Assessing Financial Literacy Among the Young

Luis Oberrauch, Tim Kaiser, and Annamaria Lusardi Abstract: Since 2012, the Programme for International Student Assessment (PISA), an initiative of the Organisation for Economic Co-operation and Development (OECD), conducted triennial tests to evaluate the financial literacy of 15-year-old students in various countries. These data provide an opportunity to study the determinants of financial literacy among …

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Financial Literacy and Financial Education: An Overview

Tim Kaiser and Annamaria Lusardi Abstract: This article provides a concise narrative overview of the rapidly growing empirical literature on financial literacy and financial education. We first discuss stylized facts on the demographic correlates of financial literacy. We next cover the evidence on the effects of financial literacy on financial behaviors and outcomes. Finally, we …

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Selection into Financial Education and Effects on Portfolio Choice

Irina Gemmo, Pierre-Carl Michaud, and Olivia S. Mitchell Abstract: To examine how financial education affects financial outcomes, one must evaluate whether and how sample selection may bias inferences regarding program impacts. Our incentivized experiment reveals how such selection influences estimated financial education effects. The more financially literate and those expecting higher gains pay more to …

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Could Financial Education Be a Universal Social Policy? A Simulation of Potential Influences on Inequality Levels

Giovanni Gallo and Alessia Sconti Abstract: Financial vulnerability is a concern of policymakers around the world. The Covid-19 pandemic elevated the financial fragility of households globally, particularly among the most vulnerable populations, and rising inflation is adding a new strain. This paper looks at Italy in examining how a marginal change in a household’s financial …

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Effectiveness of Employer-Provided Financial Education Programs

Robert L. Clark Abstract: While there have been numerous studies illustrating the rather low level of financial knowledge of Americans, there have been only a few efforts to examine the effectiveness of employer-provided programs in enhancing financial literacy and the ability of these programs to modify worker retirement and saving decisions. In this paper, I …

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The Fear of Missing Out on Cryptocurrency and Stock Investments: Direct and Indirect Effects of Financial Literacy and Risk Tolerance

Paul Gerrans, Sherin Babu Abisekaraj, and Zhangxin (Frank) Liu Abstract: The `Fear of Missing Out’ or FoMO has become an accepted motivator of behaviours extending from the purchase of limited-edition sneaker brands to social media use and cryptocurrency investment. As a motivator of individual financial behaviours, such as cryptocurrency and stock investment, it is unclear …

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Reverse Mortgages and Financial Literacy

Ismael Choinière Crèvecoeur and Pierre-Carl Michaud Abstract: Few retirees use reverse mortgages. In this paper, we investigate how financial literacy and prior knowledge of the product influence take-up by conducting a stated-preference experiment. We exogenously manipulate characteristics of reverse mortgages to tease out how consumers value them and investigate differences by financial literacy and prior …

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Financial Education: From Better Personal Finance to Improved Citizenship

Elsa Fornero and Anna Lo Prete Abstract: Financial education is a crucial determinant of informed decisions, in both the private and social spheres. From a life cycle perspective, it improves personal finance. From youth to retirement, basic economic and financial competences, including specific pension literacy, help to plan for the future and to make better …

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Spillover Effects of Financial Education: The Impact of School-Based Programs on Parents

Veronica Frisancho Abstract: This paper studies whether school-based financial education has spillover effects from children to parents. Leveraging data from a large-scale experiment with public high schools in Peru and credit bureau records on the parents of the youth targeted, this study measures the impact of providing personal finance lessons during secondary school on parental …

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Financial Literacy, Human Capital and Long-Run Economic Growth

Alberto Bucci, Riccardo Calcagno, Simone Marsiglio, and Tiago Neves Sequeira Abstract: We extend a two-sector endogenous growth model based on human capital accumulation along two different directions. First, by postulating that individuals may invest time-resources not only in the accumulation of human capital (general knowledge) but also in the accumulation of financial literacy (specific financial knowledge). …

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