Does financial education enhance financial preparedness? Evidence from a natural experiment in Singapore. (15th August 2017)

• Record Type: Journal Article
• Authors: BARUA, RASHMI; KOH, BENEDICT; MITCHELL, OLIVIA S.
• Is Part Of: Journal of pension economics & finance. Volume 17:Number 3(2018:Jul.)
• Page Start: 254
• Page End: 277
• Publication Date: 2017-08-15
• Subjects: D14, -- D12, -- I20; Financial literacy, -- natural experiment; Pensions -- Finance -- Periodicals; Social security -- Finance -- Periodicals; 331.25205
• DOI: 10.1017/S1474747217000312
• Languages: English
• ISSNs: 1474-7472

Abstract

Abstract: We evaluate how financial education provided to college students influenced their financial knowledge and planning in a quasi-experimental setting where we control for student motivation to enroll in the course. Using a difference-in-difference strategy, we show that financial education led to an increase in financial knowledge and planning. Specifically, we find that financial education improved students' financial knowledge score by 11%, and financial planning score by 16%. No statistically significant effects are detected for student levels of financial prudence, discipline, or outcomes related to credit card usage.