IDEAS home Printed from https://ideas.repec.org/p/nfi/nfipbs/2006-pb-06.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.indstate.edu/business/sites/business.indstate.edu/files/Docs/2006-PB-06_Caskey.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Margaret Miller & Julia Reichelstein & Christian Salas & Bilal Zia, 2015. "Can You Help Someone Become Financially Capable? A Meta-Analysis of the Literature," The World Bank Research Observer, World Bank, vol. 30(2), pages 220-246.
    2. Goda, Gopi Shah & Levy, Matthew R. & Flaherty Manchester, Colleen & Sojourner, Aaron & Tasoff, Joshua & Xiao, Jiusi, 2023. "Are retirement planning tools substitutes or complements to financial capability?," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 561-573.
    3. Lusardi, Annamaria & Mitchell, Olivia S., 2007. "Financial literacy and retirement planning: New evidence from the Rand American Life Panel," CFS Working Paper Series 2007/33, Center for Financial Studies (CFS).
    4. Sandro Ambuehl & B. Douglas Bernheim & Annamaria Lusardi, 2022. "Evaluating Deliberative Competence: A Simple Method with an Application to Financial Choice," American Economic Review, American Economic Association, vol. 112(11), pages 3584-3626, November.
    5. Gary V. Engelhardt & Anil Kumar, 2007. "Employer Matching and 401(k) Saving: Evidence from the Health and Retirement Study," NBER Chapters, in: Public Policy and Retirement, Trans-Atlantic Public Economics Seminar (TAPES), pages 1920-1943, National Bureau of Economic Research, Inc.
    6. van Rooij, Maarten C.J. & Lusardi, Annamaria & Alessie, Rob J.M., 2011. "Financial literacy and retirement planning in the Netherlands," Journal of Economic Psychology, Elsevier, vol. 32(4), pages 593-608, August.
    7. Lusardi, Annamaria & Michaud, Pierre-Carl & Mitchell, Olivia S., 2020. "Assessing the impact of financial education programs: A quantitative model," Economics of Education Review, Elsevier, vol. 78(C).
    8. repec:use:tkiwps:2323 is not listed on IDEAS
    9. Lukas Menkhoff & Jannis Westermann, 2024. "Determinants of Stock Market Participation," Discussion Papers of DIW Berlin 2078, DIW Berlin, German Institute for Economic Research.
    10. Meta Brown & John Grigsby & Wilbert van der Klaauw & Jaya Wen & Basit Zafar, 2016. "Financial Education and the Debt Behavior of the Young," The Review of Financial Studies, Society for Financial Studies, vol. 29(9), pages 2490-2522.
    11. Lusardi, Annamaria & Samek, Anya & Kapteyn, Arie & Glinert, Lewis & Hung, Angela & Heinberg, Aileen, 2017. "Visual tools and narratives: new ways to improve financial literacy," Journal of Pension Economics and Finance, Cambridge University Press, vol. 16(3), pages 297-323, July.
    12. John A. Tatom, 2010. "Financial Wellbeing and Some Problems in Assessing Its Link to Financial Education," NFI Working Papers 2010-WP-03, Indiana State University, Scott College of Business, Networks Financial Institute.
    13. 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.
    14. Maarten C.J. van Rooij & Annamaria Lusardi & Rob J.M. Alessie, 2012. "Financial Literacy, Retirement Planning and Household Wealth," Economic Journal, Royal Economic Society, vol. 122(560), pages 449-478, May.
    15. Terri Friedline & Stacia West, 2016. "Financial Education is not Enough: Millennials May Need Financial Capability to Demonstrate Healthier Financial Behaviors," Journal of Family and Economic Issues, Springer, vol. 37(4), pages 649-671, December.
    16. George Apostolakis & Gert Dijk, 2018. "Retirement concerns and planning of cooperative members: a study in the Dutch healthcare sector," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 53(4), pages 209-224, October.
    17. Bucciol, Alessandro & Veronesi, Marcella, 2014. "Teaching children to save: What is the best strategy for lifetime savings?," Journal of Economic Psychology, Elsevier, vol. 45(C), pages 1-17.
    18. Davamalar Arivalagan & Pavithran Ilangko, 2024. "Investigating Financial Literacy Knowledge, Attitude, and Practice of Malaysian Secondary School Students," International Business Research, Canadian Center of Science and Education, vol. 17(1), pages 1-19, February.
    19. Paola Bongini & Paolo Trivellato & Mariangela Zenga, 2015. "Business Students and Financial Literacy: When Will the Gender Gap Fade away?," Journal of Financial Management, Markets and Institutions, Società editrice il Mulino, issue 1, pages 13-30, June.
    20. Mustabsar Awais & M. Fahad Laber & Nilofer Rasheed & Aisha Khursheed, 2016. "Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions: Empirical Evidence from Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 73-79.
    21. Sholevar, Maryam & Harris, Laurence, 2019. "Mind the gap: A discussion paper on Financial Literacy, Financial behaviour and Financial Education : Is there any Gender Gap?," OSF Preprints b7zd6, Center for Open Science.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nfi:nfipbs:2006-pb-06. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ray Thomas (email available below). General contact details of provider: https://edirc.repec.org/data/nfinsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.