Financial risk knowledge and investment propensity: an experiment on young adults

Last registered on February 24, 2026

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Pre-Trial

Trial Information

General Information

Title

Financial risk knowledge and investment propensity: an experiment on young adults

RCT ID

AEARCTR-0017913

Initial registration date

February 23, 2026

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published

February 24, 2026, 8:45 AM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

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Primary Investigator

Name

Ludovica Galotto

Affiliation

Bank of Italy

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Other Primary Investigator(s)

PI Name

Ginevra Buratti

PI Affiliation

Bank of Italy

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PI Name

Alberto Noe

PI Affiliation

Consob

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PI Name

Pietro Vassallo

PI Affiliation

Bank of Italy

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Additional Trial Information

Status

In development

Start date

2026-02-13

End date

2026-12-31

Keywords

Behavior, Education, Finance & Microfinance

Additional Keywords

Experimental Finance

JEL code(s)

G4, G53, C9, I21

Secondary IDs

Prior work

This trial does not extend or rely on any prior RCTs.

Abstract

This study examines how young people in Italy make investment decisions and how these decisions are influenced by their understanding of the risks and expected returns of different asset classes. The analysis relies on a survey experiment embedded in the 2026 Bank of Italy–Consob survey on the financial literacy of young adults in Italy. The experiment features a control group and two treatment groups exposed to enhanced risk disclosures. In addition to the standard warning about the possibility of losing the entire invested amount, the treatments provide (i) information on long run expected returns and (ii) on the opportunity cost of keeping funds in a current account, i.e. the loss of purchasing power caused by inflation. The study also investigates whether individual characteristics, such as financial literacy, education, and prior experience with financial markets, affect the ability to internalize these messages and translate them into investment intentions.

External Link(s)

Registration Citation

Citation

Buratti, Ginevra et al. 2026. "Financial risk knowledge and investment propensity: an experiment on young adults." AEA RCT Registry. February 24. https://doi.org/10.1257/rct.17913-1.0

Sponsors & Partners

Experimental Details

Interventions

Intervention(s)

Intervention Start Date

2026-02-13

Intervention End Date

2026-04-14

Primary Outcomes

Primary Outcomes (end points)

Investment propensity

Primary Outcomes (explanation)

The portion of the €10,000 that individuals choose to allocate to investments in shares and investment funds

Secondary Outcomes

Secondary Outcomes (end points)

Cripto assets investment propensity

Secondary Outcomes (explanation)

The portion of the €10,000 that individuals choose to allocate to crypto assets

Experimental Design

Respondents are presented with a hypothetical scenario in which they receive €10,000 and are asked to assume they will not need this money for the next ten years. They must then allocate the entire amount across different asset classes that differ in terms of risk and expected returns (deposit, shares and funds, crypto assets). Participants are randomly assigned to a control group or one of two treatment groups:

• Control Group: Before making their asset allocation choices, respondents are shown a standard warning emphasizing the volatility of investments and the possibility of losing the entire invested amount.

• Treatment Group 1 (Higher returns of investments): Respondents receive the same standard warning as the control group. In addition, they are given information about the historically higher medium- to long-term-returns of invested funds compared to money kept uninvested.

• Treatment Group 2 (Cost of non-investing). Respondents receive the same standard warning as the control group. In addition, they are given information about the cost of keeping money uninvested, specifically the loss of purchasing power over time due to inflation.

Experimental Design Details

Not available

Randomization Method

Randomization is carried out through simple computer-based randomization by the company responsible for administering the survey.

Randomization Unit

The individual survey respondent.

Was the treatment clustered?