Evidence of impact: an overview of financial education evaluations

The results of the FSA's Baseline Survey of Financial Capability showed that, in 2005, many UK consumers lacked the confidence and capability to make effective decisions about their money.

In March 2006 the FSA launched a seven-point programme to improve the financial capability of the UK population. Working together with partners, the FSA has focused on delivering these initiatives as part of the National Strategy for Financial Capability.

However, in its 2007 review the National Audit Office recognised that measuring the outcomes of these initiatives is inherently difficult. This was also discussed at the Treasury Select Committee, where representatives outlined the need to be able to understand not only how the National Strategy impacts on outcomes and behaviour but also the effectiveness of different 'types' of intervention.

Therefore, in order to inform further evaluation of financial capability initiatives the FSA commissioned a review of past evaluations of the effectiveness of financial capability initiatives and financial education, both in the UK and other countries. This was intended to deliver the following:

• An overview of the evidence on the incremental impact of financial capability interventions on people's behaviour and attitudes - i.e. what is the difference compared with the world if initiatives had not been introduced?
• Summaries from the available evidence on the likely impact of different types of financial capability initiative - e.g. school-based learning, one-off seminars, provision of printed information, or advertising via TV/newspapers/radio - and the likely impact on different target groups.

The final report offers a useful summary of areas where problems have occurred, and what good practice would be to overcome these, which the FSA will take into account in designing future evaluation of financial capability initiatives.

Evidence of impact: an overview of financial education evaluations (PDF, 639kB)