Apr 2014, ,
Keeping it Simple: Financial Literacy and Rules of Thumb
Micro-entrepreneurs often lack the financial literacy required for the complex financial decisions they face. This research study conducts a randomized control trial with a bank in the Dominican Republic to compare the impact of two distinct programs: a standard accounting training versus a simplified, rule-of-thumb training that teaches basic financial methods. The results suggest that reducing the complexity of training programs might improve their effectiveness, especially for less sophisticated clients.