Working Paper: NBER ID: w20135
Authors: Julian C. Jamison; Dean 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 education; savings accounts; Ugandan youth; randomized controlled trial
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) | Financial literacy (G53) |
| Financial education + Access to savings accounts (G53) | Bank savings (G21) |
| Access to savings accounts (G21) | Bank savings (G21) |
| All treatment arms (C90) | Earned income (J31) |
| Financial education + Access to savings accounts (G53) | Total savings (E21) |
| Financial education (G53) | Total savings (E21) |
| Access to savings accounts (G21) | Total savings (E21) |