Bio: William Skimmyhorn

Lieutenant Colonel William Skimmyhorn is an Assistant Professor of Economics and the Deputy Director of the Office of Economic and Manpower Analysis. He earned a B.S. in Economics at West Point in 1997, and M.A. in International Policy Studies and an M.S. in Management Science and Engineering from Stanford in 2006 and a Ph.D. in Public Policy from the Harvard Kennedy School in 2012. Prior to his current position he has served in a variety of command and staff positions in the U.S., Korea, Bosnia, Italy, and Afghanistan.  His primary research interests are household finance, human capital development, behavioral economics, and the economics of national security.

Abstract

This research estimates the effects of financial education on a variety of economic outcomes using a large natural experiment within the U.S. Army. I find that Personal Financial Management Course (PFMC) attendance and enrollment assistance doubles retirement savings, with significant effects throughout the contribution distribution that persist through at least two years. The course has smaller but suggestive effects on credit market outcomes including combined account balances and aggregate monthly credit payments in the first year after soldiers finish their initial job training. The PFMC has no significant effects on military labor market outcomes including measures of performance, productivity and reenlistment early in their service. Overall, the results suggest that financial education coupled with assistance and advice can improve financial outcomes in a number of areas.