizens and parents (Amagir et al., 2018).

To pave the way for future research in financial literacy, a
financial illiteracy study is being conducted. Students
understand the fundamentals of financial markets, investment
options, and financial budgeting when financial literacy is
taught to them. Consequently, students will avoid being
burdened by debt, which is becoming an increasingly common
occurrence among young adults. It is not difficult to recognize
certain financial management tactics, particularly when
engaging with experts who are well-informed and well-
prepared. Consequently, students who have financial literacy
will engage in debates with well-educated and informed persons
since they will anticipate dangers and argue-justify issues
relevant to their studies (Amagir et al., 2018). Because the
financial well-being of people has an impact on the economy,
there is a greater need to polarize financial literacy inside
educational institutions.
Nature of the Study
To collect, compare, and analyze the various types of
information gathered via interviews, the qualitative research
approach will be employed (Hennink et al., 2020). Because
information will be gathered via interviews and observations,
the qualitative technique is the most suited. The information
will be investigated using a narrative data analysis design,
which will be implemented (Hennink et al., 2020). As stated by
the researchers, the narratives will comprise an examination of
the words or experiences shared during the interviews in order
to identify any gaps in financial education within the Palm
Beach County School System in the state of Florida.
A big benefit of using qualitative research to assess financial
literacy in education is the ability to produce the volume of
material necessary to answer the study questions on the topic of
financial literacy (Hennink et al., 2020). For the second time,
using qualitative data will prove that the knowledge offered is
exclusive to the qualitative sector of financial education.
Finally, since qualitative research is a subjective sort of
investigation, it will provide a solution to the issue of why

financial illiteracy is so prevalent among adolescents and
teenagers in the United States (Hennink et al., 2020).
It answers the study's questions on financial literacy by using a
qualitative research approach. Due to the fact that qualitative
technique will give background and an overview of financial
literacy in schools, it is the most appropriate methodology to
utilize for this research project. The design will be influenced
by the findings of ethnographic research. This is due to the fact
that it enables for the gathering of first-hand knowledge. Direct
observation and questionnaire interviews will be utilized to
gather information for this project (Jamshed, 2014). The
participants will respond to interview questions on the level of
financial literacy in their schools, as well as the consequences,
in their opinion, of a lack of financial awareness on the part of
the participants.
In order to address concerns concerning financial literacy,
qualitative research methods should be used since they will
provide in-depth insights into financial literacy and its effects
on teens and young adults. Aside from that, since information
will be gathered via interviews and direct observations, the
qualitative research approach will be more cost effective. It is
difficult to overcome the issue of bias in data analysis, even if
the grounded technique will be utilized to do so. This is the
most significant disadvantage. Consequently, owing to
prejudice, the results and conclusions on financial literacy in
schools and how it impacts kids and teens may not be true in
their conclusions.
Research Questions
There are three research questions.
1. What are financial illiteracy gaps found in financial
education among Palm Beach County, Florida?
2. What are the evident effects of financial illiteracy on the
youth and teens within the state?
3. What actions should address the financial illiteracy
disparities in financial education seen in Florida and nationwide
schools?

Theoretical Framework
According to Champlain (2019), University of California,
Berkeley students are still battling to pay off enormous sums of
student debt. The great majority of individuals live paycheck to
paycheck, which implies that most people are financially
illiterate in some form. In today's environment, business owners
are particularly disappointed with the lack of preparation and
financial awareness of fresh graduates and potential recruits.
For most kids, financial literacy is simply another subject in
their class. Champlain (2019) confirms that students are
preparing to pass the exam only to live over their monthly pay,
are unable to purchase a house, are unable to enroll in a
monthly insurance plan, and are unable to even prepare for
retirement as a consequence of the lump sum debt (Champlain,
2019). 44 percent of Americans are predicted to be unable to
afford a $400 emergency bill without acquiring debt. Sixty-six
percent of Americans have less than $10,000 saved for
retirement (Axelrod et al., 2018). Some of these abilities should
be taught to children by their parents; unfortunately, many
parents are saddled with significant debt.
Financial illiteracy is anticipated to become the norm for a big
part of the population if youngsters are not taught financial
skills at home. Several scholars, notably Axelrod et al . (2018),
argue that schools should simply supplement what parents teach
their children. According to a financial literacy assessment, 27
states earned a "C" or below on the scale. Although most
schools are mandated to teach mathematics, they are not
compelled to teach children finance-related content such as the
idea of compound interest or how to prepare a tax return
(Champlain, 2019). Teaching personal finance in a condensed
style and expecting major outcomes is doable and successful, in
addition to being a duty of educational institutions. Students
who are learning to save their pocket money should behave in a
manner that helps them put what they have learned in school
into practice. This is owing to its huge influence on developing
financial literacy in schools (Kirkham, 2016).

