Financial literacy explains almost none of the racial investment gap

Evidence

I find both of these lines of questioning flawed at best. Financial literacy training has been proven to be ineffective: A study found that financial literacy accounts for only one-tenth of 1 percent of differences in behavior when it comes to financial decision-making. It’s not a matter of education more generally either—in the comparable wealth study, the black Americans tended to have higher education levels than their white peers. — Dorothy A. Brown, The Whiteness of Wealth, 459

Categorization

• XREF: Directly rebuts the mainstream ‘teach financial literacy’ policy prescription, reinforcing the book’s structural-over-individual framing.