EconPapers    
Economics at your fingertips  
 

Financial literacy, risk and time preferences - Results from a randomized educational intervention

Matthias Sutter (), Michael Weyland (), Anna Untertrifaller () and Manuel Froitzheim ()

Working Papers from Faculty of Economics and Statistics, University of Innsbruck

Abstract: We present the results of a randomized intervention in schools to study how teaching financial literacy affects risk and time preferences of adolescents. Following ore than 600 adolescents, aged 16 years on average, over about half a year, we provide causal evidence that teaching financial literacy has significant short-term and longer-term effects on risk and time preferences. Compared to two different control treatments, we find that teaching financial literacy makes subjects more patient, less present-biased, and slightly more risk-averse. Our finding that the intervention changes economic preferences contributes to a better understanding of why financial literacy has been shown to correlate systematically with financial behavior in previous studies. We argue that the link between financial literacy and field behavior works through economic preferences. In our study, the latter are also related in a meaningful way to students' field behavior.

Keywords: Financial literacy; randomized intervention; risk preferences; time preferences; field experiment (search for similar items in EconPapers)
JEL-codes: C93 D14 I21 (search for similar items in EconPapers)
Pages: 101 pages
Date: 2020
New Economics Papers: this item is included in nep-edu, nep-exp, nep-pay and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www2.uibk.ac.at/downloads/c4041030/wpaper/2020-27.pdf (application/pdf)

Related works:
Working Paper: Financial literacy, risk and time preferences – Results from a randomized educational intervention (2020) Downloads
Working Paper: Financial Literacy, Risk and Time Preferences - Results from a Randomized Educational Intervention (2020) Downloads
Working Paper: Financial Literacy, Risk and Time Preferences: Results from a Randomized Educational Intervention (2020) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inn:wpaper:2020-27

Access Statistics for this paper

More papers in Working Papers from Faculty of Economics and Statistics, University of Innsbruck Contact information at EDIRC.
Bibliographic data for series maintained by Janette Walde ().

 
Page updated 2020-09-19
Handle: RePEc:inn:wpaper:2020-27