Household economic strengthening through financial and psychosocial programming: evidence from a field experiment in South Africa

Journal article

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.

Authors: Steinert, J; Cluver, L; Meinck, F; Doubt, J; Vollmer, S

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Elsevier
• Journal: Journal of Development Economics
• Volume: 134
• Pages: 443-466
• Publication date: 2018-06-28
• Acceptance date: 2018-04-24
• DOI: 10.1016/j.jdeveco.2018.06.016
• EISSN: 1872-6089
• ISSN: 0304-3878
• Language: English
• Keywords: RCT; saving; South Africa; financial literacy; parenting