Questioning the Value of Financial Education

As the focus over the last several decades has been on financial education and literacy, an emerging body of behavioral economics research is illustrating how this approach has failed. The commonly held belief is that education leads to knowledge, which then leads to action. In fact, a meta-analysis of nearly 200 financial education programs completed by Prof. John Lynch and his colleagues in 2014 found that “financial education interventions explain only 0.1% of the variance in financial behaviors.”

Posted in Quick News on February, 2017