Financial Services and Education Project: Publications, Events and More

Urgency for New Rules for Finance Is Slipping Away | The Associated Press

Cecille Isidro — Tue, 15 Sep 2009 15:51:00 -0400

"The administration made a calculated decision," says Ellen Seidman, former Director of the Office of Thrift Supervision and senior fellow at The New America Foundation ... and more »

Economic Inclusion – Consumer Product Updates

Asset Building — Fri, 28 Aug 2009 07:47:00 -0400

Two of the three essential elements that comprise good financial services policy are robust consumer protections and effective safety and soundness laws. The third component is policy that supports consumers' access to reasonably priced financial services. This presentation, given at the 2009 FDIC Interagency Conference on Economic Inclusion, explores the necessary balance that must be struck to among the three elements to craft effective financial services policy, and it describes two federal policy proposals to provide underserved consumers with access to financial

Overcoming Account Opening Impediments to the Bank Secrecy Act

Erin Drankoski — Tue, 18 Aug 2009 11:30:00 -0400

A New America Event
08/18/2009 - 8:30am

The New America Foundation and Appleseed hosted a timely roundtable discussion on a proposed policy aimed at clearing the path for opening basic bank accounts for immigrants and those who are new to the financial system. Participants included counsel and compliance officers of banks, prepaid firms and financial institution processors, representatives of nonprofits serving immigrant families, delegates from the Mexican Embassy and public policy experts.

National Consumer Protection Agency Would Upend Fragmented Structure | Los Angeles Times

Cecille Isidro — Sun, 09 Aug 2009 19:20:00 -0400

Seidman, now a senior fellow at the New America Foundation, said she created an award for the best bank examiner on consumer affairs and compliance issues ... and more »

Treasury Department Considers SAFE-T Proposal

Communications — Tue, 23 Jun 2009 11:53:00 -0400

Washington, D.C.—The U.S. Treasury Department is considering a policy to create an opt-out account, into which federal income tax refunds would be direct deposited. In an interview for an article today in the Wall Street Journal, Michael Barr, Assistant Secretary for the Treasury Department described the proposal, which was developed by Melissa Koide at the New America Foundation to increase access to banking services and jumpstart savings

The Savings and Financial Electronic Transaction (SAFE-T) Account

Asset Building — Tue, 14 Apr 2009 08:22:00 -0400

Over the past two decades, policymakers, academics, and others have pursued an array of policies and strategies to help lower and middle income households^{^[i]} to build savings and assets and access reasonably-priced financial products at mainstream institutions. While some progress has been made, there have been few advances to delivering a high-value, affordable financial product at scale.

The Effectiveness of Youth Financial Education

Asset Building — Mon, 15 Dec 2008 13:23:00 -0500

As a result of the current financial crisis, consumers are more concerned about their personal finances than ever before. Household confidence in job security and future employment prospects, income stability, and the ability to preserve and build assets is plummeting; meanwhile, high fuel and food prices and tightening credit conditions are placing more pressure on households to maximize their financial decisions.

Coaches for a Game of Money | New York Times

Communications — Fri, 12 Dec 2008 23:58:00 -0500

You can read books,” said Karen Murrell, a senior research fellow at the New America Foundation, a nonprofit policy research organization in Washington. ...

Financial Education in the Workplace

Asset Building — Wed, 26 Nov 2008 15:15:00 -0500

This was presented on November 26th at the Citi-FT Financial Education Summit in Beijing.

Too Small to Fail

Communications — Thu, 20 Nov 2008 13:45:00 -0500

A New America Event
11/20/2008 - 12:15pm

With the big guns in the financial services industry in turmoil, it’s a good time to ask hard questions about the nature of our finance system. Does bigger always mean better? Or does small-scale "relationship" banking, in which individual savers and borrowers are members of the same community, help to make a better banking sector? Community banks and credit unions were regarded until recently as vestigial players in a new world of global consumer finance. But today they aren’t merely… more

Financial Education in the Workplace

Asset Building — Mon, 17 Nov 2008 16:32:00 -0500

One of the most important lessons the subprime mortgage crisis holds for us is just how poorly informed many Americans are when it comes to making important financial decisions. Clearly, there is a need for basic financial education. But when, where, and how should such education be delivered? Financial literacy programs aimed at high school students do not appear to be effective, and few adults are willing to expend the time, money, and effort to acquire the sort of general education that would help them make good lifelong financial decisions.

Building Financial Stability

Asset Building — Mon, 17 Nov 2008 09:07:00 -0500

This was presented to Indiana State Legislators at the Indiana Family Impact Seminar, "The Burden of the Unbanked in Indiana."

Ellen Seidman on NPR | 'FDIC, Treasury At Odds Over Use Of Bailout Money'

Cecille Isidro — Fri, 14 Nov 2008 15:24:00 -0500

Ellen Seidman, a fellow at the New America Foundation, says Congress is unlikely to force Treasury to adopt the FDIC proposal before President-elect Barack Obama takes office. But that doesn't mean the FDIC proposal is dead.

"This is also out here so that in a different Congress and a different administration, there's something ready to roll," Seidman says. LINK to audio

Foreclosures: What are Fannie And Freddie Doing to Stem the Tide?

Communications — Thu, 13 Nov 2008 15:30:00 -0500

A New America Event
11/13/2008 - 3:30pm

On September 7, Fannie Mae and Freddie Mac were placed into conservatorship. There was an expectation that the move would make the companies, which had hunkered down to preserve capital, much more active in dealing with the on-going housing crisis. What has actually happened, and what are the prospects for the future? How have the companies dealt with borrowers in trouble on the loans Fannie and Freddie own or have guaranteed? How are they working with… more

Ellen Seidman in The Washington Independent | 'The Best Explanation so Far for Paulson’s Bailout Behavior'

Cecille Isidro — Thu, 13 Nov 2008 14:07:00 -0500

The question crossed my mind after New America Foundation’s Ellen Seidman described as “really inept” a news conference on Tuesday by Treasury, Fannie Mae and Freddie Mac, to announce a new program to streamline loan modifications. Seidman said Treasury completely oversold the plan, to make it seem like it would cover more mortgages than the plan actually called for. Then, to make it worse, the Treasury spokesman ran out of the briefing room to avoid answering questions. LINK

Ellen Seidman in The Washington Independent | 'The Expectations Game and the Government’s Mortgage Plan'

Cecille Isidro — Wed, 12 Nov 2008 14:10:00 -0500

Tuesday night, I checked in with Ellen Seidman of the New America Foundation, who specializes in the financial services industry, to find out her reaction. Seidman, who closely follows loan modifications, said that people don’t really understand that the Fannie and Freddie plan is aimed at heading off foreclosures among prime borrowers — the next segment of homeowners in danger of defaulting on their mortgages. In that sense, the program has some merit. LINK

Ellen Seidman in CongressNow | 'Experts Urge Caution in Financial Regulatory Overhaul'

Cecille Isidro — Mon, 10 Nov 2008 11:19:00 -0500

Ellen Seidman, a financial services policy director for New America Foundation's Asset Building Program, outlined a set of guidelines for lawmakers to take into consideration for improving the financial services regulatory regime. Policy changes should incorporate consistent regulation based on activity rather than entity, effective enforcement, transparency, as well as capital adequacy standards, Seidman said. LINK (subscription required)

Ellen Seidman in American Banker | 'Why $700B Now Seems Like a Down Payment'

Cecille Isidro — Tue, 28 Oct 2008 09:42:00 -0400

"We've been jumping from program to program, and if there is an infinite number of things we can do with money, there is a need for an infinite amount of money," said Ellen Seidman, director of the New America Foundation's Financial Services and Education Project and a former director of the Office of Thrift Supervision. "If you keep expanding the scope of what it is you are going to do with the money, you keep expanding your need for money." LINK (subscription required)

The Effectiveness of Youth Financial Education

Asset Building — Sun, 26 Oct 2008 22:08:00 -0400

Executive Summary

Comprehensive strategies for educating children and youth so they can become effective managers of money and successful navigators of a complex financial marketplace have not yet emerged from the dialogue and debate surrounding financial education. A rich and growing body of research about adult financial education exists, but youth financial education research has been slower in developing. While some consensus has emerged regarding best practices for adult financial education, these strategies and approaches cannot simply be reengineered down to more age-appropriate versions and imposed on a K-12 educational system.

This paper, through a review of the literature, explores the current state of youth financial education and policy, including definitions and measures of effectiveness, insofar as they exist, for youth financial education. This paper delineates a range of approaches to the delivery and assessment of youth financial education, reports on impact data and best practices, and highlights some controversies. The paper concludes with a discussion of the gaps in knowledge and suggestions for further research in the field of youth financial education.

The following summarizes research findings about promising practices, areas of disagreement, and suggestions for evaluation and research.

Promising Practices

Currently, there are no clearly defined or widely accepted standards of excellence for financial education effectiveness, and certainly none pertaining specifically to youth financial education. Key factors and promising practices include:

Youth financial education must permeate the entire K-12 setting rather than wait until the middle or high school years for introduction.
It must demonstrate relevance to students in order to engage their motivation.
Beyond teaching students to handle their cash, it must be designed to forge understandings of the relationships among money, work, investments, credit, bill payment, retirement planning, taxes, and so forth.
Systemically, it must be mandated by state academic standards in order to gain widespread implementation and time and resource commitments from teachers and school systems.
Teacher training and professional development opportunities are a necessary corollary to successful program implementation.

Controversies

A few notable areas of disagreement amongst experts exist. Some dissenting voices identify a "blame the victim" subtext in the current financial education trajectory that relieves responsibility from the financial services sector and government. Others argue that standardized curricular classroom approaches fail to take sufficient account of student socioeconomic realities and overlook moral aspects of widespread financial distress, neglecting to address this social dilemma as a question of economic injustice. Lastly, others question that the financial services sector should play as prominent a role as they do in the sponsorship and provision of financial education, given their role as product marketers.

Evaluation and Impacts

Evaluation must be planned into the design and delivery of programs and seek means to establish whether financial behavior change is in fact caused by the program at issue. To date, only weak or indirect outcome measures exist for establishing program efficacy. It is likely that several programs are strong and effective, but evaluative frameworks, better data collection techniques, long-term follow-up, and randomized and control group comparison samples are needed in order to direct program improvement, compare one program to another, and direct funding to programs that are effective.

Gaps in Knowledge and Suggestions for Research

Scholars have identified multiple gaps in knowledge and offered suggestions for further research. These include:

Research to determine barriers to the successful navigation of lifecycle financial decision-making.
Research that explores the role of motivation in program success to determine how to achieve motivational improvements.
Broad and multidisciplinary research, including pedagogical inquiry, in order to secure buy-in and infuse youth financial education more effectively into curricular, extracurricular and familial settings.
Robust professional development training for teachers of youth financial education.

Introduction

As we approach the close of the first decade of a new millennium, in the United States and, indeed, globally, society faces recession, rapidly rising fuel and food prices, crises of mortgage foreclosure, bankruptcy, credit tightening, and a drastic decline in savings. The effects of these financial stressors, for individuals, families and communities, have been widely reported in the media. These media reports discuss challenges and potential remedies for adults struggling with high rates of indebtedness, diminished incomes, negligible savings (including retirement planning), and a financial services marketplace replete with complicated product offerings. These reports also examine the implications of severe economic strain for children. However, comprehensive strategies for educating children and youth to be effective managers of money and successful navigators of a complex financial marketplace have not yet emerged from the dialogue and debate.

While some effective strategies have emerged regarding adult financial education, these strategies and approaches cannot simply be reengineered down to more age-appropriate versions and imposed on a K-12 educational system. Adult financial education is largely a remedy imposed to fix specific critical breakdowns in how adults use (or misuse) money; it tends to be designed and delivered to target demographic groups and is frequently, though not always, intended to be compensatory for already-existing financial ordeals. Childhood financial education needs to be prescriptive, preventative, developmental, and delivered on a massive scale. Therefore, the pedagogies and strategies that are appropriate for adult financial education cannot transfer effectively onto efforts by the American school system to train children to be financially literate.

Why is it necessary to bring financial education to children and youth? In addition to the struggles their families face, which are likely to persist into their own adulthood, advertising heavily targets and influences children. Children are in stores and retail venues an average of two to three times weekly, exceeding in a standard week the time dedicated to reading, church attendance, youth group and household activities, and outdoor play.[1] And children, especially the majority who do not go directly on to post-secondary education, are quickly faced with adult financial tasks and responsibilities.

