Active Learning Fosters Financial Behavior: Experimental Evidence

70 Pages Posted: 20 Jul 2018

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

Date Written: June 1, 2018

Abstract

We conduct a randomized field experiment to study the effects of two financial education interventions offered to small-scale retailers in Western Uganda. The treatments contrast “active learning” with “traditional lecturing” within standardized lesson-plans. We find that active learning has a positive and economically meaningful impact on savings and investment outcomes, in contrast to insignificant impacts of lecturing. These results are not conditional on prior education or financial literacy. The active learning intervention seems to be superior as it works via three cognitive and non-cognitive mechanisms, i.e. increased financial knowledge, self-control, and financial confidence, while lecturing only affects financial confidence.

Keywords: Financial behavior, financial literacy, active learning, lecturing, training method, field experiment

JEL Classification: O16,D14,I21

Suggested Citation

Kaiser, Tim and Menkhoff, Lukas, Active Learning Fosters Financial Behavior: Experimental Evidence (June 1, 2018). DIW Berlin Discussion Paper No. 1743. Available at SSRN: https://ssrn.com/abstract=3208637 or http://dx.doi.org/10.2139/ssrn.3208637

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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