The Academy of Financial Services 35th Annual Meeting

Financial, literacy, mindset, behaviors, psychology,

This literature review provides an overview of the mindsets and behaviors that contribute to bankruptcy, including the specific factors that contribute to bankruptcy in athletes. Topics include financial literacy, financial health, financial wellness, financial behaviors and money disorders. This article also examines the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 and the Affordable Care Act (often referred to as Obamacare), which did not reduce bankruptcies as was expected. The research concludes that Americans cannot rely solely on improving their financial literacy, but must also alter their beliefs and behaviors about money to define and enjoy their own financial success. The purpose of the literature review is to find and examine how factors other than financial literacy, like psychological factors, socialization factors, and childhood traumas
contribute to bankruptcy, and further define what behaviors among athletes in particular
contribute to bankruptcy. The implication of the work is that the financial planning practitioners
might consider embracing a more holistic approach that includes a focus on factors other than
financial literacy to help Americans, including high risk athletes and their families, define what
financial success means for them and modify their thoughts and behaviors to accomplish that
success.