Veronica Frisancho
Abstract: This paper studies the potential of school-based financial education. Relying on a large-scale experiment in Peru, the study identifies significant improvements on financial skills. Novel credit bureau data uncovers long-lasting effects on financial behavior: three years later, treated students are less likely to have negative records due to unpaid/delinquent bills or credit card statements. Teachers accrue financial literacy gains that double those identified among students and they become more likely to save, particularly through formal channels. Two years after the intervention, teachers borrow more from banks and reduce their delinquency rates, while parents transition away from expensive sources of credit.