financial education and behavior formation: large scale
TRANSCRIPT
![Page 1: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/1.jpg)
M I R I A M B R U H N
L U C I A N A D E S O U Z A L E A O A R I A N N A L E G O V I N I
R O G E L I O M A R C H E T T I B I L A L Z I A
W O R L D B A N K
Financial Education and Behavior Formation:
Large Scale Experimental Evidence from Brazil 1
New Delhi, March 5th 2013
![Page 2: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/2.jpg)
Agenda 2
The Brazilian Financial Education in Public High Schools
Impact Evaluation: implementation and results
Positive Lessons
Policy Outcomes
![Page 3: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/3.jpg)
Financial Education for High School Students 3
Part of the Brazilian National Strategy; High School program was the first to be launched.
Product of a systemic effort: complementary skills and institutional capabilities of leaders from the government, financial market and different actors from the Brazilian education sector;
Started as a pilot-project before going to a broader scale: learning experience for all the stakeholders involved.
![Page 4: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/4.jpg)
The program - Pedagogical Strategies 4
Teaching Material approved by a multi-stakeholders Pedagogical Support Group;
Created to inform and guide young people to an independent and healthy financial thought and behavior;
Books containing teaching situations aligned to the reality of the student and with autonomy for the teachers;
It’s content can be discussed and used by any subject in the school – cross-curricular approach
![Page 5: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/5.jpg)
Book 1 – Short-term situations related to individual context
5
Book 1 - everyday family life, social life, and personal property
Keeping track of Expenses
![Page 6: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/6.jpg)
Book 2 – Medium term situations 6
Book 2 - work, entrepreneurship, and large projects
Which career do I want to follow?
![Page 7: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/7.jpg)
Book 3 – Social Context 7
Book 3 - public goods, the country’s economy, and the world economy.
![Page 8: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/8.jpg)
Teacher’s training and involvement 8
Key aspect: convince teachers of the importance of the financial education and build trust to teach;
Training workshops in 6 states complemented by virtual training (DVDs to facilitate replication);
Teacher guidebook provided instructions on teaching and assessment methods for the course material, as well as examples of how to integrate the financial education curriculum into regular school learning.
![Page 9: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/9.jpg)
Example: How to implement a case-study? 9
Contar para os alunos como aprendi a tomar decisões financeiras.
Abrir debate: quem concorda / discorda da posição do autor?
![Page 10: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/10.jpg)
Impact Evaluation 10
Collaborative work with implementation partners in all the stages of planning for the pilot project;
The study spanned three academic semesters, from August 2010 to December 2011, and data were collected in three rounds consisting of baseline (August 2010), follow-up 1 (December 2010), and follow-up 2 (December 2011);
Participation in all teacher’s training, workshops and monitoring events throughout the pilot.
![Page 11: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/11.jpg)
Where Do Things Usually Break Down? (1)
1. Improving knowledge—many educations programs fail to increase knowledge
How did the project address this problem? Quality: material developed by top education experts in Brazil and
rigorously tested Use: training and materials provided to all teachers Incentives: opportunity for teachers to meet leaders in the financial
and international institutions, and awards to best performing schools
Effect: rethink high school education Fun, relevant, interactive, proactive
11
![Page 12: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/12.jpg)
Where Do Things Usually Break Down? (2)
2. Improving behavior and attitudes How did the project address this problem? interactive material with practical exercises relevant to young people’s lives actionable information cutting across all relevant spheres of life reinforce intervention
getting the family involved teaching financial literacy to parents
Effect: the material made student try out the new behavior and helped them put it into practice
12
![Page 13: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/13.jpg)
Where Do Things Usually Break Down? (3)
3. Improving household outcomes How was this addressed? Constant parent interaction through homework assignments
and exercises Parental workshop
Effect: the workshop reinforced changes in student behavior and improved parental behavior
13
![Page 14: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/14.jpg)
Methodology
Evaluation of the financial education program in 868 schools in 6 states in Brazil, 26 thousand students.