Purpose and Methodology

This paper, through a review of the literature, explores the current state of youth financial education and policy, including definitions and measures of effectiveness, insofar as they exist, for youth financial education. Though some family-based and out-of-school programs exist, most research consideration focuses on programs in the K-12 educational setting. Bringing in findings from the more extensively researched adult financial education context, this paper delineates a range of approaches to the delivery and assessment of youth financial education, reports on impact data and promising practices, and discusses some controversies in the field of youth financial education. The paper concludes by highlighting gaps in knowledge and suggestions for further research.

Scope limitations include the following:

Due to the proliferation of studies in recent years and the pre-existence of several excellent earlier literature reviews, research covered herein is limited to that published between 2004 and 2008. Emphasis on K-12 financial education is spotty and limited prior to this time.
The bulk of adult and community-based financial education programs are relatively new and lacking in assessment data. Multiple studies of adult financial education look at various measures of knowledge, satisfaction and confidence though few can definitively establish behavioral changes as resulting from, rather than corollary to, the educational program in question. Even less longitudinal data is available, due to the newness of many programs, the lack of funds for long-term follow-up on program participants, and the sensitive nature of tracking personal financial management information. All of these challenges are amplified in the K-12 setting.
Popular press coverage is not included.
Emphasis is placed on scholarly, peer-reviewed publications and on governmental and intergovernmental-sponsored programs and publications. Practitioner reports were sought but found to be in short supply, specifically as they pertain to youth financial education.
This review will not comprehensively describe the range and multitude of K-12 curriculum products, models and programs available[2] though it references some of the most well-known programs.[3]
Though many nonprofit organizations, private firms, youth clubs, social service agencies and youth correctional operations offer extracurricular financial education, this report does not comprehensively list these.[4]

Youth Financial Literacy, Education and Capability: Some Definitions

Although there is no one single, agreed upon definition for financial literacy, financial education or financial capability, scholars offer insight about the different meanings of these terms. While literacy is the possession of basic knowledge or competence, education is the means to build that capacity. Most broad-based financial education programs for adults and children attempt to bring all participants to a minimum basic knowledge of money management skills regarding banking, finance, savings, credit and so forth; many attempt to accommodate individual or familial goals. Johnson and Sherraden (2006) are among the latest to suggest that the term financial capability is intended to include the concept of education but also access to financial services and institutions, arguing that knowledge alone without access to the resources and services of financial institutions, especially for those coming from under- or unbanked communities, will not ultimately allow people to choose a financially literate lifestyle.[5]

According to Hogarth (2006), the consistent themes running through various definitions of financial education include: (1) being knowledgeable, educated and informed on the issues of managing money and assets, banking, investments, credit, insurance and taxes; (2) understanding the basic concepts underlying the management of money and assets (e.g., the time value of money in investments and the pooling of risks in insurance); and (3) using that knowledge and understanding to plan, implement, and evaluate financial decisions.[6]

Several researchers specifically examine financial literacy in a youth context. Australia's National Consumer and Financial Literacy Framework (NCFLF) states, "Consumer and financial literacy is important for all young people to empower them to make informed consumer decisions and to manage effectively their personal financial resources."[7] According to the Department of Agriculture's Cooperative State Research, Education and Extension Service (CSREES), "Many young people are unskilled in managing their personal finances, yet this crucial life skill will greatly affect their future economic well-being. . . [Youth financial education] help[s] America's youth understand the basics of money management and develop sound financial habits to expand their opportunities for the rest of their lives."[8]

There is growing interest in approaches to financial literacy that are subtly compulsory in nature, at the very least by making financially beneficial selections the default option, requiring consumers to choose actively against their long-term financial self-interest in order to opt out. The most frequently cited example of such a choice moment is the decision to participate in retirement programs such as voluntary 401(k) contributions in the workplace. Historically, workers have had to decide to opt in to these programs, whereas many financial professionals suggest the default should be an automatic opt in, with an employee having to deliberately select her- or himself out. Caskey (2006) suggests that a default approach may lead to greater financial success, though it appears superficially to be at odds with some free market or democratic principles.

In their 2008 book Nudge, Thaler and Sunstein urge an approach they call libertarian paternalism. By libertarian, they mean liberty-preserving, in that no choice is foreclosed. Thaler and Sunstein reject the assumption that people will necessarily make choices in their best interest. They challenge as a misconception that it is possible to avoid influencing people's choices and also that paternalism always involves coercion.[9] Their book applies libertarian paternalism to money, health, and other areas of social choice and freedom such as education, consumer decisions and relationships. In the money section, they address saving, investing and borrowing.

Effectiveness of Financial Education

Currently, we have no clearly defined or widely accepted standards of excellence for financial education effectiveness, and certainly none pertaining specifically to youth financial education. The Treasury's Office of Financial Education offers eight elements of a successful financial education program,[10] relating to the program's content, delivery, impact or sustainability. The primary purpose of the eight elements is to offer guidance to financial education organizations as they develop programs and strategies to achieve the greatest impact in their communities.

Kozup and Hogarth (2008) argue that worthwhile financial education programs start with a participant-defined goal (e.g., becoming a homeowner, reducing debt, or saving for retirement). However, K-12 education is unlikely to be predicated upon individually-determined financial goals. Most of what is known about program effectiveness has been built on an adult program model and the bottom line of most studies is that there is not likely to be a one-size-fits-all financial education program for consumers. Chang and Lyons (2007), Borden et al (2008) and Lusardi (2008a) are just three of the latest program reviewers to note the impact of demographic descriptors such as gender, employment status, ethnicity, family background, educational level and other social markers on improvements in financial knowledge, satisfaction, or confidence, which again are the three measures that have most often been evaluated.

The Borden et al study of a seminar-based financial education program (Credit Wise Cats) administered to college students shows that "the seminar effectively increased students' financial knowledge, increased responsible attitudes toward credit and decreased avoidant attitudes towards credit from pre-test to post-test. At post-test, students reported intending to engage in significantly more effective financial behaviors and fewer risky financial behaviors."[11] This study is typical of current research in that it charts vague measures of improvement based on a pre- and post-test model of assessment. It also is typical in that it relies on self-reported and/or intended, rather than actual, behavioral change, and does not include any longitudinal follow-up to determine "stickiness" of perceived improvements in financial knowledge and/or behaviors.

Hathaway and Khatiwada (2008) in their Federal Reserve Bank of Cleveland Working Paper "Do Financial Education Programs Work?" come to research-based conclusions about both effective program design and the validity of evaluative measures that echo what so many scholars conclude regarding adult financial education. They find the best program design advice is to target specific audiences and areas of financial activity (such as credit, or retirement planning), and to offer training on a just-in-time or "teachable moments" approach. In terms of program outcomes, they conclude, "Unfortunately, we do not find conclusive evidence that, in general, financial education programs do lead to greater financial knowledge, and, ultimately, to better financial behavior. However, this is not the same as saying that they do not nor could not."[12]

Youth Program Design: Tips for Effectiveness
Suggestions for making personal finance education effective for youth include incorporating a relevant program design, ensuring effective motivation, and providing education at an early age.

Relevant Program Design
Most of the design recommendations for adult financial education cannot realistically transfer to the K-12 classroom, where standard educational practice demands that curriculum design be generic and transferable to multiple audiences, anticipatory, and developmental, rather than event specific or just-in-time. Thomas A. Lucey (2007) offers a strongly dissenting perspective: K-12 financial education design must be customized, arguing "that financial education processes do not meet the needs of all children, because they do not account for differences in child development prompted by various economic contexts."[13]

Grody et al (2008) offer the perspective that youth program design must relate directly to today's complex financial environment:

[T]he current educational literature, teaching aids and school curricula for the elementary school age group appear to be variations of the same old theme of teaching kids solely through old age piggy bank savings and numeration techniques. . . . Our premise is that understanding the relationship of work and money, money and ATM machines, money and investments, credit cards and tangible product acquisition, bill payment mechanisms, monthly statements, retirement savings, taxes, deficits, et al is a more fundamental and current foundation for a financial education in our modern age.[14]

Effective Motivation
In terms of general findings on the effectiveness of financial education offerings, Mandell (2007b) and Meier and Sprenger (2007) offer unique insight regarding the role of motivation in the success of programs. Noting that successive iterations of the Jump$tart financial literacy surveys of high school seniors (of which there are now six) indicate a failure to show improvements in their levels of financial literacy knowledge, the 2006 survey introduced questions to determine the relevance to these students of basic concepts of personal finance, based on the hypothesis that "low financial literacy scores among young adults, even after they have taken a course in personal finance, is related to lack of motivation to learn or retain these skills."[15]

While surveys reveal that students do perceive that financial difficulties can be affected by their own actions, survey questions show significant evidence that students experience apathy rather than motivation in terms of managing and setting goals for their own personal finances and this lack of motivation correlates with students' consistently low financial literacy scores[16] and reveal that programs addressed to these students need to teach why financial literacy is important.

Meier and Sprenger (2007), in a study of self-selection into adult financial literacy programs, examine a similar motivation question. "Evidence from our field study shows that, even controlling for education and prior financial knowledge, time preferences[17] influence the acquisition of new information. . . . Future research should investigate the relationship between time preferences and abilities like planning, imagination, and motivation in general."[18]

Early Education
In the OECD 2006 policy brief entitled "The Importance of Financial Education," the OECD's "Recommendations on Principles and Good Practices for Financial Education and Awareness" include that financial education should start at school and should be clearly distinguished from commercial advice. Suiter and Meszaros (2005) advocate forcefully for comprehensive K-12 financial education:

Children throughout the K-12 grades, including children who differ in ability levels and socio-economic backgrounds, can learn worthwhile content in personal finance if their teachers use appropriate strategies and materials. Children's understanding of economics and personal finance develops through a series of levels or stages. Nothing about the subject matter per se makes personal finance inappropriate for study by children in the early grades. And postponing the study of personal finance is unwise for other reasons. First, children certainly acquire some ideas and information about personal finance information from non-school sources. Some of what children acquire in this way will be incorrect or misleading. The longer we wait to provide personal finance education, the more time teachers will spend correcting misinformation. Second, many students drop out of school before their senior year. If personal finance education is postponed until the senior year, these students-those who may be most in need of personal finance education-are deprived of receiving any.[19]

The Current State of Financial Education for Youth

The Financial Literacy and Education Commission (FLEC) 2006 national strategy document Taking Ownership of the Future reports the Treasury Departments findings that the five access points for bringing financial education into the schools are 1) state standards, 2) testing, 3) textbooks, 4) financial education materials, and 5) teacher training. While not every school can pursue comprehensive, stand-alone curricula, the national strategy notes opportunities for integration via math, social studies, and family and consumer sciences in the earlier grades, and other disciplines such as economics and business education in the high school curriculum.[20]

Every two years, the National Council on Economic Education's (NCEE) "Survey of the States: Economics and Personal Finance Education in Our Nation's Schools" provides a snapshot of national progress in implementing a K-12 personal financial education agenda. The 2007 report, NCEE's latest, reveals the following:

Personal finance is included to some extent in the educational standards of 40 states.
28 states now require these standards to be implemented.
Only 7 states require students to take a personal finance course as a high school graduation requirement.
Only 9 states require the testing of student knowledge in the area of personal finance.

The National Association of State Boards of Education (NASBE) issued Who Will Own Our Children? The Report of the NASBE Commission on Financial and Investor Literacy in 2006. While NCEE profiles where our nation's schools are, NASBE's recommendations indicate directional goals for improvement.

State boards of education must be fully informed about the status of financial literacy in their states.
States should consider financial literacy and investor education as a basic feature of K-12 education.
Ensure that teachers and/or staff members teaching financial literacy concepts are adequately trained.
States should fully utilize public/private partnerships.
States should improve their capacity to evaluate financial literacy programs.
States should include financial and investor education in their academic standards and ensure that assessments are aligned with the standards.
State boards of education should cooperate with other states to develop a common assessment tool for financial and investor education.
States should encourage the development of a National Assessment of Educational Progress (NAEP) framework for financial literacy.[21]

Promising Practices in Youth Financial Education

Scholars have identified some factors that support promising practices for financial education. These factors include the timing of financial education, teacher training, the incorporation of saving tools that make the education relevant, and evaluation and assessment.

