Why Do Financial Literacy Programmes Fail?
Numerous studies have found a positive relationship between financial literacy and
financial experience. Typically, this relationship is interpreted as being a causal relationship,
i.e. an increase in financial literacy leads to better financial decision making. However, a
simple relationship cannot be interpreted in a causal way. In this paper, we show evidence
for a causal relationship running the opposite way, i.e. people with more financial experience
seem to acquire more financial knowledge and become more financially literate. This
finding has important implications as it suggests that programmes targeted at improving
financial literacy could be more effective if they incorporate experiential components.
Copyright (c) 2016 Bart Frijns, Aaron Gilbert, Alireza Tourani-Rad
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Authors submitting articles for publication warrant that the work is not an infringement of any existing copyright and will indemnify the publisher against any breach of such warranty. By publishing in Applied Finance Letters, the author(s) retain copyright but agree to the dissemination of their work through Applied Finance Letters.
By publishing in Applied Finance Letters, the authors grant the Journal a Creative Commons nonexclusive worldwide license (CC-BY-NC-ND: Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License) for electronic dissemination of the article via the Internet, and, a nonexclusive right to license others to reproduce, republish, transmit, and distribute the content of the journal. The authors grant the Journal the right to transfer content (without changing it), to any medium or format necessary for the purpose of preservation.
Authors agree that the Journal will not be liable for any damages, costs, or losses whatsoever arising in any circumstances from its services, including damages arising from the breakdown of technology and difficulties with access.