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Can Personal Financial Management Education Promote Asset Accumulation by the Poor?

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  • John P. Caskey

Abstract

This paper asks whether personal financial management education is an effective mechanism for helping lower-income households accumulate financial assets and improve credit histories. The paper argues that the best existing studies of the effectiveness of financial literacy initiatives suggest that such initiatives might help lower-income households build savings and improve credit records, but the results are only suggestive due to the limitations of the studies. The paper concludes that a high research priority should be to gathering more robust evidence on whether teaching personal financial management skills to lower-income households can be an effective means to improve their financial situations.

Suggested Citation

  • John P. Caskey, 2006. "Can Personal Financial Management Education Promote Asset Accumulation by the Poor?," NFI Policy Briefs 2006-PB-06, Indiana State University, Scott College of Business, Networks Financial Institute.
    • Handle: RePEc:nfi:nfipbs:2006-pb-06
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    File URL: http://www.indstate.edu/business/sites/business.indstate.edu/files/Docs/2006-PB-06_Caskey.pdf
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    References listed on IDEAS

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    1. Bernheim, B. Douglas & Garrett, Daniel M. & Maki, Dean M., 2001. "Education and saving:: The long-term effects of high school financial curriculum mandates," Journal of Public Economics, Elsevier, vol. 80(3), pages 435-465, June.
    2. Bernheim, B. Douglas & Garrett, Daniel M., 2003. "The effects of financial education in the workplace: evidence from a survey of households," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1487-1519, August.
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    Cited by:

    1. Kannyiri Thadious Banyen & Joseph Kofi Nkuah, 2015. "Limited Stock Market Participation in Ghana: A Behavioral Explanation," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(6), pages 286-305, June.
    2. Adriaan Kalwij & Rob Alessie & Milena Dinkova & Gea Schonewille & Anna van der Schors & Minou van der Werf, 2019. "The Effects of Financial Education on Financial Literacy and Savings Behavior: Evidence from a Controlled Field Experiment in Dutch Primary Schools," Journal of Consumer Affairs, Wiley Blackwell, vol. 53(3), pages 699-730, September.
    3. Isaac Koomson & Renato A. Villano & David Hadley, 2023. "The role of financial literacy in households’ asset accumulation process: evidence from Ghana," Review of Economics of the Household, Springer, vol. 21(2), pages 591-614, June.
    4. Tatom, John, 2010. "Financial wellbeing and some problems in assessing its link to financial education," MPRA Paper 26411, University Library of Munich, Germany.
    5. Annamaria Lusardi & Olivia Mitchell, 2006. "Financial Literacy and Retirement Preparedness: Evidence and Implications for Financial Education Programs," Working Papers wp144, University of Michigan, Michigan Retirement Research Center.
    6. Shawn Cole & Anna Paulson & Gauri Kartini Shastry, 2016. "High School Curriculum and Financial Outcomes: The Impact of Mandated Personal Finance and Mathematics Courses," Journal of Human Resources, University of Wisconsin Press, vol. 51(3), pages 656-698.
    7. Dayoub, Mariam & Lasagabaster, Esperanza, 2008. "General trends in competition policy and investment regulation in mandatory defined contribution markets in Latin America," Policy Research Working Paper Series 4720, The World Bank.
    8. Rist, Carl & Humphrey, Liana, 2010. "City and community innovations in CDAs: The role of community-based organizations," Children and Youth Services Review, Elsevier, vol. 32(11), pages 1520-1527, November.
    9. Eurico J. Ferreira & Concetta A. DePaolo & Harry Edward Gallatin, 2011. "Assessing Finance Literacy Teaching at Indiana State University," NFI Working Papers 2011-WP-24, Indiana State University, Scott College of Business, Networks Financial Institute.

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