Mandatory Financial Education: A Field Study Having accurate
knowledge about financial products and services is widely
perceived to be advantageous, especially for low-income
communities. However, empirical evidence of this assertion has
been relatively scarce. To quantify the benefits associated with
a financial literacy program, a researcher from the Center for
Financial Security in the University of Wisconsin, Madison,
conducted a randomized controlled trial among very low-income
families in a subsidized housing program. Families were randomly
assigned to a mandatory, five-session financial education
program and, afterward, tracked for 12 months. The results are
documented in a 2010 study by the University of Wisconsin, “The
Impacts of Mandatory Financial Education: Evidence from a
Randomized Field Study.” The study’s findings include: -
Families that underwent the financial education program reported
an improvement in financial knowledge by 30% compared to the
baseline level. Improvements were detected in