A review of financial-literacy education programs for children and adolescents

Abstract

In this systematic literature review, we evaluate the effectiveness of financial-literacy education programs and interventions for children and adolescents. Furthermore, the key characteristics of the design of a successful financial-education curriculum are described. The evidence shows that school-based financial-education programs can improve children’s and adolescents’ financial knowledge and attitudes. Studies that assess the intention to practice good behavior and studies based on self-reported behavior also report positive effects. However, studies that assess the effects of financial education on children’s and adolescent’s actual financial behavior are scarce, and show hardly any effect. A promising method to teach financial literacy to children and adolescents in primary and secondary school is “experiential learning.” In college, the focus should be on specific “life events” of students. The findings may be useful for designing an effective school-based financial education program.

Financial education in schools: A meta-analysis of experimental studies

“…Additionally, as our review of the larger literature on financial education included a screening of references from previous meta-analyses (Fernandes et al, 2014;Miller et al, 2015) as well as narrative reviews (Fox et al, 2005;Collins and O'Rourke, 2010;Willis, 2011;Xu and Zia, 2012;Hastings et al, 2013;Blue et al, 2014;Lusardi and Mitchell, 2014) we also screen the references of more recent or more focused narrative reviews of financial education for children and youth in schools (Collins and Odders-White, 2015;Walstad et al, 2017;Amagir et al, 2018). We screen all of the abstracts for relevance and apply our inclusion criteria to the remaining full texts: We include papers (i) reporting on impacts of an educational intervention on financial literacy and/or financial behavior for children and/or youth in schools, (ii) providing a quantitative assessment of intervention impact that allows coding an effect size statistic (g) and its standard error, and (iii) relying on a control group in the estimation of intervention impacts.…”

“…Finally, it appears that those programs that employ design elements resembling 'active learning' (e.g. simulations and experimental learning) may yield higher effect sizes (see Amagir et al, 2018;Kaiser and Menkhoff, 2018). All these are elements which may contribute to increasing effectiveness of financial education.…”

Managing Personal Finance Literacy in the United States: A Case Study

“…Chen and Heath (2012) found that students in elementary and middle school made positive gains when exposed to personal finance lessons [44]. Likewise, Amagir, Groot, Brink, and Wilschut, (2017) found that school-based financial education programs could develop children's and adolescent's financial knowledge and attitudes [45]. There is agreement amongst scholars that financial education should start earlier than high school [37].…”

Money matters

“…This approach can build financial knowledge at the same time as learning about other school subjects. Overall, it is crucial that these foster critical thinking, attitudes and behaviour (Kaiser and Menkhoff, 2018;Amagir et al, 2018).…”

“…Class lectures can be combined with more dynamic activities where learners participate actively with financial content in ways that are engaging and meaningful to them (Amagir et al, 2018;Kasman, Heuberger and Hammond, 2018). This is perhaps obvious for younger children.…”