As one example, several U. Similarly, financial education in high schools has recently been examined in Brazil and Italy Bruhn, Legovini, and Zia ; Romagnoli and Trifilidis In some instances, large U. Despite the popularity of the programs, only a few authors have undertaken careful evaluations of the impact of financial education programs. Rather than detailing or reviewing the existing literature, 43 here we instead draw attention to the key issues which future researchers must take into account when evaluating the effectiveness of financial education programs.
A concern emphasized above in Section 2 is that evaluation studies have sometimes been conducted without a clear understanding of how financial knowledge is developed. That is, if we define financial literacy as a form of human capital investment, it stands to reason that some will find it optimal to invest in financial literacy while others will not. Yet for some, it may not be optimal to save; for others, it might be rational to reduce debt.
Hence, unless an evaluator focused on the household portfolio problem including broader saving measures, a program might incorrectly be judged a failure. For this reason, offering a few retirement seminars or sending employees to a benefit fair can be fairly ineffective Duflo and Saez , Additionally, few studies have undertaken a careful cost-benefit analysis, which should be a high priority for future research.
The evidence reported previously also shows there is substantial heterogeneity in both financial literacy and financial behavior, so that programs targeting specific groups are likely to be more effective than one-size-fits-all financial education programs. For example, Lusardi, Michaud and Mitchell show theoretically that there is substantial heterogeneity in individual behavior, implying that not everyone will gain from financial education.
Accordingly, saving will optimally be zero or negative for some, and financial education programs in this case would not be expected to change that behavior. In other words, one should not expect a percent participation rate in financial education programs. In this respect, the model delivers an important prediction: As in other fields of economic research, program evaluations must also be rigorous if they are to persuasively establish causality and effectiveness.
Thus far, as noted above, few financial educational programs have been designed or evaluated with these standards in mind, making it difficult to draw inferences. A related point is that confounding factors may bias estimated impacts unless the evaluation is carefully structured. As an example, we point to the debate over the efficacy of teaching financial literacy in high school, a discussion that will surely be fed by the new financial literacy module in the PISA mentioned above.
Some have argued against financial education in school e. Yet subsequent analyses Walstad, Rebeck, and MacDonald pointed out that this research was incomplete as it did not account for course content, test measurement, teacher preparation, and amount of instruction. They concluded that when students were mandated to take a financial education course, they perform much better than students in states with no personal finance mandates.
Accordingly, there is reason to believe that mandating personal finance education may, in fact, be effective in increasing student knowledge—but only when it requires significant exposure to personal finance concepts. It is likewise risky to draw inferences without knowing about the quality of teaching in these courses.
For instance, Way and Holden examined over 1, K—12 teachers, prospective teachers, and teacher education faculty representing four U. Almost all of the teachers recognized the importance of and need for financial education, yet fewer than one-fifth stated they were prepared to teach any of the six personal finance concepts normally included in the educational rubrics. Furthermore, prospective teachers felt least competent in the more technical topics including risk management and insurance, as well as saving and investing.
Interestingly, these are also the concepts that the larger adult population struggles with, as noted above. That study concluded that state education mandates appeared to have no effect on whether teachers took courses in personal finance, taught the courses, or felt competent to teach such a course, consistent with the fact that the states mandating high school financial education did not necessarily provide or promote teacher training in the field. It would also be valuable to further investigate whether the knowledge scores actually measured what was taught in school and whether students self-selected into the financial education classes.
Walstad, Rebeck, and MacDonald used a quasi-experimental set up to assess a well-designed video course covering several fundamental concepts for both students and teachers. Compared to the research on schooling, evaluating workplace financial education seems even more challenging. There is evidence that employees who attended a retirement seminar were much more likely to save and contribute to their pension accounts Bernheim and Garrett Yet those who attended such seminars could be a self-selected group, since attendance was voluntary; that is, they might already have had a proclivity to save.
Another concern is that researchers have often little or no information on the content and quality of the workplace seminars. Their findings, including in-depth interviews and qualitative analysis, are invaluable for shedding light on how to make programs more effective.
