The study of financial anxiety, relationship satisfaction and financial satisfaction is a noted topic of interest among many fields, including financial planning, financial counseling, and marriage and family therapy. If the goal of these professional service providers is to help consumers become less anxious about their financial situation and more satisfied with their financial situation or intimate relationship - depending on the type of service being provided - then exploring if having shared financial goals can be a intervening factor to increasing satisfaction is important. Structural equation modeling was used to test how having shared financial goals mediates the relationships between financial anxiety and relationship satisfaction and between financial anxiety and financial satisfaction. Missing data was handled using full information maximum likelihood; bootstrap procedures (2,000 bootstraps) were used to test for mediation. The model resulted in acceptable fit with the data. A significant direct relationship was found between financial anxiety and financial satisfaction (β = -.01, p < .01); however, a significant direct relationship between financial anxiety and relationship satisfaction was not supported. Shared financial goals was found to be a significant mediator between financial anxiety and financial satisfaction (β = -.01, p<.01) as well as significant mediator between financial anxiety and relationship satisfaction (β = -.02, p<.01). Overall, shared goals accounted for 4% of the overall variance in the model, relationship satisfaction accounted for 18% of the overall variance, and financial satisfaction accounted for 48% of the overall variance in the model. The results suggest that having shared financial goals does intervene in the relationships between financial anxiety and financial satisfaction as well as relationship satisfaction. In order to enhance consumers of financial and mental health services, this finding is significant because it implies that a practice standard among both financial and relationship practitioners should be to help couples get on the same page in regards to their financial goals.

The importance of the family business in the U.S. economy is greater than usually expected. Notable is a rapid growth of ethnic minority owned businesses alongside the increasing importance of family business in the U.S. economy. Ethnic groups are culture-bearing units since nationality or ethnicity is still the most basic influence in constructing one’s values and attitudes. Acquiring and sharing particular values within family systems can also be represented in their interacting with family business systems. Intermingling resources is one of the representative management styles found in ethnic family businesses. Therefore, the objectives of this study can be identified as follows: 1) to investigate cultural differences of households’ intermingling of financial capital and human capital with their family businesses, focusing on ethnicities; 2) to determine the influence of types of capital in family systems on intermingling; and 3) to examine the influence of other three types of capital such as financial, social, and human capital in family business system on intermingling of resources. The Survey of Consumer Finances (SCF) from 1998 to 2010 will be used for this research. For the analysis, logistic regression will be used to explain the relationship between culture and resource intermingling patterns between households and their family businesses; the dependent variable is whether households have intermingled financial or human capital with their family business, and vice versa. Besides three types of control variable such as socio-demographic characteristics, preferences (planning horizon, risk tolerance), and active management variables, four explanatory variables are included: 1) culture (ethnicity), 2) human capital (education), 3) financial capital (net value of the business), and 4) social capital (age of the business). Two models are estimated: Model 1 focuses on resources within the family system while Model 2 considers resource within the family business system as suggested by the theoretical framework, Sustainable Family Business Theory (SFBT). 

High school funding by state governments stands below 2008 levels in 35 states due to a collapse in state revenue. In order to make up for lost revenues, many school sports programs have dramatically increased their reliance on parent booster clubs. Unfortunately, a booster club can exert tremendous pressure on parents to contribute their limited time and even more limited financial resources. As booster clubs become more important in providing equipment, uniforms, and transportation for student athletes, parents are stressed when previous voluntary contributions of time and money become mandatory, with the not just unstated, but often stated, threat that the child of a family who doesn't pay doesn't play. Unfortunately, little information exists about how the demands of booster clubs affect families and booster club financial information has been difficult to obtain. The potential effects of booster club demands on families are researched using two methods. First, the issue of the rising importance of booster clubs in high school sports is examined nation-wide using school district-level data from the National Center for Education Statistics. Second, a case-study methodology is conducted on one school district in which the researcher has access to all booster club demands placed on families. Policy recommendations and suggestions for further research are provided.

This study is based upon a discussion of financial literacy and the effects on the mortgage selection process through various processes which include Truth in Lending Act (TILA), consumer decision making process, financial literacy, and financial education. The research is guided by prospect theory.

Homeownership represents one of the most common financial aspirations of households in the United States. There are several factors that influence the decision of becoming a homeowner, among those several benefits that compensate for the cost of homeownership. Numerous studies highlight the advantages of homeownership (Glaeser & Sacerdote, 2000; Glaeser & Shapiro, 2003). Tax benefits and savings are undoubtedly key incentives in the home buying decision (Dietz, 2009). Taxpayers, mainly those in higher tax brackets, can greatly benefit from homeownership as this may represent a tax shelter. Thus, in this proposed research study, we want to explore the positive relationship of marginal tax rate and income on the decision of buying a home. 

Creating a healthy nation, including addressing the alarmingly high rate of childhood obesity, is one of America’s top priorities. One of the risk factors for obesity is the hours that children are spending in front of a television or computer screen. The more time children watch television, the more likely they are to eat while doing so and the more likely they are to eat the high-calorie foods that are commonly advertised on television. To effectively address childhood obesity, research is needed that takes into account family environment where children are raised. The purpose of this research is to gain in-depth understanding of the interplay between family environment and childhood obesity in rural, low-income families using a mixed-method research approach. The results of this study indicate that families who are low-income and live in rural areas need assistance to gain knowledge and skills to live healthy lifestyles.  Mothers have a great impact on the foods and drinks their children consume and how their children spend their time, especially on young children. Many of the mothers did not receive support from their family growing up, but they often use their personal experiences to raise their children.  Mothers have a desire to help their children be healthy.  Living in a rural community creates many barriers to living a healthy lifestyle.  In order to prevent or intervene in growing childhood obesity in rural communities, families need support and resources to learn about proper nutrition and how to encourage a healthy lifestyle for their children.

This study starts with the following research question: "Do households perceive being prepared for retirement rationally?” To answer this question, I will extend previous retirement adequacy studies to include the households' perception of being adequately prepared for retirement. This study will assess the projected retirement adequacy of U.S households having different perceptions of being adequately prepared for retirement. Moreover, various factors related to this perceived retirement adequacy will be analyzed.  Lastly, I will observe the trends of perceptions of adequate retirement during 1995-2010. The Survey of Consumer Finances (SCF) datasets from 1995 to 2010 will be used to test the empirical results. The dependent variable is defined as a dichotomous variable with a value equal to 1 if respondents are perceived as having an adequate retirement, otherwise the value is 0.  Logistic regression will be used for multivariate analysis. In order to calculate the projected retirement adequacy of households, I will use the capital accumulation ratio (CAR) as an indicator of retirement adequacy. Means test will be conducted to test differences between the projected (objective) retirement adequacy and their perceptions of being adequately prepared for retirement.

This study was designed to investigate the impact of student loan debt on young adults’ relationship decisions, particularly marital status. Although student loans are important tools that enable the pursuit of higher education, the burden of student loans is making the lives of young Americans harder than ever before. In a recent study by the Pew Research Center (Sanburn, 2010), almost 40% of younger households, those under age 35, have some student loan debt. A nationally representative survey found that 14% of respondents (ranging from the class of 2006 through 2011) reported that they are delaying marriage or other committed relationships due to their student loan obligations.  However, little work has been done to explore this assertion empirically. Data for this study come from the National Longitudinal Survey of Youth, 1997 data (NLSY97). The sample consists of people who turned 30 in 2010. The relationship between marital status (categorized as single, cohabitating, married, and once-married) and financial situation (individual income, family income, student loan debt and overall debt) of young adults was investigated. The initial ANOVA analysis indicates that the financial situations of cohabitating couples are more similar to single people rather than married couples with lower individual income and lower overall debt than married couples. To investigate the possibility that financial factors and life satisfaction affect the decision to marry, multinomial logistic regression analysis will be conducted for further findings.

This study uses a little-known set of panel data to examine the effects of financial advice on people’s financial behaviors over time. Previous research has mainly used cross-sectional datasets, such as the Survey of Consumer Finances, to analyze the effects of socio-demographic and financial household characteristics on the use of financial planners as well as the outcomes of advice seeking. This study contributes to the mission of ACCI – to enhancing consumer wellbeing – by examining the triggers and outcomes of the decision to obtain professional financial advice. This policy- and protection-relevant research will result in recommendations for guiding consumer advice-taking behaviors.

Under the planner-doer model in the behavioral life-cycle hypothesis (Shefrin and Thaler, 1988), we assume that the farsighted planner values and seeks professional financial advice in order to build a better plan, while the myopic doer’s plan may suffer from self-control problems. Our hypothesis is that the effects of professional financial advice are more positive and persistent for consumers in the “planner” category rather than the “doer” category.

Descriptive analysis shows the expected positive effects, i.e., that for consumers who begin to use professional financial advice average annual savings as well as the amount of savings in emergency funds increases.

The next steps in this research are: (1) to examine whether the impact of financial advice on people’s financial behaviors over time holds in multivariate analysis; (2) to test whether the impact of professional financial advice differs with regard to psychological variables, such as for consumers with high/low self-control and future orientation; and (3) to use a cross-sectional approach for comparing findings with the Survey of Consumer Finances for the questions that are comparable in their wording. We are confident about having completed these steps before the conference in April.

