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Promoting financial literacy through a digital platform: A pilot study in Luxembourg

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  • Jian Li
  • Alexis Meyer‐Cirkel

Abstract

This paper investigates the dynamics of individual portfolios in a unique innovation test conducted through a digital financial literacy platform—saalt. We conduct the test at the University of Luxembourg and ask students to construct their own financial portfolios, choosing from among 500+ financial assets; students could adjust their portfolio weights at any time using their registered accounts. Moreover, we stimulate the sharing of portfolio information among students through class presentations and Facebook postings. We find relatively sophisticated diversification strategies and clear momentum‐chasing behaviour for winning stocks; we also discover rapid convergence of individual portfolios to the provided benchmark portfolios. Finally, we find significant peer influences in the test. In general, financial literacy spreads rapidly among students.

Suggested Citation

  • Jian Li & Alexis Meyer‐Cirkel, 2021. "Promoting financial literacy through a digital platform: A pilot study in Luxembourg," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 73-87, January.
    • Handle: RePEc:wly:ijfiec:v:26:y:2021:i:1:p:73-87
    DOI: 10.1002/ijfe.1777
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    2. Azra Zaimovic & Anes Torlakovic & Almira Arnaut-Berilo & Tarik Zaimovic & Lejla Dedovic & Minela Nuhic Meskovic, 2023. "Mapping Financial Literacy: A Systematic Literature Review of Determinants and Recent Trends," Sustainability, MDPI, vol. 15(12), pages 1-30, June.
    3. Xiawei Tan & Zhineng Hu & Yongge Niu & Jiuping Xu, 2024. "Chinese College Student Financial Literacy: Knowledge, Attitude, and Behavior," SAGE Open, , vol. 14(3), pages 21582440241, August.
    4. Chris Brooks & Louis Williams, 2024. "People are people: A comparative analysis of risk attitudes across Europe," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 3545-3566, July.
    5. Tiina Koskelainen & Panu Kalmi & Eusebio Scornavacca & Tero Vartiainen, 2023. "Financial literacy in the digital age—A research agenda," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 507-528, January.

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