Following a survey of employees estimated to be one year from retirement Seligman analyzed responses to a twelve item financial literacy quiz relating scores to evidence of planning exercises, self-assessed proficiency with economics, education, wealth, IRA ownership and a battery of demographic controls. He find evidence of difficulty self-assessing understanding of economics and concepts related to financial literacy.
This paper by Annamaria Lusardi & Peter Tufano, which was presented at the Family Financial Security Symposium hosted by CFS in April, 2010, analyzes a national sample of Americans with respect to their debt literacy, financial experiences, and their judgments about the extent of their indebtedness. Debt literacy is measured by questions testing knowledge of fundamental concepts related to debt and by self-assessed financial knowledge.
This paper was presented by Stephan Meier and Charles Sprenger at the Family Financial Security Symposium in April, 2010. If defaulting is a decision in which consumers weigh the present benefits of not having to repay their debts against the future costs of potentially being excluded from financial markets or stigmatized, individual time preferences should be a key determinant of defaulting. This paper links experimentally measured differences in time preferences to objectively measured differences in defaulting behavior.
Date: April 19 and 20, 2010
Description: The CFS convened researchers, practitioners and policymakers to explore challenges and opportunities in consumers’ financial literacy and stability. The event, “Family Financial Security: Implications for Policy and Practice,” introduced some of the most recent and cutting-edge studies that bring new insights into economic behavior.