Timing of Financial Education

The NASBE Commission argues that "the earlier a student begins learning these concepts, the more opportunities schools will have to impact behavior. Therefore, states should consider infusing financial and investor education throughout the K-12 curriculum."[22]

The poor performance over time of high school students on personal financial knowledge tests, as indicated by the Jump$tart surveys, suggests that the current model of waiting until high school to introduce personal money management concepts is too late and the model needs to be backed up into the earlier grades.
It is widely recognized that literacy, as the foundation for virtually all other subject areas, needs to be taught from the very earliest ages; this focus on early childhood literacy is known as emergent literacy. . . . Networks Financial Institute contends that the core concepts that undergird financial literacy, including goal setting, intertemporal choice,[23] philanthropic giving, earning, saving and spending, also need to be emphasized and supported from the very earliest grades, if students are to transition into financially literate consumers.[24]

Teacher Training and Professional Development

Baron-Donovan et al (2005) provide insight on the topic of teacher training as a component of successful delivery of financial education, based on a Coalition for Consumer Bankruptcy Education two-day train-the-trainer program with multiple measures (focus groups, pre- and post-test knowledge and attitude surveys, and classroom observations). This study sought to demonstrate whether individuals from diverse backgrounds are prepared to teach basic financial literacy and used a combination of focus groups and a pre- and post-training survey to substantiate increases in teacher satisfaction, confidence and motivation. The 30-question survey (16 financial knowledge questions and 14 attitude measures) shows an average pre-training knowledge score of 81% and a post-training knowledge score of 90%. The researchers found that "desired changes on almost one half of the attitude items indicate that teachers not only gained an understanding of what they needed to teach, but also gained the confidence to teach what many considered to be complex material. . . . These results suggest that well designed teacher training can influence the beliefs that individuals have about themselves as teachers . . . Trained teachers report that they are satisfied and generally feel prepared to teach. Self-reports are buttressed with measured gains in financial knowledge and more confident attitudes about teaching."[25]

Loibl (2008) also addresses the teacher confidence issue for high school financial education programs in Ohio, identifying (1) academic content area concerns, that is, teacher confidence in the larger disciplines within which the topic of financial education is often addressed (i.e., math, social studies, economics, family and consumer science, and business education), (2) teacher strategies in gathering personal finance information, and (3) teacher knowledge about personal finance. Loibl's survey includes a short quiz on financial knowledge with which teachers from almost all disciplines struggled, indicating a need for training of financial education instructors.

Incorporate Savings Tools to Make Education Relevant

Three policy documents from the New America Foundation[26] reinforce best practices for youth financial education that include establishment of savings and investments accounts at birth (that can be tracked by the children in their school-based financial education programs) and school-based delivery of financial education that is active - keeping in mind that, due to a lack of standards, there is little cohesiveness in terms of format, content and depth for financial education in schools.

Evaluation and Assessment

Lyons (2005) and Hathaway and Khatiwada (2008) decry the lack of evidence regarding financial education's impact on behavior specifically because programs fail to incorporate meaningful "formal program evaluation methods in the design of the program itself" and that study authors "assume a casual relationship [between financial education and financial outcomes] where there is (often weak) correlation. There is a big difference between these two, and confusing correlation with causality is a critical flaw."[27]

The next section, on evaluation, will focus heavily on evaluative frameworks and models, but some general observations concerning evaluation include the following:

Pre- and post-tests appear to be the most pervasive approach to outcomes measurement. Lyons, Cheng and Scherpf (2006b) also describe retrospective pretests (RPTs), in which "participants are asked to answer questions about their level of knowledge and behavior after the program. They are then asked to think back to their level of knowledge and behavior prior to the program."[28]

Fox, Bartholomae and Lee (2005) cite as problematic the widely accepted assumption that the need for financial literacy is so great that "no further evidence is required." They find that program evaluations generally are one of two types: process or formative evaluations (which provide feedback for educators and program organizers to make improvements in the program itself), or impact or summative evaluations (collecting information on whether the program is making a difference in previously identified and desired outcome measures - does education impact behavior? Increase knowledge? Increase levels of confidence?) Like Hathaway and Khatiwada, Fox, Bartholomae and Lee suggest a 5-tiered evaluation program, as described by Jacobs (1988): preimplementation, accountability, program clarification, progress toward objectives, and program impact.[29]

Evidence of Impact: Data

As has been pointed out, due to weaknesses in assessment measures, "definitive statements on the impact of financial education [on behavior] are premature,"[30] although some indicators do point to efficacy of financial education efforts. Most of the studies have measured adult financial education programs. However, Danes and Haberman (2007); Mandell (2006, 2007a, 2007b, 2008); Peng et al (2007); Valentine and Khayum (2005); and Varcoe et al (2005) have considered youth impacts. It should be noted that most impact studies cite the foundational work of two prior studies outside the timeframe of this report. The first is the 1999 Danes, Huddleston-Casas and Boyce study that, in 1997-1998, evaluated NEFE's High School Financial Planning Program (HSFPP) both at the conclusion of the curriculum and three months post delivery, finding increases in knowledge, self-efficacy and savings rates. The second is Bernheim, Garrett and Maki's 2001 study of the effects of statewide financial education mandates, finding evidence of positive effects of state mandates on savings rates and net worth during peak earning years.[31] The following table summarizes the findings; none reach down into the elementary or middle grades.

*Source*	*Summary of Youth Impact Data*
Danes, S. and H. Haberman (2007). "Teen Financial Knowledge, Self-Efficacy, and Behavior: A Gendered View." Financial Counseling and Planning 18 (2), 48-60.[32]	Several gender differences before and as a result of the curriculum are highlighted. In sum, male teens reinforced their existing knowledge, whereas female teens learned significantly more about finances in areas with which they were unfamiliar prior to the curriculum.
Mandell, Lewis. Jump$tart Financial Literacy Surveys of High School Seniors, 1997 - 2008. For further information, see http://www.jumpstart.org.	The highest mean financial literacy score, 57 percent, was reached in the 1997-98 academic year. This fell to 51.9 percent in 2000, then again to 50.2 percent in 2002. It recovered slightly to 52.3 percent in 2004 and 52.4 percent in 2006 before falling to 48.3 percent in 2008.
Peng, T., S. Bartholomae, J. Fox and G. Cravener (2007). "The Impact of Personal Finance Education Delivered in High School and College Courses." Journal of Family and Economic Issues 28 (2), 265-284.[33]	The study shows no significant relationship between high school financial education and investment knowledge. There was a significant relationship between college level financial education and investment knowledge.
Valentine, G. and M. Khayum (2005). "Financial Literacy Skills of Students in Urban and Rural High Schools." Delta Pi Epsilon Journal 47 (1), 1-9.[34]	Regression analysis shows that certain socialization factors such as having a part-time job of 10-20 hours per week, having a savings account, and being from a family with a relatively higher level of family income yield improved quiz performance.
Varcoe, K., A. Martin, Z. Devitto, and C. Go (2005). "Using a Financial Education Curriculum for Teens." Financial Counseling and Planning 16 (1), 63-71.[35]	The study shows improvement in all measured financial behaviors: saving, knowledge of ways to decrease auto insurance costs, and comparison and sale shopping.

The Evaluation Dilemma

In 2004, the Comptroller General issued a report entitled "The Federal Government's Role in Improving Financial Literacy," important to this discussion because of its promotion of better evaluation measures tracking behavior change. While citing the benefits of standardized evaluation measures in order to allow program comparisons, this report further reminds policymakers that measuring impact on a societal scale requires the use of benchmarks - such as the Jump$tart periodic survey of high school seniors, or federally generated economic data, to evaluate the effectiveness of financial education on a macro level. Striking a cautionary note, the report acknowledges that long-term tracking of actions and decisions by educators may be "unduly expensive, time consuming or infeasible. In addition, because many variables can affect consumers' behavior and decision making, ascribing any long-term changes to a particular program is difficult."[36]

Hathaway and Khatiwada (2008), Fox, Bartholomae and Lee (2005), Hogarth (2006), and multiple studies by Angela Lyons critique the weak methods and frameworks for evaluation. Historically, measurements of outputs (numbers of program participants, for example, or number of programs delivered) have stood in where measurement of outcomes (behavior impacts, for example) should occur, because evaluation was conducted as an afterthought rather than built into the design and delivery of financial education. Studies also generally lack control groups and random population samples for comparison purposes.

Lyons et al (2006a) summarizes what program assessments and evaluative frameworks should look like:

*Objective Measures of Program Impact*	*Subjective Measures of Program Impact*
Savings rates	Satisfaction levels
Debt levels	Self-confidence
Wealth accumulations	Attitudes
Delinquency and bankruptcy rates	Intended changes in financial behavior
Credit scores
Investments
Account enrollments
Homeownership rates
Retirement plan participation
*Specific Evaluative Framework Needs*
Ease of use	Basic methodological info, inc. models
Sample evaluation instruments	Quant-/qualitative data collection methods
Instructions on how to analyze, interpret and summarize data
Instructions on creating impact statements (reports, news releases, executive summaries)

Willis (2008) cites some additional flaws in data-driven financial education assessment. She maintains that data collection relating to financial education programs is frequently biased toward finding that the education has been effective. Participants tend to overestimate how much they have learned in courses when left to self-assess (which many of these evaluations do). Additionally, programs frequently bundle direct assistance (financial rewards, special loan programs, etc.) with education, in which case improved outcomes may be attributable to assistance rather than learning. Furthermore, there is a self-selection bias. Most financial education is voluntary, and researchers cannot randomize citizens into treatment and control groups.

Controversies

Several areas of controversy or significant intellectual disagreement exist concerning both youth financial education and its evaluation. Willis (2008) and Gross (2005) both identify a "blame the victim" subtext in financial education. Willis argues that policymakers' embrace of financial education as a means to consumer responsibility and empowerment, while seductive, is empirically unsupported and implausible given the velocity of change in the financial services marketplace and the persistence of emotional bias in the individual decision-making process (as documented by psychologists and behavioral economists). She also sees more pernicious aspects of what she views as the false promise of financial education. "With its focus on the responsibility and efficacy of the individual consumer, the financial literacy model absolves financial services firms and policymakers and deflects inquiry away from systemic societal and market failures."[37] Similarly, argues Gross,

Money education is being sold as a tool for consumer empowerment and a cure for all that ails our consumer credit economy: financial ignorance, unhealthy debt burdens, predatory lending, mortgage foreclosures, joblessness and susceptibility to savvy lenders and scam artists. This approach is fundamentally flawed. It leads to a "blame the victim" mentality by erroneously assuming that individual knowledge acquisition alone will produce fundamental change in the consumer financial markets, an approach that also absolves a wide range of other entities, public and private, from responsibility.[38]

Willis suggests shifting the context away from the responsibility of the individual to seek his or her own financial best interest to a model of responsibility located within the financial services industry She describes several changes that could be imposed on the industry: affordable expert advice, welfare-enhancing defaults, true transparency through simplification of financial products toward clearer costs and benefits, aligning incentives between product sellers and consumers, imposition of liability on sellers whose actions and products harm consumers, and substantive regulation of risky or harmful products.[39]

Lucey (2007) pits the "diversity-minded multiculturalists" of a social educator movement against "standardized curriculum advocates," claiming that standardized curricula produce an assimilative classroom environment.[40]

In a society experiencing degrees of diversity, social educators should reexamine these cultures' values systems and recognize the importance of guiding children toward moral decisions on humanistic, rather than economic, bases. . . . Social educators should explore the moral issues in financial education by fostering classroom dialogues, modeling pedagogies toward equality, and lowering resistance to conversations about the economic injustice.[41]

Lucey and Giannangelo (2006) advocate financial literacy tailored specifically to the needs of urban students, whose financial literacy needs include countervailing pressures to combat the "stronger consumer-based social pressures" and "self-images related to material comparisons" in urban settings. They further discuss the need to meet students where they are in terms of the socioeconomic functioning of their families and the possible scenarios for their access to financial institutions. For example, an introduction to financial institutions may need to start with a discussion of pawn shops and their costs and benefits and move from there to a discussion of banks and banking functions.[42]

Corporate sponsorship of financial education by financial services firms exists as an act of corporate citizenship and/or philanthropy and, in the case of banking, as a logical extension of Community Reinvestment Act services. However, many of the financial services marketplace providers offer approaches to financial education that teach students to be effective, reliable and ‘safe' consumers of financial services products and services. These emphases are not necessarily coterminous with the best interests of individual consumers and a distinction must be made between holistic financial education and sponsored curricula focused on consumers in the financial services marketplace. Says Willis (2008), "[T]he advantage in resources with which to reach consumers that financial services firms enjoy puts firms in a better position to capitalize on decision-making biases than educators who seek to train consumers out of them."[43] Willis further argues that the teachable moment approach is also based on consumer vulnerability, and again due to circumstance and the financial resource advantage enjoyed by the financial services firms, consumers at those moments are more likely to be reached by sales-motivated industry representatives than unbiased educators.[44]

Gaps in Knowledge and Suggestions for Further Research

In addition to the need for improvement in assessment measures and evaluative frameworks, what are the additional gaps in knowledge and understanding that scholars of financial education have identified? Wagland (2006) cites the need to know more about the emotional and other barriers to making beneficial financial decisions; she encourages researchers not to assume that lapses in financial literacy and knowledge per se are the most important, or only, barriers preventing individuals from successfully navigating lifecycle financial decisions. And as Caskey (2006) and Meier and Sprenger (2008) discuss, means to achieve motivational improvements must be addressed as well.

