Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309136 
Year of Publication: 
2024
Series/Report no.: 
Staff Reports No. 1131
Version Description: 
Revised November 2024
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
We examine the impact of financial education on credit decisions during COVID-19. The pandemic presented economic challenges, but policy responses provided opportunities for savvy borrowers. Using variation in state-mandated financial education during high school, we find that mandated borrowers reduced their credit card balances by larger amounts after stimulus checks were distributed, and were more likely to buy homes and to refinance mortgages at low rates during the pandemic. The larger credit card balance reduction was driven by middle-income areas and subprime borrowers, while prime borrowers drove mortgage refinancing. Our findings underscore the importance of financial education for economic resilience.
Subjects: 
financial education
high school curriculum
financial decisions
household debt
COVID-19 pandemic
JEL: 
D14
G51
G53
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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