Does financial education impact financial literacy and financial behavior, and if so, when?
Abstract:
In a meta-analysis of 126 impact evaluation studies, we find that financial education significantly impacts financial behavior and, to an even larger extent, financial literacy. These results also hold for the subsample of randomized experiments (RCTs). However, intervention impacts are highly heterogeneous: financial education is less effective for low-income clients as well as in low- and lower-middle–income economies. Specific behaviors, such as the handling of debt, are more difficult to influence and mandatory financial education tentatively appears to be less effective. Thus, intervention success depends crucially on increasing education intensity and offering financial education at a “teachable moment.”
Citation:
Kaiser, T., & Menkhoff, L. (2017). Does financial education impact financial literacy and financial behavior, and if so, when? The World Bank Economic Review, 31(3), 611–630.
About This Study:
Intervention(s): Financial education
Intervention Duration: Various
Relevant ORR Program: Microenterprise Development
Study Type: Meta-analysis
Full Text Availability: Paid
Strength of Evidence: Strong
Population(s): Other
Gender(s) of Participants: All
Age(s) of Participants: Adults
Region(s) of Origin of Participants: Multiple Regions
Relevant Evidence Summaries:
The evidence was reviewed and included in the following summaries:
