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ERIC Number: EJ1097338
Record Type: Journal
Publication Date: 2016
Pages: 15
Abstractor: As Provided
ISSN: ISSN-0022-0485
Using Online Compound Interest Tools to Improve Financial Literacy
Hubbard, Edward; Matthews, Percival; Samek, Anya
Journal of Economic Education, v47 n2 p106-120 2016
The widespread use of personal computing presents the opportunity to design educational materials that can be delivered online, potentially addressing low financial literacy. The authors developed and evaluated three different educational tools focusing on interest compounding. In the authors' laboratory experiment, individuals were randomized to one of three display tools: text, linear graph, or volumetric graph. They found that the text and volumetric tools were most effective at improving understanding of interest compounding, whereas individuals using the linear tool made little gains. The superiority of the text over the linear tool runs counter to the prediction of theories that suggest advantages of graphics over text. For researchers, the authors' findings highlight the importance of pedagogy evaluation. For practitioners, they provide research-validated tools for online dissemination.
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Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Wisconsin
Grant or Contract Numbers: N/A