Publication:
Why Is Voluntary Financial Education So Unpopular? Experimental Evidence from Mexico

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dc.contributor.authorLara Ibarra, Gabriel
dc.contributor.authorMcKenzie, David
dc.contributor.authorBruhn, Miriam
dc.date.accessioned2013-09-04T16:55:19Z
dc.date.available2013-09-04T16:55:19Z
dc.date.issued2013-05
dc.description.abstractTake-up of voluntary financial education programs is typically extremely low. This paper reports on randomized experiments around a large financial literacy course offered in Mexico City to understand the reasons for low take-up, and to measure the impact of financial education. It documents that the general public displays little interest in such courses and that participation is low even among individuals who express interest in financial education. The paper experimentally investigates barriers to take-up, and finds no impact of relaxing reputational or logistical constraints and no evidence that time inconsistency is the reason for limited participation. Even relatively sizeable monetary incentives get less than 40 percent of interested individuals invited to training to attend. Using a randomized encouragement design, the authors measure the impact of the course on financial knowledge and behavior. Attending training results in a 9 percentage point increase in financial knowledge and a 9 percentage point increase in saving outcomes, but no impact on borrowing behavior. Administrative data indicate that the savings impact is relatively short-lived. The results suggest people are making optimal choices not to attend financial education courses, and point to the limits of using general purpose courses to improve financial behavior for the general population.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/05/17692433/voluntary-financial-education-so-unpopular-experimental-evidence-mexico
dc.identifier.doi10.1596/1813-9450-6439
dc.identifier.urihttps://hdl.handle.net/10986/15580
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;NO. 6439
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.subjectACCESS TO FINANCIAL SERVICES
dc.subjectACCESS TO SAVINGS
dc.subjectADMINISTRATIVE DATA
dc.subjectADULT FINANCIAL EDUCATION
dc.subjectANNUAL INCOME
dc.subjectAPR
dc.subjectATTENDANCE RATE
dc.subjectATTENDANCE RATES
dc.subjectAUDITS
dc.subjectBANK ACCOUNT
dc.subjectBANK CREDIT
dc.subjectBANK DEPOSITS
dc.subjectBANKING PRODUCTS
dc.subjectBANKING SERVICES
dc.subjectBARRIERS TO PARTICIPATION
dc.subjectBEHAVIORAL ECONOMICS
dc.subjectBORROWING
dc.subjectBUSINESS SCHOOL
dc.subjectBUSINESS TRAINING
dc.subjectCALCULATIONS
dc.subjectCHECKS
dc.subjectCOLLEGE STUDENT
dc.subjectCOLLEGE STUDENTS
dc.subjectCOMMERCIAL BANK
dc.subjectCOMMERCIAL BANKS
dc.subjectCONSUMER
dc.subjectCONSUMER CREDIT
dc.subjectCONSUMER EDUCATION
dc.subjectCONSUMER PROTECTION
dc.subjectCONSUMERS
dc.subjectCONTRIBUTION
dc.subjectCOST OF CREDIT
dc.subjectCREDIT CARD
dc.subjectCREDIT CARD BALANCE
dc.subjectCREDIT CARD BALANCES
dc.subjectCREDIT CARD DEBT
dc.subjectCREDIT CARD INTEREST RATE
