The ABCs of Financial Education : Experimental Evidence on Attitudes, Behavior, and Cognitive Biases

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) particip...

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Main Authors:	Carpena, Fenella, Cole, Shawn, Shapiro, Jeremy, Zia, Bilal
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	FINANCIAL EDUCATION IN SCHOOLS DEPOSIT FINANCIAL SERVICES BORROWER DURABLE GOODS CREDIT CARDS ATM CARDS ACCOUNTING CHECKS FINANCIAL DECISIONS DEPOSITS BEHAVIORAL EFFECT BEHAVIORAL ECONOMICS EDUCATION PROGRAM CALCULATION GOAL SETTING FINANCIAL MANAGEMENT INCOME INTEREST LIFE INSURANCE FINANCIAL MATTERS CONTRIBUTION FINANCIAL LITERACY SAVINGS BEHAVIOR SAVINGS ACCOUNTS INTEREST RATE RESOURCE MANAGEMENT SPENDING DISCOUNT RATE PURCHASES FINANCIAL EDUCATION COURSES INFORMATION BANK ACCOUNT COMPUTATIONAL SKILLS HEALTH INSURANCE REPAYMENTS CALCULATIONS FINANCIAL GOAL SETTING WELFARE LOAN FINANCIAL GOALS KNOWLEDGE TEST DIRECT DEPOSIT CLASSROOM SESSIONS FINANCIAL BEHAVIOR FINANCIAL EDUCATION WORKSHOP TRAINING PROGRAMS CREDIT CARD BUDGETING SAVINGS PROGRAM SAVING RENTS BUDGET LITERACY KNOWLEDGE FINANCIAL CONCEPTS SAVINGS MATHEMATICS BANKING PRODUCTS SAVINGS GOAL CONSUMER DEBT TRAINING LOW- INCOME FINANCIAL COUNSELOR RESERVE BANK MONEY TAKE-UP RATES FINANCIAL ADVICE PROBABILITY FINANCES SAVING BEHAVIOR INTEREST RATES SECONDARY SCHOOL MARKETING DEBT FINANCIAL LITERACY TRAINING HOUSEHOLD INCOME FINANCIAL PRODUCTS FINANCIAL HABITS FINANCIAL TRAINING POSITIVE FINANCIAL OUTCOMES LOANS FINANCIAL GOAL FINANCIAL SYSTEM INSURANCE POLICY FINANCE LOAN TERMS SAVINGS ACCOUNT FINANCIAL COUNSELORS FINANCIAL LEARNING COMPUTATIONAL SKILL CONSUMER MONETARY INCENTIVES EXPENSES FINANCIAL EDUCATION PROGRAMS BEST PRACTICES CONSUMER RESEARCH FINANCIAL CRISIS FINANCIAL EDUCATION PROGRAM BANK CREDIT BUDGETS DEMAND FINANCIAL DECISION KNOWLEDGE TESTS WORKSHOP FINANCIAL EDUCATION REPAYMENT CONSUMERS PAMPHLETS LOW-INCOME MONTHLY INCOME CURRICULUM MONETARY INCENTIVE BUSINESS SCHOOL HOUSEHOLD SAVINGS DISCOUNT RATES INSURANCE FINANCIAL OUTCOMES PAYMENT AMOUNT EDUCATION PROGRAMS PURCHASE EDUCATION COLLEGE FRESHMEN MINIMUM PAYMENT ATM TRAINING PROGRAM FINANCIAL ACTIONS DEBT REPAYMENTS HOUSEHOLD BORROWING PERSONAL SAVINGS STUDENTS INVESTMENTS BORROWING DEBT REPAYMENT FINANCIAL KNOWLEDGE FINANCIAL CONSEQUENCES RISK AVERSION INHERITANCE CREDIT CARD PAYMENT HIGH SCHOOL STUDENTS FINANCIAL SECTOR VALUE OF MONEY FINANCIAL EDUCATION COURSE RESEARCH ASSISTANCE FINANCIAL INCENTIVES INDIVIDUAL COUNSELING EMPLOYEE SAVING
Online Access:	http://documents.worldbank.org/curated/en/2015/09/25050693/abcs-financial-education-experimental-evidence-attitudes-behavior-cognitive-biases http://hdl.handle.net/10986/22669

id	okr-10986-22669
recordtype	oai_dc
