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Using Factor Analysis to Assess Financial Vulnerability in the United States
January 16, 2022Abstract: This paper examines the complex nature of financial vulnerability in the United States through the adoption of factor analysis to identify the underlying constructs of financial security. Using data from the FINRA Foundation’s 2018 National Financial Capability Study (NFCS),… Read More »
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Examining the Barriers to Annuity Ownership for Older Americans
October 05, 2021Abstract: The annuity take-up rate is lower than economic theory predicts.1 Using data from the 2018 National Financial Capability Study, we conduct an empirical analysis of individuals in the retirement-planning phase of the life cycle (ages 40–61) and individuals of… Read More »
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Financial Anxiety and Stress Among U.S. Adults: New Evidence From a National Survey and Focus Groups
September 14, 2021Summary: The economic impact of the COVID-19 pandemic has shed light on the deeply rooted financial insecurity that many Americans face. Our research shows that even before the pandemic hit, and at a time of economic expansion, a large share… Read More »
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Factors Contributing to Financial Well-Being among Black and Hispanic Women
August 06, 2021Abstract: This article provides an in-depth examination of the financial well-being of Black and Hispanic women and the factors contributing to that well-being, using the 2018 survey wave of the National Financial Capability Study. The article documents meaningful differences between… Read More »
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Financial Anxiety and Stress among U.S. Households: New Evidence from the National Financial Capability Study and Focus Groups
April 27, 2021Summary: The economic impact of the COVID-19 crisis has brought to light the deeply rooted financial struggles that many Americans face. This paper shows that even before the pandemic, a substantial share of households was already anxious and stressed about… Read More »
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Black and Hispanic Women’s Financial Well-Being
February 22, 2021Summary: We provide an in-depth examination of the financial well-being of Black and Hispanic women and the factors contributing to it, using the 2018 wave of the National Financial Capability Study. We document meaningful differences between Black and Hispanic women… Read More »
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Understanding Debt in the Older Population
December 22, 2020Abstract: Poor financial capability can erode well-being in later life. To explore debt and debt management among older Americans, age 51-61, we designed and analyzed a new module in the 2018 Health and Retirement Study along with information from the… Read More »
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The Stability and Predictive Power of Financial Literacy: Evidence from Longitudinal Data
November 18, 2020Abstract: We administered the FINRA Foundation’s National Financial Capability Study questionnaire to members of the RAND American Life Panel (ALP) in 2012 and 2018. Using this unique, longitudinal data set, we investigate the evolution of financial literacy over time and… Read More »
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The Stability and Predictive Power of Financial Literacy: Evidence From Longitudinal Data
October 29, 2020Summary: We administered the FINRA Investor Education Foundation’s National Financial Capability Study (NFCS) questionnaire to members of the RAND American Life Panel (ALP) in 2012 and 2018. Using this longitudinal data set, we investigate the evolution of financial literacy over… Read More »
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Financial Literacy, Wellness and Resilience Among African Americans
October 26, 2020Summary: The financial situation of African Americans lags that of the U.S. population as a whole, and of whites in particular. Simple economic indicators illustrate the gap. While 66% of African Americans report that they are doing at least OK… Read More »
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Millennials and money: Financial preparedness and money management practices before COVID-19
August 11, 2020Abstract: Millennials (individuals age 18–37 in 2018) are the largest, most highly educated, and most diverse generation in U.S. history, and they are already playing a pivotal role in society by making up the largest share of the work force. Consequently,… Read More »
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Millennials and money: The state of their financial management and how workplaces can help them
February 25, 2020Summary: Millennials (individuals age 18–37 in 2018) are the largest, most highly educated, and most diverse generation in U.S. history. Millennials are making financial decisions that will likely shape the future of the U.S. economy for the next 30 years,… Read More »
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Financial Well-Being of the Millennial Generation: An In-Depth Analysis of Its Drivers and Implications
December 04, 2019Click here to see the working paper.
