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What Does Financial Literacy Training Teach Us?

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  • Bruce Ian Carlin
  • David T. Robinson

Abstract

The authors use data from a finance-related theme park to explore how financial education changes investment, financing, and consumer behavior. Students were assigned fictitious life situations and asked to create household budgets. Some students received a 19-hour financial literacy curriculum before going to the park, and some did not. After controlling for demographic variables, the authors show that the treatment effects of the financial literacy program are strong. Students were more frugal, delayed gratification, paid off debt faster, and relied less on credit financing after training. Students who attended training showed greater uptake of decision support that was offered in the park, which indicates that decision support and financial literacy training are complements, not substitutes.

Suggested Citation

  • Bruce Ian Carlin & David T. Robinson, 2012. "What Does Financial Literacy Training Teach Us?," The Journal of Economic Education, Taylor & Francis Journals, vol. 43(3), pages 235-247, July.
    • Handle: RePEc:taf:jeduce:v:43:y:2012:i:3:p:235-247
    DOI: 10.1080/00220485.2012.686385
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    More about this item

    JEL classification:

    • A21 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Pre-college
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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