Financial literacy and education research, as a discipline, is heavily weighted toward economics, both because economics is a logical disciplinary venue for financial education in the upper grades[45] and because economists traditionally pursue measures of micro and macro level financial well being. However, many studies discussed in this paper note that financial education is needed in the early grades, and economics is a late-occurring class in a typical student's K-12 educational path. Therefore, scholars who are K-12 pedagogy experts or content experts for the lower grades need to be brought into the dialogue.

Haynes and Chinadle (2007) discuss that, for purposes of classroom friendliness, practicality and educator buy-in, curricula need to be written by and for educators, emphasizing active learning and multiple intelligences models. Moreover, research is needed into means and methods for professional development for teachers. Godsted and McCormick (2007) establish that a lack of teacher training is a significant impediment to the inclusion of financial education in K-12 classroom settings.[46]

Lucey and Cooter (2008) go a long way to address this need for teacher training, having produced a multi-disciplinary teacher education text (though not a how-to guide) that they believe will have appeal for finance scholars, psychology scholars, sociology researchers and even philosophers (section three approaches financial literacy from a socio-historical and moral framework, looking at questions of social justice and equitable resource allocation). Their instructional section addresses a range of classroom scenarios, including math, economics, drama and art.[47] Their work is a significant resource in that regard, with nearly 600 pages of text and 27 articles, geared mostly but not exclusively to middle and high school teachers and complete with discussion questions and activity suggestions for educators to employ.

Lastly, while not a gap in knowledge per se, a major impediment to progress in getting financial education into the schools is the lack of inclusion of financial education standards in state academic standards. A 2007 national survey of K-12 financial literacy finds:

After the ever-present challenge of finding time, the second ranking obstacle for teachers is the lack of specific academic standards mandating financial literacy. Among teachers NOT teaching financial literacy in their classrooms, lack of standards is the number one reason cited, not a lack of time. Also notable is that 75% of all teachers surveyed believe there are academic standards pertaining to financial literacy embedded in existing standards. In general, K-12 teachers do show a strong consensus that it is important to have academic standards for financial literacy instruction and would teach more, or at least as much, on this topic were the standards in place.[48]

Conclusion

There is reason for concern about financial well being on the individual, familial, community and national level, but also for some sense of progress on the issue of an educational counterattack against the ills of financial illiteracy. In recent years, programs have grown exponentially in number and emphasis, but financial education professionals know more about program design, implementation, success and next steps in the field of adult financial education than in the field of youth financial education. The need for financial education for children and youth is clear and compelling. It is not disputed, but neither is it championed. A plan of action is required for integrating financial education into state standards, training teachers, implementing curriculum, verifying behavioral impacts, widening disciplinary expertise and input, and resolving areas of professional disagreement. This study provides a snapshot of youth financial education status at a moment in time, in order to summarize what is known, delineate what is happening now, and provide direction for future efforts to educate the school-age population for a lifetime of financial decision-making and security in a dauntingly complex marketplace.

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Danes, S. and H. Haberman (2007). "Teen Financial Knowledge, Self-Efficacy, and Behavior: A Gendered View." Financial Counseling and Planning 18 (2), 48-60.

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Fox, J., S. Bartholomae, and J. Lee (2005). "Building the Case for Financial Education."
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Gross, K. (2005). "Financial Literacy Education: Panacea, Palliative, or Something Worse?" St. Louis University Public Law Review 24: 307-312.

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Johnson, E. and M. Sherraden (2007). "From Financial Literacy to Financial Capability among Youth." Journal of Sociology and Social Welfare 34 (3), 119-146.

Kozup, J. and J. Hogarth (2008). "Financial Literacy, Public Policy, and Consumers' Self-Protection-More Questions, Fewer Answers." Journal of Consumer Affairs 42 (2), 127-136.

Loibl, C. (2008). "Survey of Financial Education in Ohio's Schools: Assessment of Teachers, Programs, and Legislative Efforts." Ohio State University P-12 Project. http://p12.osu.edu/reports/Loibl.PersonalFinanceEducation.pdf

Lucey, T. (2007). "The Art of Relating Moral Education to Financial Education: An Equity Imperative." Social Studies Research and Practice 2 (3), 486-500.

Lucey, T. and K. Cooter (2008). Financial Literacy for Children and Youth. Athens, GA: Digitaltextbooks.biz.

Lucey, T. and Giannangelo, D. (2006). "Short Changed: The Importance of Facilitating Equitable Financial Education in Urban Society." Education and Urban Society 38 (3), 268-287.

Lusardi, A. (2008a). "Financial Literacy: An Essential Tool for Informed Consumer Choice?" Joint Center for Housing Studies, Harvard University. http://www.jchs.harvard.edu/publications/finance/understanding_consumer_credit/papers/ucc08-11_lusardi.pdf

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Parrish, L., H. McCulloch, K. Edwards and G. Gunn (2006b). "State Policy Options for Building Assets." New America Foundation. http://www.newamerica.net/files/Doc_File_3134_1.pdf

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Seidman, E., K. Murrell and M. Koide (2007). "Public Policy Ideas to Improve Financial Education and Help Consumers Make Wise Financial Decisions." New America Foundation, Financial Services and Education Project, Asset Building Program. http://www.newamerica.net/files/Public%20Policy%20Ideas%20to%20Improve%20Financial%20Education.pdf

Suiter, M. and B. Meszaros (2005). "Teaching about Saving and Investing in the Elementary and Middle School Grades." Social Education 69 (2), 92-95.

Thaler, R. and C. Sunstein (2008). Nudge: Improving Decisions About Health, Wealth and Happiness. New Haven: Yale UP.

Valentine, G. and M. Khayum (2005). "Financial Literacy Skills of Students in Urban and Rural High Schools." Delta Pi Epsilon Journal 47 (1), 1-9.

Varcoe, K., A. Martin, Z. Devitto, and C. Go (2005). "Using a Financial Education Curriculum for Teens." Financial Counseling and Planning 16 (1), 63-71.

Wagland, Suzanne (2006). "Financial Literacy in the Context of Literacy in General." University of Western Sydney, Australia. http://www.cbs.curtin.edu.au/files/Wagland_Paper1.pdf

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Endnotes

[1] Suiter and Meszaros (2005), 93.

[2] For educational materials generally, see the Jump$tart Coalition Clearinghouse, http://www.jumpstart.org/search.cfm. The Clearinghouse uses the Educational Materials Review Checklist as a guide in the selection of materials to be included in the database.

[3] These include the high school curricula, National Council on Economic Education Financing Your Future (http://financingyourfuture.ncee.net/) and the National Endowment for Financial Education High School Financial Planning Program (http://www.nefe.org/HighSchoolProgram/tabid/146/Default.aspx). The President's Advisory Council on Financial Literacy promotes Money Math: Lessons for Life (http://www.publicdebt.treas.gov/mar/marmoneymath.htm) for middle schoolers. Networks Financial Institute offers a grades 3-5 curriculum and mobile classroom experience, known as Kids Count on the Money Bus^TM(http://www.moneybus.org/).

[4] Some of the better-known include 4H efforts such as Financial Champions and Consumer Savvy (http://www.4-hcurriculum.org/catalog.aspx?cid=184&c=Financial and http://www.4-hcurriculum.org/projects/consumer/ respectively) and the U.S. Department of Agriculture Cooperative State Research, Education and Extension Service youth financial efforts (for a state-by-state breakdown of programs and contacts, visit http://www.csrees.usda.gov/nea/economics/in_focus/security_if_youth2.html). Girls Inc. Economic Literacy (http://www.girlsinc.org/ic/page.php?id=1.2.8), Girl Scouts Financial Literacy (http://www.girlscouts.org/program/program_opportunities/financial_literacy/), and Boy Scouts Personal Management Merit Badge (http://www.boyscouttrail.com/boy-scouts/meritbadges/personalmanagement.asp) are additional examples.

[5] Others, including New America Foundation, stress that part of financial education should be access to real-life savings and financial services opportunities, such as Individual Development Accounts (IDAs), bank-at-school programs, matched savings accounts, or the U.S. Department of Treasury's Save for America program.

[6] Hogarth (2006), 3.

[7] Consumer and Financial Literacy Working Party (2005). National Consumer and Financial Literacy Framework. http://www.mceetya.edu.au/verve/_resources/Financial_Literacy_Framework.pdf.

[8] http://www.csrees.usda.gov/nea/economics/in_focus/security_if_youth.html.

[9] Thaler and Sunstein (2008), 5-11.

[10] Treasury's eight elements of a successful financial education program are as follows:

Content	1. focuses on basic savings, credit management, home ownership and/or retirement planning.
	2. is tailored to its target audience, taking into account its language, culture, age and experience.
Delivery	3. is offered through a local distribution channel that makes effective use of community resources and contacts.
	4. follows up with participants to reinforce the message and ensure that participants are able to apply the skills taught.
Impact	5. establishes specific program goals and uses performance measures to track progress toward meeting those goals
	6. demonstrates a positive impact on participants' attitudes, knowledge or behavior through testing, surveys or other objective evaluation.
Sustainability	7. can be easily replicated on a local, regional or national basis so as to have broad impact and sustainability.
	8. is built to last as evidenced by factors such as continuing financial support, legislative backing or integration into an established course of instruction.

[11] Borden et al (2008), 23.

[12] Hathaway and Khatiwada (2008), 19.

[13] Lucey (2007), 486.

[14] Grody et al (2008), 10.

[15] Mandell (2007b), 105.

[16] Mandell (2007b), 109-114.

[17] Time preference is the general desire to have goods and services sooner rather than later.

[18] Meier and Sprenger (2007), 13.

[19] Suiter and Meszaros (2005), 93.

[20] FLEC (2006), 87.

[21] NASBE (2006), 20-21.

[22] NASBE (2006), 20.

[23] Intertemporal choice is the study of the relative value people assign to two or more payoffs at different points in time. Intertemporal choice was introduced by John Rae in 1834 in the "Sociological Theory of Capital." Eugen von Böhm-Bawerk (1889) and Irving Fisher (1930) elaborated on the model. http://en.wikipedia.org/wiki/Intertemporal_choice. Intertemporal choice is different from the concept of delayed gratification. Deferred or delayed gratification is the ability of people to wait for things they want but does not take into consideration comparative value of now vs. later, or the notion of payoff as a benefit of waiting. http://en.wikipedia.org/wiki/Delayed_gratification.

[24] Godsted and McCormick (2006), 3-4.

[25] Baron-Donovan et al (2005), 68-72.

[26] See Parrish and Servon (2006a), "Policy Options to Improve Financial Education: Equipping Families for Their Financial Futures," Parrish et al (2006b), "State Policy Options for Building Assets," and Seidman, Murrell and Koide (2007), "Public Policy Ideas to Improve Financial Education and Help Consumers Make Wise Financial Decisions."

[27] Hathaway and Khatiwada (2008), 3.

[28] Lyons, Cheng and Scherpf (2006b), 28.

[29] Fox, Bartholomae and Lee (2005), 203-204.

[30] Hathaway and Khatiwada (2008), 208.

[31] As an interesting additional observation, but pertaining to privately-sponsored financial education programs in schools, Fox, Bartholomae and Lee (2005) mention that a 2002 Consumer Bankers Association review of bank-sponsored K-12 programs points out that only 56% of bank sponsors evaluate their programs, with only 21% of the bank-sponsored programs using a more rigorous pre- and post-test method to identify impact. Fully 35% of programs were deemed effective solely based on the number of students completing the program.

[32] A social constructivist perspective was taken in this investigation of 5,329 male and female high school students. Gender differences were investigated in financial knowledge, self-efficacy, and behavior after studying a financial planning curriculum.

[33] Survey (N=1039) was sent to alumni of a large Midwestern university, with 46 questions (10 specific to investment knowledge), also covering savings, financial education, financial experience, income and inheritance, and demographics.

