Publication:
Unpacking the Causal Chain of Financial Literacy

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dc.contributor.authorCarpena, Fenella
dc.contributor.authorCole, Shawn
dc.contributor.authorShapiro, Jeremy
dc.contributor.authorZia, Bilal
dc.date.accessioned2012-03-19T18:04:39Z
dc.date.available2012-03-19T18:04:39Z
dc.date.issued2011-09-01
dc.description.abstractA 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.en
dc.identifierhttp://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.doi10.1596/1813-9450-5798
dc.identifier.urihttps://hdl.handle.net/10986/3562
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5798
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO FINANCE
dc.subjectACCOUNTING
dc.subjectAPR
dc.subjectARITHMETIC
dc.subjectAVERAGE SCORE
dc.subjectBANK ACCOUNT
dc.subjectBASIC FINANCIAL LITERACY
dc.subjectBORROWING
dc.subjectBORROWING MONEY
dc.subjectBUDGETING
dc.subjectBUSINESS EDUCATION
dc.subjectBUSINESS SCHOOL
dc.subjectBUSINESS TRAINING
dc.subjectCALCULATIONS
dc.subjectCASH PAYMENT
dc.subjectCHECKS
dc.subjectCHILD CARE
dc.subjectCLASSROOM
dc.subjectCLASSROOM SESSION
dc.subjectCLASSROOM SESSIONS
dc.subjectCONSUMER
dc.subjectCONSUMER FINANCE
dc.subjectCONSUMER PROTECTION
dc.subjectCONSUMER PROTECTION MEASURES
dc.subjectCONSUMERS
dc.subjectCONTRIBUTION
dc.subjectDEBT
dc.subjectDECISION MAKING
dc.subjectDEMAND FOR SAVINGS
dc.subjectDEPOSIT
dc.subjectDEPOSIT INSURANCE
dc.subjectDEVELOPMENT BANK
dc.subjectDISCOUNT RATE
dc.subjectDISCOUNT RATES
dc.subjectDIVERSIFICATION
dc.subjectEARNINGS
dc.subjectECONOMIC DECISIONS
dc.subjectELEMENTARY SCHOOL
dc.subjectEMPLOYEE
dc.subjectEMPLOYEE BENEFITS
dc.subjectENROLLMENT
dc.subjectENTREPRENEURS
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectFARM ENTERPRISE
dc.subjectFINANCIAL ADVICE
dc.subjectFINANCIAL BEHAVIOR
dc.subjectFINANCIAL CHOICES
dc.subjectFINANCIAL CONCEPTS
dc.subjectFINANCIAL CURRICULUM
dc.subjectFINANCIAL DECISION
dc.subjectFINANCIAL DECISIONS
dc.subjectFINANCIAL EDUCATION
dc.subjectFINANCIAL EDUCATION PROGRAM
dc.subjectFINANCIAL EDUCATION PROGRAMS
dc.subjectFINANCIAL INCENTIVE
dc.subjectFINANCIAL INCENTIVES
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL KNOWLEDGE
dc.subjectFINANCIAL LITERACY
dc.subjectFINANCIAL LITERACY EDUCATION
dc.subjectFINANCIAL LITERACY PROGRAM
dc.subjectFINANCIAL LITERACY PROGRAMS
dc.subjectFINANCIAL LITERACY SURVEYS
dc.subjectFINANCIAL LITERACY TRAINING
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL MATTERS
dc.subjectFINANCIAL OPTIONS
dc.subjectFINANCIAL OUTCOMES
dc.subjectFINANCIAL PRODUCT
dc.subjectFINANCIAL PRODUCTS
dc.subjectFINANCIAL PROVIDERS
dc.subjectFINANCIAL REFORM
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL SOPHISTICATION
dc.subjectFORMAL FINANCIAL SERVICES
dc.subjectGENDER
dc.subjectGENERAL POPULATION
dc.subjectHEALTH EDUCATION
dc.subjectHEALTH INSURANCE
