Carpena, FenellaCole, ShawnShapiro, JeremyZia, Bilal2012-03-192012-03-192011-09-01https://hdl.handle.net/10986/3562A 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.CC BY 3.0 IGOACCESS TO FINANCEACCOUNTINGAPRARITHMETICAVERAGE SCOREBANK ACCOUNTBASIC FINANCIAL LITERACYBORROWINGBORROWING MONEYBUDGETINGBUSINESS EDUCATIONBUSINESS SCHOOLBUSINESS TRAININGCALCULATIONSCASH PAYMENTCHECKSCHILD CARECLASSROOMCLASSROOM SESSIONCLASSROOM SESSIONSCONSUMERCONSUMER FINANCECONSUMER PROTECTIONCONSUMER PROTECTION MEASURESCONSUMERSCONTRIBUTIONDEBTDECISION MAKINGDEMAND FOR SAVINGSDEPOSITDEPOSIT INSURANCEDEVELOPMENT BANKDISCOUNT RATEDISCOUNT RATESDIVERSIFICATIONEARNINGSECONOMIC DECISIONSELEMENTARY SCHOOLEMPLOYEEEMPLOYEE BENEFITSENROLLMENTENTREPRENEURSEXPENDITUREEXPENDITURESFARM ENTERPRISEFINANCIAL ADVICEFINANCIAL BEHAVIORFINANCIAL CHOICESFINANCIAL CONCEPTSFINANCIAL CURRICULUMFINANCIAL DECISIONFINANCIAL DECISIONSFINANCIAL EDUCATIONFINANCIAL EDUCATION PROGRAMFINANCIAL EDUCATION PROGRAMSFINANCIAL INCENTIVEFINANCIAL INCENTIVESFINANCIAL INSTRUMENTSFINANCIAL KNOWLEDGEFINANCIAL LITERACYFINANCIAL LITERACY EDUCATIONFINANCIAL LITERACY PROGRAMFINANCIAL LITERACY PROGRAMSFINANCIAL LITERACY SURVEYSFINANCIAL LITERACY TRAININGFINANCIAL MANAGEMENTFINANCIAL MATTERSFINANCIAL OPTIONSFINANCIAL OUTCOMESFINANCIAL PRODUCTFINANCIAL PRODUCTSFINANCIAL PROVIDERSFINANCIAL REFORMFINANCIAL SERVICESFINANCIAL SOPHISTICATIONFORMAL FINANCIAL SERVICESGENDERGENERAL POPULATIONHEALTH EDUCATIONHEALTH INSURANCEHEALTH TRAININGHIGH SCHOOLHOUSEHOLD FINANCEHOUSEHOLD INCOMEHOUSEHOLDSHUSBANDINCOMESINFLATIONINFORMAL SAVINGSINFORMED FINANCIAL CHOICESINHERITANCEINSTALLMENTINSURANCEINSURANCE POLICYINTEREST RATEINTEREST RATESINTERNATIONAL BANKINTERVENTIONSINVESTINGKNOWLEDGE TESTLENDERLIFE INSURANCELIFE INSURANCE POLICYLIMITED FINANCIAL LITERACYLITERACY LEVELSLITERACY TESTLOANLOAN PROCESSINGLOAN REPAYMENTLOW-INCOMEMATHMATHEMATICSMEDICAL INSURANCEMFIMICRO-ENTREPRENEURSMICROFINANCEMONETARY INCENTIVESMONEY LENDERMONEYLENDERMONEYLENDERSMONTHLY INCOMEMORTGAGEMORTGAGE CHOICENUMERACYPAYDAY LOANPEOPLESPREGNANT WOMENPROBABILITYPUBLIC ECONOMICSRENTSREPAYMENTRETIREMENTRETIREMENT PLANRETIREMENT READINESSRETIREMENT SAVINGSRETIREMENT SAVINGS ACCOUNTSRISK AVERSIONSAVING MONEYSAVINGSSAVINGS ACCOUNTSAVINGS BEHAVIORSAVINGS INSTRUMENTSSAVINGS OPTIONSAVINGS PRODUCTSCHOOLINGSECONDARY SCHOOLSMALL LOANSOCIAL PROCESSESSTOCK MUTUAL FUNDSUPPLY OF CREDITTEACHINGTRAINING CENTERTRAINING PROGRAMURBAN DEVELOPMENTVALUE OF MONEYVITAMIN AWorld Bank10.1596/1813-9450-5798