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Financial Literacy, Experimental Preference Measures and Field Behavior – A Randomized Educational Intervention

Author

Listed:
  • Sutter, Matthias

    (Max Planck Institute for Research on Collective Goods)

  • Weyland, Michael

    (Ludwigsburg University of Education)

  • Untertrifaller, Anna

    (University of Cologne)

  • Froitzheim, Manuel

    (University of Siegen)

  • Schneider, Sebastian O.

    (Max Planck Institute for Research on Collective Goods)

Abstract

We present the results of a randomized intervention to study how teaching financial literacy to 16-year old high-school students affects their behavior in risk and time preference tasks. Compared to two different control treatments, we find that teaching financial literacy makes subjects behave more patiently, more time-consistent, and more risk-averse. These effects persist for up to almost 5 years after our intervention. Behavior in the risk and time preference tasks is related to financial behavior outside the lab, in particular spending patterns. This shows that teaching financial literacy affects economic decision-making which in turn is important for field behavior.

Suggested Citation

  • Sutter, Matthias & Weyland, Michael & Untertrifaller, Anna & Froitzheim, Manuel & Schneider, Sebastian O., 2023. "Financial Literacy, Experimental Preference Measures and Field Behavior – A Randomized Educational Intervention," IZA Discussion Papers 16102, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16102
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    More about this item

    Keywords

    financial behavior; time preferences; risk preferences; randomized intervention; financial literacy; field experiment;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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