One notable recent experiment involved exposing a representative sample of the U. Compared to a control group who did not receive such education, those exposed to the informational videos were more knowledgeable and better able to answer hypothetical questions about saving decisions. Goda, Manchester, and Sojourner asked whether employee decisions to participate in and contribute to their company retirement plan were affected by information about the correlation between retirement savings and post-retirement income. Since the computation involves complex relationships between contributions, investment returns, retirement ages, and longevity, this is an inherently difficult decision.
In that study, employees were randomly assigned to control and treatment groups; the treatment group received an information intervention while nothing was sent to the control group. Results showed that the treatment group members were more likely than the control group to boost their pension contributions and contribution rates; the increase was an additional 0.
Moreover, the treatment group felt better informed about retirement planning and was more likely to have figured out how much to save. This experiment is notable in that it rigorously illustrates the effectiveness of interventions—even low-cost informational ones—in increasing pension participation and contributions. Very promising work assessing the effects of financial literacy has also begun to emerge from developing countries.
Frequently analysts have focused on people with very low financial literacy and in vulnerable subgroups which may have the most to gain. Many of these studies have also used the experimental method described above, now standard in development economics research. These studies contribute to an understanding of the mechanisms driving financial literacy as well as economic advances for financial education program participants.
One example, by Carpena, Cole, Shapiro, and Zia , sought to disentangle how financial literacy programs influence financial behavior. The authors used a randomized experiment on low income urban households in India who underwent a five-week comprehensive video-based financial education program with modules on savings, credit, insurance and budgeting. They concluded that financial education in this context did not increase respondent numeracy, perhaps not surprisingly given that only four percent of respondents had a secondary education.
Nevertheless, financial education did positively influence participant awareness of and attitudes toward financial products and financial planning tools. Cai, de Janvry, and Sadoulet showed that lack of financial education was a major constraint on the demand for weather insurance in rural China and that financial training could significantly improve take-up rates. Moreover, Song showed that when Chinese farmers were taught about interest compounding, it produced a sizeable increase in pension contributions.
In sum, while much effort has been devoted to examining the effectiveness of financial education programs in a variety of settings, relatively few studies have been informed by either a suitable theoretical model or a carefully-designed empirical approach. For these reasons, future analysts would do well to emulate the more recent rigorous field experiments that trace how both knowledge and behavior changes result from additional purpose-designed financial information and training.
As we have shown, a relatively parsimonious set of questions measuring basic concepts such as interest compounding, inflation, and risk diversification has now become the starting point for evaluating levels of financial literacy around the world. Using these questions, researchers have demonstrated that low levels of financial knowledge are pervasive, suggesting that it will be quite challenging to provide the tools to help people function more effectively in complex financial and credit markets requiring sophisticated financial decision-making.
While research in this field continues to spread, it seems clear that there are likely to be important benefits of greater financial knowledge, including savvier saving and investment decisions, better debt management, more retirement planning, higher participation in the stock market, and greater wealth accumulation. Though it is challenging to establish a causal link between financial literacy and economic behavior, both instrumental variables and experimental approaches suggest that financial literacy plays a role in influencing financial decision making, and the causality goes from knowledge to behavior.
Much work remains to be done. Very importantly, there has been no carefully-crafted cost-benefit analysis indicating which sorts of financial education programs are most appropriate, and least expensive, for which kinds of people. Some research from developing countries speaks to this point, comparing educational treatments with other approaches such as simplifying decisions Cole, Sampson, and Zia ; Drexel, Fischer, and Schoar , but this remains a high priority area. In any event, the estimated aggregate costs of financial illiteracy point to possibly high returns, especially in the areas of consumer debt and debt management.
When employers automatically enroll workers into these plans rather than let them opt in, this can dramatically increase pension participation from less than 40 to close to 90 percent, as reported in one of the seminal work in this area, i. Several other studies also note that automatic enrollment leads to large and persistent increases in pension participation Choi, Laibson, and Madrian ; Choi, Laibson, Madrian and Metrick ; Thaler and Benartzi , and better diversified portfolios Mitchell and Utkus Moreover, in the wake of the recent financial crisis, attention has been increasingly devoted to methods of protecting people from their own financial illiteracy and inability to make informed financial decisions.
