The effects of financial literacy training: Evidence from a field experiment with German high-school children

Lührmann, Melanie and Serra-Garcia, Marta and Winter, Joachim (2012): The effects of financial literacy training: Evidence from a field experiment with German high-school children. Discussion Papers in Economics 2012-24

Abstract

We report the results of a field experiment evaluating the impact of financial literacy training on teenagers of between 14 and 16 years of age in lower stream high schools in Germany. Before the training, teenagers in treatment and control groups show little interest in financial matters and low levels of self-assessed knowledge. After the training, teenagers exhibit a significant increase in both their interest in financial matters and their self-assessed knowledge. Their objective knowledge also increases in some dimensions, e.g. their ability to assess risks correctly. We find that after the training, the prevalence of impulse purchases decreases, so teenagers can be steered towards being more sovereign consumers. We also find an increase in intended savings in a hypothetical task. Finally, our data show that already at these young ages, there are strong gender differences in all dimensions of financial matters: financial knowledge, motivation, and behavior.

• Item Type: Paper (Discussion Paper)
• Keywords: financial literacy, financial knowledge, field experiment
• Collections: Economics; Economics > Discussion Papers in Economics
• Subjects: 300 Social sciences > 300 Social sciences, sociology and anthropology; 300 Social sciences > 330 Economics
• JEL Classification: C93, D14
• Language: English

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