IDEAS home Printed from https://ideas.repec.org/p/idb/brikps/12696.html

Spillover Effects of Financial Education: The Impact of School-Based Programs on Parents

Author

Listed:
  • Frisancho, Verónica

Abstract

This paper studies whether school-based financial education has spillover effects from children to parents. Leveraging data from a large-scale experiment with public high schools in Peru and credit bureau records on the parents of the youth targeted, this study measures the impact of providing personal finance lessons during secondary school on parental financial behavior. Financial education lessons in the school yield limited average spillover effects, but lead to sizable effects on parental financial behavior within disadvantaged households. Among parents from poorer households, the treatment reduces default probability by 26%, increases credit scores by 5%, and increases current debt levels by 40%. The treatment has stronger effects among the parents of daughters, who experience a significant 6.7% increase in their credit score and a 28% reduction in their loan portfolio in arrears. Among the parents of boys, most of the spillover effects are muted.

Suggested Citation

  • Frisancho, Verónica, 2023. "Spillover Effects of Financial Education: The Impact of School-Based Programs on Parents," IDB Publications (Working Papers) 12696, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:12696
    DOI: http://dx.doi.org/10.18235/0004736
    as

    Download full text from publisher

    File URL: https://publications.iadb.org/publications/english/document/Spillover-Effects-of-Financial-Education-The-Impact-of-School-Based-Programs-on-Parents.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.18235/0004736?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bruce Sacerdote, 2005. "Slavery and the Intergenerational Transmission of Human Capital," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 217-234, May.
    2. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
    3. Philip Oreopoulos & Marianne E. Page & Ann Huff Stevens, 2003. "Does Human Capital Transfer from Parent to Child? The Intergenerational Effects of Compulsory Schooling," NBER Working Papers 10164, National Bureau of Economic Research, Inc.
    4. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 3, number 3, June.
    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. Christa Gibbs & Benedict Guttman-Kenney & Donghoon Lee & Scott Nelson & Wilbert van der Klaauw & Jialan Wang, 2025. "Consumer Credit Reporting Data," Journal of Economic Literature, American Economic Association, vol. 63(2), pages 598-636, June.
    2. Cziriak, Marius & Bucher-Koenen, Tabea & Alessie, Rob, 2024. "Beyond knowledge: Confidence and the gender gap in financial literacy," ZEW Discussion Papers 24-083, ZEW - Leibniz Centre for European Economic Research.
    3. Lusardi, Annamaria & Kaiser, Tim, 2024. "Financial literacy and financial education: An overview," CEPR Discussion Papers 19185, C.E.P.R. Discussion Papers.
    4. Jana S. Hamdan & Tim Kaiser & Lukas Menkhoff & Yuanwei Xu, 2024. "Scaling Financial Education Among Micro-Entrepreneurs: A Randomized Saturation Experiment," CESifo Working Paper Series 11431, CESifo.
    5. Sconti, Alessia & Caserta, Maurizio & Ferrante, Livio, 2024. "Gen Z and financial education: Evidence from a randomized control trial in the South of Italy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 112(C).
    6. Kaiser, Tim & Hamdan, Jana & Menkhoff, Lukas & Xu, Yuanwei, 2024. "Scaling up financial education: Evidence from a randomized saturation experiment," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302424, Verein für Socialpolitik / German Economic Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Moretti, Luca & Mayerl, Martin & Mühlemann, Samuel & Schlögl, Peter & Wolter, Stefan C., 2017. "So Similar and Yet So Different: A Comparative Analysis of a Firm's Cost and Benefits of Apprenticeship Training in Austria and Switzerland," IZA Discussion Papers 11081, Institute of Labor Economics (IZA).
    2. Mattéo Godin & Jean Hindriks, 2018. "An international comparison of school systems based on social mobility," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 499, pages 61-78.
