There are various M&E methods to evaluate financial literacy programmes. This article contains useful sources for three methods.
1. Using a Life Cycle Model to Evaluate Financial Literacy Program Effectiveness
“Prior studies disagree regarding the effectiveness of financial literacy programs, especially those offered in the workplace. To explain such measurement differences in evaluation and outcomes, we employ a stochastic life cycle model with endogenous financial knowledge accumulation to investigate how financial education programs optimally shape key economic outcomes.”
2. Evaluating financial education programmes
“The debate about financial education programmes and evaluation methods is far from over. The continued discussion and interaction among scholars, evaluators, and policy makers is necessary to enrich and improve upon the existing evaluation studies. Further efforts are needed to apply the five-tier framework to as many programmes as possible in order to assess the effectiveness of different initiatives and collect information on the needs of specific groups of citizens. In this way policy makers and private organisations will be able to tailor financial initiatives to specific needs, using the most effective methods. And the OECD can become an important resource by creating a supporting structure for all policy makers and financial educators.”
3. Why Financial Literacy Programs Require Long-term Follow-up
Computer generated: Using virtual, computer-generated people instead of real ones can simulate their financial literacy over their lifetimes in a few hours on instead of real-time tracking over the lifetime. The greatest effect of improved financial literacy was found with sims who received financial education at age 40 followed by regular booster shots. They had a 10% gain in wealth at retirement.