Learning the Impact of Financial Education When Take-Up Is Low

Financial education programs are increasingly offered by governments, nonprofits, and financial institutions. However, voluntary participation rates in such programs are often very low, posing a severe challenge for randomized experiments attemptin...

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Main Authors:	Lara Ibarra, Gabriel, McKenzie, David, Ruiz Ortega, Claudia
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2017
Subjects:	FINANCIAL LITERACY CREDIT CARD BEHAVIOR
Online Access:	http://documents.worldbank.org/curated/en/366421510084807543/Learning-the-impact-of-financial-education-when-take-up-is-low http://hdl.handle.net/10986/28857

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recordtype	oai_dc
spelling	okr-10986-288572021-06-08T14:42:47Z Learning the Impact of Financial Education When Take-Up Is Low Lara Ibarra, Gabriel McKenzie, David Ruiz Ortega, Claudia FINANCIAL LITERACY CREDIT CARD BEHAVIOR Financial education programs are increasingly offered by governments, nonprofits, and financial institutions. However, voluntary participation rates in such programs are often very low, posing a severe challenge for randomized experiments attempting to measure their impact. This study uses a large experiment on more than 100,000 credit card clients in Mexico. The study shows how the richness of financial data allows combining nonexperimental methods with the experiment to yield credible measures of impact, even with take-up rates below 1 percent. The findings show that a financial education workshop and personalized coaching result in a higher likelihood of paying credit cards on time, and of making more than the minimum payment, but do not reduce spending, resulting in higher profitability for the bank. 2017-11-14T21:59:43Z 2017-11-14T21:59:43Z 2017-11 Working Paper http://documents.worldbank.org/curated/en/366421510084807543/Learning-the-impact-of-financial-education-when-take-up-is-low http://hdl.handle.net/10986/28857 English Policy Research Working Paper;No. 8238 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	FINANCIAL LITERACY CREDIT CARD BEHAVIOR
spellingShingle	FINANCIAL LITERACY CREDIT CARD BEHAVIOR Lara Ibarra, Gabriel McKenzie, David Ruiz Ortega, Claudia Learning the Impact of Financial Education When Take-Up Is Low
relation	Policy Research Working Paper;No. 8238
description	Financial education programs are increasingly offered by governments, nonprofits, and financial institutions. However, voluntary participation rates in such programs are often very low, posing a severe challenge for randomized experiments attempting to measure their impact. This study uses a large experiment on more than 100,000 credit card clients in Mexico. The study shows how the richness of financial data allows combining nonexperimental methods with the experiment to yield credible measures of impact, even with take-up rates below 1 percent. The findings show that a financial education workshop and personalized coaching result in a higher likelihood of paying credit cards on time, and of making more than the minimum payment, but do not reduce spending, resulting in higher profitability for the bank.
format	Working Paper
author	Lara Ibarra, Gabriel McKenzie, David Ruiz Ortega, Claudia
author_facet	Lara Ibarra, Gabriel McKenzie, David Ruiz Ortega, Claudia
author_sort	Lara Ibarra, Gabriel
title	Learning the Impact of Financial Education When Take-Up Is Low
title_short	Learning the Impact of Financial Education When Take-Up Is Low
title_full	Learning the Impact of Financial Education When Take-Up Is Low
title_fullStr	Learning the Impact of Financial Education When Take-Up Is Low
title_full_unstemmed	Learning the Impact of Financial Education When Take-Up Is Low
title_sort	learning the impact of financial education when take-up is low
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/366421510084807543/Learning-the-impact-of-financial-education-when-take-up-is-low http://hdl.handle.net/10986/28857
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Learning the Impact of Financial Education When Take-Up Is Low

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