Abstract
We examine whether training individuals about the riskiness of financial products changes their risk perception in making financial decisions. Conducting a nationwide survey in Türkiye, we first map individuals’ use of regulated and unregulated financial products in borrowing, saving, and investing. We next train a randomly selected sample of people in three regions where use of unregulated or risky products is high and test their financial preferences by asking them to take the survey after the training. With controls for observable characteristics, our results suggest that training on the riskiness of financial products helps improve individuals' risk perception, and this improvement seems to motivate them to prefer regulated financial products and to seeking professional advice about borrowing, saving, and investment.
| Original language | English |
|---|---|
| Pages (from-to) | 30-37 |
| Number of pages | 8 |
| Journal | Borsa Istanbul Review |
| Volume | 25 |
| Issue number | Supplement 1 |
| DOIs | |
| Publication status | Published - Oct 2025 |
Bibliographical note
Publisher Copyright:© 2025 Borsa İstanbul Anonim Şirketi.
Funding
Authors gratefully acknowledge the financial support of the Scientific and Technological Research Council of Türkiye (TUBITAK). The grant number is: 221K006. We thank Cavit Görkem Destan and the participants at the Financial education - Why, what works, what doesn't and for whom - conference in Politecnico di Milano (June 2025) and at the Efil Conference on Economics and Society (December 2024) for their suggestions and comments.
Keywords
- Financial decision making
- Financial literacy
- Financial risk perception