spelling	okr-10986-226692021-04-23T14:04:10Z The ABCs of Financial Education : Experimental Evidence on Attitudes, Behavior, and Cognitive Biases Carpena, Fenella Cole, Shawn Shapiro, Jeremy Zia, Bilal FINANCIAL EDUCATION IN SCHOOLS DEPOSIT FINANCIAL SERVICES BORROWER DURABLE GOODS CREDIT CARDS ATM CARDS ACCOUNTING CHECKS FINANCIAL DECISIONS DEPOSITS BEHAVIORAL EFFECT BEHAVIORAL ECONOMICS EDUCATION PROGRAM CALCULATION GOAL SETTING FINANCIAL MANAGEMENT INCOME INTEREST LIFE INSURANCE FINANCIAL MATTERS CONTRIBUTION FINANCIAL LITERACY SAVINGS BEHAVIOR SAVINGS ACCOUNTS INTEREST RATE RESOURCE MANAGEMENT SPENDING DISCOUNT RATE PURCHASES FINANCIAL EDUCATION COURSES INFORMATION BANK ACCOUNT COMPUTATIONAL SKILLS HEALTH INSURANCE REPAYMENTS CALCULATIONS FINANCIAL GOAL SETTING WELFARE LOAN FINANCIAL GOALS KNOWLEDGE TEST DIRECT DEPOSIT CLASSROOM SESSIONS FINANCIAL BEHAVIOR FINANCIAL EDUCATION WORKSHOP TRAINING PROGRAMS CREDIT CARD BUDGETING SAVINGS PROGRAM SAVING RENTS BUDGET LITERACY KNOWLEDGE FINANCIAL CONCEPTS SAVINGS MATHEMATICS BANKING PRODUCTS SAVINGS GOAL CONSUMER DEBT TRAINING LOW- INCOME FINANCIAL COUNSELOR RESERVE BANK MONEY TAKE-UP RATES FINANCIAL ADVICE PROBABILITY FINANCES SAVING BEHAVIOR INTEREST RATES SECONDARY SCHOOL MARKETING DEBT FINANCIAL LITERACY TRAINING HOUSEHOLD INCOME FINANCIAL PRODUCTS FINANCIAL HABITS FINANCIAL TRAINING POSITIVE FINANCIAL OUTCOMES LOANS FINANCIAL GOAL FINANCIAL SYSTEM INSURANCE POLICY FINANCE LOAN TERMS SAVINGS ACCOUNT FINANCIAL COUNSELORS FINANCIAL LEARNING COMPUTATIONAL SKILL CONSUMER MONETARY INCENTIVES EXPENSES FINANCIAL EDUCATION PROGRAMS BEST PRACTICES CONSUMER RESEARCH FINANCIAL CRISIS FINANCIAL EDUCATION PROGRAM BANK CREDIT BUDGETS DEMAND FINANCIAL DECISION KNOWLEDGE TESTS WORKSHOP FINANCIAL EDUCATION REPAYMENT CONSUMERS PAMPHLETS LOW-INCOME MONTHLY INCOME CURRICULUM MONETARY INCENTIVE BUSINESS SCHOOL HOUSEHOLD SAVINGS DISCOUNT RATES INSURANCE FINANCIAL OUTCOMES PAYMENT AMOUNT EDUCATION PROGRAMS PURCHASE EDUCATION COLLEGE FRESHMEN MINIMUM PAYMENT ATM TRAINING PROGRAM FINANCIAL ACTIONS DEBT REPAYMENTS HOUSEHOLD BORROWING PERSONAL SAVINGS STUDENTS INVESTMENTS BORROWING DEBT REPAYMENT FINANCIAL KNOWLEDGE FINANCIAL CONSEQUENCES RISK AVERSION INHERITANCE CREDIT CARD PAYMENT HIGH SCHOOL STUDENTS FINANCIAL SECTOR VALUE OF MONEY FINANCIAL EDUCATION COURSE RESEARCH ASSISTANCE FINANCIAL INCENTIVES INDIVIDUAL COUNSELING EMPLOYEE SAVING 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. 2015-09-23T20:41:27Z 2015-09-23T20:41:27Z 2015-09 Working Paper http://documents.worldbank.org/curated/en/2015/09/25050693/abcs-financial-education-experimental-evidence-attitudes-behavior-cognitive-biases http://hdl.handle.net/10986/22669 English en_US Policy Research Working Paper;No. 7413 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper India
