Financial literacy education has long been promoted as key to consumer financial well-being. It is widely embraced as an effective alternative to substantive legal regulation. Yet its effectiveness has never had more than negligible empirical support. This review (1) sets forth the model of...

This paper argues that the pursuit of financial literacy poses costs that almost certainly swamp any benefits. For some consumers, financial education appears to increase confidence without improving ability, leading to worse decisions. When consumers find themselves in dismal financial straits,...