[34] This study quizzed 312 students in five southwestern Indiana high schools (urban and rural) on credit cards, checking and savings, automobile insurance, housing rental, food purchases and car purchases, with an average score of 51%. No significant overall differences in knowledge between urban and rural schools.

[35] This study evaluates the Money Talks: Should I Be Listening? curriculum, in 2002, with 114 high school students in 4 California counties. Pre- and post-test methodology, post-test generally administered at 2 months following delivery of curriculum. Statistically significant improvement in self-reported financial knowledge, improved knowledge score on a 19-question true/false test (with males averaging a significantly greater increase in knowledge than females). No significant change in talking with families about money.

[36] Comptroller General (2004), 14-15.

[37] Willis (2008), 44.

[38] Gross (2005), Abstract.

[39] Willis (2008), 52-54.

[40] Lucey (2007), 486.

[41] Lucey (2007), 489-490.

[42] Lucey and Giannangelo (2006), 271, 282.

[43] Willis (2008), 3.

[44] Willis (2008), 36-37.

[45] See Morton (2005). However, as Godsted and McCormick (2006) point out, "Insofar as economics is a social science concerned with the production, distribution and consumption of goods and services, including financial services, it is not the same thing as financial literacy. Most students take economics, yet most students fail financial literacy tests" (5).

[46] Godsted and McCormick (2007): "[R]esearch also indicates that there is a strong need for grade level and subject-appropriate professional development and training opportunities for teachers to feel fully comfortable with the topic. Other reported obstacles to teaching financial literacy include lack of funding and a lack of access to materials. And, some teachers (32%) do report that they have never even thought about teaching the topic" (5).

[47] Lucey and Cooter (2008), ix-x.

[48] Godsted and McCormick (2007), 5.

Descriptive Bibliography

Asset Building — Sat, 25 Oct 2008 19:43:00 -0400

Baker, C. and D. Dylla (2007). "Analyzing the Relationship Between Account Ownership and Financial Education." New America Foundation.

Abstract: Account ownership and financial knowledge are understood to be critical components of financial stability and wealth accumulation. Presumably, combining financial education and accounts reinforces the positive effects of each on the other and enhances the recipient's financial well being. To date, however, no testing of this hypothesis has been undertaken. This report sets out to do that. It presents a review of programs across the country that combine account ownership with financial education to analyze their relationship and the impact that each component has on the other to inform financial service and education policies for lower-income individuals and families. Based on the findings of the research that was conducted, it appears that financial education and accounts have an iterative relationship, whereby each leads to consumers seeking more of the other. Combining financial education and accounts seems to have a number of positive effects for some consumers.

Baron-Donovan, C., R. Wiener, K. Gross and S. Block-Lieb (2005). "Financial Literacy Teacher Training: A Multiple-Measure Evaluation." Financial Counseling and Planning 16 (2), 63-75.

Abstract: This study evaluates a two-day train the trainer program designed to provide instructors from diverse backgrounds with the tools needed to teach financial literacy to individual debtors. Trained teachers reported satisfaction with their training and felt prepared to teach; they also provided constructive feedback. Pre- and posttest questionnaires reveal a 9% increase in financial knowledge and positive changes in attitude. Observations reveal that skills learned in training transferred to desired reaching behavior in the classroom. This paper addresses the implications of our findings for both the training literature and the implementation and operation of the recently passed 2005 bankruptcy legislation.

Borden, L., S. Lee, J. Serido and D. Collins (2008). "Changing College Students' Financial Knowledge, Attitudes and Behavior through Seminar Participation." Journal of Family and Economic Issues 29 (1), 23-40.

Abstract: This pilot study examined the influence of Credit Wise Cats, a financial education seminar presented by Students in Free Enterprise, on the attitudes, knowledge, and intentions toward financial responsibility of college students (N = 93). Findings suggest that the seminar effectively increased students' financial knowledge, increased responsible attitudes toward credit and decreased avoidant attitudes towards credit from pre-test to post-test. At post-test, students reported intending to engage in significantly more effective financial behaviors and fewer risky financial behaviors. Finally, demographic factors (e.g., gender and employment status) predicted students' financial knowledge, attitudes, and behaviors. These results suggest that a seminar format may be useful in reaching a wider audience of college students and, thus, warrants future longitudinal evaluation.

Caskey, J. (2006). "Can Personal Financial Management Education Promote Asset Accumulation by the Poor?" Networks Financial Institute Policy Brief 2006-PB-03.

Abstract: This paper asks whether personal financial management education is an effective mechanism for helping lower-income households accumulate financial assets and improve credit histories. The paper argues that the best existing studies of the effectiveness of financial literacy initiatives suggest that such initiatives might help lower-income households build savings and improve credit records, but the results are only suggestive due to the limitations of the studies. The paper concludes that a high research priority should be to gathering more robust evidence on whether teaching personal financial management skills to lower-income households can be an effective means to improve their financial situations.

Chang, Y. and A. Lyons (2007). "Are Financial Education Programs Meeting the Needs of Financially Disadvantaged Consumers?" Networks Financial Institute Working Paper 2007-WP-02.

Abstract: This paper uses data collected from a retrospective pre-test to investigate the impact that a financial education program has on participants' financial behaviors. Specifically, we compare program impact across participants with varying levels of financial competency prior to the program and examine whether the program is meeting the educational needs of those it was designed to target - namely, financially disadvantaged consumers. The findings show that the program benefited all of the participants and the greatest improvement in financial behavior was observed for those who reported lower levels of financial ability prior to the program. The findings offer important practical information to consumer educators, program developers, and financial counselors.

Clarke, M., M. Heaton, C. Israelsen and D. Eggett (2005). "The Acquisition of Family Financial Roles and Responsibilities." Family and Consumer Sciences Research Journal 33 (4), 321-340.

Abstract: This study was designed to assess the modeling and teaching of adult financial roles to children and adolescents and theimplementation of those roles in early adulthood. The study also assessed the impact of various demographic variables on financial role transfer. Young adults felt only adequately taught and moderately prepared to perform financial tasks. Financial role transfer is taking place most often from parents in the home, rather than sources outside the home. Financial tasks needed in teen years are modeled and taught more frequentlyand thoroughly in the home than the financial tasks needed in emerging adulthood. Fathers modeled financial tasks more frequently than mothers. When mothers modeled financial tasks and adolescents practiced those tasks, frequency of performance as young adults increased and they felt more financially prepared. Frequency of performance is also enhanced when financial tasks are considered the responsibility of the entire family while growing up.

Comptroller General (2004). "The Federal Government's Role in Improving Financial Literacy." United States Government Accountability Office GAO-05-93SP.

Abstract: Research has shown that many Americans lack the knowledge of basic personal economics they need to make informed financial judgments and manage their money effectively. On July 28, 2004, GAO hosted a forum on the role of the federal government in improving financial literacy. Forum participants included experts in financial literacy and education from federal and state agencies, the financial industry, nonprofit organizations, and academic institutions. Participants discussed the topics federal efforts should cover, populations that should be targeted, methods of delivering information, and the role of program evaluation. Forum participants offered a number of suggestions regarding the federal government's role in improving Americans' financial literacy. A variety of methods are needed to deliver financial education effectively. Participants said the U.S. Department of Education needs to deepen its commitment to financial education. Financial literacy programs need to be evaluated. Program evaluation ideally should assess outcomes, such as the impact on participants' personal savings. The federal government can facilitate others' evaluation efforts by developing or supporting standardized evaluation tools, serving as a national clearinghouse for evaluation efforts, and disseminating best practices.

Danes, S. and H. Haberman (2007). "Teen Financial Knowledge, Self-Efficacy, and Behavior: A Gendered View." Financial Counseling and Planning 18 (2), 48-60.

Abstract: A social constructivist perspective was taken in the current investigation of 5,329 male and female high school students. Gender differences were investigated in financial knowledge, self-efficacy, and behavior after studying a financial planning curriculum. Several gender differences before and as a result of the curriculum are highlighted. In sum, male teens reinforced their existing knowledge, whereas female teens learned significantly more about finances in areas in which they were unfamiliar prior to the curriculum.

Financial Literacy and Education Commission (FLEC) (2006). Taking Ownership of the Future: The National Strategy for Financial Literacy. Washington, DC: FLEC.
See also "Taking Ownership of the Future Quick Reference Guide."

Abstract: Taking Ownership of the Future: The National Strategy for Financial Literacy is the game plan for improving financial education in America. The strategy was called for by the Fair and Accurate Credit Transactions (FACT) Act of 2003, which also directed the Treasury Department to lead a group of 19 other federal agencies, officially called the Financial Literacy and Education Commission, in an effort to help Americans learn more about their money. In addition, the Treasury Department issued an accompanying Quick Reference Guide, offering a brief summary of tactics and calls to action, as well as a list of financial education resources.

Fox, J., S. Bartholomae, and J. Lee (2005). "Building the Case for Financial Education."Journal of Consumer Affairs 39 (1), 195-214.

Abstract: The need for financial education among Americans is often demonstrated with alarming rates of bankruptcy, high consumer debt levels, low savings rates, and other negative outcomes that may be the result of poor family financial management and low financial literacy levels. The collective response by public and private organizations to the accepted and often demonstrated need for financial education has been impressive in size and scope. This article provides an overview of the wide range of programs aimed at improving Americans' financial literacy as well as a short review of the current evidence of the effectiveness of financial education programs. We advocate for the adoption of a comprehensive framework or approach to evaluation to assist those currently delivering, and planning to deliver, financial education and highlight some of the key challenges. A five-tiered approach to program evaluation is described and outlined to provide a general framework to guide financial education evaluation.

Fox, J. and S. Bartholomae (2007). "Financial Education and Program Evaluation." In Xiao, J., Ed., Handbook of Consumer Finance Research, 47-68. See entry under Xiao, J.

Franklin, I. (2004). "Financial Literacy Program Prepares Youth for Living on Their Own." Journal of Family and Consumer Sciences 96 (1), 22-23.

Abstract: At one time, the financial unit of a family and consumer sciences (FCS) curriculum was as simple as looking at budgets and doing checkbook exercises. Today, the FCS financial literacy program is a 6-week unit, designed to meet the Colorado Core Life Management Curriculum Standard II, Managing Your Finances, and the FCS Education National Standard 2.0. The goal for the "Life Management" course, which supports the math and language arts curricula, is to teach skills for living on one's own. The ultimate goal of financial literacy overall is to build a financially strong society of individuals and families who are financially literate and able to make wise choices with their money. The primary focus of the unit is to ensure that students develop the knowledge and financial literacy skills necessary to make informed choices regarding money management, banking, use of credit, savings and investments, insurance, and taxes. The financial literacy program boosts math, language arts, and technology skills while also teaching youth how to make wise choices with their money.

Godsted, D. and M. McCormick (2006). "Learning Your Monetary ABCs: The Link between Emergent Literacy and Early Childhood Financial Education." Networks Financial Institute Report 2006-NFI-03.

Abstract: Trends suggest that the current crop of parents have cause to worry both about their own and their children's financial futures. Parents, teachers, school districts, boards and departments of education, and our entire nation must come to terms with the fact that, just as with literacy generally, students cannot afford to wait until middle or high school to begin learning about financial literacy. Until a set of financial literacy standards are adopted nationally, stakeholders of our educational system need to glean teachable moments of financial literacy from existing curricula in all subject areas. At the youngest grade levels, doing so will entail concentrating on the baseline concepts that form the foundation for the personal financial decisions children and, ultimately, adults must be prepared to make about building and managing wealth.

Godsted, D. and M. McCormick (2007). "National K-12 Financial Literacy Research Overview." Networks Financial Institute Report 2007-NFI-03.

Abstract: Personal economic issues such as credit card debt, home foreclosures, the collapse of the subprime lending market, and escalating numbers of personal bankruptcy have focused the nation's attention on the importance of financial education. Networks Financial Institute (NFI) believes that financial independence begins in childhood with a strong foundation of skills, knowledge and appropriate experiences. Important components of personal financial literacy include planning, budgeting, earning, saving, managing financial risks such as health or property events, investing, filing taxes, and the responsible use of debt including credit cards. NFI's national research indicates that educators agree, identifying financial literacy as critically important and part of their classroom activity.

Grody, A., D. Grody, E. Kromann, and J. Sutliff (2008). "A Financial Literacy and Financial Services Program for Elementary School Grades - Results of a Pilot Study."