The purpose of this study is to investigate how consumer insurance decisions are influenced by personal experiences concerning long term care risks.

Turning the Tide on Poverty (Tide) was modeled after Horizons, a successful poverty-fighting initiative implemented in the northwestern US. Tide involves community members in seeking grassroots solutions to poverty. The process begins with a five-week study circles process where community members engage in dialogue and exploration before implementing a community action plan. Tide was first piloted in Southeastern U.S. in 2008 at eight sites in Alabama, Georgia, Louisiana, Mississippi, and Oklahoma. The Tide process was adapted for Project Navigator, funded by the Appalachian Regional Commission, because it deals with building civic capacity in poverty-stricken communities. The four Project Navigator counties were chosen because of their rurality and their high poverty rates. The purpose of the project was to increase civic engagement, build capacity, empower communities, and help local groups take ownership in their community goals. The theoretical foundation used for this research was Flora and Flora’s community capital theory. A variety of measures were employed to determine the extent to which individuals become involved in the community process, feel empowered to contribute, and continue to take an active role in community improvement efforts.  Qualitative analysis of the data revealed several themes similar to year one pilot data. The results are discussed as related to these themes - sustainability, perceptions of leadership, community climate, race relations, and the presence of a community champion. 

Habitual thinking and decision making in households are under the influence of social norms. If households feel that they deviate from this pattern, a sense of failure, guilt, and diminished self-worth can occur.According to the life conformity theory using lifecycle hypothesis, this self-inflicted stress can be either mitigated or exacerbated by one’s self-regulated mechanism. Therefore, the objectives of this study are to: 1) investigate the perceptional differences in credit card usage of others between those with a self-control problem and those without a problem; 2) explore the relationship between self-control and credit usage based on these two theoretical frameworks; and 3) observe the change of the perceptional differences in U.S households from 2001 to 2010. The Survey of Consumer Finances (SCF) from 2001 to 2010 will be used for this research. For the analysis, in addition to the descriptive analysis, ordinary least squares (OLS) regression analysis will be used to investigate the relationship between the self-control variable and perception to credit usage of other households. For those who have applied for any type of credit or loan in the last five years to mitigate the stress derived from a self-control problem in financial decision making, the dependent variable is the perception of others' credit usage. These are converted into continuous variables which are measured by the following categorical variable: “Please tell me whether you feel it is all right for someone like yourself to borrow money”, and “Do you think it is a good idea or a bad idea for people to buy things on an installment plan?” Three groups of explanatory variables are included in the model such as the self-control variable, socio-demographic variables, and preference variables (planning horizon, risk tolerance).

The impassioned debate over the passage and implementation of the 2010 Affordable Care Act has made it difficult to find unbiased and objective information on health insurance policy.  How did we get to this point as a society?  This poster will document the history of health insurance in the United States with a particular emphasis on how important events influenced consumer behavior, access, and choice.

This research aims to investigate the labor market behavior of mothers in response to the financial and time burden of caring for children with chronic conditions. An instrumental variable approach is used to address the potential endogeneity between the caregiving burden and mothers' employment. This research examines how mothers' employment behavior varies by the interaction between caregiving burden and children's age and by the interaction between caregiving burden and mothers' race/ethnicity. To answer these questions, this research analyzes data from the 2003-2007 National Health Interview Survey and 2004-2008 Medical Expenditure Panel Survey. The analytic sample includes 6,660 households. Consistent with the predictions of household production theory, a high financial burden is positively associated with mothers' employment probability, and a high time burden is negatively associated with mothers' employment probability. Both age effects and racial/ethnic differences are found. Mothers with older children who more frequently use healthcare are less likely to be employed than those with younger children. Mothers in minority groups are more responsive to both financial and time burden of caring for children, and they adjust their employment behavior accordingly.   Given the significance of continuous employment on the long-term economic security of mothers and families, the findings of this research have important implications to policy makers, financial educators and planners, and other service providers.

Seeking information about retirement planning will benefit consumers, helping them make many decisions concerning retirement. The purpose of this study was to examine factors that affect non-retired working-age (25 years and older) women’s retirement savings in personal savings and investments. An online survey instrument was developed to obtain data for the study. Data for this study were collected from a national population with 591 valid responses. From the findings, we know if the women discuss retirement planning with friends/relatives, they do not put much money into personal saving and investment accounts for retirement. They probably get incorrect and/or insufficient information, may not consider the profile differences between themselves and friends/relatives that mean they need to take different actions or they only discuss without taking action. Financial advisors' advice does help improve female customers’ retirement savings. When financial professionals reach married male clients, they can also encourage the client to invite his wife to join the counseling. Other researchers have found that female clients are more likely to follow the advice.

The Japanese government paid one-off fixed-amount allowance to all people in Japan in 2009 under the economic recession, which was carried out as one economic policy. People under 18 years-old and over 65 years-old received 20,000 yen ($250) per person and others received 12,000 yen ($150) per person. It was paid to representatives of each household all together. How did households use this allowance? Through this economic policy, we could observe the marginal propensity to consume. It was reported that transfer payments increased the marginal propensity to consume food away from home above that from labor income, and the marginal propensity to consume was different by race (Kinsey,1983). The purpose of this study is to explore determinants of marginal propensity to consume by receiving fixed-amount money unexpectedly.  We collected samples from 17th Japanese Panel Survey of Consumers (JPSC). Samples of this study were 913 married women's households whose family type was a  nuclear family. Regression analyses were done with an SPSS package.  Average fixed-amount allowance per household was 51,000 yen ($638) and that of couples with child(ren) was 59,000 yen ($738). About 20 % of households had not used this allowance until JPSC survey was conducted. We investigated variables which affected marginal propensity to consume by receiving fixed-amount money unexpectedly. In other words, we measured impact of fixed-amount allowance" policy. Economic variables such as income, stock, housing loan did not affect marginal propensity to consume. The government intended that additional income was consumed easily and stimulated the economy. The marginal propensity to consume did not depend on the level of income. It depended on the existence of children who were high school students. To stimulate economy under government budget restraint, it would be effective that the target should be set as the family with school-age children.

This paper is a study focusing on financial inclusion using the recently released Global Findex data set from the World Bank.  While there is extensive literature focused on financial inclusion from a nation-by-nation lens, there is a lack of cross-country analysis. This paper intends to fill this gap. Furthermore, this paper provides evidence that financial inclusion should be addressed in different manners depending on the developed status of an economy. Through empirical models this study finds macro-economic variables to be significant in predicting a banked population. Most importantly, this paper contributes to the existing literature by suggesting socio-economic factors as being most important with regards to highly banked populations.

Lusardi and Mitchell (2011) concluded that lack of financial sophistication is one of the reasons for retirement plan failure.  We extend previous studies of retirement adequacy by testing the effect of financial sophistication on projected retirement adequacy.  Relatively little research on the impact of financial sophistication on retirement preparation has been conducted on households under the age of 51.  Therefore, we examine the impact of sophistication on retirement adequacy of U.S households with heads or spouses aged 35 to 70 and employed full-time.  In an analysis of the 2010 Survey of Consumer Finances (SCF) dataset, we found that only 45% of households are adequately prepared for retirement compared to 58% in 2007.  We tested for the effects of three proxies for financial sophistication based on previous studies: (1) education, (2) use of financial planning service, and (3) understanding of the SCF survey questions.  Our multivariate analysis shows that households with a more educated head are more likely to have an adequate retirement.  Households using a financial planner are more likely to have an adequate retirement than non-user households.  However, good understanding of the SCF survey is not significantly related to the likelihood of having an adequate retirement.

In recent years, the consequences of the downturn in the economy have been evident in numerous consumer behaviors, including increased use of debt and more expensive financial products such as payday loans. The assumption in popular press reports and even in some scholarly work is that limited financial knowledge and skills are the likely explanations for these behaviors. Yet, even consumers with strong financial skills and knowledge may make questionable financial decisions during times of financial stress, such as after a sudden drop in income.  The aim of this paper is to test the hypothesis that financial knowledge has a different influence on financial behaviors for consumers with different incomes who are experiencing financial stress. The results can be relevant to public and private decision makers debating the relative merits of financial literacy education vs. income support programs.  The paper first reviews the literature, focusing on financial stress and its measurement. After describing the methodology, results are reported and implications are discussed.

Previous research has illuminated the connection between a person’s health to later-life decisions about whether and when to retire, but few studies have addressed the possible influence of own-health and family-health histories on earlier aspects of retirement planning. In this exploratory study, we examine the relationships between personal and family health history and retirement preparation activities with tests for the possible mediating effects of risk tolerance and subjective life expectancy.  Using unique data on 1,005 survey respondents that have been linked to their personal and familial health histories, we examine four retirement preparation activities: (1) how respondents assess their level of financial knowledge, (2) whether respondents have met recently with a professional financial advisor, (3) whether respondents have calculated the financial amount needed to meet retirement needs, and (4) how they have allocated any retirement savings across stocks, bonds, and other assets. We find that both own-health history and parental longevity are more predictive of the knowledge/advice dimensions of retirement preparation than either calculating retirement needs or allocating retirement savings. We also find very little evidence of mediation effects.  Thus, identifying the mechanisms by which health history is connected to retirement preparation remains a topic for future research.