Definition of Terms
According to Lusardi (2019), college students are those who are
presently enrolled in a postsecondary educational institution of
higher learning. They are mostly interested in academic
programs. They will face several financial constraints
throughout their stay in the field while studying. Due to
financial constraints, college students are more prone to
experience depression and stress than the general population.
Financial literacy is the capacity to grasp and effectively use
several financial competencies, such as personal financial
management, budgeting, and investing. A solid financial
foundation is the cornerstone of every financial relationship,
and it is a constant learning adventure (Lusardi, 2019).
Kirkham (2016) defines discipline as "a way of behavior that
demonstrates a desire to follow the rules or accept orders."
While most people link discipline with social habits, according
to some sources, it may also pertain to how you manage your
money. Financial discipline is the ability to regulate your
spending and saving following the financial objectives you've
set for yourself in financial management. It is decided by your
ability to stay on track with your spending and saving. -
According to Lusardi (2019), Curriculum developers are
elementary, middle, and high school instructors who construct
instructional ways to help pupils improve their learning ability.
They are in charge of devising instructional strategies for pupils
in grades K-12. These instructional coordinators create school
program guidelines to ensure that schools are aware of the
norms and rules that they are obligated to follow. Educators
may also advise teachers on enhancing their classroom
management skills, assisting teachers in developing classroom
teaching materials, and checking class texts to ensure that the
content fits academic requirements.
According to Kirkham (2016), financial budgeting is the process
of calculating how much money you will make over a certain
period and planning how much you will spend, save, and borrow
during that time: If you want to pay off your mortgage sooner

rather than later, financial planning is essential.
Assumptions
The idea that financial information is excessive for people with
low levels of financial literacy is based on the premise that less
well-informed people face greater footraces when it comes to
information collection and distribution and, as a result, save
more money on data and search costs when they turn to an
advisor. The belief is founded on a misunderstanding of adult
education, psychology, and behavior change research, as well as
the socio-cultural factors that lead learners to struggle (Lusardi,
2019).
Another assumption seems to be that someone suffering from
financial troubles must lack financial ability; otherwise, the
issues would not have happened. The solution is to educate
people about individual responsibility for successes and
failings, which is an important component of American
philosophical philosophy and practice. Another theory is that
education in financial subjects will boost people's literacies
and, consequently, their financial well-being as a result of this
permit. As a consequence of this assumption, non-fiction is
omitted from the adult education mindset and behavior variance
study (Lusardi, 2019).
Limitations
Establishing the dialogue on the premise that an enquiring
approach to discovering gaps in the education system is
influenced by what is discovered and what is not discovered is a
realistic assumption. Before the examination starts, it highlights
the research's limits by concentrating on teaching rather than
the reasons that create such changes in educational systems.
Several ways may be used to ensure an accurate understanding
of the subject. The first step is to recognize that the ultimate
authority for these gaps lies with the system to establish a clear
separation between the education system and the policies.
This study uses qualitative research approaches to identify
present gaps in financial education, which entails gathering
first-hand information rather than depending only on existing

literature. Because there are only a limited number of
interviews that may be adequately inferred and assessed in
terms of financial literacy understanding, the number of
interviews accessible is limited. As a consequence of the need
to develop narratives from a set number of interviews to gather
information on the gaps, there will be a skewed point of view
(Skagerlund et al., 2018). Consequently, the information will be
confined to this specific group of persons who do not fulfill any
established requirements or have experience in a weak financial
education system.
Furthermore, the limited scope of the theoretical framework to
focus on college students as a genuine aspect of lack of
financial education limits the extent to which there is a gap.
This is because students are provided with academic
opportunities, which they end up repaying when they are
employed (Skagerlund et al., 2018). The huge number of default
and struggling payments is due to the increasing unemployment
rate and, therefore, a lack of means to ensure the utilization of
such education (Aboagye & Jung, 2018). It biases the study to
show only the failing students who did not have any education
in addition to those who may have had opportunities to learn
and benefit from extra-curricular financial education programs.
Delimitations
The purpose of research restrictions is to clearly define where
the scope of a study ends in terms of financial education and the
gap in Florida schools. The study's limitations will include
measuring the Degree of trust in information and if it can be
effectively used to create strong financial literacy for young
learners. There is virtually little academic material relating to
financial thinking and dialogue accessible to pupils.
To investigate financial literacy in education, qualitative
research is being employed since it can provide adequate
information to answer the financial literacy study questions.
The use of qualitative data will make it simpler to ensure that
the information provided is relevant to education (Aboagye &
Jung, 2018). The limitations of this study are that it only allows

for the assessment of various educational materials and does not
consider the rules in place to ensure that the standards and
content taught in schools are up to grade.
Summary
Currently, only a few schools include financial literacy
materials as part of their curriculum. This may be due to the
way policy is formed and implemented in universality and
harmonization in learning. The research will also look at
whether or not there is trustworthy and genuine information on
financial literacy in schools and whether or not enough
procedures have been put in place to promote it. The qualitative
research technique was used in this study, and a narrative
approach was used to appropriately derive the results of the
investigation, which was successful.
The research is particularly interested in finding out what
options are available to guarantee that the financial education
gap in Florida schools is closed. Furthermore, it is intended to
identify the consequences of a lack of financial literacy among
youngsters in Florida's educational institutions. After
identifying the financial gaps in financial literacy education in
Palm Beach County, which was previously determined. With
clearly obvious discrepancies in educational attainment in the
schools, academic policies must be put in place to guarantee
that adequate education is provided throughout the county's
educational institutions.
Literature Review
The bulk of financial choices made by graduates may be
attributed to a lack of financial literacy. This includes
comparing the typical adult's ability to cover financial crises.
Theoretically, this debate aims to assess the level of financial
literacy among youngsters and the Degree to which it is taught
in schools. Various scholars have said that lack of financial
knowledge leads to young people making unwise judgments.
Amagir et al. (2018) evaluate the school curriculum's financial
literacy for adolescents and children. They emphasized the
disparity in financial education and how inadequate financial

