A Literature Review on the Effectiveness of Financial Education

27 Pages Posted: 9 Dec 2012

See all articles by Matthew Martin

Matthew Martin

Federal Reserve Banks - Federal Reserve Bank of Richmond

Date Written: June 15, 2007

Abstract

This survey summarizes current research on financial literacy efforts. Because most financial literacy programs are relatively new, much of the literature reviewed here is also new and part of a field that is still developing as a program of research. However, we can conclude that financial education is necessary and that many existing approaches are effective. Among the findings are that some households make mistakes with personal finance decisions; mistakes are more common for low income and less educated households; there is a causal connection between increases in financial knowledge and financial behavior; and the benefits of financial education appear to span a number of areas including retirement planning, savings, homeownership, and credit use.

Keywords: financial literacy, financial education, retirement, savings, homeownership

JEL Classification: D12, D14

Suggested Citation

Martin, Matthew, A Literature Review on the Effectiveness of Financial Education (June 15, 2007). FRB Richmond Working Paper No. 07-03. Available at SSRN: https://ssrn.com/abstract=2186650 or http://dx.doi.org/10.2139/ssrn.2186650

Matthew Martin (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
1,410
Abstract Views
4,577
rank
12,649
PlumX Metrics