IDEAS home Printed from https://ideas.repec.org/a/fip/fedgrb/y2002inovp445-457nv.88no.11.html
   My bibliography  Save this article

Financial literacy: an overview of practice, research, and policy

Author

Listed:
  • Sandra F. Braunstein
  • Carolyn Welch

Abstract

Attention to financial literacy has grown in recent years, in large part because technological, market, and legislative changes have resulted in a more complex financial services industry that requires consumers to be more actively involved in managing their finances. Consumer and community interest groups, banking companies, government agencies, and policymakers, among others, have become concerned that many consumers lack a working knowledge of financial concepts and the tools they need to make decisions most advantageous to their economic well-being. As a result, considerable resources have been devoted to financial literacy, with a wide range of organizations providing training, including banks, consumer and community groups, employers, and government agencies. Overall, studies suggest that financial literacy training can lead to better decisionmaking; however, the findings raise numerous questions about the best means of providing that training, the most appropriate setting, and the most opportune timing. Findings from recent research on personal money management styles, combined with awareness of human behavioral traits, offer insights that may be useful in developing successful training programs and strategies.

Suggested Citation

  • Sandra F. Braunstein & Carolyn Welch, 2002. "Financial literacy: an overview of practice, research, and policy," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Nov, pages 445-457.
  • Handle: RePEc:fip:fedgrb:y:2002:i:nov:p:445-457:n:v.88no.11
    as

    Download full text from publisher

    File URL: http://www.federalreserve.gov/pubs/bulletin/2002/1102lead.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. W Gibb Dyer & Barry West & Ian Peacock & Spencer Yamada & Jessie Dyer, 2016. "Can The Poor Be Trained To Be Entrepreneurs? The Case Of The Academy For Creating Enterprise In Mexico," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-22, June.
    2. Luisa ANDERLONI & Emanuele BACCHIOCCHI & Daniela VANDONE, 2011. "Household financial vulnerability: an empirical analysis," Departmental Working Papers 2011-02, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano, revised 03 Nov 2011.
    3. Cliff Robb, 2011. "Financial Knowledge and Credit Card Behavior of College Students," Journal of Family and Economic Issues, Springer, vol. 32(4), pages 690-698, December.
    4. Ethan Cohen-Cole, 2008. "Credit card redlining," Risk and Policy Analysis Unit Working Paper QAU08-1, Federal Reserve Bank of Boston.
    5. Habila, Murna, 2015. "Influence of Financial Education on Retirement Security: Evidence from the state of Illinois," MPRA Paper 73988, University Library of Munich, Germany, revised 05 Jun 2016.
    6. Mustabsar Awais & M. Fahad Laber & Nilofer Rasheed & Aisha Khursheed, 2016. "Impact of Financial Literacy and Investment Experience on Risk Tolerance and Investment Decisions: Empirical Evidence from Pakistan," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 73-79.
    7. Lynsey Romo, 2014. "“These Aren’t Very Good Times”: Financial Uncertainty Experienced by Romantic Partners in the Wake of an Economic Downturn," Journal of Family and Economic Issues, Springer, vol. 35(4), pages 477-488, December.
    8. Geert Van Campenhout, 2015. "Revaluing the Role of Parents as Financial Socialization Agents in Youth Financial Literacy Programs," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(1), pages 186-222, March.
    9. repec:hur:ijarbs:v:7:y:2017:i:7:p:192-206 is not listed on IDEAS
    10. Cristina OTTAVIANI & Daniela VANDONE, 2016. "Is Impulsivity a Mediator of the Relationship between Financial Literacy and Debt Decisions?," Departmental Working Papers 2016-06, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    11. Judy Postmus & Sara-Beth Plummer & Sarah McMahon & Karen Zurlo, 2013. "Financial Literacy: Building Economic Empowerment with Survivors of Violence," Journal of Family and Economic Issues, Springer, vol. 34(3), pages 275-284, September.
    12. Sharon Danes & Katherine Brewton, 2014. "The Role of Learning Context in High School Students’ Financial Knowledge and Behavior Acquisition," Journal of Family and Economic Issues, Springer, vol. 35(1), pages 81-94, March.
    13. Dellande, Stephanie & Gilly, Mary C. & Graham, John L., 2016. "Managing consumer debt: Culture, compliance, and completion," Journal of Business Research, Elsevier, vol. 69(7), pages 2594-2602.
    14. Matthew Martin, 2007. "A literature review on the effectiveness of financial education," Working Paper 07-03, Federal Reserve Bank of Richmond.
    15. Vanessa Mak & Jurgen Braspenning, 2012. "Errare humanum est: Financial Literacy in European Consumer Credit Law," Journal of Consumer Policy, Springer, vol. 35(3), pages 307-332, September.
    16. Ian Hathaway & Sameer Khatiwada, 2008. "Do financial education programs work?," Working Paper 0803, Federal Reserve Bank of Cleveland.
    17. Judy L. Postmus & Andrea Hetling & Gretchen L. Hoge, 2015. "Evaluating a Financial Education Curriculum as an Intervention to Improve Financial Behaviors and Financial Well-Being of Survivors of Domestic Violence: Results from a Longitudinal Randomized Control," Journal of Consumer Affairs, Wiley Blackwell, vol. 49(1), pages 250-266, March.
    18. Yoshino, Naoyuki & Morgan, Peter J., 2016. "Overview of Financial Inclusion, Regulation, and Education," ADBI Working Papers 591, Asian Development Bank Institute.
    19. World Bank, 2009. "Banking the Poor : Measuring Banking Access in 54 Economies," World Bank Publications, The World Bank, number 13804.
    20. Oliver Williams & Stephen Satchell, 2011. "Social welfare issues of financial literacy and their implications for regulation," Journal of Regulatory Economics, Springer, vol. 40(1), pages 1-40, August.
    21. Andrea Hetling & Judy L. Postmus & Cecilia Kaltz, 2016. "A Randomized Controlled Trial of a Financial Literacy Curriculum for Survivors of Intimate Partner Violence," Journal of Family and Economic Issues, Springer, vol. 37(4), pages 672-685, December.
    22. J.A. Bikker & L. Spierdijk, 2009. "Measuring and explaining competition in the financial sector," Working Papers 09-01, Utrecht School of Economics.
    23. Anderson, Laurel & Ostrom, Amy L. & Corus, Canan & Fisk, Raymond P. & Gallan, Andrew S. & Giraldo, Mario & Mende, Martin & Mulder, Mark & Rayburn, Steven W. & Rosenbaum, Mark S. & Shirahada, Kunio & W, 2013. "Transformative service research: An agenda for the future," Journal of Business Research, Elsevier, vol. 66(8), pages 1203-1210.
    24. Agnew Stephen & Cameron-Agnew Trudi, 2015. "The Influence of Gender and Household Culture on Financial Literacy Knowledge; Attitudes and Behaviour," Journal of Financial Management, Markets and Institutions, Società editrice il Mulino, issue 1, pages 31-50, June.
    25. Antonides, Gerrit & Manon de Groot, I. & Fred van Raaij, W., 2011. "Mental budgeting and the management of household finance," Journal of Economic Psychology, Elsevier, vol. 32(4), pages 546-555, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedgrb:y:2002:i:nov:p:445-457:n:v.88no.11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Franz Osorio). General contact details of provider: http://edirc.repec.org/data/frbgvus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.