Date of Graduation

Spring 2024

Document Type

Thesis

Degree Name

Master of Science in Applied Economics (MSAE)

College/School

College of Arts and Sciences

Department/Program

Economics

First Advisor

Andrew Hobbs

Abstract

This study investigates the feasibility of digital financial education for microcredit borrowers with limited digital literacy in Eastern Uganda using a mobile game simulating real-world livestock investments. Analyzing 117,870 decisions made by 133 participants across five game sessions, we found a statistically significant increase in decision-making speed, with the speed more than doubling between the first and last game session, indicating growing familiarity with the game interface.

However, the overall error rate of participants increased significantly, possibly due to fatigue or the introduction of more complex financial concepts in higher levels. Additional analysis of the initial decisions at each level revealed a consistent error rate, and decisions made in just Level 1 displayed a positive correlation between error rate and playing the game more. Those findings suggest limited understanding of the game mechanics and financial concepts of our target population. A key limitation was the lack of direct feedback within the game.

Future iterations should incorporate feedback mechanisms and educational components to enhance user understanding. This study demonstrates the potential of mobile apps in similar environments, emphasizing the importance of user-friendly and intuitive interfaces and adaptability based on participants' numeracy and literacy skills. Further research should explore cognitive factors influencing decision-making and the effectiveness of real-time feedback mechanisms. This thesis contributes to the growing research on financial literacy interventions and the potential of mobile apps for effective and scalable financial education.

Supplemental Files
schulz_lucie_SP2024_suppl_files.zip (2197 kB)
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