Does financial education improve how people manage money?

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1. 1

   Psychological mechanisms linking a financial-literacy curriculum to scenario-based financial decision quality: a cluster randomized trial of financial self-efficacy and future-orientation in Chinese vocational students.

   Frontiers in psychology (Yu & Zhang)Published Aug 10, 2026Checked Oct 4, 2026

   “As a cluster randomized trial, the study therefore cannot reject the null at the unit of randomization. Individual-level difference-in-differences estimates (knowledge d = 0.37; self-efficacy d = 0.51; decision quality d = 0.48) are reported as effect-size estimates requiring confirmation in adequately clustered trials. In exploratory, individual-level mediation analysis, financial self-efficacy and future-orientation (CFC) appeared as parallel partial mediators, jointly accounting for 41% of the effect on decision quality; sensitivity analysis shows these indirect effects would be nullified by modest mediator-outcome confounding. Knowledge estimates faded by 6 months, whereas self-efficacy showed a directional but non-significant trend toward persistence.ConclusionThe findings provide effect-size estimates and mechanism hypotheses-capacity beliefs and future-orientation as parallel pathways-for adequately clustered confirmatory trials of financial-literacy education in this underserved population.”

2. 2

   Latent dimensions of financial behaviour derived by principal component and factor analysis.

   Journal of financial services marketing (Sholevar)Published Aug 7, 2026Checked Oct 4, 2026

   “Financial inclusion emerges as a relatively distinct, access-related dimension associated with usage, but its status as a prerequisite for broader financial behaviour requires additional investigation. Financial literacy is most strongly linked to usage and knowledge-related indicators, and while its role in risk management remains conceptually plausible, it requires direct empirical testing. The findings highlight the limitations of inclusion-focused metrics and underscore the multidimensional nature of financial literacy. By integrating a novel conceptual framework, original data, and advanced statistical techniques, this study provides a comprehensive approach to understanding financial behaviour and challenges traditional assumptions, thereby establishing a foundation for future research and more effective strategies in financial education and inclusion.Supplementary informationThe online version contains supplementary material available at https://doi.org/10.1057/s41264-026-00384-5.”

3. 3

   Household financial management behavior and catastrophic health expenditure risk in rural China: the moderating role of health insurance coverage.

   Frontiers in public health (Cheng)Published May 21, 2026Checked Oct 4, 2026

   “We employed logistic regression and instrumental variable methods to analyze the impact of financial management behavior on CHE and its interaction with health insurance.ResultsFinancial management behavior significantly reduces CHE risk, with saving behavior and insurance awareness demonstrating the strongest protective effects. Health insurance moderates this effect, weakening the protective role by approximately 70%, with stronger substitution among low-capacity households. The protective effect is greater among low-income households, western regions, and older-adult-headed households, exhibiting diminishing marginal utility. Different dimensions show complementary and substitutional relationships: savings' marginal effect is significantly higher in high-debt households, while debt management's effect is weaker in high-saving households.DiscussionThese findings suggest that reducing CHE risk requires shifting from singular health insurance expansion toward differentiated "health insurance + financial capacity" strategies, implementing targeted interventions based on household financial capacity levels.”

4. 4

   Financial literacy (Wikipedia)

   WikipediaPublished Oct 4, 2026Checked Oct 4, 2026

   “Financial literacy is the possession of skills, knowledge, behavior, and attitude that allow an individual to make informed decisions regarding money. Financial literacy, financial education, and financial knowledge are used interchangeably. Financially unsophisticated individuals cannot plan for their future because of their poor financial knowledge. Financially sophisticated individuals are good at financial calculations; for example they understand compound interest, which helps them to engage in low-credit borrowing. Most of the time, unsophisticated individuals pay high costs for their debt borrowing. Raising interest in personal finance is now a focus of state-run programs in Australia, Canada, Japan, the United Kingdom, and the United States. Understanding basic financial concepts allows people to know how to navigate the financial system. People with appropriate financial literacy training make better financial decisions and manage money than those without such training.”

5. 5

   Protocol: Psychological Factors of Financial Planning for Retirement in Working-Age Adults: A Scoping Review.

   Campbell systematic reviews (Shabrina et al.)Published Apr 8, 2026Checked Oct 4, 2026

   “This is a protocol for a scoping review. The main objective is to understand what has been reported in the literature about the psychological factors that play a role in financial planning for retirement. The secondary objectives include: (a) examining the occupational groups that have been the focus of prior studies; (b) investigating how financial planning for retirement has been defined and measured; (c) mapping the types of decision-making and behaviors within financial planning for retirement that have been the focus of prior research; (d) identifying the geographical regions studied in relation to the psychology of retirement financial planning; and (e) determining the predominant publication types in this field (e.g., scientific journals, governmental reports). This review will incorporate both peer-reviewed publications and grey literature. The findings will provide valuable insights for policymakers and financial institutions to develop targeted interventions, while also identifying research gaps that can guide future studies to refine approaches and explore understudied areas.”