The fact that unsophisticated consumers may not appreciate and take advantage of the many opportunities offered by complex financial markets leaves them at the mercy of scams Deevy, Lucich, and Beals and in turn, has given rise to protective legislation. For instance the Dodd-Frank Act of , establishing the U. Consumer Financial Protection Bureau, had as a key goal the development of a government entity that could better protect consumers and specify uniform standards for financial products.
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As they noted, in a system of individual responsibility where individuals must make important economic decisions instead of having governments and employers do so centrally, it will be important to reduce search costs, for example via standardized and centralized information.
Similarly, for contracts or decisions that people engage in infrequently such as buying a home or saving for retirement and where there are few chances to learn from experience, it may be useful to structure the information provided and make it easily understood. The debate about the role of regulation versus financial education is still ongoing. Similar, regulation and financial education are not necessarily substitutes, as they can also complement each other.
Likewise, pension plan sponsors have tended to establish very low saving targets in their default auto-enrollment arrangements, fearing that employees might not participate in their plans if the default contribution rates were high. For instance, auto-enrollment contribution rates for new hires in the paper by Madrian and Shea mentioned earlier, were set at three percent of salary, whereas a six percent contribution rate would have entitled workers to receive a 50 percent employer match.
In that setting, the low default saving rate did not prod workers to take full advantage of the employer match. Interestingly, those likely to do so were disproportionately low income and less educated, those likely to be the least financially literate. The human capital approach to financial literacy suggests that there will be substantial heterogeneity in both financial knowledge and economic behavior, so it is unlikely that any one default rate or environment will enhance wellbeing for everyone.
Thus if workers are carrying credit card debt or high-interest mortgages, it may be more sensible to pay off these debts rather than raise their pension contributions. And of course, only about half of the U. If, as argued previously, saving decisions are very complex, one way to help people save may be to find ways to simplify those decisions.
For example, it could be useful to find ways to move people to action. Such a strategy is analyzed by Choi, Laibson, and Madrian , who studied the effects of Quick Enrollment, a program that gave workers the option of enrolling in the employer-provided saving plan by opting into a preset default contribution rate and asset allocation. Here, and unlike the default scenario, workers had a choice of whether or not to enroll, but the decision was much simplified as they did not need to set their contribution rates or how to allocate their assets.
Another approach designed to simplify the decision to save and, in addition, motivate employees to make an active choice involves a planning aid distributed to new hires during employee orientation Lusardi, Keller, and Keller This planning aid broke down the process of enrolling in supplementary pensions into several small steps, describing to participants what they needed to do to be able to enroll online. It also provided several pieces of information to help overcome barriers to saving, such as describing the low minimum amount of income employees can contribute in addition to the maximum and indicating the default fund that the employer has chosen for them a life-cycle fund.
While the program evaluation was not performed in an experimental setting, the study provided several useful insights. The qualitative data collected reveals important heterogeneity across employees, even within the same firm. Results also showed that economic incentives such as employer matches or tax advantages need not exhaust the list of options to induce people to save. The authors also concluded that employees were more prone to decision-making at some times rather than others. For example, starting a new job is a good time to think about saving, often because people must make decisions about their pension contributions.
In the developing country context, more work is also needed to assess whether simplification can help uneducated individuals make better financial decisions. This can include using simple financial instruments such as checking accounts, to more complex contracts such as insurance and decisions related to entrepreneurial activities. Early research has been promising: Drexel, Fischer, and Schoar showed that a simplified rule-of-thumb training program enhanced business practices and outcomes among microentrepreneurs in the Dominican Republic.
Kast, Meier, and Pomeranz also found that self-help peer groups and text messaging boosted employee saving patterns in Chile. Some have argued it is not feasible or even desirable to make everyone be a financial expert Willis , Of course financial education programs do not turn ordinary consumers into experts, just as courses on literature do not make students into professional writers.
