Financial Education and its Impact in Financial Literacy
Theme 3 Financial Literacy.
Researchers and academics.
This study investigates the effect of financial education course in enhancing financial literacy.
Financial literacy is a crucial factor that directly impacts the financial behavior and financial
planning of individuals of all ages, regions, and gender. Given the low levels all over the world,
a need for immediate action is perceived. Financial educators and policy makers suggest
financial education as a tool to overcome such problem. Despite this, the literature posits two
different points of views, one on favor of financial education effectiveness and another against.
We study the impact of a financial education course in enhancing the financial literacy in high
school students, in Tirana, Albania. A sample of 519 students, from four schools in Tirana in
Albania, two schools offering the financial education course and the other two not offering, are
included in this study.
A difference in difference analysis is employed, and the results suggest that financial
education resulted to be effective in terms of financial literacy scores. Students who have
taken the financial education course scored on average more than those students who have
not taken the course. An interesting result of this research is that financial literacy before the
start of course also impacts post-financial literacy score. Post-course financial literacy scores
resulted to be on average higher for those students with a lower baseline financial literacy.
The presentation will be interactive, where I will allow participants to ask questions during the presentation and share the opinions on the effectiveness of financial education courses, as the one in our study.
Presented by: Jonada Tafa (1, 1)