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How motivations and costs affect financial knowledge learning? Evidence from a large-scale FinTech experiment in China

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  • Pan, Xuefeng
  • Su, Qin
  • Lei, Haibo

Abstract

Utilizing the launch of mobile wealth management services in China in 2013 as a shock to financial education, we analyze a panel of 16,440 households through a difference-in-differences strategy to examine how learning motivations and costs affect financial knowledge learning. Results show that using mobile services encourages risky asset holdings and enhances the self-discipline to learn, which, coupled with low-cost and personalized learning tools provided through the services, increases financial knowledge. We contribute by utilizing a large-scale experiment beyond the classroom to show the role of learning motivations and costs in financial knowledge learning, therefore help clear the controversy on the effectiveness of financial education.

Suggested Citation

  • Pan, Xuefeng & Su, Qin & Lei, Haibo, 2024. "How motivations and costs affect financial knowledge learning? Evidence from a large-scale FinTech experiment in China," China Economic Review, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:chieco:v:88:y:2024:i:c:s1043951x24001834
    DOI: 10.1016/j.chieco.2024.102294
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    More about this item

    Keywords

    Mobile wealth management; Financial education; Financial knowledge; Motivation; Cost;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • I20 - Health, Education, and Welfare - - Education - - - General
    • O36 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Open Innovation

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