Perspectives on evaluation in financial education: Landscape, issues, and studies

Walstad, William B.; Urban, Carly; Asarta, Carlos J.; Breitbach, Elizabeth; Bosshardt, William; Heath, Julie A.; O’Neill, Barbara; Wagner, Jamie; Xiao, Jing Jian

doi:10.1080/00220485.2017.1285738

Cited by 67 publications

(70 citation statements)

References 46 publications

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“…Last, Walstad et al () reviewed studies of evaluations on various financial education programmes in the United States and concluded that the effectiveness of financial education is positive. A national survey reported that while 17 states required a high school personal finance course, only five states required a semester course that focused on the personal finance and students in these states are more likely to display desirable financial behaviours (Council for Economic Education, ).…”

Section: Resultsmentioning

confidence: 99%

Impact of family income in early life on the financial independence of young adults: Evidence from a matched panel data

Cui

Xiao

et al. 2019

Int J Consumer Studies

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This study investigates whether the family income level in early life influences the financial independence of young adults. Using a large nationally representative U.S. sample (constructed based on the data from the 1999 to 2015 Panel Study of Income Dynamics, its 2009 to 2015 Transition to Adulthood Supplement and its 1997 to 2007 Child Development Supplement), we find that the relationship between one's family income level during adolescence and the financial independence of young adults follows an inverted U‐shape. We find that the college graduation status plays an important role in determining the financial independence of young adults. Once young adults graduate from the college, their financial independence is no longer influenced by their family income level during adolescence. The results show similar patterns after controlling for cognitive and noncognitive abilities and financial behaviours of young adults when they were children or teenagers. The findings of this study have significant implications for policymakers and educators.

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Section: Resultsmentioning

confidence: 99%

Impact of family income in early life on the financial independence of young adults: Evidence from a matched panel data

Cui

Xiao

et al. 2019

Int J Consumer Studies

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“…A much-cited meta-analysis of 90 effect sizes between financial education and financial behaviors such as savings, planning for retirement, cash flow management, and so on, reported significant but very small effects r 2 = .001 (Fernandes, Lynch, and Netemeyer 2014). Yet, others argue that each intervention varies widely depending on target group and goals and that impacts need to be evaluated based on economic circumstances of the study participant (Lusardi and Mitchell 2014;Walstad et al 2017), and that financial education has potential (Collins and O'Rourke 2010). One study from a small sample showed that financial education had across-the-board significant improvements on financial knowledge among high school students (Walstad, Rebeck, and MacDonald 2010).…”

Section: Financial Educationmentioning

confidence: 99%

Exploring the Relationship between Financial Education and Financial Knowledge and Efficacy: Evidence from the Canadian Financial Capability Survey

Rothwell¹,

Wu²

2019

Journal of Consumer Affairs

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Researchers and policymakers in many countries are interested in better understanding the relationship between financial education participation and cognitive outcomes such as financial knowledge and self‐efficacy. We used two waves of the nationally representative Canadian Financial Capability Survey along with propensity score matching (PSM) to compare outcomes between persons who had taken a financial education course to those who had not. After matching and adjusting for demographic and economic factors, financial education participants exhibited significantly higher objective and subjective financial knowledge and financial self‐efficacy scores. Post‐estimation analysis showed that higher overall objective financial knowledge scores were at least partially driven by higher scores of men. Financial education participants had higher subjective knowledge and financial self‐efficacy scores for both genders and across age. Future research into financial education ought to consider cognitive dimensions in addition to behavioral and financial outcomes.

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“…While the general consensus is that financial education should have a positive effect, the findings from prior studies have been mixed, including those aimed at youth, such that it has been difficult to assess their cost-effectiveness (Brown et al 2016;Hastings, Madrian, and Skimmyhorn 2013;Lyons et al 2006;McCormick 2009;Walstad et al 2017). For example, some studies have demonstrated that financial education in high school has a positive effect on financial knowledge and behavior among youth as well as improved outcomes later in life (Bernheim, Garrett, and Maki 2001;Danes 2005;Varcoe et al 2005).…”

Section: Relevant Literaturementioning

confidence: 99%

“…However, prior studies evaluating the impact of financial education programs on outcomes have not produced consistent results, particularly for programs aimed at youth, making their cost-effectiveness uncertain at best (Brown et al 2016;Cole, Paulson, and Shastry 2016;Hastings, Madrian, and Skimmyhorn 2013;Lyons et al 2006;McCormick 2009;Walstad et al 2017;Willis 2011). Approaches that focus on developing financial capability among youth by combining financial literacy with access to financial products appear to hold greater promise (Johnson and Sherraden 2007;Loke, Choi, and Libby 2015).…”

mentioning

confidence: 99%

Assessing the Effectiveness of Financial Coaching: Evidence from the Boston Youth Credit Building Initiative

Modestino¹,

Sederberg²,

Tuller³

2019

Journal of Consumer Affairs

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Since the 2008 financial crisis, there has been renewed interest in providing financial education to improve consumer financial decision making, especially among youth. Using a randomized controlled trial, we estimate the causal effects of a financial coaching program for young adults from linked individual‐level administrative credit reports and self‐reported survey responses. Within six months, the treatment group was 10 percentage points more likely to have access to credit compared to the control group. After 18 months, the average credit score was 26 points higher for the treatment group versus the control group, raising the likelihood of achieving a “good” credit rating by 8 percentage points. Consequently, the treatment group was less likely to rely on alternative financial services and paid lower interest rates on car loans. These impacts are largely driven by improvements in self‐efficacy, offering important insights for policymakers seeking to incorporate financial education into youth workforce development programs.

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Perspectives on evaluation in financial education: Landscape, issues, and studies

Cited by 67 publications

References 46 publications

Impact of family income in early life on the financial independence of young adults: Evidence from a matched panel data

Impact of family income in early life on the financial independence of young adults: Evidence from a matched panel data

Exploring the Relationship between Financial Education and Financial Knowledge and Efficacy: Evidence from the Canadian Financial Capability Survey

Assessing the Effectiveness of Financial Coaching: Evidence from the Boston Youth Credit Building Initiative

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