Abstract: This study examines the effectiveness of teaching financial literacy to elementary school children and extending such learning into an age-appropriate digital world of online support services. We utilize a picture book and a story relevant to the students ‘real life' experiences and conceptual understanding of future rewards. We hypothesize that using materials geared toward developmental levels of cognitive ability and psychological readiness will readily engage students' understanding of delaying gratification, saving, earning or paying interest, and other fundamentals of personal finance. This study sought to develop a successful tool to fill the gap in early financial education by teaching the production concepts of finance as a mechanism to better understand the consumer components, and thereby supply a missing foundational element for ongoing financial well-being into adulthood. We report on the first implementation of the pilot program and speculate on the implications of the study result's positive outcome on future financial literacy programs in elementary school grades, and on into secondary education levels, combining elements found in the curriculums of math, economics and social studies. We postulate a role for financial institutions in the reinforcement of the learning experience and, more importantly, in the delivery of age-appropriate financial products and services. We demonstrate an economic reward for financial institutions in embracing child financial literacy programs in elementary school grades and in extending the learning and implementation components through integration of age appropriate online banking services and socialization websites.

Gross, K. (2005). "Financial Literacy Education: Panacea, Palliative, or Something Worse?" St. Louis University Public Law Review 24: 307-312.

Abstract: With increasing frequency, elementary and secondary schools, colleges, universities, community organizations, military installations, and state and federal agencies are developing and implementing programs designed to improve the financial management skills of their particular constituencies. Money education is being sold as a tool for consumer empowerment and a cure for all that ails our consumer credit economy: financial ignorance, unhealthy debt burdens, predatory lending, mortgage foreclosures, joblessness and susceptibility to savvy lenders and scam artists. This approach is fundamentally flawed. It leads to a "blame the victim" mentality by erroneously assuming that individual knowledge acquisition alone will produce fundamental change in the consumer financial markets, an approach that also absolves a wide range of other entities, public and private, from responsibility.

Hathaway, I. and S. Khatiwada (2008). "Do Financial Education Programs Work?" Federal Reserve Bank of Cleveland Working Paper No. 08-03.

Abstract: In this paper we provide a comprehensive critical analysis of research that has investigated the impact of financial education programs on consumer financial behavior. In light of the evidence, we recommend that future programs be highly targeted towards a specific audience and area of financial activity (e.g. homeownership or credit card counseling, etc.), and that this training occurs just before the corresponding financial event (e.g. purchase of a home or use of a credit card, etc.). Similarly, in light of a lack of evidence, we also recommend that program evaluation be taken as an essential element of any program, and that it be included in the design of the programs before they are introduced.

Haynes, D. and N. Chinadle (2007). "Private Sector/Educator Collaboration: Project Improves Financial, Economic Literacy of America's Youth." Journal of Family and Consumer Sciences 99 (1), 8-10

Abstract: The Family Economics and Financial Education Project (FEFE) began in 2001 at Montana State University with an annual grant from Take Charge America, Inc., a credit counseling and debt management company headquartered in Phoenix, Arizona. FEFE's mission is to provide educators with curriculum materials and training to be effective teachers of family economics and finance. This article describes the FEFE Project, including its core principles, history, accomplishments, and future. The project is a highly successful example of collaboration across the private sector and education at various levels. It serves as a national model to educators who are working every day to improve the financial and economic literacy of America's youth.

Hogarth, J. (2006). "Financial Education and Economic Development." Paper prepared for "Improving Financial Literacy: International Conference Hosted by the Russian G8Presidency in Cooperation with the OECD."

Abstract: Logically, financially-educated consumers should make better decisions for their families, increasing their economic security and wellbeing. Secure families are better able to contribute to vital, thriving communities, further fostering community economic development. But identifying and documenting those links is difficult. This paper provides a snapshot of the current state of financial education in the U.S. as it relates to community and economic development. In the process, we look at a variety of issues: Why is financial education important? What is "financial education?" What financial education initiatives are underway? Are they working - and how do we know? Data from a community development credit union, provided as a case study, hint at the potential relationships between financial education and community involvement and give us some hope that financial education programs really are making a difference in communities, and that we will some day be able to document those differences more robustly.

Johnson, E. and M. Sherraden (2007). "From Financial Literacy to Financial Capability among Youth." Journal of Sociology and Social Welfare 34 (3), 119-146.

Abstract: Youth in the United States are facing an increasingly complex and perilous financial world. Economically disadvantaged youth, in particular, lack financialfinancial institutions. Despite growing interest in youth financial literacy, we have not seen comparable efforts to improve access to financial policies and services, especially among disadvantaged youth. Instead of aiming for financial literacy, an approach widely promoted in the United States, we suggest aiming for financial capability, a concept grounded in the writing of Amartya Sen and Martha Nussbaum. Building on research in the United Kingdom, the paper proposes that financial capability results when individuals develop financial knowledge and skills, but also gain access to financial policies, instruments, and services. The paper addresses theoretical and pedagogical approaches to increasing financial capability, followed by examples of programs in the United States. In the conclusion, we discuss implications for policy, practice, and research.

Jump$tart Coalition. "Annual Survey of Personal Financial Literacy among High School Students." 2004, 2006, 2008 available from http://www.jumpstart.org.

For educational materials, see also the Jump$tart Coalition Clearinghouse. The Clearinghouse uses the Educational Materials Review Checklist as a guide in the selection of materials to be included in the database.

Kozup, J. and J. Hogarth (2008). "Financial Literacy, Public Policy, and Consumers' Self-Protection-More Questions, Fewer Answers." Journal of Consumer Affairs 42 (2), 127-136.

Abstract: The article discusses various reports published within the issue, including one that examines organizing frameworks for effective education delivery and environmental factors that moderate the effectiveness of programmatic efforts as well as cases of best and worst practice, and another on how consumers can be educated in the most effective manner to help them realize their financial goals.

Lerman, R. and E. Bell (2006). "Financial Literacy Strategies: Where Do We Go From Here?" Networks Financial Institute Policy Brief 2006-PB-10.

Abstract: The evolution of market economies has dramatically broadened the opportunities of consumers, workers, investors, and firms. Financial services have become especially free and accessible, but also increasingly complex. For the new financial freedom to help most people, they must understand their choices and the likely implications of alternative decisions. Unfortunately, many Americans have a weak grasp of basic personal finance principles. This paper emphasizes the importance of financial literacy in an increasingly complex market economy and examines the current state of financial education in the U.S. and abroad. We explore two methods of delivering financial knowledge - through broad financial curriculums and through more focused "teachable moments." After examining the pros and cons of each, along with the evidence about their effectiveness, we suggest that a combination of the two perspectives, with the specific topics and behavioral strategies varying by target audience. We conclude by calling for a more rigorous evaluation of the effects of existing programs.

Loibl, C. (2008). "Survey of Financial Education in Ohio's Schools: Assessment of Teachers, Programs, and Legislative Efforts." Ohio State University P-12 Project.

Abstract: This project addressed the scope and determinants of personal finance instruction in Ohio high schools. Through a survey, the project identified the personal finance topics taught in Ohio high schools, which teachers are teaching the courses, and which students attend the classes; determined the personal finance education and knowledge of high school teachers and their sources of information; compared legislative efforts concerning personal finance education in Ohio to other state legislative efforts; and conducted a meta-analysis of existing financial literacy programs and training available to Ohio K-12 teachers.

Lucey, T. (2007). "The Art of Relating Moral Education to Financial Education: An Equity Imperative." Social Studies Research and Practice 2 (3), 486-500.

Abstract: To achieve a fully participatory society, all participants should receive equal opportunities for understanding the processes of acquiring, managing, and developing financial resources. The author argues that financial education processes do not meet the needs of all children, because they do not account for differences in child development prompted by various economic contexts. He contends that these contexts prompt judgment patterns among individuals having economic differences and that efforts toward social equity necessitate the exploration of moral issues related to personal finance. He recommends use of the arts to enable student discovery and reconciliation of financial judgments so that students may construct understandings of the social issues that prompt financial inequities and may explore ideas to challenge them.

Lucey, T. (2005). "Assessing the Reliability and Validity of the Jump$tart Survey of Financial Literacy." Journal of Family and Economic Issues 26 (2), 283-294.

Abstract: Financial education represents an area of popular interest, owing largely to the Jump$tart surveys of financial literacy. However, while the surveys represent indicators of financial knowledge among high school seniors, these measures have not been statistically validated. This article describes an assessment of the surveys' reliability (internal consistency), and validity. It reports a moderately high degree of consistency overall, however, discloses low to moderate internal consistencies among subscales. It also finds significant response differences to one quarter of comparable items between surveys. The researcher observes challenges to affirming the surveys' validity and offers statistics suggesting social bias among survey items. He calls for further research into measures of financial literacy.

Lucey, T. and K. Cooter (2008). Financial Literacy for Children and Youth. Athens, GA: Digitaltextbooks.biz.

Abstract: This book demonstrates that financial literacy needs to become an important component of the K-12 curriculum in all U.S. schools. The authors unveil that our schools do too little to ensure that students leave school prepared to manage their financial lives.

Table of Contents:

Part I: Defining Financial Literacy

Introduction

1. A Case for Consumer Studies in the Early Grades - R. Chamberlin
2. Buying More Can Give Children Less - C. Holst
3. The Importance of Financial Education Today - A. Greenspan
4. Financial Literacy: Does it Matter? - L. Mandell
5. Meaning and Money - M. Brenner
6. What Teens Want to Know about Financial Management - K. Varcoe, S. Peterson, C. Garrett, A. Martin, P. Rene and C. Costello
7. Elementary Teachers' Views on Economic Issues - M. Schug
8. Random Acts of Financial Literacy - K. Cooter

Part II: Instruction Issues

Introduction

9. Mathematics and Financial Literacy: Collaboration or Conflict?
What are Mathematics Educators' Responsibilities? - S. Maxwell
10. Improving Financial and Economic Education: A Program for Urban Schools - M. Schug, R. Wynn II, T. Posnanski
11. Financial Literacy and Youths in Jail - J. Christensen
12. Finance Faculty in the Middle School Classroom: Using a Portfolio Management Project to Integrate Teaching, Research, and Service - S. Crain, D. Goodwin, P. Herd, G. Ragan, K. Ragan
13. Teaching Young Dogs Old Tricks: The Effectiveness of Financial Literacy Intervention in Pre-High School Grades - L. Mandell
14. Teaching Financial Literacy through the Arts: Theoretical Underpinnings and Guidelines for Lesson Development - J. Laney
15. Using a Financial Education Curriculum for Teens - K. Varcoe, A. Martin, Z. Devitto and C. Go
16. Economic Inequality and Secondary Mathematics - A. Brantlinger

Part III Socio-Historical Moral Connections

Introduction

17. Grasping the Foundational Roots of Economic Perceptions: Pre-Colonial West Africa and the Bantu - T. Lucey, D. Kruger, J. Hawkins
18. Human Rights Violations in the Inner City: Implications for Moral Educators - E. Sparks
19. The Determinants of Wealth and Asset Holding in Nineteen-Century Canada: Evidence from Microdata - L. Di Matteo
20. Financial Responsibility for the Family: The Case of Southeast Asian Refugees in Canada - P. Johnson
21. Who has a Bank Account? Exploring Changes over Time, 1989-2001 - J. Hogarth, C. Anguelov, and J. Lee
22. Decomposing the Black-White Wealth Gap: The Role of Parental Resources, Inheritance, and Investment Dynamics - D. Conley
23. Variations in Level of Moral Judgment as a Function of Type of Dilemma and Moral Choice - J. Carpendale and D. Krebs
24. Ethics and Economics, Friends or Foes? An Educational Debate - G. Minnameier
25. Using Stories to Teach Complex Moral Concepts to Young Children - C. Bacigalupa
26. Understanding the Role of Community in Moral and Character Education - F. Power, A. Power and V. Khmelkov
27. Economics, Religion, Spirituality, and Education: Encouraging Understandings of the Dimensions - T. Lucey

Epilogue

Lucey, T. and Giannangelo, D. (2006). "Short Changed: The Importance of Facilitating Equitable Financial Education in Urban Society." Education and Urban Society 38 (3), 268-287.

Abstract: Through this literature review, the authors explore financial education's relevance to urban society. They consider research measuring children's financial development by observing environmental influences that affect both financial learning and personal judgments. These conditions necessitate financial curricula addressing associated challenges. The authors recommend a cooperative rather than competitive financial education curriculum. Such a framework would employ student-centered instruction to create awareness of the societal consequences for financially based personal judgments related to financial differences.

Lusardi, A. (2008a). "Financial Literacy: An Essential Tool for Informed Consumer Choice?" Joint Center for Housing Studies, Harvard University.