Also individuals must make many financial decisions not requiring professional advice from opening checking accounts to paying credit cards. Yet some decisions, such as saving for retirement and making investment choices, do require rather sophisticated knowledge, so turning to advisors could be desirable. Even among those who indicate they might be willing to use professional investment advice, two-thirds state they would probably implement only those recommendations that were in line with their own ideas Employee Benefit Research Institute In other words, financial advice might not have a large impact if individuals fail to seek out and act on the recommendations of their advisors.
Accordingly it may be difficult or even impossible for consumers to determine whether the quality of advice provided is accurate, suitable, and consistent with their own goals. For instance, advisor compensation structures sometimes are not well-aligned with household interests. And those least likely to be knowledgeable may also face obstacles in identifying good advice sources: Relatively little is known about the effects of financial advice and whether it can improve financial decision-making.
In practice, however, most people continue to rely on the help of family and friends for their financial decisions. In the wake of the global financial crisis, policymakers around the world have expressed deep concern about widespread lack of financial knowledge. It is essential to provide basic financial education that allows people to better navigate an economic crisis such as this one. Federal Reserve Board Chairman Bernanke Well-informed consumers, who can serve as their own advocates, are one of the best lines of defense against the proliferation of financial products and services that are unsuitable, unnecessarily costly, or abusive.
Despite policy agreement on the need to fill these gaps, analysts and policymakers have much to learn about the most cost-effective ways to build financial knowledge in the population at large. The literature to date has showed that many people are financially illiterate, around the world, as we have sketched here. Econometric models and experiments have done much to confirm the causal impact of financial literacy on economic decision-making, and to separately identify this effect from other factors, including education and cognitive ability.
Research on efforts to enhance financial literacy suggest that some interventions work well, but additional experimental work is critical to control for endogeneity and confirm causality. Several key tasks remain. First, theoretical models of saving and financial decision-making must be further enriched to incorporate the fact that financial knowledge is a form of human capital. Second, efforts to better measure financial education are likely to pay off, including gathering information on teachers, training programs, and material covered.
Third, outcomes beyond what have been studied to date are likely to be of interest, including borrowing for student loans, investment in health, reverse mortgage patterns, and when to claim Social Security benefits, decisions that all have far-reaching economic consequences. Additional experimental research would be useful, to learn more about the directions of causality between financial knowledge and economic wellbeing, though the early results offered here are promising.
While the costs of raising financial literacy are likely to be substantial, so too are the costs of being liquidity-constrained, over-indebted, and poor. Louis, and Yong Yu for research assistance. Opinions and conclusions expressed herein are solely those of the authors and do not represent the opinions or policy of the funders or any other institutions with which the authors are affiliated. The authors do not, however, allow for endogenous acquisition of information. Here, however, the investment cost was cast as a simplified flat fixed fee per person, whereas Lusardi, Michaud, and Mitchell evaluate more complex functions of time and money costs for investments in knowledge.
Related surveys in other countries examined similar financial literacy concepts see, the Dutch Central Bank Household Survey, which has investigated and tested measures of financial literacy and financial sophistication, Alessie, Van Rooij, and Lusardi They have also been used to measure financial literacy among Sri Lankan entrepreneurs de Mel, McKenzie, and Woodruff and a sample of U.
We do not report the estimates for these countries because they do not always work with representative samples of the population or use samples that can be compared with the statistics reported in Table 2. Results confirmed sensitivity to question wording, especially for the more sophisticated financial concepts Lusardi, Mitchell, and Curto Behrman, Mitchell, Soo and Bravo developed a financial literacy index employing a two-step weighting approach, whereby the first step weighted each question by difficulty and the second step applied principal components analysis to take into account correlations across questions.
Resulting scores indicated how financially literate each individual was in relation to the average and to specific questions asked.