    3. Maïlys Korber, 2019. "Does Vocational Education Give a Labour Market Advantage over the Whole Career? A Comparison of the United Kingdom and Switzerland," Social Inclusion, Cogitatio Press, vol. 7(3), pages 202-223.
    4. Xiaozhou Ding & Christopher Bollinger & Michael Clark & William H. Hoyt, 2022. "Too Late to Buy a Home? School Redistricting and the Timing and Extent of Capitalization," CESifo Working Paper Series 9647, CESifo.
    5. Gregorio Gimenez & Luis Vargas-Montoya, 2021. "ICT Use and Successful Learning: The Role of the Stock of Human Capital," Mathematics, MDPI, vol. 9(14), pages 1-15, July.
    6. James J. Heckman, 2019. "The Race Between Demand and Supply: Tinbergen’s Pioneering Studies of Earnings Inequality," De Economist, Springer, vol. 167(3), pages 243-258, September.
    7. Sang Yoon (Tim) Lee & Yongseok Shin & Donghoon Lee, 2015. "The Option Value of Human Capital: Higher Education and Wage Inequality," NBER Working Papers 21724, National Bureau of Economic Research, Inc.
    8. Marchionni, Mariana & Vazquez, Emmanuel & Pinto, Florencia, 2012. "Desigualdad educativa en la Argentina. Análisis en base a los datos PISA 2009 [Education Inequality in Argentina. An analysis based on PISA 2009 data]," MPRA Paper 56420, University Library of Munich, Germany.
    9. Neyt, Brecht & Verhaest, Dieter & Baert, Stijn, 2020. "The impact of dual apprenticeship programmes on early labour market outcomes: A dynamic approach," Economics of Education Review, Elsevier, vol. 78(C).
    10. Tommaso Agasisti & Sergio Longobardi & Andrea Regoli, 2017. "A cross-country panel approach to exploring the determinants of educational equity through PISA data," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(3), pages 1243-1260, May.
    11. Erich Battistin & Lorenzo Neri, 2017. "School Performance, Score Inflation and Economic Geography," Working Papers 837, Queen Mary University of London, School of Economics and Finance.
    12. Kai Hong & Peter A. Savelyev & Kegon T. K. Tan, 2020. "Understanding the Mechanisms Linking College Education with Longevity," Journal of Human Capital, University of Chicago Press, vol. 14(3), pages 371-400.
    13. Eyles, Andrew & Machin, Stephen & McNally, Sandra, 2017. "Unexpected school reform: Academisation of primary schools in England," Journal of Public Economics, Elsevier, vol. 155(C), pages 108-121.
    14. Thomas Pave Sohnesen, 2019. "Are you what you consume?: Impact of food, soft drinks, and coffee on cognitive and non-cognitive test scores," WIDER Working Paper Series wp-2019-117, World Institute for Development Economic Research (UNU-WIDER).
    15. Görlitz, Katja & Penny, Merlin & Tamm, Marcus, 2022. "The long-term effect of age at school entry on cognitive competencies in adulthood," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 91-104.
    16. Petter Lundborg & Carl Hampus Lyttkens & Paul Nystedt, 2016. "The Effect of Schooling on Mortality: New Evidence From 50,000 Swedish Twins," Demography, Springer;Population Association of America (PAA), vol. 53(4), pages 1135-1168, August.
    17. Satoshi Myojo, 2024. "Did the Abolition of School District Zoning Affect House Prices? Evidence from the Housing Market in Osaka City," Working Papers e207, Tokyo Center for Economic Research.
    18. Eric A. Hanushek & Jacob D. Light & Paul E. Peterson & Laura M. Talpey & Ludger Woessmann, 2022. "Long-run Trends in the U.S. SES-Achievement Gap," Education Finance and Policy, MIT Press, vol. 17(4), pages 608-640, Fall.
    19. Battistin, Erich & De Nadai, Michele & Vuri, Daniela, 2017. "Counting rotten apples: Student achievement and score manipulation in Italian elementary Schools," Journal of Econometrics, Elsevier, vol. 200(2), pages 344-362.
    20. Daniel Horn, 2014. "The Effectiveness of Apprenticeship Training - a within track comparison of workplace-based and school-based vocational training in Hungary," Budapest Working Papers on the Labour Market 1405, Institute of Economics, Centre for Economic and Regional Studies.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:idb:brikps:12696. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Felipe Herrera Library (email available below). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.