Keywords

financial literacy, consumer finance, financial education

Abstract

In this article we review the literature on financial literacy, financial education, and consumer financial outcomes. We consider how financial literacy is measured in the current literature, and examine how well the existing literature addresses whether financial education improves financial literacy or personal financial outcomes. We discuss the extent to which a competitive market provides incentives for firms to educate consumers or offer products that facilitate informed choice. We review the literature on alternative policies to improve financial outcomes, and compare the evidence to evidence on the efficacy and cost of financial education. Finally, we discuss directions for future research.

Original Publication Citation

“Financial Literacy, Financial Education and Economic Outcomes.” 2013. Annual Review of Economics 5(2013): 347-73 (with Justine S. Hastings and William L. Skimmyhorn). http://dx.doi.org/10.1146/annurev-economics-082312-125807

Document Type

Peer-Reviewed Article

Publication Date

2013

Publisher

Annual Review of Economics

Language

English

College

Marriott School of Business

Department

Finance

University Standing at Time of Publication

Full Professor

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