Does online financial education work?
A report sponsored by the Filene Research Institute and conducted at the University of Wisconsin-Madison in cooperation with the Wisconsin Credit Union League suggests that online investor education improves financial literacy and changes behavior.
Employees from 45 credit unions participated in the program, known as RP3, Real Progress and Paths to Prosperity. Originally completed in 2009 and 2010, more employees reported writing budgets (6% increase), having a written financial plan (5% increase), increased use of IRAs (8 percent increase), and increased likelihood of having saved enough money for three months of expenses (5 percent increase).
Author J. Michael Collins, PhD, assistant professor, director of the Center for Financial Security at the University of Wisconsin and John Hoffmire, PhD, directed a series of surveys in conjunction with financial education modules for hundreds of employees at Wisconsin credit unions.
A full report on the effects of the course is available from the Filene Research Institute, a not-for profit research organization focusing on scientific analysis of consumer finance issues. It examines matters vital to credit unions. Additionally, more information about online financial education from one of the partners, Precision Information, LLC can be found at http://www.educatedinvestor.com/index.html.
This project is funded in part by a grant from the Investor Protection Trust (IPT). The IPT is a Washington, DC-based nonprofit organization dedicated to investor education. Since 1993 the IPT has worked with the states to provide the independent, objective investor education needed by all Americans to make informed investment decisions. Visit www.investorprotection.org