Unpacking the Causal Chain of Financial Literacy

Carpena, Fenella; Cole, Shawn; Shapiro, Jeremy; Zia, Bilal

dc.creator	Carpena, Fenella
dc.creator	Cole, Shawn
dc.creator	Shapiro, Jeremy
dc.creator	Zia, Bilal
dc.date	2012-03-19T18:04:39Z
dc.date	2012-03-19T18:04:39Z
dc.date	2011-09-01
dc.date.accessioned	2023-02-17T20:59:23Z
dc.date.available	2023-02-17T20:59:23Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110919154530
dc.identifier	http://hdl.handle.net/10986/3562
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244526
dc.description	A growing body of literature examines the causal impact of financial literacy on individual, household, and firm level outcomes. This paper unpacks the mechanism of impact by focusing on the first link in the causal chain. Specifically, it studies the experimental impact of financial literacy on three distinct dimensions of financial knowledge. The analysis finds that financial literacy does not immediately enable individuals to discern costs and rewards that require high numeracy skills, but it does significantly improve basic awareness of financial choices and attitudes toward financial decisions. Monetary incentives do not induce better performance, suggesting cognitive constraints rather than lack of attention are a key barrier to improving financial knowledge. These results illuminate the strengths and limitations of financial literacy training, which can inform the design and anticipated effects of such programs.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5798
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCESS TO FINANCE
dc.subject	ACCOUNTING
dc.subject	APR
dc.subject	ARITHMETIC
dc.subject	AVERAGE SCORE
dc.subject	BANK ACCOUNT
dc.subject	BASIC FINANCIAL LITERACY
dc.subject	BORROWING
dc.subject	BORROWING MONEY
dc.subject	BUDGETING
dc.subject	BUSINESS EDUCATION
dc.subject	BUSINESS SCHOOL
dc.subject	BUSINESS TRAINING
dc.subject	CALCULATIONS
dc.subject	CASH PAYMENT
dc.subject	CHECKS
dc.subject	CHILD CARE
dc.subject	CLASSROOM
dc.subject	CLASSROOM SESSION
dc.subject	CLASSROOM SESSIONS
dc.subject	CONSUMER
dc.subject	CONSUMER FINANCE
dc.subject	CONSUMER PROTECTION
dc.subject	CONSUMER PROTECTION MEASURES
dc.subject	CONSUMERS
dc.subject	CONTRIBUTION
dc.subject	DEBT
dc.subject	DECISION MAKING
dc.subject	DEMAND FOR SAVINGS
dc.subject	DEPOSIT
dc.subject	DEPOSIT INSURANCE
dc.subject	DEVELOPMENT BANK
dc.subject	DISCOUNT RATE
dc.subject	DISCOUNT RATES
dc.subject	DIVERSIFICATION
dc.subject	EARNINGS
dc.subject	ECONOMIC DECISIONS
dc.subject	ELEMENTARY SCHOOL
dc.subject	EMPLOYEE
dc.subject	EMPLOYEE BENEFITS
dc.subject	ENROLLMENT
dc.subject	ENTREPRENEURS
dc.subject	EXPENDITURE
dc.subject	EXPENDITURES
dc.subject	FARM ENTERPRISE
dc.subject	FINANCIAL ADVICE
dc.subject	FINANCIAL BEHAVIOR
dc.subject	FINANCIAL CHOICES
dc.subject	FINANCIAL CONCEPTS
dc.subject	FINANCIAL CURRICULUM
dc.subject	FINANCIAL DECISION
dc.subject	FINANCIAL DECISIONS