literacy is taught to youngsters (Amagir et al., 2018).
Financial education may be introduced in schools in numerous
ways. First, ensuring that the educational system adequately
explains how financial choices and information are made.
Authors have suggested numerous approaches to introduce
education into the curriculum appropriately. One of the most
prevalent methods is to ensure pupils have such chances
(Amagir et al., 2018). This helps youngsters establish and grasp
the basic building blocks of financial education. After
confirming the presence of a basic curriculum element, the
education system's effectiveness is assessed. Educating children
and adolescents about money has enhanced their financial
attitudes and knowledge. They do so because they create and
shape perceptions of money and its use in the contemporary
world (Amagir et al., 2018).
According to Hastings et al. (2013), low financial education is
linked to unfavorable credit financial behaviors. High debts,
foreclosures, and unpleasant mortgage options are examples.
This trend has been proven to affect adults and even youngsters
and adolescents who lack financial knowledge. Several experts
have stated that an increasing percentage of families are in
danger of debt owing to bad financial decisions (Aboagye &
Jung, 2018).
Titles Search and Documentation
Research techniques are an important approach for gathering
and debating information to make an educated choice. This is
because the information being gathered may include a variety of
settings and scenarios that need different types of analysis and
judgments (Aboagye & Jung, 2018). In research, three basic
approaches are used: the qualitative research technique, the
quantitative research technique, and the combined method. All
of these kinds of research have applications and are used in
many sorts of research, and the emphasis of this discussion will
be on the examination of the various types of research
techniques. We may get a new perspective on the data and
present diverse insights via analysis (Hennick et al., 2020).

Qualitative Analysis
Data segmentation is common in data analysis. Without the
breakdown, the data would be misinterpreted and misunderstood
(Hennick et al., 2020). Understanding data segmentation is
becoming more important. We need to know when. This method
is popular since it does not need a lot of data collecting. They
are category, relationship, and description (Hennick et al.,
2020). The qualitative analysis starts with data description and
comprehension. The goals and procedure define a separate
argument and school of thought. This is how most researchers
acquire data. There are many techniques to check the analysis.
Information categorization and links are crucial. Collected and
sorted material must be correctly presented. The study in issue
is socially relevant. It should include key findings from the
study. It should be clear what the issue is (Hennick et al.,
2020). That is, the data should be described and classified
logically.
Quantitative Analysis
Most of the time, this study analysis is done to disseminate and
discuss information. This style of study analysis frequently
leads to a good debate. Data processing frequently requires
mathematical and statistical accuracy (Hennick et al., 2020).
The quantity of data and information necessary to establish a
clear relationship is enormous. This method of analysis assumes
that the data is quantitative. Consequently, facts from this form
of study analysis frequently suggest how to approach the issue
of discussion (Hennick et al., 2020).
This approach offers two key advantages. One benefit is that it
increases the study sample size. The data capture a clearer and
more educated argument or research response. This sort of study
also addresses objectivity and information accuracy. As a result,
it is a more attractive study approach. In terms of community or
social research, a plethora of data on numerous areas of society
is crucial. In this way, the study may fully understand the topic
and guarantee that findings are precise and clear (Hennick et
al., 2020).

Mixed Methods
These procedures include the employment of several sorts of
study analysis to obtain conclusive facts. In simple words, it
often involves using both qualitative and quantitative kind of
research approaches to produce a clear result on the topic. This
normally operates through the exploitation of research resources
and methodologies into regions where both types of research
analysis give a strong fit (Jamshed, 2014). This implies that
each study method gives its own set of benefits and guarantees
that they function in unison. It also entails collecting both open
and closed-ended data that are generally in response to the
study topic. The compelling and demanding technique of
ensuring the qualitative methodologies are appropriately applied
(Jamshed, 2014).
There are numerous mixed-method studies, which indicates it is
not a question of simply combining the two concepts. This
technique has the advantage of recognizing discrepancies
between quantitative data and qualitative findings. Such a
manner enables the right harmonization of various features
making it simpler to determine a subject of conversation. It is
also based on the experiences and conclusions of the directly
questioned participants, making the data a proper representation
of the study issue (Jamshed, 2014).
Historical Content
The research established the significance of financial literacy
and the lessons from history that ought to be learned about its
importance. Illiteracy of such kind has been considered an
endemic issue, especially since most of the world's young
population is struggling to find financial independence in their
capacity (Lusardi et al., 2015). In 2015, a research study was
able to pinpoint that the majority of the country's youth and
adolescents are responsible for the loss of over $91 billion due
to their lack of understanding of the financial system. Lack of
understanding of the financial system is considered one of the

