Financial Education and Risk Literacy

Edited by Riccardo Viale, Herbert Simon Society, BIB-Behavioral Insights Bicocca of University of Milan Bicocca and School of Government, LUISS, Rome, Umberto Filotto, University of Rome “Tor Vergata”, Barbara Alemanni, University of Genoa, Italy and the late Shabnam Mousavi, formerly Center for Artificial Intelligence (CENTAI), Turin, Italy

• Contents:Foreword by Salvatore Rossi xIntroduction 1Riccardo Viale and Umberto FilottoPART I FINANCIAL LITERACY AND FINANCIALEDUCATION: RECOMMENDATIONS, EVIDENCEAND POLICY IMPLICATIONS1 Broadening the scope of financial literacy to incorporateself-control, budgeting and heuristics 5Hersh Shefrin2 How financial decisions are affected by financial literacy levels,behavioral aspects and individual propensities: an empiricalanalysis of Italian young adults 29Gian Paolo Stella, Umberto Filotto and Enrico Maria Cervellati3 From financial education to economic education forcitizenship 48Anna Emilia Berti4 Financial education in times of digitalization and FinTech(r)evolution 60Rossella Locatelli and Alessandra Tanda5 Financial and demographic education effectiveness inacademic and vocational high schools: a randomisedexperiment 75Luca Maria Pesando, Francesco C. Billari, Carlo Favero andFrancesco Saita6 Business education: do values make a difference? 96Malte Petersen, Monika Keller, Jürgen Weibler andWasilios Hariskos7 Learning to wait, be altruistic, and fair: a primary schooltraining in economic education 112Antonella Marchetti, Teresa Rinaldi, Elisabetta Lombardi,Davide Massaro and Annalisa Valle8 Financial education in action for socially fragile groups 123Giovanna Paladino9 Enhancing financial knowledge and risk literacy throughedutainment:CONSOB’s experience 135Nadia LincianoPART II RISK LITERACY AND FINANCIALDECISION-MAKING10 Boosting and nudging: two paths toward better financialdecisions 150Ralph Hertwig and Till Grüne-Yanoff11 Cultural Finance: how is financial information received? 181Barbara Alemanni and Shabnam Mousavi12 Using experiments to inform consumer protection policyin financial services 197Shane Timmons and Peter D. Lunn13 Risk seeking or risk averse? Phenomenology and perception 220Caterina Lucarelli, Mario Maggi and Pierpaolo Uberti14 Old age and the decline in investment performance 236Michael S. Finke and Sandra J. Huston15 The need for entrepreneurs’ risk literacy: evidence fromItalian SMEs and a call to arms 250Enrico Maria Cervellati16 The effect of ex-post information in choice under ambiguity 262Francesco D. Zaffuto, Mateus Joffily and Giorgio Coricelli17 Financial education among Italian SMEs 272Fabrizio Guelpa18 Finance, technology and financial education 279Cristina Giorgiantonio and Zeno RotondiIndex 291

’In today’s environment, financial education and risk literacy continue to be essential elements for individuals and organizations worldwide. This book provides keen insights from leading authorities worldwide on how best to improve financial education and risk literacy. Perhaps the traditional 3Rs (Reading, wRiting, and aRithmetic) should be extended to include a fourth R, being Risk, which would apply in the context of financial literacy and financial education. Enjoy the book - it is well worth the money!’