How Motivations and Costs Affect Financial Knowledge Learning? Evidence from a Large-Scale Fintech Experiment in China

Utilizing the launch of mobile wealth management services in China in 2013 as a shock to financial education, we analyze a panel of 16,440 households through a difference-in-differences strategy to examine how learning motivations and costs affect financial knowledge learning. Results show that the use of the mobile services encourages risky asset holdings and in turn enhances the self-discipline to learn, which, coupled with low-cost and personalized learning tools provided through the services, increases financial knowledge. The finding is robust to the probability of using the services and potential pre-trends in financial knowledge. We contribute by utilizing a large-scale experiment beyond classrooms to show the role of learning motivations and costs in financial knowledge learning and thus help clear the controversy on the effectiveness of financial education