dc.subjectCREDIT CARD PAYMENT
dc.subjectCREDIT CARD USE
dc.subjectCREDIT CARDS
dc.subjectCREDIT COUNSELING
dc.subjectCREDIT HISTORY
dc.subjectCREDIT LIMIT
dc.subjectCREDIT MANAGEMENT
dc.subjectCREDIT REPORT
dc.subjectCREDIT SCORE
dc.subjectCROP INSURANCE
dc.subjectCURRENCY
dc.subjectDEBT MANAGEMENT
dc.subjectDELINQUENCY
dc.subjectDEPOSIT
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSITS
dc.subjectDEVELOPMENT BANK
dc.subjectDISCOUNT RATES
dc.subjectEARLY INTERVENTION
dc.subjectECONOMIC DECISIONS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectEDUCATED INDIVIDUALS
dc.subjectEDUCATION LEVEL
dc.subjectEMPLOYEE
dc.subjectEMPLOYER
dc.subjectEMPLOYERS
dc.subjectEXPENDITURES
dc.subjectEXTORTIONS
dc.subjectFAMILIES
dc.subjectFARMERS
dc.subjectFINANCIAL BEHAVIOR
dc.subjectFINANCIAL BEHAVIORS
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL CURRICULUM
dc.subjectFINANCIAL EDUCATION
dc.subjectFINANCIAL EDUCATION COURSE
dc.subjectFINANCIAL EDUCATION COURSES
dc.subjectFINANCIAL EDUCATION MANDATES
dc.subjectFINANCIAL EDUCATION PROGRAMS
dc.subjectFINANCIAL EXPERIENCE
dc.subjectFINANCIAL INCENTIVE
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL KNOWLEDGE
dc.subjectFINANCIAL LITERACY
dc.subjectFINANCIAL LITERACY EFFORTS
dc.subjectFINANCIAL LITERACY PROGRAM
dc.subjectFINANCIAL LITERACY PROGRAMS
dc.subjectFINANCIAL LITERACY TRAINING
dc.subjectFINANCIAL LITERACY TRAININGS
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MATTERS
dc.subjectFINANCIAL NEEDS
dc.subjectFINANCIAL OUTCOMES
dc.subjectFINANCIAL PRODUCT
dc.subjectFINANCIAL PRODUCTS
dc.subjectFINANCIAL PROVIDERS
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL SYSTEM
dc.subjectFIRST CREDIT
dc.subjectFUTURE VALUE
dc.subjectGENDER
dc.subjectGENERAL POPULATION
dc.subjectGENERAL PUBLIC
dc.subjectGOOD CREDIT
dc.subjectGROUPS OF PEOPLE
dc.subjectHIGH SCHOOL
dc.subjectHIGH SCHOOL FINANCIAL EDUCATION
dc.subjectHIGH SCHOOLS
dc.subjectHOMEOWNERS
dc.subjectHOUSEHOLD EXPENDITURE
dc.subjectHOUSEHOLD FINANCE
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD SAVING
dc.subjectHOUSEHOLD SAVINGS
dc.subjectHOUSEHOLDS
dc.subjectID
dc.subjectILLITERATE HOUSEHOLDS
dc.subjectINCOME GROUP
dc.subjectINDEBTEDNESS
dc.subjectINDIVIDUAL RETIREMENT
dc.subjectINDIVIDUAL RETIREMENT ACCOUNTS
dc.subjectINFLATION
dc.subjectINSURANCE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINVESTMENT PORTFOLIO
dc.subjectKNOWLEDGE LEVEL
dc.subjectLACK OF ACCESS
dc.subjectLACK OF INFORMATION
dc.subjectLACK OF INTEREST
dc.subjectLACK OF KNOWLEDGE
dc.subjectLATE PAYMENT
dc.subjectLEVELS OF RISK
dc.subjectLITERACY COURSE
dc.subjectLITERACY COURSES
dc.subjectLITERACY SKILLS
dc.subjectLITERATE INDIVIDUALS
dc.subjectLOAN
dc.subjectLOAN BEHAVIOR
dc.subjectLOAN BEHAVIORS
dc.subjectLOST INCOME
dc.subjectLOW FINANCIAL LITERACY
dc.subjectLOW-INCOME
dc.subjectLOW-INCOME INDIVIDUALS
dc.subjectMARKETING
dc.subjectMASS MEDIA
dc.subjectMIGRANT WORKERS
dc.subjectMINIMUM BALANCES
dc.subjectMINIMUM PAYMENT
dc.subjectMONETARY INCENTIVE
dc.subjectMONETARY INCENTIVES
dc.subjectMONTHLY INCOME
dc.subjectMORTGAGE
dc.subjectMORTGAGES