dc.subjectHEALTH TRAINING
dc.subjectHIGH SCHOOL
dc.subjectHOUSEHOLD FINANCE
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLDS
dc.subjectHUSBAND
dc.subjectINCOMES
dc.subjectINFLATION
dc.subjectINFORMAL SAVINGS
dc.subjectINFORMED FINANCIAL CHOICES
dc.subjectINHERITANCE
dc.subjectINSTALLMENT
dc.subjectINSURANCE
dc.subjectINSURANCE POLICY
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERVENTIONS
dc.subjectINVESTING
dc.subjectKNOWLEDGE TEST
dc.subjectLENDER
dc.subjectLIFE INSURANCE
dc.subjectLIFE INSURANCE POLICY
dc.subjectLIMITED FINANCIAL LITERACY
dc.subjectLITERACY LEVELS
dc.subjectLITERACY TEST
dc.subjectLOAN
dc.subjectLOAN PROCESSING
dc.subjectLOAN REPAYMENT
dc.subjectLOW-INCOME
dc.subjectMATH
dc.subjectMATHEMATICS
dc.subjectMEDICAL INSURANCE
dc.subjectMFI
dc.subjectMICRO-ENTREPRENEURS
dc.subjectMICROFINANCE
dc.subjectMONETARY INCENTIVES
dc.subjectMONEY LENDER
dc.subjectMONEYLENDER
dc.subjectMONEYLENDERS
dc.subjectMONTHLY INCOME
dc.subjectMORTGAGE
dc.subjectMORTGAGE CHOICE
dc.subjectNUMERACY
dc.subjectPAYDAY LOAN
dc.subjectPEOPLES
dc.subjectPREGNANT WOMEN
dc.subjectPROBABILITY
dc.subjectPUBLIC ECONOMICS
dc.subjectRENTS
dc.subjectREPAYMENT
dc.subjectRETIREMENT
dc.subjectRETIREMENT PLAN
dc.subjectRETIREMENT READINESS
dc.subjectRETIREMENT SAVINGS
dc.subjectRETIREMENT SAVINGS ACCOUNTS
dc.subjectRISK AVERSION
dc.subjectSAVING MONEY
dc.subjectSAVINGS
dc.subjectSAVINGS ACCOUNT
dc.subjectSAVINGS BEHAVIOR
dc.subjectSAVINGS INSTRUMENTS
dc.subjectSAVINGS OPTION
dc.subjectSAVINGS PRODUCT
dc.subjectSCHOOLING
dc.subjectSECONDARY SCHOOL
dc.subjectSMALL LOAN
dc.subjectSOCIAL PROCESSES
dc.subjectSTOCK MUTUAL FUND
dc.subjectSUPPLY OF CREDIT
dc.subjectTEACHING
dc.subjectTRAINING CENTER
dc.subjectTRAINING PROGRAM
dc.subjectURBAN DEVELOPMENT
dc.subjectVALUE OF MONEY
dc.subjectVITAMIN A
dc.titleUnpacking the Causal Chain of Financial Literacyen
dspace.entity.typePublication
okr.crossref.titleUnpacking the Causal Chain of Financial Literacy
okr.date.disclosure2011-09-01
okr.date.doiregistration2025-04-10T11:13:12.521771Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110919154530
okr.globalpracticeEducation
okr.guid329301468322465624
okr.identifier.doi10.1596/1813-9450-5798
okr.identifier.externaldocumentum000158349_20110919154530
okr.identifier.internaldocumentum15084797
okr.identifier.reportWPS5798
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/09/19/000158349_20110919154530/Rendered/PDF/WPS5798.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.sectorHealth and other social services :: Other social services
okr.topicEducation::Education For All
okr.topicEducation::Access & Equity in Basic Education
okr.unitDevelopment Research Group (DECRG)
okr.unitDECRG: Finance & Priv Sec Devt (DECFP)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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