NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Financial Literacy, Financial Education and Economic Outcomes

Justine S. Hastings, Brigitte C. Madrian, William L. Skimmyhorn

NBER Working Paper No. 18412
Issued in September 2012
NBER Program(s):   AG   ED   LS   PE

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.

download in pdf format
   (394 K)

email paper

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

This paper is available as PDF (394 K) or via email.

This paper was revised on October 4, 2012

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18412

Published: Justine S. Hastings & Brigitte C. Madrian & William L. Skimmyhorn, 2013. "Financial Literacy, Financial Education, and Economic Outcomes," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 347-373, 05. citation courtesy of

Users who downloaded this paper also downloaded these:
Lusardi w17103 Americans' Financial Capability
Lusardi and Mitchell w18952 The Economic Importance of Financial Literacy: Theory and Evidence
Lusardi, Mitchell, and Curto w15352 Financial Literacy among the Young: Evidence and Implications for Consumer Policy
Behrman, Mitchell, Soo, and Bravo w16452 Financial Literacy, Schooling, and Wealth Accumulation
Klapper, Lusardi, and Panos w17930 Financial Literacy and the Financial Crisis
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us