Research on Financial Literacy @dilipsoman

We are in the business of behaviour change ……the knowledge, skills and confidence to make responsible financial decisions………..

Econs!

Humans!

Design for humans, not for econs

The four –”ition”s Motivation Cognition Perception Emotion

Focus too much on content, and too little on context Focus too much on cognition, too little on the other “-itions”

Case 1: Saving in a Cash-Economy (Soman and Cheema, 2011)

The Solution

Case 2: The World Bank on Fin-Lit Carpena et al (2016)

Case 2: The Study No intervention Financial Education Financial Education + Planning Prompts Education (but not financial)

Case 3: Financial Literacy in a Box (Shah et al., ongoing)

Themes Financial education is not enough Quantity and timing of the initiatives matter One size doesn’t fit all – tailoring programs to the needs and the context facing various groups is critically important Measurement, evaluation and evidence is key to long term success. In particular, measurement of knowledge is only one indicator; measures of confidence and decision-quality are also important.

Evidence Data ≠ Evidence Evidence (Now, Here) ≠ Evidence (Then, there)

Data Before Financial Education After

Data and Evidence Before After No intervention Financial Education Financial Education + Planning Prompts Education (but not financial) After

In sum