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	FINANCIAL EDUCATION IN SCHOOLS DEPOSIT FINANCIAL SERVICES BORROWER DURABLE GOODS CREDIT CARDS ATM CARDS ACCOUNTING CHECKS FINANCIAL DECISIONS DEPOSITS BEHAVIORAL EFFECT BEHAVIORAL ECONOMICS EDUCATION PROGRAM CALCULATION GOAL SETTING FINANCIAL MANAGEMENT INCOME INTEREST LIFE INSURANCE FINANCIAL MATTERS CONTRIBUTION FINANCIAL LITERACY SAVINGS BEHAVIOR SAVINGS ACCOUNTS INTEREST RATE RESOURCE MANAGEMENT SPENDING DISCOUNT RATE PURCHASES FINANCIAL EDUCATION COURSES INFORMATION BANK ACCOUNT COMPUTATIONAL SKILLS HEALTH INSURANCE REPAYMENTS CALCULATIONS FINANCIAL GOAL SETTING WELFARE LOAN FINANCIAL GOALS KNOWLEDGE TEST DIRECT DEPOSIT CLASSROOM SESSIONS FINANCIAL BEHAVIOR FINANCIAL EDUCATION WORKSHOP TRAINING PROGRAMS CREDIT CARD BUDGETING SAVINGS PROGRAM SAVING RENTS BUDGET LITERACY KNOWLEDGE FINANCIAL CONCEPTS SAVINGS MATHEMATICS BANKING PRODUCTS SAVINGS GOAL CONSUMER DEBT TRAINING LOW- INCOME FINANCIAL COUNSELOR RESERVE BANK MONEY TAKE-UP RATES FINANCIAL ADVICE PROBABILITY FINANCES SAVING BEHAVIOR INTEREST RATES SECONDARY SCHOOL MARKETING DEBT FINANCIAL LITERACY TRAINING HOUSEHOLD INCOME FINANCIAL PRODUCTS FINANCIAL HABITS FINANCIAL TRAINING POSITIVE FINANCIAL OUTCOMES LOANS FINANCIAL GOAL FINANCIAL SYSTEM INSURANCE POLICY FINANCE LOAN TERMS SAVINGS ACCOUNT FINANCIAL COUNSELORS FINANCIAL LEARNING COMPUTATIONAL SKILL CONSUMER MONETARY INCENTIVES EXPENSES FINANCIAL EDUCATION PROGRAMS BEST PRACTICES CONSUMER RESEARCH FINANCIAL CRISIS FINANCIAL EDUCATION PROGRAM BANK CREDIT BUDGETS DEMAND FINANCIAL DECISION KNOWLEDGE TESTS WORKSHOP FINANCIAL EDUCATION REPAYMENT CONSUMERS PAMPHLETS LOW-INCOME MONTHLY INCOME CURRICULUM MONETARY INCENTIVE BUSINESS SCHOOL HOUSEHOLD SAVINGS DISCOUNT RATES INSURANCE FINANCIAL OUTCOMES PAYMENT AMOUNT EDUCATION PROGRAMS PURCHASE EDUCATION COLLEGE FRESHMEN MINIMUM PAYMENT ATM TRAINING PROGRAM FINANCIAL ACTIONS DEBT REPAYMENTS HOUSEHOLD BORROWING PERSONAL SAVINGS STUDENTS INVESTMENTS BORROWING DEBT REPAYMENT FINANCIAL KNOWLEDGE FINANCIAL CONSEQUENCES RISK AVERSION INHERITANCE CREDIT CARD PAYMENT HIGH SCHOOL STUDENTS FINANCIAL SECTOR VALUE OF MONEY FINANCIAL EDUCATION COURSE RESEARCH ASSISTANCE FINANCIAL INCENTIVES INDIVIDUAL COUNSELING EMPLOYEE SAVING
spellingShingle	FINANCIAL EDUCATION IN SCHOOLS DEPOSIT FINANCIAL SERVICES BORROWER DURABLE GOODS CREDIT CARDS ATM CARDS ACCOUNTING CHECKS FINANCIAL DECISIONS DEPOSITS BEHAVIORAL EFFECT BEHAVIORAL ECONOMICS EDUCATION PROGRAM CALCULATION GOAL SETTING FINANCIAL MANAGEMENT INCOME INTEREST LIFE INSURANCE FINANCIAL MATTERS CONTRIBUTION FINANCIAL LITERACY SAVINGS BEHAVIOR SAVINGS ACCOUNTS INTEREST RATE RESOURCE MANAGEMENT SPENDING DISCOUNT RATE PURCHASES FINANCIAL EDUCATION COURSES INFORMATION BANK ACCOUNT COMPUTATIONAL SKILLS HEALTH INSURANCE REPAYMENTS CALCULATIONS FINANCIAL GOAL SETTING WELFARE LOAN FINANCIAL GOALS KNOWLEDGE TEST DIRECT DEPOSIT CLASSROOM SESSIONS FINANCIAL BEHAVIOR FINANCIAL EDUCATION WORKSHOP TRAINING PROGRAMS CREDIT CARD BUDGETING SAVINGS PROGRAM SAVING RENTS BUDGET LITERACY KNOWLEDGE FINANCIAL CONCEPTS SAVINGS