most forthcoming challenges of the modern age. Failure to
understand its importance usually leads to an array of
consequences. Some of them include high-level spending on
poor credit management of funds, among other reasons that have
been credited as some of the forefront decisions made in light of
lack of such education (Jamshed, 2014).
This only means a high number of seniors are graduating with
little to no information regarding the aspects of financial
literacy. This is because of the limited information regarding
financial literacy in their academic curriculum, leading to little
preparation (Jamshed, 2014). If the curriculum were in place,
then there wouldn't be an increased number of learners with no
concept of financial literacy, which would lead to more
successful students and young adults. Such education allows
them to understand how to budget their finances properly, make
proper investment choices, and even understand financial
markets (Lusardi et al., 2015). This allows them to understand
finance and manipulate them to ensure their way out of debt. It
also increases their horizons to understand decisions, patterns,
and techniques implemented in the markets and how they can be
beneficial to the student.
There has been a record of many students in Florida who do not
have any financial literacy classes. This is because of the
number of educational materials available at their disposal
during their studies (Lusardi et al., 2015). As a result, many
students tend to finish school with little knowledge about how
financial circumstances operate and work in life. The number of
students in the state that are missing out on crucial financial
lessons has increased significantly. From the complex way li fe
requires various financial skills to survive, the lack of this
knowledge spells doom for students from the county. When
considering the current patterns of decisions, we tend to find
out that there was a gap in education material in the country
concerning financial education.
Naturally, the beginning point of the discussion would be to
establish the importance of having such literacy courses taught

in schools. Various studies have been known to indicate the
difference between counties that offer this form of education
and those that do not. The difference was perceivable in the
credit scores where the number of students who performed well
in terms of financial decisions as those who received some
education in some form or the other. The impact and benefit are
largely felt from homes that parents did not have the
opportunity to learn and understand the inner working of
financial education and its importance on life.
While considering this importance, it is crucial to note that
there is the chance of parents being against such initiatives and
was seen as a way of weakening the credibility of scholarships
ad the provision of student loans. While this might benefit the
student's education, it only assists them further to be able to
determine which options they have and which opportunities are
at their disposal (Jamshed, 2014). The major downside would be
the disadvantage it brought about to the county as there would
be little funding channeled towards the support of college
education.
I tend to argue that this fear is based on the unforeseen benefits
of financial education. A reduction in student loans would mean
increased success in seeking and determining education. This
benefits the young learners and adolescents even more, to make
correct decisions for their credit score. On top of that, having
increased financial education would mean the capability to
understand and benefit from various scholarships in college
without the burden of getting into debt (Kirkham, 2016).
While this might be the case, it was also crucial to establish
boundaries in terms of learning and ensure that only those
interested in the initiatives would be allowed to participate in
the learning programs that further their financial literacy. This
aspect of inclusion would mean that there is the benefit of
choice, and those who feel not interested in such education
material can opt out. In this circumstance, it is crucial to
understand the difference in perspective and how financial
education can be undertaken. This case has seen various

households not benefit from discussions revolving around
financial education.
From a historical perspective, we understand the importance of
the literacy classes and why policy indicated and supported the
lack of such educational material in schools. The huge number
of schools and school districts from the data collection pool
indicates an oversight from curriculum developers and
instructors over the importance of financial education in schools
within the county.
To further determine the country's economic success, historical
data was used to determine the extent to which adults and the
financial economy were fairings. This information was
generated utilizing data from various income statements from
prominent businesses. On top of that, financial records of
various governmental bodies and their analysis of cause and
effect in terms of economic periods determined the extent of
financial preparation (Kirkham, 2016). To this extent, we can
credibly deduce that there is a huge impact on adult decisions
and their understanding of financial literacy. There have been
high numbers of individuals who make their decisions based on
the information received and the actions of others.
The majority of the information collected during this data
collection period led to the eventual global economic collapse
of the financial system. This was due to poor decision-making
and knowledge in investing and making sound decisions. The
major loss saw the dwindling financial hopes of individuals who
had made huge decisions, and those who lived with debt were
hit the hardest with a lack of recourse due to their huge debts
(Kirkham, 2016). Even when the economy recovers, it only
leads to more debts which could only translate to more poor
financial decisions.
Current Content
The next question to discuss is whether modernization is
development. The period after world war two showed a growing
interest in the poor nations of the world among scholars and
policymakers in industrialized countries, especially in the

United States. The American historian known as Walt W.
Rostov inspired theorists of the nineteen fifties and sixties who
argued that the process of development could be seen as a series
of successive stages of economic growth through which all
countries must pass.
The modernization theory is given to this particular school of
thinking (Nakano & Muniz, 2018). Our research reveals that
modernization theorists argued that a society's delayed progress
was both caused by and reflected in its conventional economic,
political, social, and cultural systems rather than its
contemporary ones. Endogenous interactions, they said, were
the source of the urge for modernization in their society.
However, in developing countries, their transformation would
come primarily through exogenous stimuli. This means that
modernization would occur by the diffusion of capital,
institutions, and values from the First World. It was presumed
that Westernization, industrialization, and economic growth
would generate the preconditions for the evolution of greater
social equality and consequently the rise of stable, democratic
institutions and a welfare state.
Throughout this process, the state would serve as the primary
agent of the social agent. Modern law was believed to be the
"functional prerequisite of an industrial economy." That is, the
law would provide the necessary elements for the functioning of
a modern system, including contract and private property rights
and universal and uniformly applied rules that allow for
predictability and planning. In addition, modern law would be
essential to political development as it would help create a
pluralist, liberal-democratic state and serve as the primary
restraint on arbitrary state action.
Simply put, as Americans began to question their ideals at
home, they also began to question their value as models for
other countries. Financial considerations may have also played a
role in that government agencies and private foundations began
to lose interest in the role of law in the development process,
and so academics were deprived of necessary financial support

