May 2020
Abstract: In today’s economy, individuals are required to make important and complex financial decisions, many of them carrying long-lasting consequences. Yet significant numbers of people lack the basic knowledge needed to handle this responsibility and execute informed choices, underscoring the crucial and urgent need for financial education. In this study, we evaluate the financial capability and knowledge of the members of the Church Pension Group (CPG). Further, we contrast their money-management behavior with that of a comparison group from the 2015 National Financial Capability Study (NFCS). The main goal is to identify areas of strength and weakness among the members of the CPG. The results can be used to tailor personal finance education programs that match these consumers’ financial needs and expectations. CPG members do relatively well in answering the Big Three questions that measure financial literacy. They also engage less in expensive short-term money management practices and do more retirement planning than the NFCS subgroup. Despite the clergy members’ good performance against the comparison group, there is significant room for improvement. Tailored financial education can help prepare these people for the many financial decisions they face, which positively affects their financial security over the life cycle.