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Is School-Based Financial Education Effective? Immediate and Long-Lasting Impacts on High School Students

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  • Veronica Frisancho

Abstract

Relying on a large-scale experiment in Peru, this study evaluates the effects of an in-class intervention on financial literacy and financial behaviour. As soon as the programme is over, treated students record significant financial literacy gains that do not hinder their academic performance. The programme also leads to immediate changes in downstream financial behaviour as measured by financial autonomy and financial savviness. Credit bureau records gathered three years later show that early improvements in financial literacy translate into limited, but positive long-lasting changes in financial behaviour. The treatment did not affect students’ credit or repayment behaviour on the extensive margin, but, among those few with outstanding loans, it reduced arrears by 20%.

Suggested Citation

  • Veronica Frisancho, 2023. "Is School-Based Financial Education Effective? Immediate and Long-Lasting Impacts on High School Students," The Economic Journal, Royal Economic Society, vol. 133(651), pages 1147-1180.
    • Handle: RePEc:oup:econjl:v:133:y:2023:i:651:p:1147-1180.
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    File URL: http://hdl.handle.net/10.1093/ej/ueac084
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    References listed on IDEAS

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    1. Kaiser, Tim & Lusardi, Annamaria & Menkhoff, Lukas & Urban, Carly, 2022. "Financial education affects financial knowledge and downstream behaviors," Journal of Financial Economics, Elsevier, vol. 145(2), pages 255-272.
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    Cited by:

    1. Jana S. Hamdan & Tim Kaiser & Lukas Menkhoff & Yuanwei Xu, 2024. "Scaling Financial Education Among Micro-Entrepreneurs: A Randomized Saturation Experiment," CESifo Working Paper Series 11431, CESifo.
    2. Lusardi, Annamaria & Kaiser, Tim, 2024. "Financial literacy and financial education: An overview," CEPR Discussion Papers 19185, C.E.P.R. Discussion Papers.
    3. Kaiser, Tim & Hamdan, Jana & Menkhoff, Lukas & Xu, Yuanwei, 2024. "Scaling up financial education: Evidence from a randomized saturation experiment," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302424, Verein für Socialpolitik / German Economic Association.
    4. Frisancho, Veronica & Herrera, Alejandro & Prina, Silvia, 2023. "Can a mobile-app-based behavioral intervention teach financial skills to youth? Experimental evidence from a financial diaries study," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 595-614.

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