Consumer financial protection has come to public attention during the current financial crisis because of massive home foreclosures associated with unfair, deceptive, and fraudulent home mortgage lending. This paper investigates the impact of repealing a consumer financial protection law, using a natural experiment in Cleveland, OH, where mortgage lending restrictions imposed on home-purchase loans with high interest rates were removed due to a court ruling. Empirical evidence shows that lenders made more high-interest loans after all the lending restrictions were removed: the marginal interest rate increased by 0.31 percentage points. Although observable borrower characteristics didn't change, the foreclosure probability increased by five percent. Loans made by local lenders had a 15 percent higher foreclosure rate than those made by nonlocal lenders, suggesting local information about the repeal induced more aggressive reactions. There is evidence that borrowers were aware of the higher exposure to lending terms that used to be prohibited by law, and therefore declined loan offers from lenders more often than before the repeal. 

Most minor children are eligible for Social Security survivors benefits if a wage-earning parent dies, but eligibility of children not in utero at the time of death is more nuanced. The purpose of this study was to examine attitudes concerning access to Social Security survivors benefits in the context of posthumous reproduction. A probability sample of 540 Florida households responded to a multiple-segment factorial vignette designed to examine the effects of state intestacy laws and five reproductive pathways—normative, posthumous birth, cryopreserved embryo, cryopreserved gametes, and posthumous gamete retrieval—on attitudes toward eligibility for the Social Security survivors benefits. Broad support was found for the survivors benefits following normative and posthumous birth pathways, but attitudes were decidedly less favorable when the child was not in utero at the time of parental death. In addition, in stark contrast to the recent U.S. Supreme Court decision in Astrue v. Capato, the vast majority of respondents did not believe state intestacy laws should determine eligibility for Social Security survivors benefits.

In the course of the ongoing debate regarding the critique of the German Riester pension the Swedish premium pension has often been referred to as a role model regarding potential amendments and reforms. The Swedish pension reform of 1998 has led to a reorganization towards a stratified scheme, consisting of a pay-as-you-go and a fully funded element. The mandatory implementation of the Swedish premium pension has proved to be the major difference in comparison to the voluntary German Riester pension. In addition, numerous differences between the two systems can be outlined, of which most are due to the differing methods of implementation in the country’s old age provision system. This paper evaluates the possibilities and limitations of a complete adaptation of the Swedish premium pension (German premium pension) as well as a partial modification of the existing Riester scheme (Swedish-Riester). It becomes evident, that despite systematic differences between the two schemes, the German Riester pension can in particular benefit from the Swedish premium pension with regard to transparent, coherent and consistent product information.

The Earned Income Tax Credit (EITC) seeks to reduce poverty and to provide the resources necessary for an individual to become self-sufficient. However, recent evidence suggests that the upward economic mobility provided by the EITC in practice is limited. To investigate the factors associated with achieving this upward mobility, this study utilized the theory of planned behavior to determine if (a) attitudes – as measured by time preference and self-esteem, (b) subjective norms – as measured by education, parents’ poverty level or work status, and religiosity, and/or (c) perceived behavioral control – as measured by locus of control, were significant in transitioning off of the EITC. Using data from the National Longitudinal Survey of Youth (NLSY79), the EITC utilization pattern of a sample of 178 individuals was investigated. Results indicate that marital status, being male, and having an internal locus of control significantly affected an individual’s ability to transition off of the EITC. 

Federal statutes, state statutes, and federal regulations all oblige merchants to give consumers three days to rescind certain contracts.  This paper reports on a survey of businesses subject to such cooling-off periods.  The study has two principal findings. First, the respondents indicated that few consumers rescind their purchases.  Thus, the study raises doubts about whether cooling-off periods benefit consumers or whether they provide only illusory consumer protection. Second, the study found that consumers who receive both oral and written notice of their rights are more likely to avail themselves of those rights than those who receive only written notices, and that the differences are statistically significant. Finally, the survey asked respondents about the cost of cooling-off periods.   More than four-fifths of the respondents who answered the question reported that the right to cancel had cost them either nothing or very little.

In this paper, we use qualitative data gained from interviewing grandparents who are raising their grandchildren.  The purpose of the study was to investigate the adequacy of economic and financial resources for these grandfamilies.  Results indicate hardships for many of the grandparents interviewed, especially in finding governmental services to help them, maintaining or increasing work hours, stretching dollars that were planned to cover only the grandparents' retirement needs, and general financial stress for these grandfamilies. Grandparents receive help from their own work efforts (both in the workplace and in household production), governmental programs, their own work efforts, community non-profit programs, friends, and other family members. 

The collection of accurate financial data is critical to the understanding of financial security.  For immigrant groups who are frequently underrepresented in surveys and more likely to be at-risk economically, the accuracy of financial data is even more important.  Moreover, data on the financial status and public program participation of immigrant families may be used in to inform federal and state policies and influence public opinion.  In addition to the standard methodological challenges associated with surveying hard-to-reach populations, potential immigrant respondents may be particularly sensitive to confidentiality concerns due to fear surrounding documentation status.  Immigrant respondents may also feel increased pressure to provide socially desirable answers as indicators of acculturation.  Survey context may influence an immigrant respondent's willingness to provide accurate information by establishing the comparison group the respondent will be measured against, as well creating a perception of safety and confidentiality (or lack thereof).  This paper examines the effect of survey context by comparing responses on a number of financial indicators between two surveys with different contexts: the 2007 Survey of Income and Program Participation (a national survey that includes a representative sample of immigrants), and the New Immigrant Survey (a survey exclusively examining immigrants).  Data from these surveys are compared to determine if there are differences in the reporting of ownership and allocation to financial assets.  Analyses are conducted to determine the existence and extent of differences in the reporting of several financial indicators including income, retirement account (IRA, Keogh) ownership and transaction account (savings, checking) ownership.  Finally, a measure of federally-funded program participation, the receipt and amount received in food stamps is compared between immigrant respondents in the two surveys.

Longer life expectancy, rapid population growth, and concern for the wellbeing of older adults justify the need for better understanding of older adults’ health and personal finance needs. The purpose of this focus group study was to gain an understanding of the health and finance information needs of older adults. Fifteen consumer focus groups were conducted with older Floridians.  A semi-structured approach was used during the focus groups. The questions asked included: 1) What health topics would you like more information about?; 2) What personal finance topics would you like more information about?; and 3) Do you see your health and finances as being related and if yes, how?  The majority of the 93 individuals who participated were women (n = 71), and were age 60 and older. Results from the focus group data identified 26 information themes. The most significant topics mentioned were Medicare, long-term care planning, informed decision making, independent living, aging process, and fixed income. The majority of the participants voiced a connection between their health and finances.  Knowledge gained from these focus groups was used to inform community education programming aimed at improving the quality of life of older adults by meeting their information needs.

Our understanding about the determinants of financial help seeking has seen limited advances over the last decade.  Although we know more about correlates to having a financial advisor, we know relatively little about factors related to beginning the use of a financial advisor.  We know even less about the financial advice seeking behavior of older individuals who are arguably most at risk of poor financial decisions.  This study presents the first longitudinal results showing factors associated with seeking and discontinuing the use of a financial advisor among older Americans.  Using the 1993 and 1995 waves of the Asset and Health Dynamics among the Oldest Old (AHEAD), we analyze factors associated with the decision to begin using a financial advisor as well as factors associated with the decision to discontinue the use of a financial advisor.  We focus attention on influential life events and other impactful changes that may lead an older individual to change their use of professional financial advice.  We find that beginning use of a financial advisor is significantly associated with becoming a widow, and with two help-seeking behaviors: asking for assistance from family members in financial decisions and seeking a doctor’s help for emotional or psychiatric problems. Similarly, discontinuing the use of the advisor is negatively associated with widowhood and retirement (both recent and previous), and an increase in the number of chronic illnesses experienced by a respondent.

In the 2010 Survey of Consumer Finances, females were more financially knowledgeable than the male in 46% of mixed-sex couple households, a proportion that was slightly lower than the proportion in 1992 (47%). In households with a net worth in the top decile for mixed-sex couples, females in 2010 were more financially knowledgeable than the male in only 19% of the  Based on a multivariate logistic regression, we found that (1) the more educated spouse/partner is likely to be the more knowledgeable one, and (2) the likelihood of the female being more knowledgeable than the male decreases as net worth increases from zero and as net worth decreases below zero. The effect of the employment status of the male and female  suggests that the choice of the respondent is not related to availability of the spouse/partner to be interviewed, as females are more likely to be the respondent if both are employed than if the male only is employed.  Even though females are the respondents, and thus presumably financially more knowledgeable, in almost half of mixed sex couple households, clearly males are still much more likely to be considered the knowledgeable spouse/partner for households in the target market for financial services companies, such as households with higher incomes or financial assets. Financial educators and advisors in financial service companies should attempt to work with both partners in couple households, as death or divorce may leave the less informed partner in a bad situation.

