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This chapter describes the findings of financial literacy surveys in selected Organization for Economic Co-operation and Development (OECD) countries and relevant studies in behavioral economics, examining their implications for the design and implementation of financial education programs. The evaluations of financial education programs are specifically addressed. Surveys across OECD countries reveal low levels of financial literacy across the board and of pension-related financial literacy specifically. The chapter also shows that individuals are not saving enough for retirement. The experience of the OECD's Financial Education Project has shown that insights into improving financial education programs can be observed in the responses to financial literacy surveys and in the research based on behavioral economics. The provision of financial education can benefit from the findings of both financial literacy surveys and behavioral economics research.

This chapter, which describes a well-crafted financial education program implemented by Teachers Insurance and Annuity Association-College Retirement Equities Fund, also assesses the effect of financial education seminars on retirement income goals and retirement saving behavior. The results show that participants in financial education seminars respond to the knowledge and information gained by altering their retirement goals and changing their saving behavior. In response to the seminars, the proportion of participants who changed either of their retirement goals was relatively small. Women are more likely to change goals and behavior after the seminar. Female respondents had much lower account balances in their retirement plans than men. Financial education can cause workers to reconsider their retirement goals and alter their saving behavior. The lack of financial literacy has resulted in movements to automate the retirement saving process.

This book investigates the financial education programs that are in place, examines available investment products, and looks at the experiences of countries that have privatized the pension systems or experienced changes in the social security systems. It presents suggestions on how to enhance the effectiveness of these programs and products, thereby enabling the United States to make the transition to this new system more smoothly. The book shows that although the problems are many and the challenges daunting, programs can be designed to change saving behavior and overcome the saving slump now facing so many individuals. It also reveals that financial education programs can be effective and that increased literacy does result in better saving habits. Finally, an overview of the chapters included in the book is provided.

This chapter examines a study conducted with the Peruvian microfinance institution Arariwa, which explores a number of questions regarding technology's potential and proper role as a development tool by implementing and testing a multimedia financial education program for clients. In this case, there are two major areas of failures: research setting and partner organization challenges. There were a few distinct instances of the former. First, the field sites presented challenges to the use of technology. Second, the intervention itself was deceptively complex. Finally, there was an element of bad timing in the flooding that caused repayment problems for some clients, thus adding stress to loan officers' already full plates. Indeed, competing priorities were a key partner organization challenge in this case. Loan officers were expected to deliver trainings without any lapses in, or relief from, their basic duties.