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Active Learning Fosters Financial Behavior: Experimental Evidence

Author

Listed:
  • Tim Kaiser
  • Lukas Menkhoff
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.

Suggested Citation

  • Tim Kaiser & Lukas Menkhoff, 2018. "Active Learning Fosters Financial Behavior: Experimental Evidence," Discussion Papers of DIW Berlin 1743, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1743
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    References listed on IDEAS

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    Cited by:

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    2. Kaiser, Tim & Menkhoff, Lukas, 2020. "Financial education in schools: A meta-analysis of experimental studies," Economics of Education Review, Elsevier, vol. 78(C).
    3. Barua, Rashmi & Shastry, Gauri Kartini & Yang, Dean, 2020. "Financial education for female foreign domestic workers in Singapore," Economics of Education Review, Elsevier, vol. 78(C).

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    More about this item

    Keywords

    financial behavior; financial literacy; active learning; lecturing; training method; field experiment;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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