Abstract: Increasingly, individuals are in charge of their own financial security and are confronted with ever more complex financial instruments. However, there is evidence that many individuals are not well-equipped to make sound saving decisions; they do not possess adequate financial literacy. This paper demonstrates widespread financial illiteracy among the U.S. population, particularly specific demographic groups. Those with low education, women, African-Americans, and Hispanics display particularly low levels of literacy. Financial literacy impacts decision-making. Failure to plan for retirement, lack of participation in the stock market, and poor borrowing behavior can all be linked to ignorance of basic financial concepts. While financial education programs can result in improved saving behavior and financial decision-making, much can be done to improve these programs' effectiveness.

Lusardi, A. (2006). "Financial Literacy and Financial Education: Review and Policy Implications." Networks Financial Institute Policy Brief 2006-PB-11.

Abstract: In recent years, as workers have gained an unprecedented degree of control over their pensions and savings, the importance of financial literacy and financial education has increased considerably. Large changes in the structure of financial markets, labor markets, and demographics in developed countries have led to this change. Consumers have a bewildering array of complex financial products - from reverse mortgages to annuities - to choose from, making saving decisions increasingly complex. Knowledge about the working of compound interest rates, the effects of inflation, and the working of financial markets is essential to make saving decisions. Several initiatives have been undertaken to improve financial literacy. The Organization for Economic Co-Operation and Development (OECD) comprehensively defines financial education as "the process by which financial consumers/investors improve their understanding of financial products and concepts and, through information, instruction and/or objective advice, develop the skills and confidence to become more aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being." Building upon this definition, I provide a review of the current state of financial literacy and financial education programs, and discuss whether workers possess the financial literacy necessary to process information and formulate saving plans.

Lusardi, A. (2008b). "Household Saving Behavior: The Role of Financial Literacy, Information, and Financial Education Programs." NBER Working Paper No. W13824.

Abstract: Individuals are increasingly in charge of their own financial security after retirement. But how well-equipped are individuals to make saving decisions; do they possess adequate financial literacy, are they informed about the most important components of saving plans, do they even plan for retirement? This paper shows that financial illiteracy is widespread among the U.S. population and particularly acute among specific demographic groups, such as those with low education, women, African-Americans, and Hispanics. Moreover, close to half of older workers do not know which type of pensions they have and the large majority of workers know little about the rules governing Social Security benefits. Notwithstanding the low levels of literacy that many individuals display, very few rely on the help of experts or financial advisors to make saving and investment decisions. Low literacy and lack of information affect the ability to save and to secure a comfortable retirement; ignorance about basic financial concepts can be linked to lack of retirement planning and lack of wealth. Financial education programs can help improve saving and financial decision-making, but much more can be done to improve the effectiveness of these programs.

Lusardi, A., Ed. (2008c). Overcoming the Saving Slump: How to Increase the Effectiveness of Financial Education and Savings Programs. Chicago: U of Chicago, P. 2008 (forthcoming).

Abstract: The great majority of working Americans are unprepared to face the difficult task of planning for retirement. In fact, the personal savings rate has been holding steady at zero for several years, down from 8 percent in the mid-1980s. Overcoming the Saving Slump explores the many challenges facing workers in the transition from a traditional defined benefit pension system to one that requires more individual responsibility, analyzing the considerable impediments to saving and evaluating financial literacy programs devised by employers and the government. Mapping the changing landscape of pensions and the rise of defined contribution plans, Annamaria Lusardi and others investigate new methods for stimulating saving and promoting financial education drawing on the experience of the United States as well as countries that have privatized their welfare systems, including Sweden and Chile. This timely volume pinpoints where human resources departments, the financial industry, and government officials have succeeded-or failed-in bridging the way to a new retirement system. As the workforce ages and more pensions disappear each second, Lusardi's findings will be invaluable for economists and anyone facing retirement.

Lyons, A., L. Palmer, K. Jayaratne, and E. Scherpf (2006a). "Are We Making the Grade? A National Overview of Financial Education and Program Evaluation." Journal of Consumer Affairs 40 (2), 208-235.

Many financial education providers still do not have a basic level of evaluation capacity and are unable to identify program outcomes and design effective evaluation instruments. It is difficult to propose a national evaluation strategy without a basic understanding of current evaluation capacity and of the critical gaps in program evaluation. In addition, there has been little discussion about the challenges facing financial professionals and educators who are on the "front lines" delivering and evaluating programs. The purpose of this survey article is to address these critical gaps in the literature and to provide an overview of the current state of financial education and program evaluation. Using qualitative and quantitative data collected from financial professionals and educators nationwide, this study provides insight into what can be done to build national evaluation capacity and conduct more effective program evaluations.

Lyons, A. (2005). "Financial Education and Program Evaluation: Challenges and Potentials for Financial Professionals." Journal of Personal Finance 4 (4), 56-68.

Abstract: The objectives of this article are threefold: (a) to provide an overview of current evaluation methods, (b) to discuss the challenges financial professionals face in conducting more rigorous program evaluations, and (c) to identify the potentials for improving existing efforts by making recommendations as to how the financial education professional can realistically overcome these challenges and conduct more effective program evaluations. Improving program evaluation results in better programs and initiatives, which in turn lead to an overall improvement in the financial wellbeing of families and the economic vitality of their communities.

Lyons, A. and U. Neelakantan (2008). "Potential and Pitfalls of Applying Theory to the Practice of Financial Education." Journal of Consumer Affairs 42 (1), 106-112.

Abstract: Researchers are increasingly using interdisciplinary theory to bring rigor to the practice of financial education. Practitioners often do not see the value of the theory because it does not coincide with their observations of how people behave, and researchers do not yet have enough experience with interdisciplinary theory to demonstrate its usefulness to practitioners. If carefully applied, theory can be used to set appropriate financial goals and to positively change consumers' financial behaviors. Better communication can bridge the gap between theory and practice to the benefit of the consumer.

Lyons, A., Y. Cheng and E. Scherpf (2006b). "Translating Financial Education into Behavior Change for Low-Income Populations." Financial Counseling and Planning 17 (2), 27-45.

Abstract: The impact that financial education had on the financial behaviors of (a) the agency staff who were trained to deliver the program and (b) the low-income individuals who participated in the program was investigated. Specifically, the researchers examined the relationship between total number of financial education lessons completed, prior financial experience, and improvement in individuals' financial behaviors. The results provide some evidence that financial education may result in improved financial behaviors. However, the findings suggest that prior level of financial experience may matter more than the number of lessons completed. Researchers may want to re-examine the indicators currently being used to show program impact and whether financial knowledge is the appropriate catalyst to foster behavior change.

Lyons, A., M. Rachlis, M. Staten and J. Xiao (2006c). "Translating Financial Education into Knowledge and Behavior Change." Consumer Interests Annual 52, 397-403.

Abstract: The number of financial education programs continues to flourish. However, research measuring the effectiveness of these programs has been more limited, primarily because of a continued lack of understanding among financial education providers about how to measure program impact. In general, the empirical rigor of these studies is still far from satisfactory, and only recently have a few studies attempted to present program impact within the context of a theoretical framework. This paper reviews a session held at the 2006 conference of the American Council of Consumer Interests highlighting research related to financial education program evaluation, summarizing each of 4 papers and some of the discussion highlights of this conference session.

Mandell, L. (2006). "Financial Literacy: If it's So Important, Why Isn't It Improving?' Networks Financial Institute Policy Brief 2006-PB-08.

Abstract: Financial literacy has assumed greater importance in our society as the result of the increasing complexity of financial products and the simultaneous cutting of economic safety nets by government, employers and even parents who worry about their own retirements. If the problem isn't solved and consumers don't look out for themselves, they may exercise a "put option" by throwing themselves on the mercy of taxpayers when they cannot support themselves in retirement. In addition, a lack of financial literacy may contribute to seemingly "irrational" behavior that distorts financial markets. Measured financial literacy scores among high school seniors is low and has even declined since 1997. More distressing is the fact that students who take a course in personal finance end up no more financially literate than those who don't. Tracking students who took such a course over a 5 year period shows no positive impact on financial literacy, attitudes toward thrift or behavior. The only bright spot is the stock market game which consistently increases literacy scores, indicating that teaching should be interactive, contemporary and "fun."

Mandell, L. (2007a). "Financial Literacy of High School Students." In Xiao, J., Ed., Handbook of Consumer Finance Research, 163-184. See entry under Xiao, J.

Mandell, L. (2008). "High School Financial Literacy." Forthcoming in Overcoming the Savings Slump, A. Lusardi, Ed. See entry under Lusardi, A.

Mandell, L. and L. Klein (2007b). "Motivation and Financial Literacy." Financial Services Review 16, 105-116.

Abstract: This paper examines the hypothesis that low financial literacy scores among young adults, even after they have taken a course in personal finance, is related to a lack of motivation to learn or retain these skills. The research is based upon the latest national Jump$tart survey of high school seniors and uses financial literacy scores after controlling for socioeconomic, demographic, and aspirational characteristics that have historically predicted these scores. We analyze the relation of financial literacy scores to responses to three questions designed to measure motivation to be financially literate. We found that the motivational variables significantly increased our ability to explain differences in financial literacy.

Martin, M. (2007). "A Literature Review on the Effectiveness of Financial Education." Federal Reserve Bank of Richmond Working Paper No. 07-03.

Abstract: This survey summarizes current research on financial literacy efforts. Because most financial literacy programs are relatively new, much of the literature reviewed here is also new and part of a field that is still developing as a program of research. However, we can conclude that financial education is necessary and that many existing approaches are effective. Among the findings are that some households make mistakes with personal finance decisions; mistakes are more common for low income and less educated households; there is a causal connection between increases in financial knowledge and financial behavior; and the benefits of financial education appear to span a number of areas including retirement planning, savings, homeownership, and credit use.

Meier, S. and C. Sprenger (2008). "Selection into Financial Literacy Programs: Evidence from a Field Study." Federal Reserve Bank of Boston Public Policy Discussion Paper No. 07-5.

Abstract: As financial literacy has been shown to correlate with good financial decisions, policymakers promote educational programs to improve individuals' financial decisions. But who selects into educational programs and who acquires information about personal finance? This paper, in a field study with more than 870 individuals, offers individuals free information about their credit reports (and credit scores). About 55 percent choose to participate in this small counseling program. To test whether those who self-select to acquire information about personal finance differ from those who do not on (normally) unobservable characteristics, we elicit time preferences, using incentivized choice experiments. Our results show that the two groups differ sharply in their discount factors: those who choose to acquire information do not discount the future as much as those who choose not to acquire information. This result has implications for financial education programs.

Morton, J. (2005). "The Interdependence of Economic and Personal Finance Education." Social Education 69 (2), 66-70.

Abstract: In an increasingly complex financial world, personal finance education is more important today than ever. Nevertheless, the number of states incorporating personal finance concepts into their academic standards is not rising significantly, and students are demonstrating few gains, if any, in their knowledge of those concepts. One reason for this paradox is that personal finance education does not have a home in the American school curriculum. The natural home for personal finance education is in the economics curriculum, which is one of the core subjects in the No Child Left Behind law. Economics provides the organizing principles and logic that could be the structure for personal finance education, helping to strengthen it so that K-12 students will learn the concepts and skills of personal finance they need to make informed choices throughout their lives.

National Association for State Boards of Education (NASBE) (2006). Who Will Own Our Children: The Need for Financial Literacy Standards. Alexandria, VA: NASBE.

Abstract: Staggering personal debt, skyrocketing bankruptcies, and the elimination of pension plans have imperiled the nation's economic and social security, and called into question the ability of American consumers to manage their financial destiny. In light of this grave threat to individuals, families, and the country as a whole, a national call for states to establish financial education as a core academic subject in all grades-from Kindergarten through graduation-was made by the National Association of State Boards of Education (NASBE). The urgent recommendation is part of a broader list of policy proposals issued from a national commission that spent a year scrutinizing the fiscal condition of the American family and the status of financial education in K-12 schools.

National Council on Economic Education (2007). "Survey of the States: Economic and Personal Finance Education in Our Nation's Schools in 2007: A Report Card."

Abstract: What isn't taught isn't learned. No longer is the question: "should we take action on improving economic and financial literacy?" The question is " how will we do it?" The National Council on Economic Education (NCEE) "Report Card," sponsored by State Farm®, provides the only national set of data that tracks the progress of economic and personal finance education via detailed state by state "snapshots" and attendant data. States haven't made enough progress on their commitment to offer or require economic and finance education in our nation's schools. Consequently, the majority of students aren't receiving the essential real-life economic skills they need to become knowledgeable consumers, prudent savers and investors, and productive members of the workforce.

