Abstract
Policymakers are increasingly focused on improving citizens’ financial well-being through better financial literacy. Traditional strategies emphasize financial education to boost financial knowledge, while recently behavioural-based education focus on issues like behavioural biases and emotional influences. This paper suggests a randomized controlled-study to assess if financial education including lessons on heuristics (availability and gambler's fallacy) enhances financial literacy. Results showed that traditional financial education significantly improved financial literacy, while adding heuristics had effect close to zero. This suggests expanding curricula to address rules-of-thumb may not necessarily improve financial literacy, challenging the notion that more complex financial education is always beneficial.
Original language | English |
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Article number | 105854 |
Journal | Finance Research Letters |
Volume | 67 |
DOIs | |
Publication status | Published - 1 Sept 2024 |
Keywords
- Availability heuristics
- Behavioural finance
- Decision support systems
- Financial education
- Financial literacy
- Gambler's fallacy