Education and Saving: The Long-Term Effects of High School Financial Curriculum Mandates

Bernheim, B. Douglas; Garrett, Daniel M.; Maki, Dean M.

doi:10.3386/w6085

Cited by 463 publications

(447 citation statements)

References 21 publications

Supporting

Mentioning

401

Contrasting

Unclassified

Order By: Relevance

“…The previous literature on financial literacy has used alternative instruments for current financial literacy, including parental background (van Rooij et al, 2011), mathematical ability (Jappelli and Padula, 2013) when young, and previous experience of education in economics and finance (Bernheim et al, 2001;Lusardi and Tufano, 2009).…”

Section: Empirical Strategy and Econometric Resultsmentioning

confidence: 99%

Credit counseling: a substitute for consumer financial literacy?

Disney

Gathergood

Weber

2015

Journal of Pension Economics and Finance

View full text Add to dashboard Cite

Is financial literacy a substitute or complement for financial advice? We analyze the decision by consumers to seek financial advice in the form of credit counseling. Credit counseling is an important component of the consumer credit sector for consumers facing debt problems. Our analysis accounts for the endogeneity of an individual's financial situation to financial literacy, and the endogeneity of financial literacy to exposure to credit counseling. Results show counseling substitutes for financial literacy. Individuals with better literacy are 60% less likely to use credit counseling. These results suggest that credit counseling provides a safety net for poor financial literacy.JEL CODES: D10, D12, I22

show abstract

Section: Empirical Strategy and Econometric Resultsmentioning

confidence: 99%

Credit counseling: a substitute for consumer financial literacy?

Disney

Gathergood

Weber

2015

Journal of Pension Economics and Finance

View full text Add to dashboard Cite

show abstract

“…Financial literacy, financial advice, and financial behavior 621 Walstad et al 2010;Heinberg et al 2010;Lührmann et al 2015) as well as financial behavior (e.g., Bernheim et al 2001;Servon and Kaestner 2008;Clark et al 2015;Lührmann et al 2015). The literature usually approaches the topic as follows: A particular financial education intervention is analyzed with respect to its impact on measured financial literacy and-in most assessments-on financial behavior.…”

Section: Selected Financial Education Initiatives and The Costs Of Fimentioning

confidence: 99%

Financial literacy, financial advice, and financial behavior

2017

View full text Add to dashboard Cite

In this survey, we review the voluminous body of literature on the measurement and the determinants of financial literacy. Wherever possible, we supplement existing findings with recent descriptive evidence of German households' financial literacy levels based on the novel Panel on Household Finances dataset, a large-scale survey administered by the Deutsche Bundesbank and representative of the financial situation of households in Germany. Prior research not only documents generally low levels of financial literacy but also finds large heterogeneity in financial literacy across the population, suggesting that economically vulnerable groups are placed at further disadvantage by their lack of financial knowledge. In addition, we assess the literature evaluating financial education as a means to improve financial literacy and financial behavior. Our survey suggests that the evidence with respect to the effectiveness of the programs is rather disappointing. We also review the role of individuals' financial literacy for the use of professional financial advice and assess whether expert intervention can serve as a substitute to financial literacy. We conclude by discussing several directions for future research.

show abstract

“…Indeed, Bernheim et al (2001) use variation in the introduction of consumer education across states in the U.S. to show that these programs had a positive effect on asset accumulation later in life. However, exploiting the same variation in financial education between states, but with more data and a different model specification, Cole and Shastry (2009) find no effect of financial education on financial market participation.…”

Section: Economics At Schoolmentioning

confidence: 99%

Childhood roots of financial literacy

Grohmann

Kouwenberg

Menkhoff

2015

Journal of Economic Psychology

180

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We use the concept of financial socialization and aim to represent three major agents of financial socialization: family, school and work. Thus we compile twelve relevant childhood characteristics in a new survey study and examine their relation to financial literacy, while controlling for established socio-demographic characteristics. We find in a mediation analysis that both family and school positively affect the financial literacy of adults. Moreover, financial literacy and school related variables also have a direct effect on financial behavior. This suggests that family factors and schooling work through complementary channels. Terms of use: Documents in EconStor may Childhood Roots of Financial Literacy 1 IntroductionMany economic decisions require basic knowledge of financial concepts, such as interest rates and inflation. However, many people lack this type of knowledge. The degree of this deficiency has been systematically researched using tests, which collect "financial literacy"scores. There is growing evidence that individuals who possess higher financial literacy have better economic outcomes as it improves financial decision making (e.g., Lusardi and Mitchell, 2014). At the same time, these studies also find that in many countries and many population groups, financial literacy levels are low. In the USA only 30.2% can answer all three of the standard financial literacy questions. This number is not much higher at 44.8% and 53.2% in the Netherlands and Germany respectively (Lusardi and Mitchell, 2014, BucherKoenen and Lusardi, 2011, van Rooij et al., 2011b Several variables have been found to be linked to a person's financial literacy. These factors include socio-demographic variables in the way that better education, higher age or higher incomes are related to higher financial literacy. Many of these factors seem to be at least partially shaped by childhood experiences of today's adults (see Lusardi et al., 2010).Indeed, several studies either look at the impact of some childhood experiences on financial behavior (e.g., Webley and Nyhus, 2013, Bucciol andVeronesi, 2014), or use a specific childhood variable as instrument for financial literacy (Behrman et al., 2010, 2012, van Rooij et al., 2011b. Thus many childhood variables have been considered in relation to financial literacy and financial behavior. What remains less clear is: what are the main channels through which childhood experiences affects financial literacy and financial be...

show abstract

Education and Saving: The Long-Term Effects of High School Financial Curriculum Mandates

Cited by 463 publications

References 21 publications

Credit counseling: a substitute for consumer financial literacy?

Credit counseling: a substitute for consumer financial literacy?

Financial literacy, financial advice, and financial behavior

Childhood roots of financial literacy

Contact Info

Product

Resources

About