Sheraton Uptown, Albuquerque, NM, USA
Sunday, April 23 • 8:00am - 9:30am
C1B-Impact of Financial Education Mandates on Younger Consumers’ Use of Alternative Financial Services

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Financial literacy in the US remains shockingly low: two-thirds of Americans are not able to answer more than three out of five questions about interest rates, inflation, risk diversification, mortgages, and bond pricing. One policy response has been to mandate financial education in schools; however, it is not clear if financial education improves financial capability. This study examined if financial education impacts the use of alternative financial services (AFS) with data from the National Financial Capability Study (2012) and Urban, Schmeiser and Collins (2015). Probability and count data models with state fixed effects were employed to examine AFS use among consumers mandated to take financial education relative to consumers who were not. This study found that mandated consumers were less likely to use any AFS. In particular, financial education mandates are significantly associated with reduced likelihood and frequencies of using payday loans and rent-to-own transactions.

Speakers & Presenters
avatar for Melody Harvey

Melody Harvey

National Poverty Fellow, University of Wisconsin-Madison
Melody Harvey, Ph.D., is a postdoctoral fellow in the National Poverty Fellows Program at the University of Wisconsin-Madison's Institute for Research on Poverty. Her research focuses on effects of consumer, social, and higher education policies on economically vulnerable populations... Read More →

Sunday April 23, 2017 8:00am - 9:30am

Attendees (2)