2014 Conference

While there is a long history of financial and economic education in K-12 public schools across the United States, little is known about the long-term benefits of these programs. In some states, significant resources are allocated to teaching these topics, and given the limited amount of instructional time available it is of utmost importance to determine the returns to these course requirements. Though previous research has been done on this topic, it has suffered from methodological or data limitations, which yield widely varying and often contradictory results.  Using a unique panel data set of credit reports and a synthetic controls difference in difference identification strategy, we analyze the effectiveness of the financial education mandates of specific states for improving later life financial outcomes.  Doing so, we find that rigorous financial education courses do in fact improve financial well-being as shown by higher credit scores and reduced delinquency rates.