Financial Literacy, Financial Education and Downstream Financial Behaviors (full paper and web appendix)

ArXiv ID: ssrn-2333898 “View on arXiv”

Authors: Unknown

Abstract

Policy makers have embraced financial education as a necessary antidote to the increasing complexity of consumers’ financial decisions over the last generation.

Keywords: Financial Education, Consumer Finance, Behavioral Economics, Policy Intervention, Financial Literacy, Personal Finance / Policy

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 8.5/10
• Quadrant: Street Traders
• Why: The paper uses advanced statistical methods like meta-analysis and instrumental variables, but the mathematics is not dense or highly theoretical; it is data and implementation-heavy, focusing on large-scale empirical studies and backtesting policies.

  flowchart TD
    A["Research Goal: Does financial education<br>improve financial behaviors?"]
    A --> B["Methodology: Meta-Analysis &<br>Randomized Controlled Trials RCTs"]
    B --> C["Input: 20,000+ Obs from<br>198 Studies across 42 Countries"]
    C --> D["Computation: Impact Estimation<br>of Education vs. Control Groups"]
    D --> E{"Analysis by Outcome Category"}
    E --> F["Short-term: Knowledge<br>(Large Positive Effect)"]
    E --> G["Medium-term: Financial Outcomes<br>(e.g., Loan Terms, Small Effect)"]
    E --> H["Long-term: Asset Accumulation<br>(e.g., Retirement, Mixed/Null Effect)"]