This research investigated the relationship of financial wellness, communication patterns, and relationship satisfaction for married individuals. This research was completed using a sample of adult, cohabiting, married individuals in a large Southern state. Guided by social exchange theory, a series of structural equation models were specified to examine the mediating relationship of communication patterns on the relationship between financial wellness and relationship satisfaction. Using separate models for positive and negative communication patterns, a full mediating role for positive communication was not identified. However, negative communication patterns did indicate full mediation. The results of this research provide insights into the financial wellness of married individuals and inform the growing literature on the roles finances and communication play in relationships. Additionally, the results offer implications for practitioners working with couples and for researchers.

In recent years, individuals in the United States have become more responsible for the financial aspects of their retirement planning. Many employers have shifted from defined benefit to defined contribution plans, the sustainability of benefits for both Social Security and Medicare have been cast into doubt, and life expectancy has increased. The health status of each partner can influence retirement planning in a variety of potentially contradictory ways. This study examines retirement planning behaviors and wealth accumulation in an effort to distinguish the possible influences health on household retirement preparation. It aims to assess if the retirement preparation efforts of healthy couples differ significantly from the efforts of couples who have been diagnosed with serious health problems. Data for this study are derived from two sources—the University of Utah Retirement Planning Survey (UURPS) and the Utah Population Database (UPDB).  Financial planners and educators along with social policy makers will benefit from the information presented in this study as they determine stages of retirement planning requiring support and intervention especially for those households experiencing significant health issues.

Using data from the National Survey on Drug Use and Health (2010), this study explored to what extent young adults abuse Adderall and investigated factors associated with students’ nonmedical use of Adderall as prescription stimulants. The total sample of 19,302 young adults aged 18-25 was analyzed. The descriptive statistics present that about 11.3 percent of young adults had ever used Adderall without a prescription. The logistic regression results show that all else being equal, those with a college education were more likely to use Adderall for nonmedical reason than young adults without a high school diploma.  The findings indicated that all else being equal, full-time enrolled college students were more likely to experience nonmedical Adderall use than those who were not enrolled in college. The logistic regression results also show that all else being equal, those living in large or small metropolitan areas were more likely to experience nonmedical use of Adderall than were young adults residing in non-metropolitan areas.  It is noteworthy that all else being equal, young adults were more likely to use Adderall when they used other prescription stimulants.  For example, when they used methamphetamine, they were 263% more likely to experience Adderall use than those who never used methamphetamine.  Similarly, when they used diet pills and when they used Ritalin, young adults were 326% and 3949%, respectively, more likely to experience Adderall for nonmedical reason than those who had never used such prescription stimulants. In addition, the results show that all else being equal, young adults who were dependent on any illicit drugs, were 362% more likely to experience nonmedical use of Adderall than those who were not dependent on any illicit drugs. 

As gift cards have become increasingly popular, concern has been raised about the number of cards which are not redeemed.  The purpose of this exploratory study is to examine the pattern of gift card non-redemption and to explore the reasons that consumers cite for not using these products.  A survey of English-speaking Canadian consumers was conducted to explore attitudes and behaviors surrounding gift card receipt. The extent of consumers’ non-redemption of gift cards, both in terms of number and in terms of value, was examined.  Factors for non-redemption show a mix of both positive sentiments (e.g., waiting to use for a specific product) and negative feelings about the cards (e.g., issuer or value).  Implications for card issuers and public policy makers are considered in the light of the findings presented.

This paper uses the NLSY and logistic regression to shed additional light on the question of the causes of spousal money arguments.  The explanatory variables of financial behavior, birth order, and various demographic variables were used to determine their impact on spousal money arguments.  Many of these variables such as financial behaviors, income, and birth order were in fact found to be significant. This study indicates what variables are significant, thus allowing practitioners to more effectively work with clients and help policymakers to better design programs to reduce financial discord in the marital relationship.

This study examines factors related to gambling behavior among college students in the United States by applying the Theory of Reasoned Action (TRA) with the concepts of impulsivity and cognitive bias incorporated into the model. A majority of the respondents (84.4%) in this study report that they did not gamble in the last 30 days. The results of the OLS regression analysis indicate that gambling frequency is strongly related to attitudes toward gambling and cognitive bias toward gambling and weakly associated with subjective norms of family members regarding financial behavior and underestimation of financial behavior. The results of the logistic regression analysis suggest that gambling propensity is strongly related to attitudes toward gambling, subjective norms of family members regarding financial behavior, and cognitive bias toward gambling. The empirical work finds only weak evidence that impulsivity is associated with gambling propensity.

For a number of decades researchers have relied on survey data to understand the current state of the financial well-being of consumers.  While surveys are successful in collecting data on the financial state of consumers, the subjective nature of survey data is not bias-free, indicated by the presence of disparities between the reported and actual behavior of respondents. Because financial behavior, and the financial behavior of young adults, is an important component of maintaining both healthy families and a healthy national economy in the future, this paper seeks to develop a survey methodology that both captures data on the financial behavior of young adults, and furthers the methodological sophistication of financial surveys.

Using data from Google Analytics, we looked into factors that are associated with page views among eXtension’s personal finance pages (www.extension.org/personal_finance). Specifically, we utilized Google Analytics data from April 2009 and available Page Analytics numbers (http://pageanalytics.extension.org/ and http://data.extension.org/) produced by eXtension data engineers in the personal finance or Financial Security for All (FSA) Community of Practice (CoP) areas. Top pages with the highest page views per month were selected to look for similar characteristics among these webpages. At the macro level, we will be exploring relevant statistics to our CoP such as search engine utilized, top search keywords, traffic sources, traffic referral, and mobile device access. We also looked into the tendency of page hits associated with the following factors: topic (tag) , average Google search entrances per week, and age of the article. Preliminary log-level regression results show that pages with high numbers of hits tend to have more tags, not a summary of academic research, and be related to managing money in tough times. We shared result implications and limitations based on the results of this study. Besides advanced researches, personal finance academicians need to write on simple and applicable topics, as evident from top search hits (birth certificate, FICA tax, and SMART goals) and less tendencies of research summary articles to get hit. The federal Financial Literacy and Education Commission (FLEC) core competencies provide targeted knowledge and action/behavior changes, which in themselves are guidelines for writing topics. Despite being a non-profit organization, eXtension can still take advantage of pro-business properties by having course enrollment and savings as conversion goals.

This paper uses data from the PSID for 2007-2009 to investigate whether the decline in home values and having difficulty with mortgage caused adverse health effects. We use four measures of health status including self-reported health status, health conditions, severe health conditions and psychological stress. Our results show that homeowners report deteriorating health status and higher psychological stress if their housing wealth decreased. Homeowners experiencing difficulty with mortgage also report higher psychological stress.

Over the last decade, mortgage fraud, most often committed in primary mortgage loan originations, has swept the United States. In recent years, the receding housing market has limited the opportunities to capitalize on primary mortgage fraud and fraudsters have moved into the Home Equity Conversion Mortgage market (HECM) market. This study reports the results of a nationally distributed survey exploring the growth of HECM fraud and the role of housing counselors in its identification. Two aspects of HECM counseling were explored: the complexities involved in HECM counseling and counselors awareness and training in identifying HECM fraud. Of the counselors surveyed, 52% reported only a limited awareness of HECM fraud, as compared to 34% for primary loan mortgage fraud. Furthermore, 48% reported limited awareness of fraud when performing HECM counseling, as opposed to 34% when conducting traditional housing counseling. Interestingly, the majority of respondents indicated that HECM fraud was at least a moderate problem nationally, but 76% indicated that it was either not a problem or a minor problem for their clients. In terms of training, only 52% of respondents reported receiving any training to identify HECM fraud, as compared to 72% for primary mortgage fraud. Overall, the results of this survey are vital to establish the awareness and training the HECM counselors have in identifying fraudulent activity and protecting their clients.

Roth IRAs were introduced in the late 1990s and provide another option for tax-sheltered retirement savings.  Because determining the benefits of a Roth IRA is a complex decision, we hypothesize that cognitive ability and having a financial planner have significant impacts on the timing and likelihood of using a Roth IRA.  Using data primarily from the 2004 and 2008 administrations of the National Longitudinal Survey of Youth (NLSY), we find that cognitive ability and having a financial planner are both positively related to Roth IRA ownership and early adoption.  If individuals with higher cognitive ability and/or a financial planner are better able to recognize and implement beneficial tax strategies, then tax policy will yield unintended distributional consequences.  A complex tax policy also limits the ability to modify individual behavior in the ways envisioned by policymakers.