dc.subjectNUMERACY
dc.subjectOLDER INDIVIDUALS
dc.subjectOUTSTANDING DEBT
dc.subjectOVERDRAFT
dc.subjectPAWN
dc.subjectPAWN SHOP
dc.subjectPAYMENT BEHAVIOR
dc.subjectPENSION
dc.subjectPENSION FUND
dc.subjectPENSION FUND ADMINISTRATOR
dc.subjectPENSION FUNDS
dc.subjectPENSION SAVINGS
dc.subjectPENSION SYSTEM
dc.subjectPERSONAL FINANCES
dc.subjectPERSONAL SAVINGS
dc.subjectPRIMARY EDUCATION
dc.subjectPRIVATE PENSIONS
dc.subjectPROBABILITY
dc.subjectPROVISION OF INFORMATION
dc.subjectPUBLIC ECONOMICS
dc.subjectQUESTIONNAIRE
dc.subjectQUESTIONNAIRES
dc.subjectRADIO
dc.subjectRECEIPT
dc.subjectREMITTANCE
dc.subjectREMITTANCES
dc.subjectREPAYMENT
dc.subjectREPAYMENT RATES
dc.subjectRESPONSIBILITIES
dc.subjectRETIREMENT
dc.subjectRETIREMENT AGE
dc.subjectRETIREMENT PLAN
dc.subjectRETIREMENT PLANNING
dc.subjectRETIREMENT READINESS
dc.subjectRETIREMENT SAVING
dc.subjectRETIREMENT SAVINGS
dc.subjectRETIREMENT SEMINARS
dc.subjectRISK AVERSION
dc.subjectSAVING BEHAVIOR
dc.subjectSAVING MONEY
dc.subjectSAVINGS
dc.subjectSAVINGS ACCOUNT
dc.subjectSAVINGS ACCOUNTS
dc.subjectSAVINGS BEHAVIOR
dc.subjectSAVINGS BEHAVIORS
dc.subjectSAVINGS GOAL
dc.subjectSAVINGS GOALS
dc.subjectSAVINGS INSTRUMENTS
dc.subjectSAVINGS RATE
dc.subjectSAVINGS RATES
dc.subjectSCHOOL EDUCATION
dc.subjectSMART MONEY
dc.subjectSOCIAL NETWORKS
dc.subjectSOUND FINANCIAL DECISIONS
dc.subjectSOURCES OF CREDIT
dc.subjectTAKE-UP RATE
dc.subjectTAKE-UP RATES
dc.subjectTRAINING COURSE
dc.subjectTRAINING COURSES
dc.subjectTRAINING PROGRAM
dc.subjectTRAINING PROGRAMS
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectURBAN AREAS
dc.subjectWAGE
dc.subjectWORKBOOKS
dc.subjectWORKING ADULTS
dc.subjectWORKING CAPITAL
dc.subjectWORTH
dc.titleWhy Is Voluntary Financial Education So Unpopular? Experimental Evidence from Mexicoen
dspace.entity.typePublication
okr.crossref.titleWhy is Voluntary Financial Education so Unpopular? Experimental Evidence from Mexico
okr.date.disclosure2013-05-01
okr.date.doiregistration2025-04-10T10:03:31.154980Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/05/17692433/voluntary-financial-education-so-unpopular-experimental-evidence-mexico
okr.globalpracticeEducation
okr.globalpracticeFinance and Markets
okr.guid726701468045022845
okr.identifier.doi10.1596/1813-9450-6439
okr.identifier.externaldocumentum000158349_20130509161820
okr.identifier.internaldocumentum17692433
okr.identifier.reportWPS6439
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/05/09/000158349_20130509161820/Rendered/PDF/wps6439.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryMexico
okr.topicEducation::Education For All
okr.topicFinance and Financial Sector Development::Financial Literacy
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicAccess and Equity in Basic Education
okr.topicEducation::Primary Education
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isAuthorOfPublication471c8982-45ac-42cd-87d0-3e505bd1a972
relation.isAuthorOfPublication.latestForDiscovery148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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