Financial wellbeing and some problems in assessing its link to financial education
In 2009, the National Endowment for Financial Education initiated a project to study the “Implications of a Quarter Century Research in Personal Finance.” As part of that effort, one of the major themes chosen was to study the measurement and evaluation of participant outcomes. This paper is part of the investigation of measurement and evaluation. It focuses more on what the macro-measures of financial wellbeing are that financial education is aimed at improving and the extent to which these larger scale measures can be improved by financial education, as well as obstacles to good evaluations and limitations of correlation outcomes. The case for improving financial education rests upon (1) the hypothesis that financial education can improve financial wellbeing, (2) the documented low state of financial literacy and individual satisfaction with their financial knowledge, behavior and financial outcomes of consumer decision making, and finally (3) the stress that recent financial shocks have put on household wellbeing. This article also reviews some of those recent changes and the initial recovery from the most recent shock to wellbeing. Section I reviews macro measures of wellbeing and the principal measures and approaches of most studies of the effects of financial education programs. Section II reviews the extent of two major shocks to household net worth in the past decade, some of the potential stress for households this created and the implications for the importance of financial education. Section III reviews some of the principal obstacles to effective assessment and the difficulties with reliance on simple correlations of financial programs and outcomes for such assessments.
|Date of creation:||01 Oct 2010|
|Publication status:||Published in Networks Financial Institute Working Paper Series 2010-WP-03.Networ(2010): pp. 1-14|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McCloskey, Donald N, 1983. "The Rhetoric of Economics," Journal of Economic Literature, American Economic Association, vol. 21(2), pages 481-517, June.
- Bernheim, B. Douglas & Garrett, Daniel M. & Maki, Dean M., 2001.
"Education and saving:: The long-term effects of high school financial curriculum mandates,"
Journal of Public Economics,
Elsevier, vol. 80(3), pages 435-465, June.
- B. Douglas Bernheim & Daniel M. Garrett & Dean M. Maki, 1997. "Education and Saving: The Long-Term Effects of High School Financial Curriculum Mandates," NBER Working Papers 6085, National Bureau of Economic Research, Inc.
- B. Douglas Bernheim & Daniel M. Garrett & Dean M. Maki, 1997. "Education and Saving: The Long-Term Effects of High School Financial Curriculum Mandates," Working Papers 97012, Stanford University, Department of Economics.
- Kevin Hoover & Mark Siegler, 2008. "Sound and fury: McCloskey and significance testing in economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 15(1), pages 1-37.
- Kevin D. Hoover & Mark V. Siegler, 2005. "Sound and Fury: McCloskey and Significance Testing in Economics," Econometrics 0511018, EconWPA.
- Annamaria Lusardi, 2006. "Financial Literacy and Financial Education: Review and Policy Implications," NFI Policy Briefs 2006-PB-11, Indiana State University, Scott College of Business, Networks Financial Institute.
- John P. Caskey, 2006. "Can Personal Financial Management Education Promote Asset Accumulation by the Poor?," NFI Policy Briefs 2006-PB-06, Indiana State University, Scott College of Business, Networks Financial Institute.
- Robert I. Lerman & Elizabeth Bell, 2006. "Financial Literacy Strategies: Where Do We Go From Here?," NFI Policy Briefs 2006-PB-10, Indiana State University, Scott College of Business, Networks Financial Institute.
- Meier, Stephan & Sprenger, Charles, 2008. "Discounting Financial Literacy: Time Preferences and Participation in Financial Education Programs," IZA Discussion Papers 3507, Institute for the Study of Labor (IZA).
- John Karl Scholz & Ananth Seshadri, 2008. "Are All Americans Saving ‘Optimally’ for Retirement?," Working Papers wp189, University of Michigan, Michigan Retirement Research Center.
- Bernheim, B. Douglas & Garrett, Daniel M., 2003. "The effects of financial education in the workplace: evidence from a survey of households," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1487-1519, August. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:26411. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.