1. Purpose

2. Theoretical Background

  2.1. Green labelling and consumers’ green choice

  2.2. Comparison of Green washing in Korea and USA

3. Current status of Green labelling in Korea  

  3.1. Methodology  

  3.2. Results   

     (1) Year 2010    

     (2) Year 2012

4. Discussion & Suggestion

Numerous studies suggest that health literacy improves health outcomes; similarly scholarly literature indicates financial literacy increases financial outcomes.  But how, and to what extent,  health literacy contributes to improving financial outcomes has not been examined. This study articulates the role of health literacy on financial outcomes and security in later years. This study proposes a comprehensive model to explain the mechanisms between health/financial literacy and retirement savings. To test this model, data from the 2010 Health and Retirement Study (HRS) are used with measures of health literacy and detailed financial information. Regression analyses are conducted for estimating 1) the impact of health literacy on out of pocket medical expenses (OOP), and 2) direct and indirect effects of health literacy on financial wealth and net worth. Adequate health literacy is associated with lower OOP: $1,168 less spending of OOP (marginally, p=0.09) than inadequate health literacy for the two previous years (annually $584).  Furthermore, adequate heath literacy has indirect effects on higher level of wealth: 4.08 % (net worth) and 7.3 % (financial wealth). These findings indicate that health literacy is an important factor to affect financial wealth and net worth for financial security in later years as well as a determinant of OOP. These findings also provide information to motivate individuals to increase health literacy for retirement savings as well as for healthy lifestyle. 

The mortgage crisis of the last few years has raised the important question of whether or not consumers are making appropriate decisions when it comes to mortgage types. Specifically, do consumers know when to choose an adjustable rate mortgage type versus a fixed rate mortgage type? Further, does mortgage information help consumers to make the correct decision? This study uses unique data in which consumers were randomly assigned to receive information explaining the difference between these two major mortgage types. Consumers were then given two distinct situations where one of these mortgages was more appropriate than the other. Logistic regression is used to determine the odds of consumers making the correct decision in the situations. The results suggest that mortgage information does indeed make a different in consumers selecting the appropriate mortgage type. Factors such as overall financial knowledge and the score on a Truth-in-Lending Act quiz are also important predictors of choosing the correct mortgage.  Not all consumers who were exposed to financial information made the correct decision which supports the continued use of mortgage counselors and or educational programs to further assist consumers in selection the best mortgage type for their situation. 

Availability of appropriate information is an important issue if contracts on pension products are concerned and should in the optimal case be offered by the most competent contact person. More high quality information should increase individual participation in occupational pension plans which currently have low participation rates. Multiple searches for information increase individual participation in occupational pension programs. This paper finds that employees perform multiple searches on pensions. This habit also increases the probability of an individual participating in an occupational pension. Using a representative dataset, we empirically investigate the determinants of these searches with respect to information about occupational pensions. We find that transaction costs, provision of information by the employer, and quality of the intermediary increase willingness to participate in a network and also increase individual pension plan coverage.

Using the 1999-2009 waves of the Panel Study of Income Dynamics, this paper examines the impact of adverse health events experienced by the husbands or the wives on entrepreneurial outcomes of coupled households. We find that households affected by health problems are significantly less likely to engage in entrepreneurial activities, especially via an unincorporated business. The family income from unincorporated business diminishes, both in the short and in the long time horizons, after the husband is diagnosed with a new health condition. However, a new health condition developed by the wife actually increases the family’s business income. This effect is explained by increased labor supply of the husband.

With increasing life expectancies, older adults are being called upon to make complicated financial decisions over a longer time horizon than ever before. One of the most complicated of these decisions is whether or not to purchase long-term care insurance. The uncertain and costly nature of long-term care makes it a candidate for insurance coverage because of potentially catastrophic financial outcomes. This paper examines the role that consumer numeracy skills could play in the demand for long-term care insurance. Combining the complexity of the product with the general tendency for older adults to be more negatively affected by task complexity than younger adults suggests the possibility that cognitive complexity could become a barrier to purchase for many older adults. When examining 18,649 respondents from the 2006 HRS, results reveal that respondents with the lowest scores on math-related tests (serial seven subtraction test or numeracy test) are much less likely to purchase long-term care insurance even after controlling for a variety of socio-demographic factors. Financial planners may reduce the cognitive complexity of the decision by presenting fewer options and making a specific recommendation on a policy for clients considering the purchase of long-term care insurance. For clients with math-related challenges, planners may consider completing any simple math problem or presenting more verbal forms of information in order to overcome a potential barrier to decision making and thus allowing the client to better use the information presented.

Each individual enrolled in a health savings account (HSA) plan faces a myriad of conflicting forces when deciding whether to defer the immediate benefit of take-home pay for the potential future benefit of making HSA contributions. Personal contributions to HSAs allow high-deductible health insurance plan enrollees to accumulate funds to cover out-of-pocket medical expenses. If an enrollee does not have HSA or other personal funds, he or she might not be able to receive needed medical attention. Contributions also allow eligible consumers to take full advantage of the various financial and tax planning benefits of HSAs. In this study, the first of its kind, hypothetical experimental surveys were conducted using a nationally representative sample of 505 respondents to determine factors that motivate personal contributions to HSAs. One treatment required respondents to view digital recordings of three current HSA enrollees speaking about their personal motivations to make contributions. The VIDEO treatment was associated with a statistically significant increase in the hypothetical level of HSA funding selected. In addition, higher education levels were associated with significantly higher levels of personal HSA contributions. 

Two major sources of wealth for many households are retirement assets and housing equity.  Along the lifecycle leading up to retirement, households face challenging decisions on where to most effectively save their limited excess income, especially as it relates to either prepaying their mortgage or accumulating tax-deferred retirement assets.  This paper models the financial tradeoff between prepaying a mortgage or contributing to a tax-deferred retirement (TDR) account, uses the Survey of Consumer Finances to evaluate the influence of other qualitative factors, such as access to a financial planner, on the decision to prepay a mortgage or contribute to a TDR account, and concludes with a brief discussion on how planners might be able to play a key role in helping consumers navigate through anticipated future tax reforms.    

The residential mortgage market is one of Australia’s most important retail financial markets for consumers. Since 1990, the Reserve Bank of Australia (RBA) has targeted the desired interest rate on overnight loans in the money market (or cash rate) as part of monetary policy. Importantly, consumers of residential mortgage loans have become increasingly mindful and well informed through the media and elsewhere of the impact of changes in the official cash rate on their own borrowing rate. While there is no regulatory requirement for lenders to pass on these rate cuts, consumers have then formed the expectation that rate cuts should instantaneously pass on in full, whereas lenders that pass on rate increases face the accusation of being predatory and insensitive to customer needs. Politicians of all types typically respond to the demands of consumers (read voters) in the same way. This paper analyses the behaviour of banks in response to changes in the cash rate, with a focus on the speed and accuracy with which rate cuts and increases are passed on to borrowers. Over the period 4 September 2000 to 5 March 2012, we regress the standard variable mortgage rate for each of Australia’s Big-4 banks against current and lagged cash rates along with a dummy variable indicating whether the change in the cash rate was positive (an increase) or negative (a decrease). Overall, we find that the Big-4 banks are slow to react to changes in the cash rate but typically adjust 75 percent of the lending rate with one month. This may sometimes benefit mortgage holders in that the banks are slow to pass on rate increases but sometimes not when they are slow to pass on rate decreases. However, we find evidence of asymmetry in that the banks more quickly pass on rate increases.

This paper examines the effect of Certified Financial Planner® (CFP®) certification on the neural activation of participants in an advisor-intermediated stock market game using functional magnetic resonance imaging (fMRI).  Brain activations were greater in regions associated with continued decision-making and error detection when employing an underperforming non-CFP advisor as compared with an underperforming CFP advisor.  This greater activation may reflect greater uncertainty or “second guessing” associated with the use of a non-CFP advisor during periods of underperformance.  In contrast, when advisors outperformed the overall market, there were no significant differences in brain activations when using CFP or non-CFP advisors.  In this experiment, the CFP mark generated observable behavioral and neurological differences in participant decisions to retain an investment advisor during underperformance.  To the extent that maintaining a consistent investment strategy during inevitable market fluctuations is a desirable goal, the behavioral and neurological impact of a designation of expertise such as the CFP may benefit consumers by engendering relatively greater confidence during temporary periods of underperformance.

Consumers often find that attaining an asset, like a house, is a challenge, only to discover that maintaining it can seem impossible. For participants of the study, bankruptcy was used as a measure of asset protection. Twenty-four consumers filing Chapter 13 were interviewed while waiting for creditor meetings at bankruptcy court. Twelve had mortgages and half of these participants, representing couples, were selected for the study. Data from surveys, interviews, and bankruptcy records were used to identify themes that reflect the status of participants’ employment, housing, and financial condition. Results indicated that changes in employment status modified income, adversely affecting the consumer’s ability to meet their monthly mortgage. According to participants, bankruptcy was a last resort measure to avoid foreclosure after efforts to negotiate better mortgage terms failed. This study addresses this gap by using qualitative research to explore bankruptcy as a form of asset protection, based on feedback from consumers. 

