Financial Literacy, Experimental Preference Measures and Field Behavior – A Randomized Educational Intervention

Posted: 3 Aug 2020 Last revised: 5 May 2023

See all articles by Matthias Sutter

Matthias Sutter

Max Planck Institute for Research on Collective Goods

Michael Weyland

Pädagogische Hochschule (PH) Ludwigsburg University of Education

Anna Untertrifaller

University of Cologne

Manuel Froitzheim

University of Siegen

Sebastian O. Schneider

Max Planck Institute for Research on Collective Goods

Multiple version iconThere are 3 versions of this paper

Date Written: May 3, 2023

Abstract

We present the results of a randomized intervention to study how teaching financial literacy to 16-year old high-school students affects their behavior in risk and time preference tasks. Compared to two different control treatments, we find that teaching financial literacy makes subjects behave more patiently, more time-consistent, and more risk-averse. These effects persist for up to almost 5 years after our intervention. Behavior in the risk and time preference tasks is related to financial behavior outside the lab, in particular spending patterns. This shows that teaching financial literacy affects economic decision-making which in turn is important for field behavior.

Keywords: Financial literacy, randomized intervention, risk preferences, time preferences, financial behavior, field experiment

JEL Classification: C93, D14, I21

Suggested Citation

Sutter, Matthias and Weyland, Michael and Untertrifaller, Anna and Froitzheim, Manuel and Schneider, Sebastian O., Financial Literacy, Experimental Preference Measures and Field Behavior – A Randomized Educational Intervention (May 3, 2023). MPI Collective Goods Discussion Paper, No. 2023/3, Available at SSRN: https://ssrn.com/abstract=3666088

Matthias Sutter (Contact Author)

Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

Michael Weyland

Pädagogische Hochschule (PH) Ludwigsburg University of Education ( email )

Reuteallee 46
Ludwigsburg, D-71634
Germany

Anna Untertrifaller

University of Cologne ( email )

Manuel Froitzheim

University of Siegen

Sebastian O. Schneider

Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

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