Working Paper: CEPR ID: DP9979
Authors: Julian C. Jamison; Dean S. Karlan; Jonathan Zinman
Abstract: Evidence on the effectiveness of financial education and formal savings account access is lacking, particularly for youth. We randomly assign 250 youth clubs to receive either financial education, access to a cheap group account, or both. The financial education treatments increase financial literacy; the account-only treatment does not. Administrative data shows the education plus account treatment increases bank savings relative to account-only. But survey-measured total savings shows roughly equal increases across all treatment arms. Earned income also increases in all treatment arms. We find little evidence that education and account access are strong complements, and some evidence they are substitutes.
Keywords: financial access; financial education; financial literacy; microsaving; savings; youth savings
JEL Codes: D12; D91; O12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| financial education (G53) | bank savings (G21) |
| financial education (G53) | financial literacy (G53) |
| financial education + account access (G53) | bank savings (G21) |
| account access (M41) | bank savings (G21) |
| financial education + account access (G53) | earned income (J31) |
| account access (M41) | earned income (J31) |