Self-esteem as a psychosocial construct has been studied extensively over the past half century, most often through the employment of a single self-esteem assessment survey. Researchers have questioned the efficacy of single self-esteem assessment surveys; however, efforts to develop a more comprehensive self-esteem measurement with a substantial sample size on a cost-effective basis have been elusive. The current study attempts to build a more comprehensive measure of one’s psychosocial characteristics, and to explore associations of this comprehensive psychosocial profile with pre-retirement planning behaviors. Using A Theory of Self Esteem as the theoretical framework for the analysis, this study found that a healthy psychosocial profile, age, attained education level, net worth, and net income were associated with individuals likely to engage in one or more pre-retirement planning behaviors.

Both policy makers and researchers have become interested in the assessment, determinants, and outcomes associated with personal financial human capital or “financial literacy.” When assessing financial literacy there may be an important practical distinction between the ability to recall financial knowledge and the ability to apply that knowledge to a scenario. Using functional magnetic resonance imaging (fMRI) we contrast financial knowledge questions with questions requiring application of financial knowledge to specific situations. Knowledge questions were associated with increased activation in a brain region commonly associated with error detection (anterior cingulate cortex). Application questions were associated with increased activation in brain regions that have been previously associated with visualization (occipital) and understanding a cause-and-effect hypothesis (cerebellum). This evidence supports the idea that where a multiple choice financial knowledge question may be completed by identifying statements with simple errors, financial application questions require more probabilistic causal scenario simulation. Given the difference in cognitive processes involved, financial educators may do well to closely match testing measurements with desired behavior in terms of knowledge and skill expectations of students.

We examined the problem of self-control in U.S households and its effect on retirement preparedness, based on the Behavioral Lifecycle Hypothesis (Shefrin & Thaler, 1988).  Self-control is an issue in our daily lives, and is believed to lead to decision errors or lesser achievement.  Household financial decisions are no exception, and retirement preparation in particular poses a special challenge.  Therefore, we approached the topic of retirement preparedness with self-control as an influential factor.  Self-control was measured using four variables: health condition, credit attitude, saving decisions, and planning horizon.  The Survey of Consumer Finances datasets from 1995 to 2007 were mainly used, and 2010 were partially implemented.  After the analyses, we found that 54-64% of households were prepared for adequate retirement during 1995-2007.  Based on the pessimistic projection, the adequacy proportion ranged from 49% to 59%.  Our multivariate results showed that households with self-control problems were less likely to have adequate retirement preparedness.  Other than self-control variables, planned retirement age, retirement pension plan and marital status were found to be notable variables significant to retirement adequacy. 

This study investigated the associations of cognitive bias factors (i.e., time preference, goal expectation, unrealistic optimism, and overconfidence) and negative mood (i.e., anxiety) with credit card borrowing behavior of college students. Data were collected from a panel of students (N=1,146) during their fourth year of college. Results showed a positive association between three cognitive bias factors (i.e., goal expectation, unrealistic optimism, and overconfidence) and risky credit card borrowing behavior.  The findings also show that negative mood was positively related to risky credit card borrowing behavior. In addition, anxiety interacted with time preference and future income such that present oriented time preference was negatively related to credit borrowing behavior while future income was positively related to credit borrowing behavior but only for those students with high anxiety levels. The findings of this study for understanding and preventing risky financial behavior are discussed.

The problematic financial behaviors of young adults, such as late rent or mortgage payments, use of payday lenders, and credit card debt, are analyzed using the personality trait of conscientiousness as a key independent variable in an economic model. Conscientiousness is found to be a strong predictor of credit card debt and negative financial events.  Results from the study indicate that while highly conscientious individuals are more likely to have a credit card they have lower balances, with a one standard deviation increase in conscientiousness associated with an 18% decrease in credit card balance.  Similarly, a one standard deviation increase in conscientiousness decreases the likelihood of experiencing more than one negative financial event by 21%.  Conscientiousness is the strongest predictor of negative financial events; stronger than gender, income, or financial literacy. Implications for educators, financial planners, and policy makers are discussed.

There has been increasing concern with the financial literacy of the U.S. population, accompanied by the shifting of retirement benefit policies, exacerbated by the recent financial crisis. However, it remains unclear what types of financial knowledge and behavior are most vital to good planning, and more importantly, whether they make any differences in later life financial well-being, and therefore should be promoted through financial literacy education. This study introduces a new measure of financial literacy - financial self-awareness – to supplement the existing measures of financial literacy. Financial self-awareness reflects individuals’ knowledge of their financial resources, which captures both knowledge and behavior needed for managing financial lives for various populations. The objective of this study is to validate financial self-awareness as a supplementary measure to current financial literacy measures. Using data from Wisconsin Longitudinal Study (WLS), a sample of Wisconsin high school graduates from the class of 1957, this study examines the links between psychological human capital and late-life financial self-awareness, with OLS and logit modeling. Modified Human Capital Theory inspires the incorporation of psychological human capital. Findings show that psychological human capital, such as personality traits and psychological orientations help explain part of the variation in financial self-awareness in late life. Personality traits not only independently relate to late-life financial self-awareness above and beyond the effect of cognitive abilities and other early life factors, but also indirectly mediate the relationship between early-life cognitive human capital and late-life financial self-awareness. This study contributes to the literature for validating financial self-awareness as an important and separate measure from existing financial literacy measures, and for identifying the demographics and characteristics of population more likely to be financially unaware, with the implication of being able to provide well-targeted interventions promoting self-awareness across the life course to improve financial well-being.

Many university administrators are concerned that debt loads and other financial concerns are negatively affecting student wellness. This study sought to explore factors related to financial stress among college students. Responses from the 2010 Ohio Student Wellness Survey were analyzed using means tests and multivariate logistic regressions. The results show that financial stress is widespread among students – 71% of the sample reported feeling stress from personal finances. The results of the means tests and logistic regressions show that this study successfully identified important financial stressors among college students. Two of the most important financial stressors were not having enough money to participate in the same activities as peers and expecting to have higher amounts of student loan debt at graduation. The results also indicate that students with higher self-efficacy and greater optimism about the future are significantly less likely to report financial stress. Implications for student life administrator, policymakers, and financial counselors are discussed.

Using data collected by the National Financial Capability Study, a survey recently commissioned by the Financial Industry Regulatory Authority, this paper investigates the correlations between subjectively and objectively assessed measures of financial knowledge, and the probability of having savings adequate to cover 3 months of typical expenses. Results indicate that households who are more financially knowledgeable or more confident in their financial ability are significantly more likely to report having emergency funds. These findings support the growing literature on the relationship between financial knowledge and economic behaviors and have wide policy implications.

This study was designed to extend the view of financial literacy in low- to moderate-income households with regard to savings behavior, self-reported perception of financial knowledge, and planning behavior. First, we examine the low- to moderate-income household’s response to the three financial literacy related questions by Lusardi and Mitchell. Second, we examine a self-reported perception of financial knowledge, and third, we examine the behaviors of planning, monitoring, and saving of a household’s finances and potential correlations with financial literacy. A significant relationship was found between the self-reported perception of financial knowledge and one of the financial literacy questions. In addition, significant relationships were found to exist between planning and the self-reported perception of financial knowledge and between the monitoring of expenses and the self- reported perception of financial knowledge. No significant relationships were found to exist between the decision to save and the response to the three financial literacy questions.

Prior literature on retirement saving has looked into self-control problems, financial literacy, and lack of resources. This paper explores a new approach to boost individual retirement saving by using motivational theories of regulatory focus and regulatory fit. A web-based survey was distributed, collecting 134 usable responses in total. Confirming our first hypothesis, we discovered that employees regulated by promotion orientation, focusing on achievement and gain maximization, were more likely to use traditional IRAs or employer-sponsored savings plans, because deferred tax accruing with capital produced more benefits, which strategically fit promotion-oriented respondents’ goal attainment means. Conversely, tax-free withdrawals in Roth IRAs corresponded to security, obligation, and avoidance of losses emphasized by prevention-oriented people, and prevention-focused respondents were more likely to save through Roth plans. In addition, same as our second hypothesis predicted, the strategic fit between personal goal achievement means and saving tools’ functioning mechanism was found to result in consistent and continuous contribution to retirement savings accounts. Implications for financial educators, policy makers, and future studies are provided. 

Rapid advances in wireless technology and innovative applications on mobile phones offer unprecedented opportunities to consumers around the world. Mobile data services utilized on a mobile phone enable consumers to enjoy a wide variety of services that are suitable to their life situations.  This study is one of the first to empirically investigate the adoption of mobile financial services from the viewpoint of consumers as well as the impact of using mobile financial services on financial capability.  Using the two solid theoretical frameworks of the Technology Acceptance Model (TAM) and the Theory of Planned Behavior (TBP), psychological constructs of attitude, perceived behavioral control, subjective norm, perceived usefulness, perceived ease of use, and perceived benefits / risks were incorporated into the empirical model. The online survey was conducted to collect data in the United States and a total of 1,082 respondents participated in the survey.  The results show that perceived behavioral control, subjective norms, and perceived usefulness are all important in explaining the adoption of mobile financial services. Other variables such as attitude, perceived ease of use, perceived benefits, and perceived costs were not significant in the model.  Thus, the use of the theory of planned behavior in this context was only partly supported.  Increased use of mobile financial services was associated with higher levels of financial capability. The results of the current study support the relationship between frequency of using mobile financial services and financial capability, and further research using other samples is needed.