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The results confirmed that the basic financial literacy questions designed by Lusardi and Mitchell b receive the largest weights. Financial losses per capita due to fraud have also increased over time: Similarly the SEC warns about scams and fraud and other potential consequences of very low financial literacy, particularly among the most vulnerable groups. See Bertrand and Morse and the references therein.
It is worth noting that education also plays a role, as pointed out by Poterba, Venti, and Wise who find a substantial association between education and the post-retirement evolution of assets. As in the theoretical model described previously, households with different levels of education will invest in different assets, allowing them to earn different rates of return. It remains to be seen whether this is because of differential financial literacy investments, or simply due to general knowledge gleaned through education.
Hira provides a broad overview of research on financial education over a long time span. While these videos were targeted to young adults, older respondents who viewed them also increased knowledge and capacity to correctly answer questions concerning saving decisions Heinberg, Hung, Kapteyn, Lusardi, and Yoong, National Center for Biotechnology Information , U. Author manuscript; available in PMC May Annamaria Lusardi and Olivia S. Author information Copyright and License information Disclaimer. See other articles in PMC that cite the published article.
Abstract This paper undertakes an assessment of a rapidly growing body of economic research on financial literacy. A Theoretical Framework for Financial Literacy The conventional microeconomic approach to saving and consumption decisions posits that a fully rational and well-informed individual will consume less than his income in times of high earnings, thus saving to support consumption when income falls e.
Measuring Financial Literacy Several fundamental concepts lie at the root of saving and investment decisions as modeled in the life cycle setting described in the previous section. These criteria are met by the three financial literacy questions designed by Lusardi and Mitchell Lusardi and Mitchell b , worded as follows: After 5 years, how much do you think you would have in the account if you left the money to grow: Do not know, refuse to answer.
After 1 year, would you be able to buy: Do not know; refuse to answer. Do you think that the following statement is true or false? Empirical Evidence of Financial Literacy in the Adult Population The three questions above were first administered to a representative sample of U. Open in a separate window. Empirical Evidence of Financial Literacy among the Young As noted above, it would be useful to know how well-informed people are at the start of their working lives. International Evidence on Financial Literacy The three questions mentioned earlier and that have been used in several surveys in the United States have also been used in several national surveys in other countries.
As one example, several surveys include questions asking people to indicate their self-assessed knowledge, as the following questions used in the United States and also in the Netherlands and Germany: On a scale from 1 to 7, where 1 means very low and 7 means very high, how would you assess your overall financial knowledge? Thus half the group received format a and the other half format b , as follows: Buying a company stock usually provides a safer return than a stock mutual fund. Buying a stock mutual fund usually provides a safer return than a company stock.
Disaggregating Financial Literacy To draw out lessons about which people most lack financial knowledge, we turn next to a disaggregated assessment of the data. Financial Literacy Patterns by Age The theoretical framework sketched above implies that the life cycle profile of financial literacy will be hump-shaped, and survey data confirm that financial literacy is, in fact, lowest among the young and the old. Financial Literacy Differences by Sex One striking feature of the empirical data on financial literacy is the large and persistent gender difference described in Figure 1b.
Literacy Differences by Education and Ability As illustrated in Figure 1c , there are substantial differences in financial knowledge by education: Other Literacy Patterns There are numerous other empirical regularities in the financial literacy literature, that are again persistent across countries. How Does Financial Literacy Matter? Financial Literacy and Economic Decisions The early economics literature in this area began by documenting the link between financial literacy and several economic behaviors.
Costs of Financial Ignorance Pre-retirement In the wake of the financial crisis, many have become interested in the costs of financial illiteracy as well as its distributional impacts. Costs of Financial Ignorance in Retirement Financial knowledge impacts key outcomes including borrowing, saving, and investing decisions not only during the worklife, but afterwards, in retirement, as well.
Coping with Endogeneity and Measurement Error Despite an important assembly of facts on financial literacy, relatively few empirical analysts have accounted for the potential endogeneity of financial literacy and the problem of measurement error in financial literacy alluded to above. They also interact the mandate variable with age to discern whether the effect grows over the life cycle. Larger than OLS yes Fornero and Monticone Italy The authors instrument financial sophistication by using cost of learning and acquiring financial knowledge and information.
