This paper by Pamela Herd, Karen Holden, and Yung-ting Su focuses on the relationship between cognitive functioning in early and late life and older adults’ ability to effectively manage their finances. Download Brief The results of this study demonstrate the problems that older adults face today, and that younger cohorts will face to an even greater … Continue reading Early-Life Schooling and Cognition and Late-Life Financial Literacy in the Wisconsin Longitudinal Study
Karen Holden
The Emotions and Cognitions Behind Financial Decisions: The Implications of Theory for Practice
Financial decisions are compelled and constrained by non-financial factors. These include personality characteristics of individuals as well as the social environments in which decisions are made. This paper by Karen Holden provides an overview of theories that seek to explain how non-financial factors influence financial decisions: Developmental Psychology, Crystallized and Fluid Intelligence, Behavioral Economics, Neuro-Brain … Continue reading The Emotions and Cognitions Behind Financial Decisions: The Implications of Theory for Practice
Early-Life Schooling and Cognition and Late-Life Financial Literacy in the Wisconsin Longitudinal Study
Using the Wisconsin Longitudinal Study, Pamela Herd and Karen Holden examine the links between early-life cognition and schooling experiences and late-life financial literacy. We find that early-life cognition, especially for those with very low IQ scores, and schooling have a relationship with late-life financial literacy. If the trend continues towards very individualized retirement planning, with defined contribution … Continue reading Early-Life Schooling and Cognition and Late-Life Financial Literacy in the Wisconsin Longitudinal Study
University of Wisconsin-Madison Center for Financial Security 