Schools that were interested in participating in the pilot were randomly assigned to Treatment group receives financial education text books for
free AND receives teacher training for how to implement the material
Control group will receive the same two school years later
Half of the parents in treatment schools were also randomly assigned to parent financial education workshop in schools
14
![Page 15: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/15.jpg)
Results
All effects are highly statistically significant in most cases at the 1 percent level--the likelihood that the
differences in outcomes are not cause by the program is less than 1 percent
Effects are economically significant They compare favorably to other financial literacy programs They compare favorably to other education programs If the effects held at national level, they could have
macroeconomic effects
15
![Page 16: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/16.jpg)
Knowledge
More knowledge Distribution shift
16
![Page 17: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/17.jpg)
Positive Impact on Financial Proficiency
17
56
59 60
62
45
47
49
51
53
55
57
59
61
63
65
Follow-up 1 Follow-up 2
ControlTreatment
![Page 18: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/18.jpg)
Distribution Shift: 28% more treated students do very well
26% fewer treated students do very poorly 18
![Page 19: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/19.jpg)
Behavior
More savers More savings (1.4 percentage point increase) More careful spending
19
![Page 20: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/20.jpg)
Percentage of Students who Save 20
44 40
49 46
0
10
20
30
40
50
60
70
80
90
100
Follow-up 1 Follow-up 2
ControlTreatment
![Page 21: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/21.jpg)
Percentage of Income Saved 21
12.9 14.3
0
10
20
30
40
50
60
70
80
90
100
Follow-up 1 Follow-up 2
ControlTreatment
Question Not Asked in FU 1
![Page 22: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/22.jpg)
Students’ Spending Behavior
More treated students make a list of expenses every month
More treated students negotiate the price and/or payment method
22
![Page 23: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/23.jpg)
Percentage of Student who Make a List of Expenses 23
13 14 16 17
0
5
10
15
20
25
30
35
40
45
50
Follow-up 1 Follow-up 2
ControlTreatment
![Page 24: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/24.jpg)
Percentage of Students who Negotiate Prices and/or Payment Methods
24
74 74 78 77
0
10
20
30
40
50
60
70
80
90
100
Follow-up 1 Follow-up 2
ControlTreatment
![Page 25: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/25.jpg)
Attitudes towards Future Behavior
More financial autonomy Greater intention to save
25
![Page 26: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/26.jpg)
Financial Autonomy Index 26
49
51 51
52
48
48
49
49
50
50
51
51
52
52
53
Follow-up 1 Follow-up 2
ControlTreatment
![Page 27: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/27.jpg)
Intention to Save Index 27
49
51 51
53
47
48
49
50
51
52
53
54
Follow-up 1 Follow-up 2
ControlTreatment
![Page 28: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/28.jpg)
Spill-over Effects of School Program on Parents
Students’ financial education material includes exercises to be completed with parents (e.g. make a household budget)
Positive impacts on parental financial knowledge and behavior increase in parental financial knowledge increase in discussing financial matters with their children increase in making a household budget
28
![Page 29: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/29.jpg)
Positive Lessons 29
Pedagogical material It was adherent to the educational system Appealing for students and teachers Catalyzing effect of different subjects in the schools
Appreciation of teachers as a mediator of the learning process – 2.000 teachers trained for the pilot Training of trainers Training of teachers Distance Education for teachers and trainers
Evaluation as a strategy for scalability Results to assure the quality in dissemination Impact for referral to the educational and financial segments
![Page 30: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/30.jpg)
Dissemination of results at school level 30
![Page 31: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/31.jpg)
What’s the Policy Impact? 31
The Ministry of Education is now scaling up the program to 5,000 Brazilian high schools
Financial education programs for primary schools
Virtual platform for national dissemination
Development of guidances to disseminate in public and private schools
Educational community of practice for the engagement and exchange of experiences between teachers
![Page 32: Financial Education and Behavior Formation: Large Scale](https://reader036.vdocuments.net/reader036/viewer/2022062504/586a62311a28ab6b518ba0b9/html5/thumbnails/32.jpg)
32
Thank you!
More information about the Brazilian Financial Education Program: Silvia Morais