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Diane Publishing Books
State Mandated Financial Education and the Credit Behavior of Young Adults
Alexandra Brown (au); J. Michael Collins (au); Maximilian Schmeiser (au); Carly Urban (au)
A number of U.S. states have mandated personal finance classes in public school curricula to address perceived deficiencies in financial decision-making competency. Despite the growth of financial and economic education in public schools, little is known about the effect of these programs on the credit behaviors of young adults. The authors examine young adults in three states where personal financial education mandates were implemented in 2007: Georgia, Idaho, and Texas. They compare the credit scores and delinquency rates of young adults in each of these states pre- and post-implementation of the education to those of students in a synthetic control state and then bordering states without financial education. They find that young people who are in school after the implementation of a financial education requirement have higher relative credit scores and lower relative delinquency rates than those in control states. Tables and figures. This is a print on demand report.
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