Visual Tools and Narratives: New Ways to Improve Financial Literacy

Global Financial Literacy Excellence Center Working Paper No. 2014-1

Becker Friedman Institute for Research in Economics Working Paper No. 2585231

41 Pages Posted: 27 Mar 2015

See all articles by Annamaria Lusardi

Annamaria Lusardi

George Washington University - Department of Accountancy; National Bureau of Economic Research (NBER)

Anya Samek

Center for Economic and Social Research (CESR); University of Southern California - Department of Economics

Arie Kapteyn

Dornsife Center for Economic and Social Research - University of Southern California; IZA Institute of Labor Economics

Lewis Glinert

Dartmouth College

Angela Hung

RAND Corporation - Labor and Population

Aileen Heinberg

RAND Corporation

Multiple version iconThere are 2 versions of this paper

Date Written: June 9, 2014

Abstract

In this paper, we developed and experimentally evaluated four novel educational programs delivered online: an informational brochure, a visual interactive tool, a written narrative, and a video narrative. The programs were designed to inform people about risk diversification, an essential concept for financial decision-making. The effectiveness of these programs was evaluated using the RAND American Life Panel. Participants were exposed to one of the programs, and then asked to answer questions measuring financial literacy and self-efficacy. All of the programs were found to be effective at increasing self-efficacy, and several improved financial literacy, providing new evidence for the value of programs designed to help individuals make financial decisions. The video was more effective at improving financial literacy scores than the written narrative, highlighting the power of online media in financial education.

Keywords: financial literacy, stories, videos, visual analytic tools

JEL Classification: C83, D14, G11

Suggested Citation

Lusardi, Annamaria and Samek, Anya and Kapteyn, Arie and Glinert, Lewis and Hung, Angela and Heinberg, Aileen, Visual Tools and Narratives: New Ways to Improve Financial Literacy (June 9, 2014). Global Financial Literacy Excellence Center Working Paper No. 2014-1; Becker Friedman Institute for Research in Economics Working Paper No. 2585231. Available at SSRN: https://ssrn.com/abstract=2585231 or http://dx.doi.org/10.2139/ssrn.2585231

Annamaria Lusardi (Contact Author)

George Washington University - Department of Accountancy ( email )

George Washington University School of Business
Washington, DC 20052
United States

HOME PAGE: http://business.gwu.edu/profiles/annamaria-lusardi/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Anya Samek

Center for Economic and Social Research (CESR) ( email )

635 Downey Way
Los Angeles, CA 90089-3332
United States

University of Southern California - Department of Economics ( email )

3620 South Vermont Ave. Kaprielian (KAP) Hall, 300
Los Angeles, CA 90089
United States

Arie Kapteyn

Dornsife Center for Economic and Social Research - University of Southern California ( email )

635 Downey Way
Los Angeles, CA 90089-3332
United States
310-448-5383 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Lewis Glinert

Dartmouth College ( email )

Department of Sociology
Hanover, NH 03755
United States

Angela Hung

RAND Corporation - Labor and Population ( email )

United States

Aileen Heinberg

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

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