The ABCs of financial education: experimental evidence on attitudes, behavior, and cognitive biases

Fenella Carpena, Shawn A. Cole, Jeremy Shapiro and Bilal Zia

No 7413, Policy Research Working Paper Series from The World Bank

Abstract: This paper uses a large scale field experiment in India to study attitudinal, behavioral, and cognitive constraints that stymie the link between financial education and financial outcomes. The study complements financial education with (i) participant classroom motivation with pay for performance on a knowledge test, (ii) intensity of treatment with personalized financial counseling, and (iii) behavioral nudges with financial goal setting. The analysis finds no impact of pay for performance but significant effects of both counseling and goal setting on real financial outcomes. These results identify important complements to financial education that can bridge the gap between financial knowledge and financial behavior change.

Keywords: Access to Finance; Curriculum&Instruction; Financial Literacy; Effective Schools and Teachers; Access&Equity in Basic Education (search for similar items in EconPapers)
Date: 2015-09-15
New Economics Papers: this item is included in nep-cbe, nep-edu, nep-exp and nep-hrm
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Citations: View citations in EconPapers (8)

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Journal Article: The ABCs of Financial Education: Experimental Evidence on Attitudes, Behavior, and Cognitive Biases (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:7413

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