(Nakano & Muniz, 2018). However, the most fundamental
reason for the decline of the law and development movement
was that it was widely perceived to be a failure. However,
according to Trubek and Galanter in "scholars and Self-
Estrangement," the notion that American liberal legalism could
be successfully transplanted to liberal developing nations was
completely misguided. They argued that the preconditions to the
successful implementation of the liberal legal model sharply
contrasted with reality in developing nations.
According to the findings, an alarmingly large number of people
are vulnerable to escalating debt and financial traps. This is
because the current educational system provides little to no
attention to studying such subjects (Aboagye & Jung, 2018).
This is because a substantial minority of teenagers and
adolescents are incapable of making sound financial decisions.
This is due to a learning gap in educational institutions. People
make decisions that inadvertentl y damage their financial
prospects due to their inability to comprehend how some
financially complicated circumstances function (Aboagye &
Jung, 2018).
To properly implement financial education, it is vital to
understand the stress that it relieves and how it contributes to
the progress of a country or family. Because careful financial
management leads to improved advantages for a family and the
avoidance of debt and related instruments (Aboagye & Jung,
2018), this might be seen as an investment in human capital to
make the appropriate decisions to guarantee financial
obligations are fully understood. As the contemporary world has
become more challenging in how it conducts business and
industry, having a fundamental understanding of financial
education has become vital (Aboagye & Jung, 2018).
The rules that school boards establish and the availability of
education to all students are crucial components of education.
One of the elements to consider when considering whether to
incorporate financial literacy instruction in the school
curriculum is the long-term advantage that such education will

provide (Faulkner, 2017). Due to a lack of this knowledge, there
is a lack of understanding regarding the Degree to which
financial decisions should be considered when preparing for the
future and the long-term repercussions of such choices.
Understanding our knowledge and conduct is one of the most
basic ways to forecast which activities to avoid and which to
participate in to make sound decisions (Aboagye & Jung, 2018).
It is vital to gather the appropriate knowledge and take focused
action to reap such rewards.
When dealing with financial difficulties, positive attitudes and
self-confidence are also beneficial. This is due to their crucial
function in ensuring that judgments are sensible and not based
on faulty or misleading information. This can only be done by
attention and ensuring that choices are made with both short-
and long-term benefits in mind (Faulkner, 2017). As a result,
existing and future financial education-informed initiatives may
decrease the number of financial errors made throughout
maturity and childhood, which would benefit everyone.
A thorough search of all materials and instructions related to
financial literacy in schools was conducted, and the results were
examined to determine the extent to which schools intervene
and aid their pupils (Faulkner, 2017). Based on the evaluation
of articles, papers, texts, and records, it was determined that if a
knowledge database exists, it is suitable and suitably accessible
for students and guided teaching with an expert (Faulkner,
2017).
Examining financial education budgets suggests that there is a
possibility that too little money is spent on financial education
(Faulkner, 2017). According to several writers, the absence of
financial education in schools is due, among other things, to
budget cutbacks and a lack of legislation that encourages
greater funds to be allocated to it (Aboagye & Jung, 2018).
Theoretical or Conceptual Framework Literature
A growing number of college students are getting involved in
the battle against massive amounts of financial debt. On the
other hand, a significant number of people live paycheck to

paycheck, indicating that a significant section of the population
is financially illiterate and oblivious of the consequences of
their financial actions. Entrepreneurs encounter significant
obstacles in their businesses due to the disproportional
readiness and financial knowledge people have when starting a
new job or changing employment (Skagerlund et al., 2018).
Students have commonly misinterpreted and undervalued this
notion as a critical component of life despite its importance.
This incident spurred our conversation about the purpose of this
argument and its consequence. A considerable majority of
adults, children, and adolescents fall short in financial
education, which may be linked to a lack of financial education
throughout their educational careers.
Financial literacy may seem a simple idea to acquire and
comprehend in its theoretical form. As seen by many people in
debt, this has proved to be drastically different in terms of
practical implementation. When it comes to education, the vast
majority of teaching is often done to ensure that students
complete their courses, get little practical benefit outside of the
classroom, and pass their tests. This leaves financial literacy as
nothing more than a subject taught to ensure that students meet
the certified qualification in instruction in various subjects
without regard for how they can be utilized (Draper, 2019). This
is discernible in how students can make certain life decisions
such as purchasing a home, monthly insurance plans and even
saving for their retirement benefits. Such limitations to the
understanding and practicality of finance leave an ideological
gap that seeks to fulfill academic qualifications and not the
understanding of debt and the financial systems.
According to various surveys, rough estimates have been
provided about Americans' quality of living. It has been
approximated that roughly almost half the population could not
settle emergency fees of $400 or more without accruing debt.
Similarly, shocking figures indicate that a large number of
working Americans do not have sufficient savings in their
retirement accounts due to these huge amounts of debt

