Transforming Impossible into Possible (TIP) for Financial Capability: Application of Practice-Based Program Theory and Measures in Intervention Design

Purpose: Financial knowledge often does not translate into financial well-being. This study looks at how knowledge might be converted to well-being for people living in low-income environments, based on a theory called Financial PSS. Methods: The study tests the validity of the two scales that make up Financial PSS: Perceived Financial Barriers and Financial Hope. Then it examines how these measures along with an intervention measure called TIP are associated with financial capability. Results: Results validated the Perceived Financial Barrier Scale and Financial Hope Scale. Next, the study found that the Perceived Financial Barriers Scale and the Financial Hope Scale are associated with financial capability, as is the TIP score. Conclusions: The study concludes that Financial PSS as a newly applied practice-based theory should be further tested. Workforce providers could integrate financial education and empowerment-based F-PSS process models and see a positive impact on their placement and retention outcomes.