Using a Life Cycle Model to Evaluate Financial Literacy Program Effectiveness*

Short summary: 

We investigate how financial education programs optimally shape key economic outcomes: wealth accumulation, financial knowledge, and participation in sophisticated assets (e.g. stocks). We then find that the more effective programs provide follow-up in order to sustain the knowledge acquired by employees via the programs; this follow-up can raise the value of savings at retirement by close to 10%. By contrast, one-time education programs produce short-term effects but few long-term ones.

Publication Authors: 
Annamaria Lusardi
Pierre-Carl Michaud
Olivia S. Mitchell
Number: 
15-05
Year: 
Scientific article : 

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