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Can a mobile-app-based behavioral intervention teach financial skills to youth? Experimental evidence from a financial diaries study

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  • Frisancho, Veronica
  • Herrera, Alejandro
  • Prina, Silvia

Abstract

We study the impact of a mobile-app-based behavioral intervention on youth's financial literacy and financial behavior in Peru. To maximize the chances to reach out-of-school youth, we provided access to a user-friendly budget recording tool coupled with regular enumerators' visits and the delivery of SMSs during a 27-week period. The bundled treatment had positive and significant effects on financial literacy and knowledge about prices of goods and services. The probability of saving and savings deposits were not affected, but usage of credit increased both at the extensive and intensive margins. Average treatment effects on financial literacy and behavior were driven by youth without previous exposure to financial education, suggesting that the bundled intervention prompted specific subgroups (i.e., youth with lower levels of financial knowledge) to invest more in financial literacy.

Suggested Citation

  • Frisancho, Veronica & Herrera, Alejandro & Prina, Silvia, 2023. "Can a mobile-app-based behavioral intervention teach financial skills to youth? Experimental evidence from a financial diaries study," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 595-614.
    • Handle: RePEc:eee:jeborg:v:214:y:2023:i:c:p:595-614
    DOI: 10.1016/j.jebo.2023.08.014
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    More about this item

    Keywords

    Financial inclusion; Financial diaries; Financial literacy; Youth;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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