Specifically, they use information on whether a household member has a degree in economics or whether one household member uses a computer either at home, at work, or elsewhere. Larger than OLS yes Bucher-Koenen and Lusardi Germany The authors instrument financial sophistication by using exposure to financial knowledge of others in the same region as an instrument for financial literacy.
Specifically, they use political attitudes at the regional level as they are expected to be linked to financial knowledge. Specifically, the author builds two instruments on the following information: Larger than OLS yes Van Rooij, Lusardi, and Alessie Netherlands The authors use information on the financial education that respondents acquired in school as an instrument for financial sophistication. Specifically, they use information on how much of their education was devoted to economics a lot, some, little, or hardly at all. Larger than OLS yes Van Rooij, Lusardi and Alessie Netherlands The authors use information on the financial education that respondents acquired in school and they use it as an instrument for financial sophistication.
Larger than OLS yes Klapper, Lusardi, Panos Russia — The authors use the number of newspapers in circulation per two-digit region both regional and national and the total number of universities per two-digit region both public and private. Larger than OLS yes. Assessing the Effects of Financial Literacy Programs Another way to assess the effects of financial literacy is to look at the evidence on financial education programs whose aims and objectives are to improve financial knowledge.
Implications and Discussion As we have shown, a relatively parsimonious set of questions measuring basic concepts such as interest compounding, inflation, and risk diversification has now become the starting point for evaluating levels of financial literacy around the world. Conclusions and Remaining Questions In the wake of the global financial crisis, policymakers around the world have expressed deep concern about widespread lack of financial knowledge.
Mitchell OS, Lusardi A, editors. Implications for Retirement Security and the Financial Marketplace. Oxford University Press; The Age of Reason: Financial Decisions over the Lifecycle with Implications for Regulation. Brookings Papers on Economic Activity.
Payday Loans and Credit Cards: New Liquidity and Credit Scoring Puzzles? Financial Literacy and Retirement Planning in Australia. University of New South Wales; Agnew Julie, Szykman Lisa. Annuities, Financial Literacy and Information Overload. Literacy, Trust and k Savings Behavior.
Center for Retirement Research Working Paper — Financial Literacy and Retirement Preparation in the Netherlands. Journal of Pension Economics and Finance. Allgood Sam, Walstad William. Financial Literacy and Credit Card Behaviors: A Cross-Section Analysis by Age. Almenberg Johann, Dreber Anna. Stockholm School of Economics Working Paper. Wealth Accumulation and the Propensity to Plan. Quarterly Journal of Economics.
The Chilean Pension Reform Turns Lessons from the Social Protection Survey. Kay S, Sinha T, editors. Lessons from Pension Reform in the Americas. Stockholding and Financial Literacy in the French Population. Financial Literacy and Planning in France. Remittances and the Problem of Control: University of Michigan; Atkinson Adele, Flore-Anne Messy. Assessing Financial Literacy in 12 Countries: Atkinson Adele, Messy Flore-Anne. Attanasio Orazio, Guglielmo Weber. Journal of Economic Literature. Banks James, Oldfield Zoe. A Theoretical and Empirical Analysis.
Columbia University Press; Financial Literacy and Household Savings in Romania. Financial Literacy, Schooling, and Wealth Accumulation. Journal of Political Economy. Apr 12, Bernheim Douglas. Tax Policy and Economic Growth. American Council for Capital Formation; Do Households Appreciate their Financial Vulnerabilities?
Financial Illiteracy, Education, and Retirement Saving.
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Mitchell OS, Schieber S, editors. Living with Defined Contribution Pensions. University of Pennsylvania Press; Journal of Public Economics. Bernheim Douglas, Garrett Daniel. The Effects of Financial Education in the Workplace: Evidence from a Survey of Households. Bernheim Douglas, Scholz John Karl. Private Saving and Public Policy. Tax Policy and the Economy. Bertrand Marianne, Morse Adair. Default Stickiness among Low-Income Individuals. Center for Retirement Research brief.
