Parents with high present bias were less likely to enroll their 8th graders in the financial literacy camp¶

Claim · All claims
Evidence · 1 study · causal r2 · q2
Currency · newest study 2016 · not yet checked against its sources · not reviewed by a person

Subclaims¶

q2 i? In first-stage probit estimates, the coefficient on PRESENT_BIAS (discount rate greater than 10%) was negative and statistically significant across all columns. → Bhattacharya et al. 2016

Evidence¶

Bhattacharya et al. 2016¶

Radha Bhattacharya, Andrew Gill, and Denise Stanley. (2016). The Effectiveness of Financial Literacy Instruction: The Role of Individual Development Accounts Participation and the Intensity of Instruction. Journal of Financial Counseling and Planning, Volume 27, Number 1, 2016, 20–35. https://doi.org/10.1891/1052-3073.27.1.20

q2 · i? · causal · r2

First-stage probit of camp attendance (N = 74 to 65) from the Heckman procedure; PRESENT_BIAS was derived from parents' responses to a hypothetical $1,000 cash prize comparing immediate versus future amounts. The article reports coefficients of −1.11, −1.02, and −1.57 (p < .01); these are probit coefficients, not effect sizes.

"It is interesting to note from the first-stage probit estimates reported at the bottom of Table 5 that the coefficient on PRESENT_BIAS is negative and statistically significant across all columns."

Discussion¶

Related Claims¶

• A 1-week financial fitness camp raised financial knowledge of low-income 8th graders by roughly 12 percentage points on a pretest–posttest design — related
• IDA participation and contribution level showed no statistically significant effect on financial knowledge gains from camp instruction — related
• Heckman two-step estimates found no evidence of selection bias in the pretest–posttest gain score regressions based on camp attendance — related