Compound Interest, Impulse Control, and Academic Discipline: A Field Experiment in Middle Schools

Last registered on March 16, 2026
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Pre-Trial

Trial Information

General Information

Title
Compound Interest, Impulse Control, and Academic Discipline: A Field Experiment in Middle Schools
RCT ID
AEARCTR-0018140
Initial registration date
March 15, 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
March 16, 2026, 7:21 AM EDT

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
Zeyang Chen
Affiliation
Renmin University of China
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Other Primary Investigator(s)

PI Name
Yu-Jane Liu
PI Affiliation
Peking University
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PI Name
Jianhong Wang
PI Affiliation
Peking University; The University of Hong Kong
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PI Name
Dan Wen
PI Affiliation
Peking University
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Additional Trial Information

Status
In development
Start date
2026-03-16
End date
2026-07-31
Keywords
Behavior, Education, Finance & Microfinance
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
This study examines whether a brief, integrated financial education curriculum can improve adolescents' savings behavior, reduce impulsive consumption, and potentially enhance academic self-discipline. We conduct a randomized controlled trial in Chinese middle schools, involving approximately 60 classrooms and 3,000 seventh and eighth-grade students. The intervention consists of two 45-minute lessons delivered one week apart. Lesson 1 (Compound Interest): Teaches students how savings grow over time through compound interest, using mathematical examples and goal-setting exercises. Lesson 2 (Impulse Control): Helps students differentiate between needs and wants, understand opportunity costs, and develop strategies to avoid impulsive purchases. We measure impacts on: (1) financial literacy knowledge (interest calculations, compound interest comprehension), (2) savings and consumption behaviors, and (3) exploratory outcomes related to academic discipline such as time management and study habits. This research contributes to financial education literature by testing whether an integrated approach—combining savings promotion and consumption awareness—can produce synergistic effects. Additionally, we examine whether financial education might spill over to non-financial domains, addressing open questions about the transferability of self-control skills across contexts.
External Link(s)

Registration Citation

Citation
Chen, Zeyang et al. 2026. "Compound Interest, Impulse Control, and Academic Discipline: A Field Experiment in Middle Schools." AEA RCT Registry. March 16. https://doi.org/10.1257/rct.18140-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2026-03-17
Intervention End Date
2026-04-30

Primary Outcomes

Primary Outcomes (end points)
Primary Outcome 1: Financial Literacy Knowledge - measured through standard incentivized financial literacy tests

Primary Outcome 2: Savings Behavior and Consumption Behavior - self-reported behaviors and habits, cross checked by teachers' and parents' survey questions

Primary Outcome 3: Time preferences - measured by standard incentivized time preference tests

Exploratory Outcome 4: Academic Discipline Measures - self-reported behaviors and habits, cross checked by teachers' and parents' survey questions
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
We employ a school-based randomized controlled trial with the following structure:

Setting: Public middle schools (grades 7-8) in China. Schools represent diverse institutional contexts to enhance external validity.

Participant Recruitment: All students in selected classrooms are invited to participate. Students are assured participation is voluntary and data will remain confidential.

Baseline Assessment: Students complete a 10-minute survey during school hours, including: Demographic information and family background; Baseline financial literacy and behaviors; and Current study habits and time management (for exploratory analysis).

Intervention: Classrooms are randomly assigned to either: (1) Treatment: Receive two 45-minute lessons delivered one week apart (2) Control: Continue with standard curriculum (no financial education)

Lesson 1: Savings (45 minutes), including topics such as Visual demonstrations of exponential growth through compound interest; Mathematical exercises calculating multi-period savings; Goal-setting activities for personal savings targets; Real-world applications (saving for goals)

Lesson 2: Consumption (45 minutes), including topics such as Interactive scenarios on impulse purchasing; Strategies for avoiding marketing traps and social pressure; Opportunity cost exercises demonstrating trade-offs; Development of personal spending rules

Teachers receive standardized materials (PPT, student worksheets, detailed lesson scripts) before delivery. All materials are designed for teachers without specialized financial training. Teachers audio-record sessions for fidelity monitoring.

Follow-up Assessments: (1) Immediate post-test: Within 48 hours after Lesson 2; (2) Three-month follow-up: Conducted in the same academic term to assess persistence

Incentives: All outcome measurement tasks include real incentives. Students earn tokens exchangeable for school supplies. Each incentivized question includes a random lottery where one student per classroom receives their earned reward, ensuring cost-effectiveness at scale.
Experimental Design Details
Not available
Randomization Method
Classrooms are first stratified by school and grade level. Within each stratum, classrooms are randomly assigned to treatment or control with equal probability (50/50), which is decided by random numbers generated by a computer.
Randomization Unit
Classroom (cluster)
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
50 classrooms across 3~4 junior middle schools
Sample size: planned number of observations
Students: Approximately 2,500 students (50 students per classroom × 50 classrooms) Observations per student: - Baseline: 1 observation - Immediate post-test: 1 observation - Three-month follow-up: 1 observation Total planned observations: 7,500 student-time observations (2,500 students × 3 time points)
Sample size (or number of clusters) by treatment arms
Treatment Group (Anti-Fraud Module):
- 25 classrooms
- ~1,250 students (approximately 50 per classroom)
- Receive: 45-minute anti-fraud education module + all three assessments

Control Group (Standard Curriculum):
- 25 classrooms
- ~1,250 students (approximately 50 per classroom)
- Receive: No intervention + all three assessments
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
Faculty Research Committee, Faculty of Business and Economics, The University of Hong Kong
IRB Approval Date
2026-03-12
IRB Approval Number
N/A
Analysis Plan