The Effects of Financial Education on the Financial Knowledge of High School Students

Walstad, William B.; Rebeck, Ken; MacDonald, Richard A.

doi:10.1111/j.1745-6606.2010.01172.x

Cited by 212 publications

(155 citation statements)

References 11 publications

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“…Many studies have found significant gender differences in financial literacy of high school students with males outperforming females (e.g., Varcoe et al 2005;Danes and Haberman 2007;Hanna et al 2010;Butters and Asarta 2011;Butters et al 2012). However, Walstad et al (2010) find no significant gender differences in financial literacy among high school students after participating in an intervention program, which is an encouraging sign that the gender gap can be closed by financial education.…”

Section: Introductionmentioning

confidence: 94%

The Connection between Financial Literacy and Numeracy: A Case Study from India

Jayaraman¹,

Jambunathan²,

Counselman³

2018

Numeracy

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Making financial decisions involves mathematical calculations, both simple and complex. It is a welldocumented fact that financial literacy levels among young people all over the world are quite low and that these low levels contribute to various undesirable outcomes with respect to personal financial well-being and the economy as a whole. This study explores the relationship between financial literacy and numeracy by measuring and modeling the relationship between financial literacy and numeracy levels among high school students (N = 586) in India. The results show a strong relationship between numeracy and financial literacy skills. Low numeracy is associated with a 4.8% reduction in financial literacy, while a high level of numeracy is associated with a 5.6% increase. This relationship is robust and held even when controlling for factors including gender, grade, education stream, level of financial education, language of instruction, parental involvement, parental education, family income, and future education plans. Because there is a strong relationship between numeracy and financial literacy, educational policy should consider increasing numeracy skills as one of the means of improving financial literacy. In particular numeracy as it relates to financial literacy (e.g., interest calculations, chart/data comparisons, and interpretations) should be promoted as part of the curriculum.

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Section: Introductionmentioning

confidence: 94%

The Connection between Financial Literacy and Numeracy: A Case Study from India

Jayaraman¹,

Jambunathan²,

Counselman³

2018

Numeracy

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“…These properties suggest that the samples are comparable once weighted. 27 For model 2, on the contrary, the support -although also common -is more sparse.…”

Section: First Step: Probability Of Participation In the Programmentioning

confidence: 99%

“…Some experiments suggest that short …nancial literacy courses do increase …nancial knowledge. Walstad et al (2010) show that a video on …nancial literacy to high school students increased scores in …nancial knowledge exams substantially. Bruhn et al (2013) conduct a randomized experiment that randomly assigns a 78-hours course across Brazilian states.…”

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confidence: 90%

Finance for All: The Impact of Financial Literacy Training in Compulsory Secondary Education in Spain

2015

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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. www.econstor.eu We estimate the impact on objective measures of financial literacy of a 10-hours financial education program among 15-year old students in compulsory secondary schooling. We use a matched sample of students and teachers in Madrid and two different estimation strategies. Firstly, we use reweighting estimators to compare the performance in a test of financial knowledge of students in treatment and control schools. In another specification, we use school fixed-effect estimates of the effect of the course on change in the score in tests of financial knowledge. The program increased treated students' financial knowledge by between one fourth and one third of a standard deviation. We uncover heterogeneous effects, as students in private schools did not increase their knowledge much, possibly due to a less intensive implementation of the program. Secondly, we analyze the bias that arises because the set of schools that participate in financial literacy programs is not random. Such selection bias is estimated as the pre-program performance in financial PISA of students in applicant schools relative to a nationally representative sample of schools. We then study if estimators that condition on school and parental characteristics mitigate selection bias. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E S

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“…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. One way to elicit potential changes in financial literacy levels involves measuring test-based literacy scores prior to educating subjects about the financial matters of interest and at some point in time after they have received the respective manipulation (e.g., Walstad et al 2010). Alternatively, the financial literacy scores of a treatment and a control group are contrasted after a given educational intervention (e.g., Lührmann et al 2015).…”

Section: Selected Financial Education Initiatives and The Costs Of Fimentioning

confidence: 99%

“…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

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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.

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The Effects of Financial Education on the Financial Knowledge of High School Students

Cited by 212 publications

References 11 publications

The Connection between Financial Literacy and Numeracy: A Case Study from India

The Connection between Financial Literacy and Numeracy: A Case Study from India

Finance for All: The Impact of Financial Literacy Training in Compulsory Secondary Education in Spain

Financial literacy, financial advice, and financial behavior

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