Every organization has its supporters and critics. Financial Literacy Organizations, including MoneyThink, are unavoidably placed in this situation as well. The main criticism that stems for us, especially from academics is: Does your program (or financial literacy in general) have an impact?

The immediate gut-reflex of anyone that is a member of MoneyThink is to declare: “Of course!” The MoneyThinker then goes on to present an array of anecdotes, examples, testimonials to corroborate his point. He may cite the student from Hales that put money he earned into a Certificate of Deposit instead of buying gym shoes. He may explain the group of girls at South Shore who not only opened a bank accounts, but talked their parents into opening bank accounts as well.

But, of course, we are not responding to the heart of the critic’s question. The critic is asking, is there any scientifically verifiable evidence that financial literacy leads to an increase in some social metric (increase in savings rate, increased earnings, etc.). And herein lies the problem of any financial literacy organization. Few organizations have actually scientifically tested the effectiveness of their programs. Their metrics say “x % of our participants feel financially responsible” or “y % of our participants have increased positive attitudes towards education.”

Yes critics, we agree. We need to not only teach in classrooms, but we need to make sure that our teaching is having an impact. Rest assured, we are working on making that happen. Keep checking back.

Cheers!

Shashin

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