IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v102y2018icp71-89.html
   My bibliography  Save this article

The Impact of Financial Education for Youth in Ghana

Author

Listed:
  • Berry, James
  • Karlan, Dean
  • Pradhan, Menno

Abstract

Governments and non-governmental organizations promote school-based financial literacy programs as means to instill financial behaviors that can persist through adulthood. We conduct a randomized trial of two financial literacy education programs in government-run Ghanaian primary and junior high schools. The first integrated both financial and social education, while the second included only financial education. Our study finds that after nine months, both programs had positive impacts on self-reported savings at school relative to the control group, but there were no statistically significant increases in aggregate savings nor in hypothesized mechanisms such as attitudes, preferences, or knowledge. The financial education-only treatment led to a weakly statistically significant increase in child labor relative to the control group, although the difference in impact between the two treatment groups was not statistically significant. The lack of short-term effects of these programs on financial behaviors and attitudes indicate that alternative program designs should be evaluated to understand whether and how these outcomes can be influenced among students in this age group.

Suggested Citation

  • Berry, James & Karlan, Dean & Pradhan, Menno, 2018. "The Impact of Financial Education for Youth in Ghana," World Development, Elsevier, vol. 102(C), pages 71-89.
  • Handle: RePEc:eee:wdevel:v:102:y:2018:i:c:p:71-89
    DOI: 10.1016/j.worlddev.2017.09.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X17303030
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bucciol, Alessandro & Veronesi, Marcella, 2014. "Teaching children to save: What is the best strategy for lifetime savings?," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 1-17.
    2. Bruhn, Miriam & de Souza Leao, Luciana & Legovini, Arianna & Marchetti, Rogelio & Zia, Bilal, 2013. "The impact of high school financial education : experimental evidence from Brazil," Policy Research Working Paper Series 6723, The World Bank.
    3. Melanie Lührmann & Marta Serra-Garcia & Joachim Winter, 2018. "The Impact of Financial Education on Adolescents' Intertemporal Choices," American Economic Journal: Economic Policy, American Economic Association, vol. 10(3), pages 309-332, August.
    4. Daniel Fernandes & John G. Lynch & Richard G. Netemeyer, 2014. "Financial Literacy, Financial Education, and Downstream Financial Behaviors," Management Science, INFORMS, vol. 60(8), pages 1861-1883, August.
    5. Webley, Paul & Nyhus, Ellen K., 2013. "Economic socialization, saving and assets in European young adults," Economics of Education Review, Elsevier, vol. 33(C), pages 19-30.
    6. Grohmann, Antonia & Kouwenberg, Roy & Menkhoff, Lukas, 2015. "Childhood roots of financial literacy," Journal of Economic Psychology, Elsevier, vol. 51(C), pages 114-133.
    7. 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.
    8. Dean Karlan & Aishwarya Lakshmi Ratan & Jonathan Zinman, 2014. "Savings by and for the Poor: A Research Review and Agenda," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 36-78, March.
    9. Leonardo Becchetti & Stefano Caiazza & Decio Coviello, 2013. "Financial education and investment attitudes in high schools: evidence from a randomized experiment," Applied Financial Economics, Taylor & Francis Journals, vol. 23(10), pages 817-836, May.
    10. Leonardo Becchetti & Fabio Pisani, 2011. "Financial education on secondary school students: the randomized experiment revisited," Econometica Working Papers wp34, Econometica.
    11. Xu, Lisa & Zia, Bilal, 2012. "Financial literacy around the world : an overview of the evidence with practical suggestions for the way forward," Policy Research Working Paper Series 6107, The World Bank.
    12. Prina, Silvia, 2015. "Banking the poor via savings accounts: Evidence from a field experiment," Journal of Development Economics, Elsevier, vol. 115(C), pages 16-31.
