The Case for Financial Literacy Education

May 16, 2023 | npr.org

Credit: Image by NikolayF.com from Pixabay

Financial literacy education does not have a great reputation. It’s a huge industry, spawning all sorts of books, web channels, TV shows and even social media accounts — but past studies have concluded that, for the most part, financial literacy education is kind of a waste of time.

For example, a much cited paper published in the journal Management Science found that almost everyone who took a financial literacy class forgot what they learned within 20 months, and that financial literacy has a “negligible” impact on future behavior. A trio of academics at Harvard Business School, Wellesley College and the Federal Reserve Bank of Chicago, produced a working paper that showed that mandated Finlit classes given to high schoolers made no difference to the students’ ability to handle their finances.

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