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Financial Well-Being of the Millennial Generation: An In-Depth Analysis of its Drivers and Implications
December 03, 2019Abstract: This research highlights the importance of designing and offering financial education programs that will optimally meet the needs and address the concerns of this diverse population. To improve financial well-being, programs should be tailored to the financial situation of… Read More »
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Debt Close to Retirement and Its Implications for Retirement Well-being
June 19, 2019We analyze debt and debt management of Americans nearing retirement age, and we show that older people have numerous financial obligations that can lead to financial distress. Drawing on the 2015 National Financial Capability Study and an extensive literature review,… Read More »
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Debt Close to Retirement and Its Implications for Retirement Well-being
June 19, 2019Abstract: We analyze debt and debt management of Americans nearing retirement age, and we show that older people have numerous financial obligations that can lead to financial distress. Drawing on the 2015 National Financial Capability Study and an extensive literature… Read More »
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Defined Contribution Plans and the Challenge of Financial Illiteracy
June 13, 2019Abstract: Retirement investing in the United States has changed dramatically. The classic defined-benefit (DB) plan has largely been replaced by the defined-contribution (DC) plan. With the latter, individual employees’ decisions about how much to save for retirement and how to… Read More »
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Defined Contribution Plans and the Challenge of Financial Illiteracy
June 13, 2019Abstract: Retirement investing in the United States has changed dramatically. The classic defined-benefit (DB) plan has largely been replaced by the defined-contribution (DC) plan. With the latter, individual employees’ decisions about how much to save for retirement and how to… Read More »
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Millennials’ Engagement with Online Financial Education Resources and Tools: New Survey Insights and Recommendations
May 01, 2019In today’s economy, individuals—sometimes at an early age—are required to make important and complex financial decisions, many of them with long-lasting consequences. In executing these decisions, people may tap into many resources, including ones online. For those aiming to expand… Read More »
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Debt and Financial Vulnerability on the Verge of Retirement
April 27, 2019Abstract : We analyze older individuals’ debt and financial vulnerability using data from the Health and Retirement Study (HRS) and the National Financial Capability Study (NFCS). In the HRS, we compare three groups of people age 56-61 in 1992, 2004,… Read More »
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Financial Fragility Among Middle-Income Households: Evidence Beyond Asset Building
April 08, 2019Abstract: Several years after the financial crisis, financial fragility is not only pervasive in the U.S economy but also prevalent among middle-income households. This highlights the need to consider more than asset levels in order to understand household financial resilience. In… Read More »
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Debt and Financial Vulnerability on the Verge of Retirement
June 30, 2017Abstract: We analyze older individuals’ debt and financial vulnerability using data from the Health and Retirement Study (HRS) and the National Financial Capability Study (NFCS). Specifically, in the HRS we examine three different cohorts (individuals age 56–61) in 1992, 2004,… Read More »
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Remarks of Annamaria Lusardi to the SEC Investor Advisory Committee
March 13, 2017Click here to view Director Lusardi's presentation from the SEC IAC meeting. View the agenda of the meeting by clicking here. Watch the meeting webcast by clicking here (Director Lusardi begins speaking at 48:09).
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Financial Capability and Financial Literacy among Working Women: New Insights
March 09, 2017Summary: The following report provides a comprehensive analysis of the personal finances of working women. Using data from the National Financial Capability Study conducted in 2015, we examined the financial capability of working women and how it changed since 2012. The… Read More »
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Financial Capability of American Adults: Insights from the American Life Panel
February 10, 2017Summary: While providing a wide range of financial capability indicators, the National Financial Capability Study (NFCS) lacks information about important determinants of financial outcomes, such as individuals’ health and cognition, and does not offer a precise, quantitative assessment of critical variables,… Read More »
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The National Financial Capability Study: Empirical Findings from the American Life Panel Survey
November 22, 2016Summary: The National Financial Capability Study (NFCS) is an ongoing study first conducted in 2009. It is commissioned and supported by the FINRA Investor Education Foundation, in consultation with the U.S. Department of the Treasury and the President's Advisory Council on… Read More »
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STUDENT LOAN DEBT IN THE US: AN ANALYSIS OF THE 2015 NFCS DATA
November 14, 2016Summary: According to the study, 54 percent of student loan holders did not try to figure out what their monthly payments would be before taking out loans. And 53 percent said that if they could go back and redo the… Read More »
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HOUSEHOLD FINANCIAL FRAGILITY: EVIDENCE AND IMPLICATIONS
September 29, 2016Macrofinancial Symposium: Links between Financial Markets and the American Economy
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Older Women’s Labor Market Attachment, Retirement Planning, and Household Debt
August 31, 2016Abstract: The goal of this paper is to ascertain whether older women’s current and anticipated future labor force patterns have changed over time, and if so, to evaluate the factors associated with longer work lives and plans to continue work at… Read More »
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The Evolution of Consumer Debt Following the Great Recession: An analysis of data from the 2015 NFCS
August 11, 2016Learn more about the 2015 National Financial Capability Study, a project of the FINRA Investor Education Foundation, by clicking here.
