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dc.contributor.authorMeier, Stephanen_US
dc.contributor.authorSprenger, Charles D.en_US
dc.date.accessioned2008-07-24en_US
dc.date.accessioned2010-07-07T11:35:35Z-
dc.date.available2010-07-07T11:35:35Z-
dc.date.issued2008en_US
dc.identifier.piurn:nbn:de:101:1-2008060511en_US
dc.identifier.urihttp://hdl.handle.net/10419/35270-
dc.description.abstractMany policy makers and economists argue that financial literacy is key to financial well-being. But why do many individuals remain financially illiterate despite the apparent importance of being financially informed? This paper presents results of a field study linking individual decisions to acquire personal financial information to a critical, and normally unobservable, characteristic: time preferences. We offered a short, free credit counseling and information program to more than 870 individuals. About 55 percent chose to participate. Independently, we elicited time preferences using incentivized choice experiments both for individuals who selected into the program and those who did not. Our results show that the two groups differ sharply in their measured discount factors. Individuals who choose to acquire personal financial information through the credit counseling program discount the future less than individuals who choose not to participate. Our results suggest that individual time preference may explain who will and who will not choose to become financially literate. This has implications for the validity of studies evaluating voluntary financial education programs and policy efforts focused on expanding financial education.en_US
dc.language.isogeren_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesIZA Discussion Papers 3507en_US
dc.subject.jelD14en_US
dc.subject.ddc330en_US
dc.subject.keywordFinancial literacyen_US
dc.subject.keywordtime preferencesen_US
dc.subject.keywordselectionen_US
dc.subject.keywordfield experimenten_US
dc.subject.stwKapitalanlageen_US
dc.subject.stwSparenen_US
dc.subject.stwWissenen_US
dc.subject.stwInformationsverhaltenen_US
dc.subject.stwBildungsverhaltenen_US
dc.subject.stwZeitallokationen_US
dc.subject.stwFeldforschungen_US
dc.subject.stwBildungspolitiken_US
dc.subject.stwUSAen_US
dc.titleDiscounting financial literacy: time preferences and participation in financial education programsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn569673887en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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