Does Financial Education Impact Financial Literacy and Financial Behavior, and If so, When?

90 Pages Posted: 24 Mar 2016 Last revised: 31 May 2017

See all articles by Tim Kaiser

Tim Kaiser

University of Koblenz-Landau, Department of Economics; German Institute for Economic Research (DIW Berlin) - Department of International Economics; University of Koblenz-Landau

Lukas Menkhoff

German Institute for Economic Research (DIW Berlin); Humboldt University of Berlin - Faculty of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: May 2017

Abstract

In a meta-analysis of 126 impact evaluation studies, we find that financial education significantly impacts financial behavior and, to an even larger extent, financial literacy. These results also hold for the subsample of randomized experiments (RCTs). However, intervention impacts are highly heterogeneous: Financial education is less effective for lowincome clients as well as in low and lower-middle income economies. Specific behaviors, such as the handling of debt, are more difficult to influence and mandatory financial education tentatively appears to be less effective. Thus, intervention success depends crucially on increasing education intensity and offering financial education at a “teachable moment.”

Keywords: Financial education, financial literacy, financial behavior, metaanalysis, meta-regression, impact evaluation

JEL Classification: D14, I21

Suggested Citation

Kaiser, Tim and Menkhoff, Lukas, Does Financial Education Impact Financial Literacy and Financial Behavior, and If so, When? (May 2017). DIW Berlin Discussion Paper No. 1562. Available at SSRN: https://ssrn.com/abstract=2753510 or http://dx.doi.org/10.2139/ssrn.2753510

Tim Kaiser

University of Koblenz-Landau, Department of Economics ( email )

56070 Koblenz-Metternich
Germany

German Institute for Economic Research (DIW Berlin) - Department of International Economics ( email )

Mohrenstraße 58
Berlin, 10117
Germany

University of Koblenz-Landau ( email )

August-Croissant-Str. 5
Landau, 76829
Germany

HOME PAGE: http://www.uni-koblenz-landau.de/

Lukas Menkhoff (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Humboldt University of Berlin - Faculty of Economics ( email )

Spandauer Strasse 1
Berlin
Germany

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