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Financial education affects financial knowledge and downstream behaviors

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  • Kaiser, Tim
  • Lusardi, Annamaria
  • Menkhoff, Lukas
  • Urban, Carly

Abstract

We study the rapidly growing literature on the causal effects of financial education programs in a meta-analysis of 76 randomized experiments with a total sample size of over 160,000 individuals. Many of these experiments are published in top economics and finance journals. The evidence shows that financial education programs have, on average, positive causal treatment effects on financial knowledge and downstream financial behaviors. Treatment effects are economically meaningful in size, similar to those realized by educational interventions in other domains, and robust to accounting for publication bias in the literature. We also discuss the cost-effectiveness of financial education interventions.

Suggested Citation

  • Kaiser, Tim & Lusardi, Annamaria & Menkhoff, Lukas & Urban, Carly, 2022. "Financial education affects financial knowledge and downstream behaviors," Journal of Financial Economics, Elsevier, vol. 145(2), pages 255-272.
    • Handle: RePEc:eee:jfinec:v:145:y:2022:i:2:p:255-272
    DOI: 10.1016/j.jfineco.2021.09.022
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    More about this item

    Keywords

    Financial education; Financial literacy; Financial behavior; RCT; Meta-analysis;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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