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Financial Capability in the United States 2016
July 15, 2016Summary: Financial capability is a multi-dimensional concept that encompasses a combination of knowledge, resources, access, and habits. The NFCS is designed to understand and measure a rich, connected set of perceptions, attitudes, experiences, and behaviors across a large, diverse sample in… Read More »
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Hispanic Personal Finances: Financial Literacy and Decisionmaking Among College-Educated Hispanics
May 18, 2015Summary: This report examines the personal finances—assets, liabilities, planning behaviors, financial vulnerability and financial literacy—of college-educated Hispanics, i.e., those with high school degrees who report at least “some college” as their highest level of educational attainment. Many college-educated Hispanics are, in… Read More »
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Hispanic Personal Finances: Financial Literacy and Decisionmaking Among College-Educated Hispanics
May 18, 2015Summary: This report examines the personal finances—assets, liabilities, planning behaviors, financial vulnerability and financial literacy—of college-educated Hispanics, i.e., those with high school degrees who report at least “some college” as their highest level of educational attainment. Many college-educated Hispanics are, in… Read More »
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National Financial Capability Study
December 16, 2014Available for download are reports, results tables, questionnaires, methodology, and datasets for the 2021, 2018, 2015, 2012, and 2009 National Financial Capability Study. The study is conducted by the FINRA Investor Education Foundation. Click here for the data. … Read More »
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GEN Y PERSONAL FINANCES: A CRISIS OF CONFIDENCE AND CAPABILITY
May 01, 2014Summary: Generation Y will leave a lasting imprint on American history. The largest, most diverse generation America has seen, Generation Y comprises millions who were born between the late 1970s and the mid-1990s. While this generation is confident, they face… Read More »
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HELPING GEN Y ACHIEVE LONG-TERM FINANCIAL SECURITY
February 01, 2014Summary: They are young, tech savvy, and confident; diverse, connected, and idealistic. And, they face a host of financial challenges. We’re talking, of course, about Gen Y, represented by the 2,124 college-educated respondents age 23 to 35 who took part in… Read More »
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COLLEGE-EDUCATED MILLENNIALS: AN OVERVIEW OF THEIR PERSONAL FINANCES
February 01, 2014Summary: This study has used new data from the NFCS to analyze salient issues related to college-educated Millennials’ financial capability, practices, and status, and in the process identify key financial challenges they face. The results suggest that the promotion of financial… Read More »
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THE FINANCIAL FRAGILITY OF AMERICAN FAMILIES
September 01, 2013Summary: The economic crisis that began in 2007 started a wide-ranging spiral that not only weakened the U.S. economy but also eroded the financial stability of households—exposing the fragility of American families. Stock values dropped, real estate prices plummeted, household wealth… Read More »
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FINANCIAL LITERACY AROUND THE WORLD (FLAT WORLD)
April 01, 2013Summary: Across the world, people are being asked to assume more responsibility for their financial well-being. Because of changes in the pension landscape, notably a shift from defined benefit to defined contribution type pensions, individuals must determine not only how much… Read More »
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HOW EMPLOYERS CAN HELP NEW HIRES SAVE FOR RETIREMENT: BEST PRACTICES THAT BUILD LONG-TERM FINANCIAL SECURITY
September 01, 2012Summary: Not all employer-sponsored defined contribution retirement savings plans are created equal—some employer practices and plan designs are more successful than others in helping new hires accumulate a robust retirement nest egg. We reviewed numerous studies conducted by researchers affiliated… Read More »
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Financial Literacy and Retirement Planning in the United States
October 11, 2011Abstract: We examine financial literacy in the US using the new National Financial Capability Study, wherein we demonstrate that financial literacy is particularly low among the young, women, and the less-educated. Moreover, Hispanics and African-Americans score the least well on… Read More »
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Financial literacy and retirement planning in the United States
October 11, 2011Abstract: We examine financial literacy in the US using the new National Financial Capability Study, wherein we demonstrate that financial literacy is particularly low among the young, women, and the less-educated. Moreover, Hispanics and African-Americans score the least well on… Read More »