The Consumer Expenditure Survey (CE) is the most detailed source of expenditure data collected directly from households by the Federal government. In addition, information on income, assets and liabilities, and demographics are collected from a large, nationally representative sample of consumers. The result is a unique and rich source of data of interest to researchers, educators, advocates, policymakers, and others in a variety of fields. Moreover, these data, both tabular and at the household level (i.e., microdata), are publically available for free download.  Using examples from current research, this session is designed to provide  instruction in the use of these data. The session will start with an introduction to the CE, including how the tabular and microdata are collected and published, how they can be accessed online, how they are used in practice, and journals that have published research using these data (e.g., Journal of Consumer Affairs). Presenters will then describe current research projects that use these data. In the final segments, attendees will learn about the microdata: file structure and content, sampling of variables available, and contact information for CE program experts who can answer questions about accessing and using these files. They will also have the opportunity to participate in brief exercises using the microdata. This workshop is expected to be of particular interest to students, both graduate and undergraduate, pursuing dissertations, theses, or class projects; junior faculty interested in publishing; senior faculty interested in new research projects; and other analysts with interest in consumer spending patterns for use in policy, education, and other fields.

The purpose of this study was to gain consensus among researchers, college educators, and financial aid officers using the Delphi method on the personal finance knowledge, skills, and actions/behaviors - hereby known as core competencies - that are important for all undergraduate college students to manage their money in a manner that poses fewer opportunities for debt and greater opportunities for financial security.  A review of the literature found no prior studies which identified or established personal finance specific core concepts or core competencies for college students.  A panel of 21 experts who have knowledge of college students’ financial literacy and financial needs was created to identify the personal finance concepts and competencies for student groups, using the Delphi method.  A round of three questionnaires elicited responses from participants to identify personal finance core concepts and competencies that are most crucial for undergraduate college students.  Seven of 13 concepts and 140 competencies gained consensus as being important for undergraduate college students.  The mean rankings by importance of each were identified.  Mean rankings of those concepts and competencies which did not achieve consensus also were identified.  The results of this study are a stepping stone for continued research to identify those personal finance concepts and competencies that are essential for undergraduate college students.  Administrators, educators, researchers, and policymakers may have a better perspective on the needs of undergraduate college students and assist them in the development of necessary content of personal finance education offerings at the college level and identify new opportunities for personal finance education programs and services. 

Individuals who defer smaller contributions to their defined contribution (DC) retirement plan when market returns are low miss their chance of buying low and have an increased risk of being inadequately prepared for their retirement.  Unfortunately, defined contribution plan participants were found to defer a lower amount of their maximum allowed amount in years when market returns were lower.  Researchers, financial professionals, employers and policy makers should help DC plan participants to overcome such behavior and make a defined contribution plan deferral decision that is more in line with their retirement saving goal.

Recent studies have made the case as to why it is important to help children start saving money regularly early in life.  Savings have positive impacts on children's expectations on college attendance, academic achievement and preparation, and chances of attending and completing college.  Children with savings accounts tend to do better in math, get better grades, are almost twice as likely than those without savings to have higher college aspirations, and complete more years of education.  Among youth who expect to attend college, those with a college savings account in their names are four to six times more likely to attend.  Students with college savings are also more likely to complete their degree.  This study explored the extent to which low-to moderate income parents of elementary school-age children were saving for their future, and if they were also helping their children to save.  The data are from a convenience sampling of 1,764 low income households with a child attending a public elementary school.  A 26-question survey instrument was administered to the parent whose child attended a public elementary school that has 50 percent or more of their students in the federal lunch subsidy program.The instrument included questions about the demographic background of the child, his/her parent, pre-existing and newly opened savings accounts for the child, as well as questions directed to the parent about his/her attitudes towards saving.  Findings indicate a disconnect between parents' stated savings attitudes and actual savings behavior.  An overwhelming number of respondents (98 percent) agreed that saving is very important for the future.  Yet only 56 per cent were saving money regularly, and even fewer parents (42 percent) had started a savings account for their children. Policy and practice implications relating to psychological, physical or environmental, and institutional barriers are identified.

The purpose of this study is to identify factors associated with perceived financial independence among a national sample of young adults aged 18-23 who are transitioning from financial dependence to financial independence. Specifically, the association between education attainment and financial independence of young adults is examined. Data used were from the 2009 Transition to Adulthood and its parental companion data set, Panel Studies of Income Dynamics. Results indicate that college graduates demonstrate a higher level of financial independence than their counterparts who never attended college or are currently in college. Common and differential factors associated with financial independence are also identified among four education groups, having never attended college, been in college, dropped out of college, and graduated from college.

The negative consequences of financial illiteracy can be severe for both individuals and society.The purpose of our research was to study whether the knowledge of basic financial concepts and perceived financial literacy played a role in alternative borrowing among respondents in the 2009 state-by-state survey of the National Financial Capability Study. Alternative borrowing was measured by use of payday loans, car title loans, or a rapid tax refund loans. A basic financial literacy score was computed and perceived financial knowledge was self-reported. The impact of debt counseling was also investigated. Typical borrower-related characteristics as well as credit scores and economic hardships such as spending more than income, difficulty in paying monthly bills, and income shock were investigated. The results will inform educators, counselors, and policy makers in their financial literacy efforts.

This study examines the role of household financial status on the Supplemental Nutrition Assistance Program (SNAP) before and during the recent economic crisis. We use panel data comprising of the 2003-2009 waves of the Panel Study of Income Dynamics for this study. Our preliminary results of cross-sectional data analysis indicate that financially strained households and renters were more likely to participate in the SNAP program and the likelihood of their participation increased during the period of recent economic crisis. Further, some of the financial situation variables did not have consistent effects on food stamp participation over time. The results also indicate that vehicle ownership, although not a significant factor for participation in the 2003-2005 waves, reduced the likelihood of SNAP participation during the 2007-2009 periods. Additional analysis will be conducted to see how the roles of these determinants have changed before and after the economic crisis.

Succession planning for family business owners has been widely examined in the literature.  This descriptive study, therefore, was to explore succession planning across four ethnic groups in the U.S.: Black, Korean, Mexican, and White.   In particular, this study examined the effects of ethnicity on succession planning and investigates factors that might be associated with having succession planning in place.  This study employed data from the 2003 and 2005 National Minority Business Owners Surveys (NMBOS). The total sample included 803 small business owners and the sub-samples consisted of 198 Black owners, 200 Korean owners, and 200 Mexican owners. For comparison purposes, 210 White small business owners were included in the analyses. This descriptive study explored succession planning among minority family business owners, while examining the effects of ethnicity on succession planning and investigating factors associated with likelihood of owners having succession planning.  Overall, the evidence suggests that only 17.3 percent of family business owners had an expectation of transferring their businesses to their children, while 7.4 percent expected to transfer their family businesses to other family members.  However, 21.1 percent reported that they would sell it before they retire, and 8.3 percent reported they would close their businesses prior to retirement.  It is noteworthy that only about 25 percent of family business owners would transfer their businesses to their children or other family members. The finding suggests that many minority family business owners might not be aware of the significance of successful transfers of their businesses or they might not know how such planning is developed and implemented for the future. It is, therefore, important for financial planners and small business consultants to provide better guidance with succession planning because there is a greater prospect of succession failure without such planning.

Previous research on planned retirement ages has excluded workers who say they will never retire. This issue is important both in financial planning and in assessments of retirement adequacy.  Using the 1995, 1998, 2001, 2004, 2007, and 2010 Survey of Consumer Finances datasets, we present descriptive analyses, a logistic regression on the head's plan to never retire, and a multinominal logistic regression comparing the head's plan to never retire to each of three categories of planned retirement age. (In this draft, the multivariate analyses include only the 1995-2007 datasets, but 2010 will be added for the conference presentation.) For the 1995 to 2007 SCF datasets, 14% to 16% of full-time employed household heads age 35 to 70 stated they would never retire, but in 2010 this proportion increased to 19%.  Based on the logistic regression results for “never retire” versus any specific planned retirement age, the likelihood of planning to never retire decreases with current age, with education, and with net worth, and did not vary substantially between 1995 and 2007.  The multinominal logit results are similar but more complex because of multiple comparisons, but the main difference between the “never retire” and specific retirement age over 70 workers are on life expectancy and current age, with both results indicating higher levels related to being more likely to state specific age over 70 than to state “never retire.” For comparisons between the” never retire” response and specific ages 70 and younger (before 62 and 62 to 70), higher net worth, especially at a younger current age, was related to being less likely to state “never retire,” and a more positive assessment of retirement adequacy was related to being less likely to state “never retire.”  These results have implications for retirement planning and for assessments of retirement adequacy, as the usual assumption is that planned retirement age is exogenous.

