Why Do Financial Literacy Programmes Fail?

  • Bart Frijns Auckland University of Technology
  • Aaron Gilbert Auckland University of Technology
  • Alireza Tourani-Rad Auckland University of Technology
DOI: https://doi.org/10.24135/afl.v2i1.10
Keywords: Financial Literacy, Financial Experience, Causality

Abstract

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.

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Author Biographies

Bart Frijns, Auckland University of Technology

Bart Frijns is Professor of Finance at the Auckland University of Technology, New Zealand, and is Director of the Auckland Centre for Financial Research

Aaron Gilbert, Auckland University of Technology

Aaron Gilbert is a Senior Lecturer in Finance at the Auckland University of Technology, New Zealand

Alireza Tourani-Rad, Auckland University of Technology

Alireza Tourani-Rad is Professor of Finance and Chair of the Department of Finance at the Auckland University of Technology, New Zealand

Published
2013-06-30
How to Cite
Frijns, B., Gilbert, A., & Tourani-Rad, A. (2013). Why Do Financial Literacy Programmes Fail?. Applied Finance Letters, 2(1), 18-21. https://doi.org/10.24135/afl.v2i1.10
Issue
Vol. 2 No. 1 (2013): Financial Literacy: Research, Policy & Practice
Section
Articles submitted to regular issue

Copyright (c) 2016 Bart Frijns, Aaron Gilbert, Alireza Tourani-Rad

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