LOCATION

George Washington University School of Business
Duquès Hall, Room 651
2201 G Street NW
Metro: Foggy Bottom Station

Bio: David Richardson

David P. Richardson is a Senior Economist at the TIAA-CREF Institute. Prior to joining the Institute, he served as Senior Economist for Public Finance at the White House Council of Economic Advisers and held the New York Life Chair in Risk Management and Insurance at Georgia State University. Previously, Richardson worked as a Financial Economist in the Office of Tax Policy at the U.S. Treasury and was an Assistant Professor in the Department of Economics at Davidson College. Richardson’s research interests focus on public pensions, employer retirement plans, and household financial security, including retirement preparedness, retiree healthcare, and the allocation of retiree risk burdens. He has served as a research fellow for the China Center for Insurance and Social Security Research at Peking University, a research fellow for the Center for Risk Management Research, and as a research associate at the Andrew Young School of Policy Studies at Georgia State University. Richardson is a member of the American Economic Association, the American Risk and Insurance Association, and the National Tax Association. He earned an M.A. and a Ph.D. in economics from Boston College, and a B.B.A. from the University of Georgia.

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Abstract

Financial Literacy Among Graduate Students: A Case Study from the Indiana University System

Coauthors: David Richardson, TIAA-CREF Institute, and Jason Seligman, Ohio State University

A standard intuition is that people who are highly educated and have relatively high expected lifetime earnings also tend to have relatively greater financial acumen and well-being. In this study, we analyze various dimensions of this intuition using a multi-stage research protocol on a sample of Indiana University system graduate students. We develop and administer a survey that provides insights into the correlates of this group’s self-accessed and survey-measured financial literacy. We find significant differences in these measures based on gender, home country, and academic discipline but not by having previously taken a financial planning course. We then offer a series of follow-up treatments designed to improve the financial literacy of the participants. Overall, we find generally low receptivity to these opportunities. For those who do accept, we find that receptivity to our offerings varies systematically across groups. In particular those who are in non-quantitative fields and score relatively high on the financial literacy quiz are more likely to signal interest in educational offerings and to attend seminars in person than other groups. Our results suggest that highly customized guidance and education programs may be needed to significantly increase participation in programs that improve overall financial acumen. In the absence of these customized services, financial product designs that rely heavily on adequate auto-features likely provide the best chance of helping workers achieve financial well-being.

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