The Rise of Financial Fraud. Complexity as a Barrier to Annuitization. Financial Literacy and Retirement Planning in Switzerland. Browning Martin, Lusardi Annamaria. Micro Theories and Micro Facts. World Bank Working Paper. Financial Literacy and Retirement Planning in Germany. Bucher-Koenen Tabea, Ziegelmeyer Michael. Who Lost the Most? Netspar Working Paper N. How Financially Literate are Women?
Some New Perspectives on the Gender Gap. Rand Working Paper N. The Geography of Financial Literacy. Understanding Peer Influence in Financial Decisions: Evidence from a Field Experiment.
Journal of Business and Economic Statistics. Working Paper, University of Michigan. Social Networks and the Decision to Insure.
Editorial Reviews
Measuring the Financial Sophistication of Households. Journal of Economic Perspectives. Unpacking the Causal Chain of Financial Literacy. Chan Sewin, Stevens Anne. Pension Knowledge and Retirement Decision-making. Review of Economics and Statistics. Chen Haiyang, Volpe Ronald P. Chiteji Ngina, Frank Stafford. Asset Accumulation by African American Families.
Cognitive Abilities and Portfolio Choice. Plan Design and k Savings Outcomes. Saving for Retirement on the Path of Least Resistance. Toward a New Agenda. Russell Sage Foundation; Adjusting Retirement Goals and Saving Behavior: The Role of Financial Education. Overcoming the Saving Slump: University of Chicago Press; Effectiveness of Employer-Provided Financial Information: Consumption and Portfolio Choice over the Life-cycle.
Review of Financial Studies. Barriers to Household Risk Management: The Role of Nonprofit Providers. Financial Education and Counseling: Journal of Consumer Affairs. How to Improve Financial Literacy: Scams, Schemes, and Swindles: Getting Credit to High Return Microentrepreneurs: The Result of an Information Intervention.
World Bank Economic Review. Why Do the Elderly Save? The Role of Medical Expenses. Disney Richard, Gathergood John. Working Paper, University of Nottingham. Financial Literacy and Consumer Credit Portfolios. Financial Literacy and Rules of Thumb. Evidence from a Randomized Experiment. Duflo Esther, Emmanuel Saez. Mitchell OS, Utkus S, editors. Pension Design and Structure: New Lessons from Behavioral Finance. Employee Benefit Retirement Institute. Federal Deposit Insurance Corporation; Consumer Sentinel Network Data Book. Financial Capability in the United States.
National Survey - Executive Summary. Does It Make a Difference? Mitchell OS, Smetters K, editors. The Market for Retirement Financial Advice. Old Age and the Decline in Financial Literacy. What explains the gender gap in financial literacy? The Role of Household Decision Making. Building the Case for Financial Education.
Journal of Consumer Research. Review of Economic Studies. The Cost of Active Investing. A Theory of the Consumption Function. Princeton University Press; Does Financial Education Work? Working paper and forthcoming in Proceedings of the National Academy of Sciences. Numerical Ability Predicts Mortgage Default. Schools and Skills in Developing Countries: Education Policies and Socioeconomic Outcomes. Consumption over the Life Cycle. IQ and Stock Market Participation. Hanushek Eric, Woessmann Ludger.
Hastings Justine, Tejeda-Ashton Lydia. Financial Literacy, Information, and Demand Elasticity: Survey and Experimental Evidence from Mexico. Do Financial Education Programs Work?
The Economic Importance of Financial Literacy: Theory and Evidence
Five Steps to Planning Success. The Connection between Knowledge and Behavior. International Journal of Consumer Studies. Hirad Abdighani, Zorn Peter. A Little Knowledge is a Good Thing: Retsinas Nicolas, Belsky Eric. Examining the Unexamined Goal. Aging and Strategic Learning: Defining and Measuring Financial Literacy. Hurst Eric, Mark Aguiar.
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