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We study the impact of financial education on intertemporal choice in adolescence. The program was randomly assigned among high-school students and intertemporal choices were measured using an incentivized experiment. Students who participated in the program display a decrease in time inconsistency; an increase in the allocation of payment to a single payment date, compared to spreading payment across two dates; and increased consistency of choice with the law of demand. These findings suggest that the effect of such educational programs is to increase comprehension and decrease bracketing in intertemporal choice.
This working paper was updated in May 2015.
Authors
Research Fellow Royal Holloway, University of London
Melanie joined the Institute for Fiscal Studies in 2006 as a Research Fellow and she is a Professor at Royal Holloway, University of London.
Ludwig-Maximilians-Universität München
Marta Serra-Garcia
Working Paper details
- DOI
- 10.1920/wp.ifs.2014.1418
- Publisher
- Institute for Fiscal Studies
Suggested citation
M, Lührmann and M, Serra-Garcia and J, Winter. (2014). The impact of financial education on adolescents' intertemporal choices. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/impact-financial-education-adolescents-intertemporal-choices (accessed: 28 March 2024).
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