(Bamforth et al., 2018). This knowledge cannot be accurately
passed on to children due to debts that they have accrued,
making for a generation of households that accept the norm of
financial illiteracy. As the adults barely know any better, their
children are more likely to fall into similar patterns that sound
dangerous to their futures.
In the end, schools should ensure the proper facilitation of
financial skills that have been learned from home. A lack of
proper training and education would only lead to a lack of such
information benefiting young adults and children (Bamforth et
al., 2018). It is the responsibility of schools to ensure their
curriculums touch on the importance of financial literacy and
ensure that their learners can practically grasp its concepts.
Basic concepts are usually taught and demonstrated in
mathematics classes but are not given the same financial
application in life. This leads to a shallow understanding of the
workings of a financial system and not the practical concepts of
management of finances. These theories may be understood in
theoretical aspects, but circumstances are not usually similarly
tailored in real life.
Students and learners alike need to understand the importance
of financial education and why it is a personal responsibility
and institutional responsibility to ensure its proper
understanding. Institutions are usually inclined towards
teaching financial literacy from the point of view that is broad
and significant and not solely giving focus to short forms and
buzz words relating to finance. Children from various
households are usually given pocket money from a young age,
and it should be their first lesson in money management. This
provides an insight into finance and allows the students to
understand the concepts and theories from a practical point of
view. They should be able to integrate their instruction received
from school with real-life occurrences and go a long way to
ensure it improves their financial literacy (Kirkham, 2016).
Based on this outlook of financial education, the study
established the study's theoretical framework. It is keen to

indicate the rising number of financial issues experienced in
households and how the number of adults in debt also keeps
rising. This also considers the inflation rates and how they have
led to financial difficulties for individuals and families. On top
of that, such gaps also lead to students' development and
instruction, who then grow up to become poor financial
decision-makers (Kirkham, 2016). As such, the study intends to
ensure the count of Florida has adequate financial education
systems in place and whether they are sufficient enough to
validate the increasing aspect between the youth and the rise in
debt.
Methodological Literature
Research Design Literature
Conclusions
Chapter Summary
References
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behavior, and financial satisfaction. Journal of Financial
Counseling and Planning, 29(2), 208-218.
Amagir, A., Groot, W., Maassen van den Brink, H., & Wilschut,
A. (2018). A review of financial-literacy education programs

for children and adolescents. Citizenship, Social and Economics
Education, 17(1), 56-80.
Amagir, A., Groot, W., van den Brink, H. M., & Wilschut, A.
(2020). Financial literacy of high school students in the
Netherlands: knowledge, attitudes, self-efficacy, and behavior.
International Review of Economics Education, 34, 100185.
https://doi.org/10.1016/j.iree.2020.100185
Axelrod, S., Lebow, D., & Peneva, E. (2018). Perceptions and
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https://doi.org/10.17016/feds.2018.073
Bamforth, J., Jebarajakirthy, C., & Geursen, G. (2018).
Understanding undergraduates’ money management behavior: a
study beyond financial literacy. International Journal of Bank
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Blue, L. E., & Grootenboer, P. (2019). A praxis approach to
financial literacy education. Journal of curriculum
studies, 51(5), 755-770.
Cieslick, J., & van Stel, A. (2017). Explaining university
students’ career path intentions from their current
entrepreneurial exposure. Journal of Small Business and
Enterprise Development, 24(2), 313-332
Daveramsey.com (2019). Should Financial Literacy Be Taught
in More Schools [Blog post]? Retrieved from
https://www.daveramsey.com/blog/should-financial-literacy-be-
taught-in-schools
Draper, S. (2019). Why Financial Literacy in Schools matter
today for the workforce of Tomorrow. Retrieved from
https://www.forbes.com/sites/forbescommunicationscouncil/201
9/12/16/why-financial-literacy-in-schools-matters-today-for-
the-workforce-of-tomorrow/?sh=7765a940110c
Dyer, S.P.; Lambeth, D.T.; Martin, E.P. Eﬀ ects of multimodal
instruction on personal ﬁnance skills for high school students. J.
Sch. Educ. Technol. 2016, 11, 1–1
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United States: Exploring popular personal finance

literature. Journal of Librarianship and Information
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research methods. SAGE Publications Ltd.
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retirement. Retrieved from https://money.com/retirement-
savings-survey/
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education: evidence and implications. Swiss Journal of
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Ognjenović, K. (2016). Entrepreneurial intentions in selected
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Skagerlund, K., Lind, T., Strömbäck, C., Tinghög, G., &
Västfjäll, D. (2018). Financial literacy and the role of
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1-11
14
INTRODUCTION
Matador Materials, a public company, became an industry
leader in the United States supplying construction and
heavy building materials and through numerous acquisitions.
Matador followed a decentralized operating philosophy,
which allowed facilities to operate as autonomous profit
centers. Facility managers reported directly to the vice
president of operations at the main corporate office and
were given broad decision-making authority over facility

expenditures with minimal, if any, oversight. If the facility
was generating a profit, little attention was paid to the
facility manager’s decisions. Matador followed a “don’t ask
don’t tell” philosophy, which allowed facility managers to
do whatever necessary to achieve the company’s financial
objectives. Corporate executives realized their philosophy
encouraged questionable business practices bordering on
unethical—or worse, illegal—but rationalized their actions
as being consistent with industry practices. Consistent with
the company’s code of ethics, a confidential ethics hotline
was established for employees to report suspected unethical
or illegal behavior. Within the company, it was common
knowledge that calling the ethics hotline would not end well
for the employee.
THE NEWBIE
After completing her accounting degree and passing the
CMA® (Certified Management Accountant) examination,
Teresa was excited about her first accounting job as the

