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

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  • 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
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    References listed on IDEAS

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    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.
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    Citations

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    Cited by:

    1. 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.
    2. Alessio D'Ignazio & Ludovica Galotto & Daniela Marconi & Marco Panfili, 2025. "Reaching wide through small screens: the impact of a Banca d'Italia financial education TV campaign," Questioni di Economia e Finanza (Occasional Papers) 990, Bank of Italy, Economic Research and International Relations Area.
    3. 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.
    4. 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.
    5. Lusardi, Annamaria & Kaiser, Tim, 2024. "Financial literacy and financial education: An overview," CEPR Discussion Papers 19185, C.E.P.R. Discussion Papers.
    6. 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).
    7. 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.
    8. Agasisti, Tommaso & D’Ignazio, Alessio & Iannotta, Gabriele & Romagnoli, Angela & Tonello, Marco, 2025. "Financial literacy calls the roll — The effectiveness of a financial education program in Italian schools," Economics of Education Review, Elsevier, vol. 109(C).

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    Keywords

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    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

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