    13. Pascaline Dupas & Jonathan Robinson, 2013. "Savings Constraints and Microenterprise Development: Evidence from a Field Experiment in Kenya," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 163-192, January.
    14. Goodhart, Charles A. E., 2016. "Whither central banking?," LSE Research Online Documents on Economics 69297, London School of Economics and Political Science, LSE Library.
    15. Jeffrey R Kling & Jeffrey B Liebman & Lawrence F Katz, 2007. "Experimental Analysis of Neighborhood Effects," Econometrica, Econometric Society, vol. 75(1), pages 83-119, January.
    16. Margaret Sherraden & Lissa Johnson & Baorong Guo & William Elliott, 2011. "Financial Capability in Children: Effects of Participation in a School-Based Financial Education and Savings Program," Journal of Family and Economic Issues, Springer, vol. 32(3), pages 385-399, September.
    17. Arnoud W. A. Boot & Lev Ratnovski, 2016. "Banking and Trading," Review of Finance, European Finance Association, vol. 20(6), pages 2219-2246.
    18. Goddard, John & Wilson, John O. S., 2016. "Banking: A Very Short Introduction," OUP Catalogue, Oxford University Press, number 9780199688920.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kwee Kim Peong, 2019. "Determinants of Personal Financial Literacy among Young Adults in Malaysian Accounting Firms," GATR Journals gjbssr524, Global Academy of Training and Research (GATR) Enterprise.
    2. Grohmann, Antonia & Klühs, Theres & Menkhoff, Lukas, 2018. "Does financial literacy improve financial inclusion? Cross country evidence," World Development, Elsevier, vol. 111(C), pages 84-96.
    3. Kaiser, Tim & Menkhoff, Lukas, 2018. "Active Learning Improves Financial Education:," Rationality and Competition Discussion Paper Series 131, CRC TRR 190 Rationality and Competition.
    4. Entorf, Horst & Hou, Jia, 2018. "Financial education for the disadvantaged? A review," SAFE Working Paper Series 205, Research Center SAFE - Sustainable Architecture for Finance in Europe, Goethe University Frankfurt.
    5. Tim Kaiser & Lukas Menkhoff, 2017. "Does Financial Education Impact Financial Literacy and Financial Behavior, and If So, When?," World Bank Economic Review, World Bank Group, vol. 31(3), pages 611-630.
    6. Federico A. Bugni & Ivan A. Canay & Azeem M. Shaikh, 2017. "Inference under covariate-adaptive randomization with multiple treatments," CeMMAP working papers CWP34/17, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    7. repec:aea:aejapp:v:11:y:2019:i:2:p:114-42 is not listed on IDEAS
    8. Melanie Lührmann & Marta Serra-Garcia & Joachim Winter, 2018. "The Impact of Financial Education on Adolescents' Intertemporal Choices," American Economic Journal: Economic Policy, American Economic Association, vol. 10(3), pages 309-332, August.
    9. Federico A. Bugni & Ivan A. Canay & Azeem M. Shaikh, 2015. "Inference under covariate-adaptive randomization," CeMMAP working papers CWP45/15, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    10. Cordero, José Manuel & Gil, María & Pedraja Chaparro, Francisco, 2016. "Exploring the effect of financial literacy courses on student achievement: a cross-country approach using PISA 2012 data," MPRA Paper 75474, University Library of Munich, Germany.
    11. repec:eee:wdevel:v:104:y:2018:i:c:p:238-256 is not listed on IDEAS
    12. repec:eee:jeborg:v:155:y:2018:i:c:p:140-158 is not listed on IDEAS
    13. repec:eur:ejesjr:265 is not listed on IDEAS
    14. Oliver Himmler & Robert Jäckle & Philipp Weinschenk, 2019. "Soft Commitments, Reminders, and Academic Performance," American Economic Journal: Applied Economics, American Economic Association, vol. 11(2), pages 114-142, April.
    15. Entorf, Horst & Hou, Jia, 2018. "Financial Education for the Disadvantaged? A Review," IZA Discussion Papers 11515, Institute of Labor Economics (IZA).
    16. repec:eee:cysrev:v:82:y:2017:i:c:p:310-320 is not listed on IDEAS

    More about this item

    Keywords

    financial literacy; youth finance; savings;

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:102:y:2018:i:c:p:71-89. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.