Financial literacy and competency of executive nursing leaders: A mixed methods study

The aims of this study were to evaluate the reliability and validity of the Financial Management Competency Self-Assessment (FMCA) in executive nurse leaders (ENLs) and to determine how ENLs develop and apply financial knowledge. Financial literacy (FL) helps in planning, implementing, and evaluating fiscal decisions, but many ENLs report weaknesses in this core competency. An explanatory-sequential mixed-methods study was conducted to psychometrically test the FMCA and explore how ENLs with different levels of FL develop and apply financial knowledge. Eligible participants (n =178) were recruited from a population of ENLs across the United States. The test-retest reliability of the FMCA was good (mean difference, 6.80; 95% confidence). Correlations between domain scores (p < 0.01) and the overall score (Cronbach’s alpha = 0.99) demonstrated the reliability and validity of the instrument. The cutoff scores were fair indicators of different levels of FL in ENLs (p < 0.001). Self-awareness, gaps in hospital and graduate nursing education, application of financial knowledge and a micro versus macro view emerged as important themes in the qualitative analysis. In conclusion, the FMCA reliability and validity was established. FMCA cutoff scores were established to determine FL level, and the ENL lived experience described in financial knowledge development and application.