accounting manager at Matador Materials, the largest
employer in her rural hometown of Hope, GA. Since
graduating from high school, Teresa stayed in Hope to
raise her now 10-year-old daughter. Teresa was the third
generation from her family to work for Matador Materials
but the first to work in the office. Her grandfather, father,
and brother had loaded and unloaded building materials. On
her first day, Teresa mused, “This is best accounting job in
Hope. I am so blessed to work here and raise my daughter
near family and friends.”
THE DISCOVERY
In the past, the Hope facility consistently outperformed
other facilities, with corporate executives hailing it and its
facility manager Sam as models for others to emulate. All that
changed a year ago, though, when a competitor opened a
new facility in Hope. This resulted in dramatic decreases in
sales and increases in costs, with the Hope facility reporting
a loss for the first time ever. Executives who once praised

the Hope facility now requested a complete review of the
I M A E D U C AT I O N A L C A S E J O U R N A L
V O L . 1 1 , N O . 4 , A R T. 1 , D E C E M B E R 2 0 1
81
ISSN 1940-204X
Higher Degrees of an Ethical Dilemma
Robert Rankin
Department of Accounting
Texas A&M Commerce
© 2 0 1 8 I M A
Trish Driskill
Department of Accounting and Business Law
University of the Incarnate Word
facility’s financial results. They charged Pat, the former Hope
accounting manager who was recently promoted to divisional
controller, with the task. As expected, Pat discovered a
significant decrease in sales driven by lower selling prices and
increased operational costs driven by inefficient operations.

Pat was puzzled by the extraordinary increase in the facility’s
administration expenses. Pat knew Sam approved those
expenditures with the source documents retained locally at
Hope, so he asked Teresa to investigate.
THE INVESTIGATION
Teresa realized this investigation could jumpstart her career.
While Teresa reported directly to Pat at the corporate office,
she felt a deep sense of obligation to Sam at Hope. She
reasoned, “If I do a good job at the Hope facility, when
Pat retires in the next five years, I could become the next
divisional controller.”
Analyzing the details of the administration expenses,
Teresa uncovered significant increases in overtime and
tuition reimbursement costs in the general administration
and human resources departments. Confident she had the
necessary skills to uncover the root cause of the increase, her
first stop was the payroll department.
“Good morning, Mary,” Teresa said to her payroll

clerk. “I need your help. Would you please pull last year’s
timecards for Sam’s administrative assistant, Tia, and the
switchboard operator, Tamara, and all of the human resource
clerks?”
“No problem, Teresa. It might take me a little bit. Can I
get them to you after lunch?”
“Sure. Mary, is there anything unique about these
timecards?”
“Funny you should ask. These are the only departments
in the entire facility that submit their timecards in Excel.
All the other departments use the company’s time system,”
Mary said.
“I suspect that was something Pat set up years ago for
convenience. I will get him to clarify. Please make this a
priority. This is my first major project for Pat and Sam,”
Teresa said.
Mary said, “Consider it done. We are excited to have you
as part of our team.”

From payroll, Teresa next visited with the accounts
payable clerk to review the tuition reimbursement source
documents. The company recently began offering tuition
reimbursement (company-paid tuition) to encourage
employees to further their education.
“Annette, I need your help. I am reviewing tuition
reimbursement expenses for a project for Pat and Sam.
Would you please pull the source documents supporting
those expenditures?” Teresa asked.
“Sure, that is easy. Normally I file all of those together,
so when the continuous improvement manager from
corporate audits our files, I do not have to pull them for each
university. Here you go.”
“Thanks. One more question. Which departments take
full advantage of the tuition reimbursement?”
“If memory serves, the general administration and human
resource departments have over the last couple of years, but
I am not 100% certain.”

THE REVIEW
Teresa decided to review the tuition reimbursement source
documents first. She discovered Annette was correct; the
general administration and human resources departments
used the benefit extensively. In the last year, Tia and Tamara
were reimbursed $20,000 each. Angel, the human resources
manager, and Marty, the human resources clerk, received
payments of $35,000 combined. The invoices appeared to be
from bona fide universities all approved by Sam. Although
the dollars spent were abnormally high, the supporting
source documents justified the expenses.
Turning her attention to the timecards, Teresa was not
surprised to find that Tia, Tamara, and Marty were the only
administrative employees who submitted their timecards in
Excel. As with the tuition reimbursement source documents,
everything was in order and approved by Sam or Angel.
There was, however, something out of the ordinary about
their time: all three reported 70 hours worked per week for

more than a year. Teresa knew something was not right and
decided to discuss her findings with Pat.
DISCUSSION WITH THE DIVISIONAL CONTROLLER
“Pat, sorry for calling so late. I just completed my analysis of
the administration expenses. If you have a moment, I would
like to discuss my findings,” Teresa said hesitantly.
“What did you find?” Pat asked.
“The two drivers for the increased administration
expenses are overtime and tuition reimbursement in the
facility administration and human resources departments.
In previous years, neither department had any significant
overtime and no tuition reimbursement costs. For
the current year, overtime pay is $50,000 with tuition
reimbursement of $75,000.”
82
Pat asked a little puzzled, “Did you review the source

