Do you want to jump on this train? A field experiment on the impact of financial training on savings behavior in Rwanda

Abstract: This thesis reports on a field experiment conducted in rural Rwanda, in which farmers were randomly assigned to attend a financial education training and were offered one of two types of savings accounts; a Targeted savings account, or a more binding, Pre-commitment savings account. We conduct a Difference-in-Difference analysis to test whether financial training alone had any effect on savings balances, as well as how the training interacted with farmer characteristics and the new savings accounts. We find that the financial training had no effect on farmers' aggregate savings balances, but that for those who attended the training, savings balances follow the promoted seasonal cycle more clearly. Furthermore, we do not observe that farmer characteristics make financial training attendance more impactful on savings behavior, but that these characteristics on their own, seem important in determining savings balances. Surprisingly, we find no evidence that opening a savings account after attending the training reflected any increased gain from the financial training.