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The Impact of Financial Education on Adolescents' Intertemporal Choices

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  • Luhrmann, Melanie
  • Serra-Garcia, Marta
  • Winter, Joachim

Abstract

We study the impact of financial education on intertemporal choice in adolescence. The educational program was randomly assigned among high school students, and choices were measured using an incentivized experiment. Students who participated in the program make more time-consistent choices;are more likely to allocate payments to a single payment date, as opposed to spreading payment across two dates;and display increased consistency of choice with the law of demand. These findings suggest that financial education increases the quality of intertemporal decision-making and decreases narrow bracketing.

Suggested Citation

  • Luhrmann, Melanie & Serra-Garcia, Marta & Winter, Joachim, 2018. "The Impact of Financial Education on Adolescents' Intertemporal Choices," Munich Reprints in Economics 62840, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:62840
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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