It's never too late to be financially literate: Evaluating a financial education intervention for adults in Italy

Abstract

Financial education represents a powerful tool for improving economic literacy of citizens. This paper presents results from an experiment providing a group of 136 workers in an Italian university (administrative staff) an online, synchronous course. Classes were organized in 5 sessions of 2h each and covered basic topics about personal finance. The effectiveness of the course is assessed through a rigorous randomized controlled trial (RCT). In addition to the analysis of improvements in financial knowledge, financial self-efficacy and the role of prior attitudes and behaviors were explored. Participants obtained post-test scores statistically higher than individuals in the control group, with an average effect size of 0.55 SD. The effect is particularly relevant for participants starting with low levels of financial knowledge. Moreover, two novel findings emerge: financial self-efficacy increases (0.51 SD) after the course, and pre-treatment individuals' financial attitudes and behaviors shed further light on the financial learning process.