Promoting Financial Literacy through Digital Platform

Jian Li^[1][2],, Alexis Meyer-Cirkel^b

Abstract：This paper investigates the dynamics of inpidual portfolios in a unique experiment collected through a digital financial literacy platform - saalt. We conduct the experiment at University of Luxembourg and ask students to construct their own financial portfolio among 500+ financial assets, students could adjust their portfolio weights any time using registered account. Moreover, we stimulate sharing of portfolio information among themselves by class presentations and facebook postings. We find relative sophisticated persification strategy and clear momentum chasing behavior for winning stocks, and discover fast convergence of inpidual portfolios to the provided benchmark portfolios. We also find significant peer influences in the experiment. In general, financial literacy spread fast among students in the experiment.

Keywords:Financial literacy household-portfolio choice rebalancingpersificationsocial interactions

^[1]Department of Economics, University of Luxembourg, 162A avenue de la Faïencerie, Campus Limpertsberg, BRA 3.07, L-1511, Luxembourg. Jian Li email: jian.li@uni.lu

^[2]International Monetary Fund. Alexis Meyer-Cirkel email: AMeryerCirkel@imf.org