TY - JOUR
T1 - Household economic strengthening through financial and psychosocial programming
T2 - Evidence from a field experiment in South Africa
AU - Steinert, Janina Isabel
AU - Cluver, Lucie Dale
AU - Meinck, Franziska
AU - Doubt, Jenny
AU - Vollmer, Sebastian
PY - 2018/9/1
Y1 - 2018/9/1
N2 - Using data from a randomized field experiment with 552 households, nested within 40 villages and townships in South Africa, we examine the impact of a brief financial literacy training that was integrated into a broader psychosocial parenting intervention. Based on self-reported measures, we document significant improvements in financial behaviors, including higher saving and lower borrowing rates. We also see wider implications for household economic welfare, demonstrated by reduced self-reported financial distress, better resilience to economic shocks, and a greater capacity to securing basic needs. We argue that program impact may run through three effect channels, namely improved self-efficacy, higher family and community social support, and greater optimism. Overall, our findings suggest that “hybrid” program curricula that offer combinations of financial and psychosocial components can add value to stand-alone financial literacy training.
AB - Using data from a randomized field experiment with 552 households, nested within 40 villages and townships in South Africa, we examine the impact of a brief financial literacy training that was integrated into a broader psychosocial parenting intervention. Based on self-reported measures, we document significant improvements in financial behaviors, including higher saving and lower borrowing rates. We also see wider implications for household economic welfare, demonstrated by reduced self-reported financial distress, better resilience to economic shocks, and a greater capacity to securing basic needs. We argue that program impact may run through three effect channels, namely improved self-efficacy, higher family and community social support, and greater optimism. Overall, our findings suggest that “hybrid” program curricula that offer combinations of financial and psychosocial components can add value to stand-alone financial literacy training.
KW - Financial literacy
KW - Parenting
KW - RCT
KW - Saving
KW - South Africa
U2 - 10.1016/j.jdeveco.2018.06.016
DO - 10.1016/j.jdeveco.2018.06.016
M3 - Article
AN - SCOPUS:85056247887
VL - 134
SP - 443
EP - 466
JO - Journal of Development Economics
JF - Journal of Development Economics
SN - 0304-3878
ER -