Interventions designed to improve financial capability: A systematic review

There is growing recognition that people need stronger financial capability to avoid and recover from financial difficulties and poverty. Researchers are testing financial capability interventions with adults, children, immigrant populations and other groups, but little is known about the effectiveness of financial capability interventions on financial behaviour and financial outcomes.

The purpose of this review is to inform practice and policy by examining and synthesizing evidence of the effects of interventions designed to improve financial capability. Financial capability interventions combine financial education and financial products and/or services. The research questions are: (a) What are the effects of interventions designed to improve financial capability on financial behaviour and financial outcomes? and (b) Does study(design), intervention (dosage, duration, type) or sample (age) characteristics relate to the magnitude of effect size?

We conducted two identical rounds of electronic searches for two different time periods. In Round 1 searched for studies through May, 2017 and Round 2 searched from May, 2017 through May, 2020. For both rounds, we identified and retrieved both published and unpublished studies, including conference proceedings, through a comprehensive search that included multiple electronic databases, grey literature sources, organizational websites, government websites and reference lists of reviews and relevant studies. We also conducted forward citation searching using Google Scholar to search for studies citing the included studies. We also conducted a search on Google using key terms. We hand searched the table of contents of selected journals to identify potentially eligible reports not properly indexed. Finally, experts who were study or sub-study authors of prior studies were contacted in an attempt to obtain unpublished studies, studies in process and published studies missed in the database search.

To be eligible for this review, the intervention must have included a financial education component and a financial product or service. Studies must have also been conducted in any of the 35-member countries of the OECD, and included a financial behaviour or financial outcome. To meet the criteria for delivering financial education, interventions must have delivered information about: (1) a variety of general financial concepts and behaviours, or advice about financial behaviours); (2) a specific financial topic; (3) a specific product; and/or (4) a specific service. To meet the criteria for access to a financial product or service, interventions must have facilitated access to one or more of the following: (1) a child development account; (2) a retirement account through an employer; (3) a 'second chance' checking account; (4) a matched savings account; (5) a financial service, such as financial counselling or coaching; (6) a bank account; (7) an investment vehicle; or (8) a home mortgage loan product.

Electronic searches of bibliographic databases and searches of other sources identified a total of 35,484 hits. Titles and abstracts were screened for relevance and 35,071 were excluded as duplicates or deemed inappropriate. The full text of the remaining 416 potential studies was reviewed and screened for eligibility by two independent coders. We excluded 353 reports that were deemed ineligible and included 63 reports that met inclusion criteria. Of the 63, 15 reports were deemed duplicates or summary reports. Of the remaining 48 reports, 24 were unique studies (using unique samples) that were included in this review. Six of those 24 studies were large longitudinal studies that presented unique analyses (using different time points, subsamples, and/or outcomes). Thus, we extracted data from 48 reports, reporting data and analyses from 24 unique studies. At least two review authors who were not study authors independently assessed risk of bias in all included studies using the Cochrane Collaboration's risk of bias tool.

The review summarizes evidence from 63 reports from 24 unique studies, which included 17 randomized controlled trials and 7 quasi-experimental designs. In addition, 17 duplicate or summary reports were also located. This review identified several different types of previously evaluated financial capability interventions. Unfortunately, few interventions that were evaluated by more than one study measured the same or similar outcomes, thus there were not a sufficient number of studies of any of the included intervention types that could be pooled to conduct a meta-analysis. Therefore, evidence is sparse about whether participants' financial behaviours and/or financial outcomes are improved. While the majority of the studies used random assignment (72%), many of the studies had some important methodological weakness.

There is a lack of strong evidence about the effectiveness of financial capability intervention. Better evidence is needed about the effectiveness of financial capability interventions to guide practitioners.