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on Financial Literacy and Education |
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Issue of 2026–07–20
six papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Lusardi, Annamaria |
| Abstract: | This paper provides an overview of the literature on financial literacy. It covers the initial measurement that created the Big Three questions and measures of personal finance knowledge featuring twenty-eight questions. It shows that levels of financial literacy are very low and have not been improving over time. This is true not just in the US but in countries worldwide. These findings matter because financial literacy is conducive to savvy financial behaviors, from holding precautionary savings to planning for retirement to many other financial decisions. Personal finance courses have been added to high school and college curricula, and the evidence indicates they are useful initiatives to improve financial knowledge and downstream behavior. |
| Keywords: | Financial literacy |
| JEL: | G53 D14 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20924 |
| By: | Lee, Ines; Lleó-Bono, Ana; Rauh, Christopher; Tipoe, Eileen |
| Abstract: | This paper examines whether increasing individuals’ awareness of their own confidence can influence financial behaviour. In a pre-registered online experiment with nearly 3, 000 U.S. adults, we test the effects of a novel metacognitive intervention: personalised feedback on implicit confidence about one’s financial abilities, as measured by a custom Implicit Association Test (IAT), paired with an explanation of the importance of self-confidence in financial abilities. Treated participants show a significant reduction in “don’t know†responses on financial literacy tests and their performance in an incentivised investment task significantly improves: treated participants are less likely to make clearly dominated choices, more likely to select efficient allocations, and choose portfolios closer to the efficient frontier. These effects persist two weeks later in a follow-up survey with obfuscated framing. Heterogeneity analyses show stronger effects for females and for participants who understate their confidence (i.e. whose reported confidence is lower than what their IAT suggests). Keywords: Confidence, Confidence awareness, Personal finance, Financial literacy, Survey experiment. |
| Keywords: | Confidence; Personal finance; Financial literacy; Survey experiment |
| JEL: | D14 D83 D91 G11 G53 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:20771 |
| By: | Karlan, Dean; Lambon-Quayefio, Monica; Manjeer, Utsav; Udry, Christopher |
| Abstract: | Digital finance in agriculture is a nascent technology which could help improve rural financial inclusion. In an experimental evaluation of a digital lending product for farmers in Southern Ghana, credit increases farm investments but has few statistically significant average effects on downstream outcomes. However, logistical challenges generated imperfect compliance with the treatment assignment, with some loans delivered in a timely fashion for agricultural investments and others coming later. We cautiously exploit this unplanned non-experimental implementation heterogeneity and conclude that agriculturally-focused digital credit platforms have potential to tackle persistent rural financial market imperfections, but the timing seems critical and deserves further study. |
| Keywords: | Ghana; Trade |
| JEL: | O12 O16 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:cpr:ceprdp:21177 |
| By: | Sara Loukili (Babnk Al--Maghrib); Patti Fisher (Virginia Tech University) |
| Abstract: | This study examines the relationship between health insurance coverage and household saving behavior in Morocco using nationally representative data from the household consumption and expenditure survey. The analysis reveals that access to health insurance is associated with reduced household savings, particularly among vulnerable groups including low-income families, rural households, and female-headed households. These findings suggest that health insurance may crowd-out precautionary savings, which may be of interest in the context of ongoing social protection and financial inclusion discussions. This research contributes to understanding how expanding health coverage influences household financial decision-making in the context of a developing country such as Morocco and opens many avenues for future research. |
| Keywords: | Household savings; Health insurance; Morocco; Social protection; AMO |
| JEL: | D12 D14 D91 E21 I13 |
| Date: | 2025–10–20 |
| URL: | https://d.repec.org/n?u=RePEc:ris:bkamdt:023111 |
| By: | Jiao Wang; Sambit Bhattacharyya; Stephen Lartey; Chirantan Chatterjee |
| Abstract: | What is the welfare cost of demonetisation in emerging economies? We find Kenya's 2019 demonetisation accelerated mobile money use, improved aggregate crime perception, and imposed income losses. Using a Two-Agent New Keynesian (TANK) model with cash-in-advance constrained households and working capital constrained informal firms, we establish three underlying general equilibrium mechanisms. First, precautionary cash hoarding by informal firms drain household liquidity and is contractionary. Second, cash-digital complementarity in agriculture exposes cash-only households to welfare losses. Third, crime perception of urban unconstrained households increases due to local wage collapse, whereas the same for constrained households decline due to reduced theft exposure. |
| Keywords: | demonetisation, mobile money, TANK, financial inclusion, informal sector, crime |
| JEL: | E26 E41 O11 O17 |
| Date: | 2026–07 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2026-58 |
| By: | Marco Lara; Juan José Li Ng |
| Abstract: | Educational inequalities in Mexico are examined through an analysis of educational lag between 2004 and 2024 and the estimation of a probit model using data from the 2024 ENIGH survey to quantify their main determinants based on individual, household, and contextual characteristics. Educational inequalities in Mexico are examined through an analysis of educational lag between 2004 and 2024 and the estimation of a probit model using data from the 2024 ENIGH survey to quantify their main determinants based on individual, household, and contextual characteristics. |
| Keywords: | Educational attainment, Educational attainment, Inequalities, Inequalities, Education, Education, Educational system, Educational system, Mexico, Mexico, Financial Inclusion, Financial Inclusion, Migration, Migration, Social Sustainability, Social Sustainability, Working Paper, Working Paper |
| JEL: | I24 O15 C25 |
| Date: | 2026–05 |
| URL: | https://d.repec.org/n?u=RePEc:bbv:wpaper:2605 |