Assessing Financial Education: Evidence from Boot Camp
American Economic Journal: Economic Policy, (8)2, 2015
41 Pages Posted: 8 Jan 2020
Date Written: July 21, 2015
This study estimates the effects of Personal Financial Management Course attendance and enrollment assistance using a natural experiment in the U.S. Army. Course attendance reduces the probability of select credit account balances, average account balances, delinquencies, and adverse legal actions in the first year after the course, but it has no effects on accounts in the second year or credit scores in either year. The course and its bundled enrollment assistance increase retirement savings rates from 12% to 24%, with effects that persist through at least two years. The course has no significant effects on military labor market outcomes.
Keywords: financial education, household finance, retirement savings, credit
JEL Classification: A29, D14, G11, H52, I21, I28
Suggested Citation: Suggested Citation