The Financial Education Fallacy
AbstractResearch to date does not demonstrate a causal chain from financial education to welfare-enhancing financial behavior, in part due to biases, heuristics, and emotional influences on decisions. Yet the search for effective financial education continues. But it is time to ask whether giving every person effective financial education would make us better off. Two reasons it might not are discussed here. First, the time, expense, and invasion of privacy required would be enormous. Second, such a world would entail a decrease in individual autonomy. Alternative tools could potentially increase household financial welfare and security at lower social and individual expense.
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 101 (2011)
Issue (Month): 3 (May)
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- Richard Disney & John Gathergood, .
"Financial Literacy and Consumer Credit Portfolios,"
12/06, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
- Gill, Andrej & Juranek, Steffen & Lizarazo, Christian & Visnjic, Nikolai & Walz, Uwe, 2012. "Anreize, systemische Risiken und Intransparenz: Lehren aus der Finanz- und Staatsschuldenkrise," CFS Working Paper Series 2013/01, Center for Financial Studies (CFS).
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