We study the impact of financial education on intertemporal choice in adolescence. The educational program was randomly assigned among high school students, and choices were measured using an incentivized experiment. Students who participated in the program make more time-consistent choices; are more likely to allocate payments to a single payment date, as opposed to spreading payment across two dates; and display increased consistency of choice with the law of demand. These findings suggest that financial education increases the quality of intertemporal decision-making and decreases narrow bracketing.
Lührmann, Melanie, Marta Serra-Garcia, and Joachim Winter.
"The Impact of Financial Education on Adolescents' Intertemporal Choices."
American Economic Journal: Economic Policy,
Household Saving; Personal Finance
Intertemporal Household Choice; Life Cycle Models and Saving
Analysis of Education
Fertility; Family Planning; Child Care; Children; Youth