documents?”
“Absolutely. Sam approved all of the expenses. What I
found a bit curious was that Tia, Tamara, and Marty used
Excel to submit their time, which averaged 70 hours per
week for more than a year. Coincidently, besides Angel, they
were the only employees to request tuition reimbursement.”
“Great. Thanks for your thorough analysis,” Pat said.
“It seems the overtime and tuition reimbursement costs
are related. When you were at Hope, did you or Sam make
any special accommodations for employees taking classes?
I am curious if you approved overtime pay for employees
taking online classes as long as they did their course work at
the office,” Teresa suggested hopefully.
“Teresa, I did not make any such arrangement and am
certain neither did Sam. I am confident Sam is in complete
control of all of the expenditures at Hope. I hope you are not
suggesting that Sam gave preferential treatment to the facility
administration and human resource departments or, worse,

committed some type of fraud. During my 10 years at the
Hope facility, Sam would not tolerate anyone bending much
less breaking the rules,” Pat commented, clearly agitated.
“Your line of inquiry is unfounded. If you persist in pressing
the issue, your tenure with our company may be short.”
DISCUSSION WITH THE FACILITY MANAGER
Teresa remained unsettled by Pat’s warning. Even though
she reported directly to Pat, her loyalties were to her
profession and to Sam and the management team at the
Hope facility. She felt compelled to resolve the issue. Even
though Sam and Pat shared a close working relationship
and friendship for several years, Teresa could not help
but wonder if Pat was protecting his former colleague or
someone else at Hope. She had to know. Ignoring her boss’
warning, Teresa arranged a meeting with Sam.
“Sam, it surely has been a long couple of months.
No matter what we do, it seems we cannot return to
profitability,” Teresa said.

“It surely has,” Sam agreed. “We are most definitely
feeling the pressure from our competition. Some of our most
experienced workers resigned in favor of the competition,
which has adversely affected our financial results. But that is
old news to you. You asked for this meeting. What is up?”
“I am not certain if you are aware that Pat asked me to
analyze our financial results for last year,” Teresa explained.
“I found the obvious decreases in sales and increases in
operating costs. One thing I discovered that I did not expect
was a doubling of our administration costs year-over-year.”
“That’s incredible. I suspect the accounting department
is the culprit. With Pat leaving, I would expect overtime
costs increased during the transition,” Sam said.
“Surprisingly, the accounting department expenses are flat.
The cost increases are actually in the facility administration
and human resources departments,” Teresa interjected.
A little annoyed, Sam exclaimed, “That cannot be right.
We have not hired anybody new in more than a year. In fact,

we have been working to reduce our costs.”
“That is exactly what I thought. When I dug deeper, I
found significant increases in tuition reimbursement and
overtime costs. Tuition reimbursement costs are up because
Tia and Tamara in your department, as well as Marty and
Angel in human resources, started taking classes. For the
past year, Tia, Tamara, and Marty worked an average of 70
hours per week. Here are the source documents for tuition
reimbursement and their timecards all with your signature,”
Teresa indicated as she handed the documentation to Sam.
“I knew they went back to school, but I was not
aware of the overtime hours. I did approve their tuition
reimbursement and time, so they must be correct,” a now
agitated Sam said.
Teresa pressed, “Sam, are you sure? Are these really your
signatures?”
“Yes. They are my signatures,” an almost furious Sam
countered. “I approve ALL expenditures at this facility and

do an excellent job of it. I do not appreciate what you are
implying. If I were you, I would be careful about making
any accusations. I have known these people for more than
10 years. We go to church together, and our kids play on the
same soccer team. Teresa, you are out of line here. When
Pat hired you over my objection, there were several more
qualified candidates. You have only been at our facility for
three months. If you are not careful, you might not make your
fourth. I am in charge here. This conversation is over. Leave
your source documents with me, and I will get the issue
resolved. You are not to mention this again. Understood?”
Barely audible, Teresa answered, “Understood.”
CASE QUESTIONS
1. As a CMA, Teresa is governed by the IMA® (Institute
of Management Accountants) Statement of Ethical
Professional Practice. What are Teresa’s ethical
responsibilities under IMA’s standards?
2. Describe how Teresa can follow the steps of ethical

conduct resolution detailed in the IMA Statement.
83
3. Pat is also a CMA. Evaluate which of IMA’s standards
Pat may have violated. What are the repercussions of
violating IMA’s ethical standards?
4. Who are the stakeholders in the case?
5. Evaluate Teresa’s potential responses to this ethical
dilemma and the advantages and disadvantages of each.
6. If Teresa elects to escalate the situation, what safeguards
are in place to protect her from repercussions in the
workplace?
7. What did you learn from this case?
8. What factors would Teresa consider when deciding to
become a whistleblower or investigate further?
84

ABOUT IMA® (INSTITUTE OF MANAGEMENT
ACCOUNTANTS)
IMA®, the association of accountants and financial
professionals in business, is one of the largest and most
respected associations focused exclusively on advancing the
management accounting profession. Globally, IMA supports
the profession through research, the CMA® (Certified
Management Accountant) program, continuing education,
networking and advocacy of the highest ethical business
practices. IMA has a global network of more than 100,000
members in 140 countries and 300 professional and student
chapters. Headquartered in Montvale, N.J., USA, IMA
provides localized services through its four global regions:
The Americas, Asia/Pacific, Europe, and Middle East/India.
For more information about IMA, please visit www.imanet.org.

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