dc.subject	FINANCIAL EDUCATION
dc.subject	FINANCIAL EDUCATION PROGRAM
dc.subject	FINANCIAL EDUCATION PROGRAMS
dc.subject	FINANCIAL INCENTIVE
dc.subject	FINANCIAL INCENTIVES
dc.subject	FINANCIAL INSTRUMENTS
dc.subject	FINANCIAL KNOWLEDGE
dc.subject	FINANCIAL LITERACY
dc.subject	FINANCIAL LITERACY EDUCATION
dc.subject	FINANCIAL LITERACY PROGRAM
dc.subject	FINANCIAL LITERACY PROGRAMS
dc.subject	FINANCIAL LITERACY SURVEYS
dc.subject	FINANCIAL LITERACY TRAINING
dc.subject	FINANCIAL MANAGEMENT
dc.subject	FINANCIAL MATTERS
dc.subject	FINANCIAL OPTIONS
dc.subject	FINANCIAL OUTCOMES
dc.subject	FINANCIAL PRODUCT
dc.subject	FINANCIAL PRODUCTS
dc.subject	FINANCIAL PROVIDERS
dc.subject	FINANCIAL REFORM
dc.subject	FINANCIAL SERVICES
dc.subject	FINANCIAL SOPHISTICATION
dc.subject	FORMAL FINANCIAL SERVICES
dc.subject	GENDER
dc.subject	GENERAL POPULATION
dc.subject	HEALTH EDUCATION
dc.subject	HEALTH INSURANCE
dc.subject	HEALTH TRAINING
dc.subject	HIGH SCHOOL
dc.subject	HOUSEHOLD FINANCE
dc.subject	HOUSEHOLD INCOME
dc.subject	HOUSEHOLDS
dc.subject	HUSBAND
dc.subject	INCOMES
dc.subject	INFLATION
dc.subject	INFORMAL SAVINGS
dc.subject	INFORMED FINANCIAL CHOICES
dc.subject	INHERITANCE
dc.subject	INSTALLMENT
dc.subject	INSURANCE
dc.subject	INSURANCE POLICY
dc.subject	INTEREST RATE
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL BANK
dc.subject	INTERVENTIONS
dc.subject	INVESTING
dc.subject	KNOWLEDGE TEST
dc.subject	LENDER
dc.subject	LIFE INSURANCE
dc.subject	LIFE INSURANCE POLICY
dc.subject	LIMITED FINANCIAL LITERACY
dc.subject	LITERACY LEVELS
dc.subject	LITERACY TEST
dc.subject	LOAN
dc.subject	LOAN PROCESSING
dc.subject	LOAN REPAYMENT
dc.subject	LOW-INCOME
dc.subject	MATH
dc.subject	MATHEMATICS
dc.subject	MEDICAL INSURANCE
dc.subject	MFI
dc.subject	MICRO-ENTREPRENEURS
dc.subject	MICROFINANCE
dc.subject	MONETARY INCENTIVES
dc.subject	MONEY LENDER
dc.subject	MONEYLENDER
dc.subject	MONEYLENDERS
dc.subject	MONTHLY INCOME
dc.subject	MORTGAGE
dc.subject	MORTGAGE CHOICE
dc.subject	NUMERACY
dc.subject	PAYDAY LOAN
dc.subject	PEOPLES
dc.subject	PREGNANT WOMEN
dc.subject	PROBABILITY
dc.subject	PUBLIC ECONOMICS
dc.subject	RENTS
dc.subject	REPAYMENT
dc.subject	RETIREMENT
dc.subject	RETIREMENT PLAN
dc.subject	RETIREMENT READINESS
dc.subject	RETIREMENT SAVINGS
dc.subject	RETIREMENT SAVINGS ACCOUNTS
dc.subject	RISK AVERSION
dc.subject	SAVING MONEY
dc.subject	SAVINGS
dc.subject	SAVINGS ACCOUNT
dc.subject	SAVINGS BEHAVIOR
dc.subject	SAVINGS INSTRUMENTS
dc.subject	SAVINGS OPTION
dc.subject	SAVINGS PRODUCT
dc.subject	SCHOOLING
dc.subject	SECONDARY SCHOOL
dc.subject	SMALL LOAN
dc.subject	SOCIAL PROCESSES
dc.subject	STOCK MUTUAL FUND
dc.subject	SUPPLY OF CREDIT
dc.subject	TEACHING
dc.subject	TRAINING CENTER
dc.subject	TRAINING PROGRAM
dc.subject	URBAN DEVELOPMENT
dc.subject	VALUE OF MONEY
dc.subject	VITAMIN A
dc.title	Unpacking the Causal Chain of Financial Literacy
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region