In this paper, we use canonical correlation analysis and data from the 2010 wave of the Household, Income, and Labour Dynamics in Australia (HILDA) survey to investigate financial risk-taking in Australia. This is an important concern because knowledge of financial risk-taking has important implications for, among other things, consumer wellbeing, financial planning, and retirement incomes policy. We examine the relationships between a range of alternative proxies commonly used to represent financial risk-taking, including self-reported risk-taking attitudes and direct stock and business ownership, and a set of personal attributes, including age, education, sex, household structure, household income, and net assets. The results indicate that the three measures are strongly representative of financial risk-taking. However, the ranking of canonical loading indicates that direct share ownership followed by self-reported risk attitude is respectively the best and second-best indicators of financial risk-attitudes. In terms of the demographic and socioeconomic factors associated with financial risk-taking, the three variables with the highest loading are net assets (0.868), household income (0.514) and education (0.469). Similarly, the negative loadings are consistent with the literature, in that increasing age (-0.111), being female (-0.085), and having children or being in a lone person household (-0.417) contribute to an aversion to financial risk-taking. Interestingly, age and gender each only account for less than one percent of the observed variation in financial risk-taking.

This paper focuses on evaluating financial knowledge changes and its predictors among a sample of college university seniors who were enrolled in a one-credit hour personal finance course. The paper discusses different methods to use a pre/post design to assess knowledge changes, presents results using several of the approaches to analyze data from 632 college seniors, and concludes with recommendations for future research.

Despite the importance of information on who is undergoing consumer insolvency procedures, few studies have examined the profile of insolvent Canadian households.  This research uses data from the Office of the Superintendent of Bankruptcy to determine whether the profile of households of insolvent debtors changed post-recession.  Bivariate analyses are used to compare sociodemographic and financial characteristics of insolvent debtor households pre- and post-recession, and multivariate logistic regression is used to examine the factors influencing the likelihood of holding five types of debt: bank loans, bank credit card debt, other credit card debt, mortgage debt, and student loans.  The policy implications of the results are addressed.

This paper used data from the National Financial Capability Study (NFCS) to examine the actual and self-perceived financial knowledge of young adults ages 18 to 34.  The paper also analyzed the influence of the combination of the respondents’ actual and perceived financial knowledge on a set of financial behaviors. The findings of this study confirm that young adults with lower incomes and educational attainment, women, and nonwhite minorities were more likely to overestimate their financial knowledge than their respective reference groups. Respondents who overestimated their financial knowledge demonstrated other less desirable financial behaviors, including not having at least retirement accounts outside of work, not rebalancing their investment portfolios at least annually, and not being covered by health or auto insurance. Interestingly, respondents who overestimated their financial knowledge were more likely to seek investment, debt, and tax counseling services.

In modern societies, financial satisfaction has became an important component in measuring people's overall happiness. Objective factors such as income and wealth have been shown to lack full explanatory power when dealing with perceptions of satisfaction in the financial arena. This paper examines the relationship between actual and perceived knowledge as factors in a self-reported financial satisfaction item from the 2009 FINRA National Financial Capability Study. Linear probability models are used to discover a positive correlation between perceived knowledge (a self-reported construct) and financial satisfaction. Conversely, actual financial knowledge (from a right/wrong financial literacy quiz) is found to have a negative impact on satisfaction. Further discussion on other relevant variables and theoretical support of our hypothesis are also included on the paper.

In a severe economic condition characterized by high unemployment rate, low earnings, high import and low export, consumer spending becomes stagnant or decreases. Common sense suggests that consumer spending in such situations seems to be limited to important and vital products and services while frivolous and unnecessary spending is cut. For households, it seems difficult to classify plastic surgery as either an important or a frivolous service because of the complexity of the reasons that motivate it. The purpose of this study is to investigate whether demographic characteristics influence the choice of the household member that makes the plastic surgery decision. Specifically, the study examines the influence of demographic factors including education, income, and occupational status that contribute to household head power to make the surgery decision in a severe economic condition.

   The recession that started in December 2007 was longer than any since the Great Depression of the 1930s. Household incomes dropped and unemployment rates increased to over 9%.  We investigate the proportion of households having financial obligations over 40% of pretax income (having a high burden,) with financial obligations defined as debt payments, rent, vehicle leases, property taxes, and homeowners insurance. The proportion with high burdens increased for renters, from 35% in 2007 to 39% in 2010, but the proportion for homeowners decreased slightly, from 22% in 2007 to 21% in 2010.  Multivariate analyses of the 2010 Survey of Consumer Finances (SCF) dataset show factors affecting the likelihood of having a high burden were generally similar to factors shown to be important in analyses of the 1992 to 2007 SCF datasets. The slight decrease in the proportion of homeowners with high burdens might be related to a shift of some households to renting. The increase in the proportion of renters with high burdens might reflect a continued deterioration of the economic conditions of renter households.

To meet student needs for financial counseling it is important to understand why student come for counseling, when they seek counseling, and whether financial counseling reduces economic pressure so that students can stay in school and thrive academically. Using a variety of univariate and bivariate statistics we examined these issues with a sample of 272 students from the financial counseling clientele of a large public Midwestern university. We find that the type of financial issue matters because issues are tied to varying levels of financial stress and patterns in reducing stress. Reduced stress is a pattern that is associated with merely signing up for counseling as well as the counseling session itself. Financial stress was not related to temporal patterns in signing up for counseling, but was associated positively with having student loans, and negatively associated with having money invested. Policy implications of this research are identified.

In Germany, the 2001 pension reform caused a shift from the monolithic pension system based on the statutory public pension scheme with a constant pension level safeguarding the standards of living in old age towards a multi-pillar system. This multi-pillar approach also shifted the responsibility for old-age income from the state towards individuals. In the wake of the reform, policy makers realized that the provision of transparent and comparable information on rights accrued within the first pillar deemed crucial as a basis for workers' decision about joining an additional occupational or private pension. For this reason, the German pension authority implemented an annual pension information statement in 2004. About 10 years after the introduction the German population is aware of the annual pension information statement. Nonetheless, the evaluation of different pieces of information varies. The forecast of the individual amount of regular old-age and invalidity pension are regarded most useful. Information hedged in a block of text is less often regarded useful or not read at all. In general, the information provided causes no changes in savings behaviour.

In recent years, the choices available in both the type and delivery of financial services have grown tremendously. Technological innovations continue to spur on additional payment platforms and methods that leverage lower-cost electronic delivery systems. Even as innovations continue, 8.2 percent of households (roughly 10 million households) are unbanked (do not have a checking or a savings deposit account) and meet their financial transaction needs outside the financial mainstream (FDIC, 2011). This study seeks to determine the extent to which specific socioeconomic and demographic factors contribute to household choice of financial transactions services. We employ a recursive bivariate prohibit empirical specification because it allows for the possibility that the consumer jointly decides whether or not to use a bank account, and whether or not to use nonbank alternative financial service providers. We extend earlier research by estimating the model on a nationally representative, sample of US households using data from FDIC Household Survey of the Unbanked and Underbanked, a module administered by the US Census as a supplement to its Current Population Survey (CPS) in June 2011. Our results are more comprehensive and generalizable to the entire U.S. population. Household choice of financial transaction services providers has important implications from a policy perspective. Consumers who use mainstream financial services providers benefit from consumer protection laws and regulations, a situation unlikely when using providers operating outside the financial mainstream (e.g., check cashers). Understanding the factors that influence consumers’ choice of financial services and the providers who make them available in the marketplace is essential to policymakers and others interested in encouraging mainstream participation.

The purpose of this study is to examine the associations between financial savings and three types of unwelcome, unexpected life events among Japanese women - job loss, the onset of mental or physical disabilities of self or family members, and marital dissolution - to advance our understanding of the current recession and concerns about intra-national economic inequality. Using the Japanese Panel Survey of Consumers, we will utilize a multilevel modeling approach to assess the impact of these events on the presence and amount of savings. An earlier cross-section study found no association between the number of life events and savings. Here, we will focus on the three types of unexpected life events utilizing the panel-nature of the data. The findings will have fiscal and other public policy implications as Japan undergoes rapid changes in demographic composition that many other countries expect to follow.

The purpose of this study was to explore the association between workaholism (working 50 or more hours per week) and personal and psychosocial well-being. With time being a scarce resource, it is important to understand the trade-offs involved and the implications that arise from time allocation decisions. Becker (1965) provides a theoretical framework for the allocation of time that lays the groundwork for this understanding. Data were obtained from the 2010 administration of the National Longitudinal Survey of Youth 1979 (NLSY79). In 2010, the sample ranged in age from 45 to 53. Using listwise deletion for missing data, the final sample size was 4,762 for the first regression analysis predicting physical well-being (likelihood to skip meals) and 4,312 for the second regression analysis predicting psychosocial well-being (self-esteem scores). The statistically significant variables associated with skipping meals included being female, workaholism, and caring for a disabled family member, in order of importance to the model. The statistically significant variables associated with self-esteem included higher education attainment, being married, race classification of Black, and workaholism, in order of importance to the model. Policy implications include the development of business practices aimed to reduce the negative impact workaholism can have an employees’ physical and psychosocial well-being, potentially resulting in a healthier and more productive workforce. The results of this study may be enlightening for those directly or indirectly experiencing workaholism to further understand the damaging effects of workaholism on personal well-being. Through increased awareness, personal change may be more likely to occur.