4 Financial Education Lessons
Do school branches combined with financial education more effectively teach students the knowledge to build a sound financial future?
A team of researchers from the Corporation of Enterprise Development in Washington, D.C., and the Center for Financial Security at the University of Wisconsin-Madison wanted to answer that question in a new study Assessing Financial Capability Outcomes.
Students with school branch accounts who completed classroom financial lessons demonstrated greater knowledge gains compared to students who received only classroom instruction, according to the study.
The AFCO study also concluded that just five hours of classroom financial education (without school branches) does appear to increase financial capability, including the students’ financial knowledge and financial behavior such as opening and using accounts.
A $25 seed deposit, provided by a private foundation, offered randomly to students in Amarillo led to an 18% increase in student bank accounts.
According to the AFCO study, financial institutions need guidance on state and federal regulations and other requirements to design and deliver financial products for the rapidly-growing field of children’s savings programs.