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  5. The Impact of Financial Education on Adolescents' Intertemporal Choices

The Impact of Financial Education on Adolescents' Intertemporal Choices

  • Melanie Lührmann
  • Marta Serra-Garcia
  • Joachim Winter
American Economic Journal: Economic Policy
vol. 10, no. 3, August 2018
(pp. 309-32)
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Abstract

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.

Citation

Lührmann, Melanie, Marta Serra-Garcia, and Joachim Winter. 2018. "The Impact of Financial Education on Adolescents' Intertemporal Choices." American Economic Journal: Economic Policy, 10 (3): 309-32. DOI: 10.1257/pol.20170012

Additional Materials

JEL Classification

  • C93 Field Experiments
  • D14 Household Saving; Personal Finance
  • D15 Intertemporal Household Choice; Life Cycle Models and Saving
  • I21 Analysis of Education
  • J13 Fertility; Family Planning; Child Care; Children; Youth
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