Active Learning Fosters Financial Behavior: Experimental Evidence

Discussion Papers 1743, 29 S.

Tim Kaiser, Lukas Menkhoff

2018

get_appDownload (PDF  1.23 MB)

Abstract

We conduct a randomized field experiment to study the effects of two financial education interventions offered to small-scale retailers in Western Uganda. The treatments contrast “active learning” with “traditional lecturing” within standardized lesson-plans. We find that active learning has a positive and economically meaningful impact on savings and investment outcomes, in contrast to insignificant impacts of lecturing. These results are not conditional on prior education or financial literacy. The active learning intervention seems to be superior as it works via three cognitive and non-cognitive mechanisms, i.e. increased financial knowledge, self-control, and financial confidence, while lecturing only affects financial confidence.

Tim Kaiser

Wissenschaftlicher Mitarbeiter in der Abteilung Weltwirtschaft

Lukas Menkhoff

Abteilungsleiter in der Abteilung Weltwirtschaft



JEL-Classification: O16;D14;I21
Keywords: financial behavior, financial literacy, active learning, lecturing, training method, field experiment
Frei zugängliche Version: (econstor)
http://hdl.handle.net/10419/181029