Connect * Empower * Impact

2019 AFCPE® Research and Training Symposium

AFCPE Pre-Symposium: Sunday, November 17 - Tuesday, November 19
AFCPE Symposium: Tuesday, November 19 - Thursday, November 21
Schedule Subject to Change

Friday, November 16th, 2018
Category: Financial Education
Financial Education and Financial Confidence Among Young Adults
We examine how an online financial education randomized intervention impacted financial capability of young adults over one year. Financial capability is the ability to apply financial knowledge and engage in desirable financial behaviors for achieving financial wellbeing. To understand financial capability, we examine financial confidence (subjective financial knowledge), financial knowledge and financial behavioral intentions. We find that financial education has a lasting effect on financial confidence and on behavioral outcomes one year after the intervention. The evidence follows that financial education promotes young adults' financial confidence giving rise to better financial behaviors even without a clear improvement on financial knowledge.

Stephen Atlas, Jing Jian Xiao, Nilton Porto and Michael Weir
University of Rhode Island
Implications for Practitioners
Results of this research confirm that the benefits of financial education extend beyond just knowledge acquisition. When delivering financial education, practitioners such as financial counselors, educators and planners are not just improving the financial knowledge of their clients but also building their financial confidence. With financial confidence, clients are better equipped to perform desirable financial behaviors and improve their financial wellbeing. We also recommend that evaluations of financial education interventions should include items on financial confidence, actual and planned behaviors, and financial knowledge to better estimate the overall impact on the financial capability of participants.