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Promoting financial literacy through a digital platform: A pilot study in Luxembourg
Author(s) -
Li Jian,
MeyerCirkel Alexis
Publication year - 2021
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/ijfe.1777
Subject(s) - financial literacy , portfolio , test (biology) , diversification (marketing strategy) , construct (python library) , benchmark (surveying) , momentum (technical analysis) , economics , convergence (economics) , financial economics , class (philosophy) , business , actuarial science , finance , marketing , computer science , paleontology , geodesy , artificial intelligence , biology , economic growth , programming language , geography
This paper investigates the dynamics of individual portfolios in a unique innovation test conducted through a digital financial literacy platform— saalt . We conduct the test at the University of Luxembourg and ask students to construct their own financial portfolios, choosing from among 500+ financial assets; students could adjust their portfolio weights at any time using their registered accounts. Moreover, we stimulate the sharing of portfolio information among students through class presentations and Facebook postings. We find relatively sophisticated diversification strategies and clear momentum‐chasing behaviour for winning stocks; we also discover rapid convergence of individual portfolios to the provided benchmark portfolios. Finally, we find significant peer influences in the test. In general, financial literacy spreads rapidly among students.