Visual Tools and Web Resources Effective in Financial Education: New Report
Financial literacy professionals unearthed new evidence for the significance and effectiveness of resources, tools and programs developed to assist individuals and families in making financial decisions, according to research recently published by the National Bureau of Economic Research. The findings include substantiation for the notion that interactive and visual content can improve financial literacy to a material extent.
The research focused on four innovative, web-based educational offerings, including a qritten narrative, a video narrative, an informational brochure, and a visual interactive tool, with each program geared to educating individuals about key topics for effective financial decision making. The researchers employed the RAND American Life Panel and participants were required to respond to a series of questions that enabled financial literacy testing. The results included findings that each of the programs is effective in boosting self-efficacy and some also enhanced financial understanding and literacy.
Among the more notable findings from the study was the fact that the video was a more successful tool in raising financial literacy scores than the written narrative, which underscores the effectiveness of digital and online media tools in financial education. This finding also comes at a key time in the financial literacy industry, as the development and launch of financial education videos has skyrocketed in recent years.
The research, which tested approximately ninety individuals, was funded by a grant from the United States Social Security Administration as part of the Financial Literacy Research Consortium. As the global financial literacy community continues to evaluate which financial education methods are most effective, we can expect more research like this to be conducted in the months and years ahead.