Upgrading financial education by adding Python‐based personalized financial projection: A randomized control trial

Abstract

AbstractResearch has shown that even though standardized financial education has gained prevalence to promote financial literacy over the past decade, it has had little effect on personal financial planning. The present study used a randomized control trial to examine the effectiveness of a Python‐based personalized financial projection on young working adults in Hong Kong, to examine if and how this approach improves their financial planning. Participants assigned to the experiment group received standardized financial education and Python‐based financial projections, while those in the control group only received standardized financial education. The assessment based on the two‐wave data showed that Python‐based financial projection promoted future time perspectives, reduced temporal discounting, and improved financial planning via the full mediation of promoting financial attitudes. Although numerous applications for personal financial planning exist (such as Wallet, Walnut, Monefy, and Money View), our Python‐based financial projection stands out as the pioneering solution tailored for the hands‐on manipulation of programming code to effectively manage personal finances. Our findings suggest a new track to upgrade personalized financial projection and standardized financial education and contribute generously to the development of personal finance education. Practitioner notesWhat is already known about this topic Standardized financial education promotes objective financial knowledge. Standardized financial education has a limited effect on personal financial planning. Classical personalized financial projection promotes personal financial planning, but the effect is small. What this paper adds Introduction of a novel Python‐based personalized financial projection by manipulating projection code. The evidence that Python‐based personalized financial projection more strongly improves personal financial planning, compared to the classical personalized financial projection. The evidence why Python‐based personalized financial projection can improve personal financial planning. Implications for practice and/or policy Facilitating engagement of young working adults with personalized finance planning through the use of a Python‐based intervention. Integrating Python‐based personalized financial projection into standardized financial education in the school setting. Using Python as the platform to design more topic‐specific financial education module.