REGULAR ARTICLE Bringing Voluntary Financial Education in Emerging Economy: Role of Financial Socialization During Elementary Years Ratna Candra Sari 1 • P. L. Rika Fatimah 2 • Suyanto 3 Ó De La Salle University 2017 Abstract The level of financial literacy tends to be low in children, while information and financial education for children are very limited, especially in developing coun- tries without mandatory financial education in schools. This study examined the effects of a classroom financial education program on financial knowledge. We used ‘‘Fi- nancial Intelligence Curriculum’’ designed for elementary school students from grade 1–6, focusing on the need and want, priority needs, income, spending, saving, and shar- ing. Using experimental method with pre-post-test and control group design, we found that the treatment group who received financial education has improved financial knowledge relative to the control group. The study pro- vides evidence that elementary school students are appro- priate targets for financial education and that it is necessary to develop mechanisms for effective learning to improve financial capability at an early age. Keywords Financial education Á Financial socialization Á Financial literacy Á Emerging economy Á Elementary years Introduction Financial literacy is the ability to use one’s knowledge and skills to manage financial resources effectively to achieve financial well-being. Citizens who have financial compe- tencies play an important role in the functioning of financial markets and the economic stability of nations (OECD 2005; Hilgert et al. 2003). Over the last decade, major initiatives on financial education have been undertaken by a number of high-income countries. Previous research on financial edu- cation conducted at primary schools in high-income coun- tries found that financial education can improve financial knowledge in elementary school students (Grody et al. 2008; Schug and Hagedorn 2005; Hagedorn et al. 2012; Berti and Monaci 1998). In the last few years, there has been a rising interest in financial education issues in both low and middle- income countries for many different causes, i.e., concerns with the perceived low level of financial capability, low financial access, or use and the recognition that finance is a critical element for innovation and growth (OECD 2005). Financial education for children, especially in middle-in- come countries, is very essential because the level of finan- cial literacy tends to be low in children (Lusardi and Mitchell 2011) and financial information for children is very limited (Sherraden et al. 2011). However, studies that examine the effects of financial education in the middle-income countries are only limited in number. Despite a growing number of high-income states mandat- ing financial education, the level of financial literacy remains low (Kirsch 2014), possibly because mandatory financial education often results in elective course without prior broad- based announcements to all students, as well as that teachers are not prepared to teach it (Holden and Way 2009). Previous studies found evidence that there is no difference in the score of financial literacy between students who have had a & P. L. Rika Fatimah rika_paper@yahoo.com; rikafatimahpl@ugm.ac.id 1 Department of Accounting, Faculty of Economics, Universitas Negeri Yogyakarta, Jl. Colombo No. 1, Caturtunggal, Depok, Sleman, Yogyakarta, Indonesia 2 Department of Management, Faculty of Economics and Business, Universitas Gadjah Mada, Jl. Sosio Humaniora No. 01, Bulaksumur, Yogyakarta, Indonesia 3 Department of Economics Education, Faculty of Economics, Universitas Negeri Yogyakarta, Jl. Colombo No. 1, Caturtunggal, Depok, Sleman, Yogyakarta, Indonesia 123 Asia-Pacific Edu Res DOI 10.1007/s40299-017-0339-0