Employees and their families are increasingly responsible for their own financial security. At the same time, financial markets have become more complex, offering products that can be difficult to understand. Are Americans equipped to handle this new financial landscape?
Difficulty covering basic expenses and costly economic practices put many college-educated Hispanics in a fragile financial state.
This paper undertakes an assessment of a rapidly growing body of economic research on financial literacy.
Women contribute more to the US economy than ever before. Women now outpace men at every level of educational attainment and currently make up 47 percent of the workforce according to the U.S. Department of Labor (2012). As working women’s earning power increases, so does their responsibility to make critical financial decisions for themselves and their household.
This study has used new data from the NFCS to analyze salient issues related to college-educated Millennials’ financial capability, practices and status, and in the process identify key financial challenges they face. The study examines perceived versus demonstrated readiness to manage personal finances and builds an innovative and comprehensive financial profile of college-educated members of Gen Y.
On September 20, 2013, the TIAA-CREF Institute convened an expert symposium to examine Gen Y financial engagement. Generation Y is the largest generation in U.S. history. Financial decisionmaking by Gen Y and the state of their personal finances have significant implications for the individuals themselves and for the U.S. economy overall. It’s therefore important to understand Gen Y’s personal finances This can then help identify strategies to better engage Gen Y in managing their personal finances to ensure financial well-being.
New analysis reveals a stronger and larger effect of financial literacy on wealth than previously estimated. Prior studies have associated financial literacy and schooling with positive financial outcomes, but typically do not account for unobserved factors that might shape financial literacy and schooling, as well as wealth outcomes. The estimates presented here indicate that financial literacy is at least as important as schooling, if not more so, in affecting household wealth and pension contributions.
The findings discussed here suggest that people with lower levels of education, income, and financial literacy rely far more heavily on employers, coworkers, and friends, than they do on cost fundamentals, when choosing pension funds. These same types of individuals are also more responsive to the framing of fee information when identifying the relative attractiveness of pension fund managers. Moreover, the impact of viewing information in terms of gains as opposed to losses is sizable.