  In this study, we investigate the causal effect of financial literacy
education on a composite financial health score constructed from 17
self-reported financial health and distress metrics ranging from spending
habits to confidence in ability to repay debt to day-to-day financial skill.
Leveraging data from the 2021 National Financial Capability Study, we find a
significant and positive average treatment effect of financial literacy
education on financial health. To test the robustness of this effect, we
utilize a variety of causal estimators (Generalized Lin's estimator, 1:1
propensity matching, IPW, and AIPW) and conduct sensitivity analysis using
alternate health outcome scoring and varying caliper strengths. Our results are
robust to these changes. The robust positive effect of financial literacy
education on financial health found here motivates financial education for all
individuals and holds implications for policymakers seeking to address the
worsening debt problem in the U.S, though the relatively small magnitude of
effect demands further research by experts in the domain of financial health.
