Visual Tools and Narratives

New Ways to Improve Financial Literacy

Annamaria Lusardi, Anya S. Samek, Arie Kapteyn, Lewis Glinert, Angela A. Hung, Aileen Heinberg

ResearchPosted on rand.org Oct 6, 2017Published in: Journal of Pension Economics and Finance, Volume 16, Issue 3 (July 2017), pages 297-323. doi: 10.1017/S1474747215000323

We developed and experimentally evaluated four novel educational programs delivered online: an informational brochure, a visual interactive tool, a written narrative, and a video narrative. The programs were designed to inform people about risk diversification, an essential concept for financial decision-making. The effectiveness of these programs was evaluated using the American Life Panel. Participants were exposed to one of the programs, and then asked to answer questions measuring financial literacy — in particular, risk literacy — and self-efficacy. All of the programs were found to be effective at increasing self-efficacy, and several improved financial literacy, providing new evidence for the value of programs designed to improve financial decision-making.

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Document Details

  • Copyright: Cambridge University Press
  • Availability: Non-RAND
  • Year: 2017
  • Pages: 27
  • Document Number: EP-67339

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