Moving from unbanked to banked: evidence from the Money Smart program

Using data collected from participants of the FDIC’s Money Smart program, this study investigates the impact that financial education has on an individual’s decision to move from unbanked to banked. To date, most programs and initiatives that target the unbanked define program impact by the number of bank accounts opened. This study provides evidence that the best measure of program “success” may not be the number of accounts opened, but instead whether the program has provided the unbanked with the skills and tools necessary to make sound financial decisions given their financial circumstances.

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