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Financial Resilience in America
August 11, 2021Summary: In this report, we examine the concept and assessment of financial resilience and its associated factors, which include income and cash flow management, debt management, risk protection, and financial literacy. We use longitudinal data from before and after the… Read More »
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How to Strengthen Household Financial Resilience
August 11, 2021Introduction: The COVID-19 pandemic and its economic consequences have laid bare the deeply rooted financial insecurity many Americans face daily. Many households are highly dependent upon earned income and have little to buffer an income loss due to business shutdowns… Read More »
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Financial Resilience in America
May 04, 2021This fact sheet provides a snapshot of the state of Americans’ financial resilience right before the onset of the COVID-19 pandemic. Many Americans were unprepared to cover a mid-sized emergency expense, and there are considerable variations across groups with different… Read More »
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Trading Stocks Increases Financial Literacy and Compresses the Confidence Gender Gap
January 08, 2021Watch the video.
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Causes and Consequences of Financial Mismanagement at Older Ages
April 26, 2018Summary: The consequences of poor financial capability at older ages are potentially serious, particularly when people make mistakes with credit, draw down retirement assets too quickly, or are defrauded by financial predators. Because older persons are close to or past the… Read More »
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Financial Education, Financial Competence, and Consumer Welfare
December 05, 2017Summary: Employers routinely attempt to address deficiencies in financial decision making among their employees by deploying educational interventions that are brief and laden with motivational rhetoric. The object of the rhetorical elements is to compensate for brevity by making the material… Read More »
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A Method for Evaluating the Quality of Financial Decision Making, with an Application to Financial Education
December 05, 2017Abstract: We introduce a method for measuring the quality of financial decisions built around a notion of financial competence, which gauges the alignment between consumers choices and those they would make if they properly understood their opportunities. We prove our… Read More »
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The Effect of Financial Education on the Quality of Decision Making
November 19, 2015Watch the video.
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FINANCIAL EDUCATION, FINANCIAL COMPETENCE, AND CONSUMER WELFARE
December 17, 2014Abstract: We introduce the concept of financial competence, a measure of the extent to which individuals’ financial choices align with those they would make if they properly understood their opportunity sets. Unlike existing measures of the quality of financial decision making,… Read More »
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FINANCIAL SOPHISTICATION IN THE OLDER POPULATION
October 01, 2014Abstract: This paper examines data on financial sophistication among the U.S. older population, using a special-purpose module implemented in the Health and Retirement Study. We show that financial sophistication is deficient for older respondents (aged 55+). Specifically, many in this… Read More »