Youth financial education programme in Brazil

1. Description of the programme
2. The study
3. Key findings
4. Points to consider

Description of the programme

This financial education programme targeted young people in schools in Brazil., It aimed to improve students’:

• Financial knowledge and preferences.
• Attitudes toward current and future financial decisions.
• Saving and spending behaviour.

It also aimed to have a positive impact on parents’ financial attitudes and behaviours.

A ‘pedagogical support group’ comprising state-wide and local education bodies designed the programme, which was overseen by Brazil’s National Financial Strategy working group. It was delivered by regular teachers in a classroom setting over 18 months (three school semesters), and was integrated into mathematics, science, history and Portuguese lessons.

The student textbook was divided into three blocks and covered nine themes, which were: family life, social life, personal property, work, entrepreneurship, large expenditures, public goods, country economy, and world economy. The textbook’s design aimed to capture the interest of young adults and be of relevance to their lives. It consisted of 72 case studies, providing material for between 72 and 144 hours of teaching (1–2 hours per case study), including interactive classroom exercises on financial education themes, self-evaluative questions, take-home exercises such as creating household budgets with parents, and role-playing assignments such as visiting local markets and organising class graduation parties.

Extensive teacher training and instructor handbooks, web learning tools and participation awards complemented the curriculum. The programme also included an adult workshop for parents (structured around the use of a DVD learning aid).

Spillover effect is perhaps more common but not sure we need this descriptor anyway.

The study

The World Bank published an independent impact evaluation of the programme in its Enhancing Financial Education & Behaviour Formation in Brazil report. The study involved randomised control trials (RCTs) spanning 20,000 students at 868 schools across six states in Brazil. Data were collected in three rounds consisting of one baseline (August 2010), and two follow-ups (December 2010 and December 2011). At the baseline point, researchers administered a financial knowledge test to students, and students filled out a self-administered questionnaire about their financial attitudes and behaviours.  These were repeated at both follow-up points. 

The parent intervention was introduced in May 2011, and the study recorded parent outcomes through an exit survey and follow-up survey in December 2011. The study assigned parents randomly to either a financial education screening or a health education screening.

Key findings

For students, the evaluation found:

Financial behaviour:

• There was an increase in the proportion of students saving and the actual amount saved per student. There was also an increase in the proportion of students making budgets, negotiating prices and negotiating payment methods.

Financial capability (ability):

• Students’ level of financial proficiency was significantly higher in the treatment group than in the control group. There was a 5-7 per cent increase in financial knowledge for students at all levels of capability.

For parents, the evaluation found:

Financial behaviour:

• After the intervention, there was an increase in savings rates among parents, as well as amongst their children. The evaluation found that parents used their improved knowledge to reinforce the school messages to their children.

Financial capability (mindset):

• Following the intervention, there was an increase in the number of parents keeping household budgets. Parents involved in the programme were significantly more likely to report that their children discussed financial matters with them at home and that they volunteered to help organize household budgets, compared to those in the comparison group.

The Ministry of Education in Brazil agreed to expand the financial education programme to 3,000 new schools across the country after reviewing evidence from the evaluation.

Points to consider

Methodological considerations:

• Maintaining school engagement was challenging during the study period, with 50 schools dropping out of the programme during this time.

Full report

Full research report