MATHEMATICS BANKING PRODUCTS SAVINGS GOAL CONSUMER DEBT TRAINING LOW- INCOME FINANCIAL COUNSELOR RESERVE BANK MONEY TAKE-UP RATES FINANCIAL ADVICE PROBABILITY FINANCES SAVING BEHAVIOR INTEREST RATES SECONDARY SCHOOL MARKETING DEBT FINANCIAL LITERACY TRAINING HOUSEHOLD INCOME FINANCIAL PRODUCTS FINANCIAL HABITS FINANCIAL TRAINING POSITIVE FINANCIAL OUTCOMES LOANS FINANCIAL GOAL FINANCIAL SYSTEM INSURANCE POLICY FINANCE LOAN TERMS SAVINGS ACCOUNT FINANCIAL COUNSELORS FINANCIAL LEARNING COMPUTATIONAL SKILL CONSUMER MONETARY INCENTIVES EXPENSES FINANCIAL EDUCATION PROGRAMS BEST PRACTICES CONSUMER RESEARCH FINANCIAL CRISIS FINANCIAL EDUCATION PROGRAM BANK CREDIT BUDGETS DEMAND FINANCIAL DECISION KNOWLEDGE TESTS WORKSHOP FINANCIAL EDUCATION REPAYMENT CONSUMERS PAMPHLETS LOW-INCOME MONTHLY INCOME CURRICULUM MONETARY INCENTIVE BUSINESS SCHOOL HOUSEHOLD SAVINGS DISCOUNT RATES INSURANCE FINANCIAL OUTCOMES PAYMENT AMOUNT EDUCATION PROGRAMS PURCHASE EDUCATION COLLEGE FRESHMEN MINIMUM PAYMENT ATM TRAINING PROGRAM FINANCIAL ACTIONS DEBT REPAYMENTS HOUSEHOLD BORROWING PERSONAL SAVINGS STUDENTS INVESTMENTS BORROWING DEBT REPAYMENT FINANCIAL KNOWLEDGE FINANCIAL CONSEQUENCES RISK AVERSION INHERITANCE CREDIT CARD PAYMENT HIGH SCHOOL STUDENTS FINANCIAL SECTOR VALUE OF MONEY FINANCIAL EDUCATION COURSE RESEARCH ASSISTANCE FINANCIAL INCENTIVES INDIVIDUAL COUNSELING EMPLOYEE SAVING Carpena, Fenella Cole, Shawn Shapiro, Jeremy Zia, Bilal The ABCs of Financial Education : Experimental Evidence on Attitudes, Behavior, and Cognitive Biases
geographic_facet	India
relation	Policy Research Working Paper;No. 7413
description	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.
format	Working Paper
author	Carpena, Fenella Cole, Shawn Shapiro, Jeremy Zia, Bilal
author_facet	Carpena, Fenella Cole, Shawn Shapiro, Jeremy Zia, Bilal
author_sort	Carpena, Fenella
title	The ABCs of Financial Education : Experimental Evidence on Attitudes, Behavior, and Cognitive Biases
title_short	The ABCs of Financial Education : Experimental Evidence on Attitudes, Behavior, and Cognitive Biases
title_full	The ABCs of Financial Education : Experimental Evidence on Attitudes, Behavior, and Cognitive Biases
title_fullStr	The ABCs of Financial Education : Experimental Evidence on Attitudes, Behavior, and Cognitive Biases
title_full_unstemmed	The ABCs of Financial Education : Experimental Evidence on Attitudes, Behavior, and Cognitive Biases
title_sort	abcs of financial education : experimental evidence on attitudes, behavior, and cognitive biases
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/09/25050693/abcs-financial-education-experimental-evidence-attitudes-behavior-cognitive-biases http://hdl.handle.net/10986/22669
_version_	1764451721785901056

The ABCs of Financial Education : Experimental Evidence on Attitudes, Behavior, and Cognitive Biases

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