by Elsa Fornero, Mariacristina Rossi, Dario Sansone; CeRP WP 162/16
We show that receiving an allowance (pocket money) between age 8 and 12 increases financial confidence in adulthood. We measure the level of confidence using the self-reported financial knowledge. We carry out the analysis by using a Dutch survey conducted in 2015. We estimate causal effects by controlling for parental attitudes and using a “within family” fixed effect.
Published: July 2016