National Endowment for Financial Education (2004). "Motivating Americans to Develop Constructive Financial Behaviors." Denver, CO: NEFE

Abstract: A group of distinguished financial educators, researchers, behaviorists, practitioners, nonprofit menders, and service providers from throughout the country convened in May 2003 under the sponsorship of the national Endowment for Financial Education (NEFE) for a think tank titled "Motivating Americans to Develop Constructive Financial Behaviors." With the stated goals of identifying ways to inspire and maintain positive changes in the way money is managed by individuals and families in American households, participants examined potential approaches, messages and media most likely to help reverse the kind of negative behaviors that have led to potentially devastating problems, such as low savings rates, ballooning debt load, and inadequate retirement planning. Guided by insights and themes drawn from research papers and articles, . . . the group examined the various barriers to changing financial behavior and considered potential catalysts for positive change. . . . [P]articipants developed actionable points for two primary change agents: Professionals and individuals. For professionals, encompassing educators, organizations and practitioners, participants created a list of best practices; for individuals, the group generated a series of practical, readily applicable steps for improving financial circumstances.

Organization for Economic Co-Operation and Development (OECD) (2006). "The Importance of Financial Education." Policy Brief.

Abstract: This Policy Brief looks at the importance of financial education, and how the OECD is helping governments achieve it. One key challenge is convincing people that they are not as financially literate as they think they are.

Organization for Economic Co-Operation and Development (OECD) (2005). Improving Financial Literacy: Analysis of Issues and Policies. Paris: OECD.

Abstract: This book, the first major study of financial education at the international level, contributes to the development of consumer financial literacy by providing information to policymakers on effective financial education programmes. It is also intended to promote the exchange of views and the sharing of experience in the field of financial education. It analyses financial literacy surveys in member countries, highlights the economic, demographic and policy changes that make financial education increasingly important, and describes the different types of financial education programmes currently being offered in OECD countries. Finally, this book evaluates the effectiveness of financial education programmes and suggests actions policymakers can take to improve financial education and awareness.

Osteen, S., G. Muske and J. Jones (2007). "Financial Management Education: Its Role in Changing Behavior." Journal of Extension 45 (3).

Abstract: Managing personal finances is a crucial but difficult issue. Many writers are concerned about whether or not Americans are prepared to handle their finances as personal debt and bankruptcies grow. While some educators believe that financial education can improve a family's financial security, others question the effectiveness of such programs. The study reported here examined the results of Money 2000^TM and its ability to influence behavior and financial preparedness. Participants made greater use of banks and less use of loan and check cashing services, increased savings, and decreased debt. The data supports financial literacy training as enhancing financial well-being.

Parrish, L. and L. Servon (2006a). "Policy Options to Improve Financial Education: Equipping Families for Their Financial Futures." New America Foundation, Asset Building Program.

Abstract: Financial education is needed now because children and adults show low levels of financial education at a time when the financial services landscape has become highly complicated just as consumers are most responsible for making their own financial decisions. Americans are not saving, and bankruptcy and debt rates are growing. Financial education initiatives should be taught at teachable moments, starting at an early age and should address both the supply of and demand for financial knowledge. Recommendations include a mandated course on personal finance prior to high school graduation and establishing a savings and investment account for every American child born. Adults require opportunities for financial education in conjunction with accounts; states should especially provide financial education to TANF recipients. Public awareness campaigns, penalties levied against predatory lenders, workplace financial education and a Financial Services Corps for spreading access to financial planning are further recommended.

Parrish, L., H. McCulloch, K. Edwards and G. Gunn (2006b). "State Policy Options for Building Assets." New America Foundation

Abstract: States continue to play an important role in helping low- and moderate-resource families save and build wealth. New America Foundation presents a range of ideas to broaden savings and asset ownership, from low-cost to those requiring substantial investment, to alter longer-term outlooks and prospects for struggling Americans, in policy areas including financial education, savings, serving unbanked and underbanked populations, homeownership, retirement planning., entrepreneurship, tax refunds, wealth sharing, asset limit reform and asset protection.

Peng, T., S. Bartholomae, J. Fox and G. Cravener (2007). "The Impact of Personal Finance Education Delivered in High School and College Courses." Journal of Family and Economic Issues 28 (2), 265-284.

Abstract: This study investigates the impact of personal finance education delivered in high school and college. Outcomes of interest were investment knowledge and household savings rates measured years after the financial education was delivered. A web-based survey with questions about participation in financial education, financial experiences, income and inheritances, and demographic characteristics was administered to 1,039 alumni from a large Midwestern university. Participation in a college level personal finance course was associated with higher levels of investment knowledge. Experience with financial instruments appeared to explain more of the variance in both investment knowledge and savings rates. No significant relationship between taking a high school course and investment knowledge was found. Financial experiences were found to be positively associated with savings rates.

Risinger, C. (2005). "Teaching Consumer Literacy with the Internet." Social Education 69 (2): 96-98.

Abstract: Are you ready to hear about another "gap" between U.S. education and education in other nations? While surfing the internet for the sites mentioned in this column, I found out that nations such as Finland, Thailand, Australia, Wales, and Northern Ireland are doing more about preparing K-12 students to be intelligent consumers than we are in the United States.

Seidman, E., K. Murrell and M. Koide (2007). "Public Policy Ideas to Improve Financial Education and Help Consumers Make Wise Financial Decisions." New America Foundation, Financial Services and Education Project, Asset Building Program.

Although the number of financial education programs has grown over the last decade, few policies have been enacted to evaluate, support and expand effective financial education and increase financial capability. Although the government is not the only entity that can help improve financial education, there is an important role for the government sector to play that complements the efforts of the private sector, the nonprofit sector, and the efforts of individuals to take personal responsibility to access financial education. All levels of government can develop policies that help prepare youth and adults to make wise financial decisions. This report identifies some policy ideas that were generated by financial education experts-including practitioners, researchers, and financial institution representatives-during the New America Foundation's Roundtable Meeting on March 21-22, 2007 in Washington, D.C. The policy ideas included in this report can improve financial education and help consumers increase their financial capability. For the purposes of this report, financial capability can be defined as developing the skills and confidence to be aware of financial opportunities, to know where to go for help, to make informed choices, and to take effective action to improve financial well-being. Financial capability links education with appropriate products and services to make the education relevant.

Shockey, S. and S. Seiling (2004). "Moving into Action: Application of the Transtheoretical Model of Behavior Change to Financial Education." Financial Planning and Counseling 15 (1), 1-12.

Abstract: This study used the Transtheoretical Model of Behavior Change to assess change in financial behavior over a 4-week period among participants enrolled in an IDA financial education program. All six money management behavior means increased. Participants who advanced at least one stage are expected to double their chances of taking action on their new behavior.

Suiter, M. and B. Meszaros (2005). "Teaching about Saving and Investing in the Elementary and Middle School Grades." Social Education 69 (2), 92-95.

Abstract: For several years, advocacy groups have recognized the need to strengthen financial education in the K-12 schools. Current statistics support their concerns. Financial illiteracy in the United States is astoundingly high. From 1992 to 2000, disposable personal income for Americans rose by 47 percent, but personal spending rose by 61 percent. In those eight years, the overall personal savings rate fell from nearly 6 percent to zero. Half of all Americans today are living paycheck to paycheck. Fifty percent of all adults have not started saving for retirement. For many Americans, unpaid credit card balances exceed 401(k) balances. These are but a few of the statistics that point out the importance of preparing young people to manage their personal finances intelligently.

Thaler, R. and C. Sunstein (2008). Nudge: Improving Decisions About Health, Wealth and Happiness. New Haven: Yale UP.

Abstract: Every day, we make decisions on topics ranging from personal investments to schools for our children to the meals we eat to the causes we champion. Unfortunately, we often choose poorly. The reason, the authors explain, is that, being human, we all are susceptible to various biases that can lead us to blunder. Our mistakes make us poorer and less healthy; we often make bad decisions involving education, personal finance, health care, mortgages and credit cards, the family, and even the planet itself. Thaler and Sunstein invite us to enter an alternative world, one that takes our humanness as a given. They show that by knowing how people think, we can design choice environments that make it easier for people to choose what is best for themselves, their families, and their society. Using colorful examples from the most important aspects of life, Thaler and Sunstein demonstrate how thoughtful "choice architecture" can be established to nudge us in beneficial directions without restricting freedom of choice. Nudge offers a unique new take, from neither the left nor the right, on many hot-button issues, for individuals and governments alike.

Valentine, G. and M. Khayum (2005). "Financial Literacy Skills of Students in Urban and Rural High Schools." Delta Pi Epsilon Journal 47 (1), 1-9.

Abstract: In the past decade, a growing number of studies have established considerable deficiencies in financial literacy among students and adults in the United States. The purpose of this paper is to further examine the relationship between the nature of economic socialization of high school students in urban and rural schools and their financial literacy at aggregate and disaggregated levels based on the scores of high school students on a personal finance quiz and the students' demographic characteristics.

Varcoe, K., A. Martin, Z. Devitto, and C. Go (2005). "Using a Financial Education Curriculum for Teens." Financial Counseling and Planning 16 (1), 63-71.

Abstract: Many researchers have studied and documented the financial literacy of youth. Even more have developed educational programs or curricula to teach them financial and consumer issues; however,. Few have actually evaluated the effectiveness of their programs. The Money Talks: Should I Be Listening? Curriculum, developed by a Cooperative Extension team, was created for teenagers to address what they want to learn about using money. A goal of the team who created Money Talks was to evaluate the effectiveness of the curriculum for changing the financial knowledge and behavior of teens. This paper presents research findings from pre- and post-test evaluations to ascertain changes in financial knowledge and/or behavior of participants.

Wagland, Suzanne (2006). "Financial Literacy in the Context of Literacy in General." University of Western Sydney, Australia.

Over recent decades, the concept of literacy has developed to meet the challengers and demands of the 21 century. In addition to reading and writing, individuals require skills to manage new technologies and the seemingly endless amount of information available. The need to be literate is particularly relevant in the area of personal finance. Over the last two decades, there has been an identifiable shift in most developed nations giving individuals greater responsibility for their own financial wellbeing and long term retirement planning. In response, the financial industry has created new products and services offering greater choice and flexibility in how individuals can manage their funds, but also increasing the complexity with which individuals have to cope. If individuals are to be literate and, in particular, financially literate in the 21 century, they require three essential skills: First, the skills to seek relevant information; second the skills to critically evaluate this information; and third, the skills to utilize this information to make beneficial decisions and solve problems. This paper will first discuss this concept of literacy as it has been developed for information literacy and then use this concept to look at financial literacy. Against this background, the paper will then discuss some issues related to developing financial literacy in Australia.

Willis, L. (2008). "Against Financial Literacy Education." University of Pennsylvania Law School. Scholarship at Penn Law. Paper 208.

Abstract: The dominant model of regulation in the United States for consumer credit, insurance, and investment products is disclosure and unfettered choice. As these products have become increasingly complex, consumers' inability to understand them has become increasingly apparent, and the consequences of this inability more dire. In response, policymakers have embraced financial literacy education as a necessary corollary to the disclosure model of regulation. This education is widely believed to turn consumers into "responsible" and "empowered" market players, motivated and competent to make financial decisions that increase their own welfare. The vision is of educated consumers handling their own credit, insurance, and retirement planning matters by confidently navigating the bountiful unrestricted marketplace. Although the vision is seductive, promising both a free market and increased consumer welfare, the predicate belief in the effectiveness of financial literacy education lacks empirical support. Moreover, the belief is implausible, given the velocity of change in the financial marketplace, the gulf between current consumer skills and those needed to understand today's complex non-standardized financial products, the persistence of biases in financial decision-making, and the disparity between educators and financial services firms in resources with which to reach consumers. Harboring this belief may be innocent, but it is not harmless; the pursuit of financial literacy poses costs that almost certainly swamp any benefits. For some consumers, financial education appears to increase confidence without improving ability, leading to worse decisions. When consumers find themselves in dire financial straits, the regulation through education model blames them for their plight, shaming them and deflecting calls for effective market regulation. Consumers generally do not serve as their own doctors and lawyers and for reasons of efficient division of labor alone, generally should not serve as their own financial experts. The search for effective financial literacy education should be replaced by a search for policies more conducive to good consumer financial outcomes.

Willis, L. (2008). "Evidence and Ideology in Assessing the Effectiveness of Financial Literacy Education." U of Pennsylvania Law School, Public Law Research Paper No. 08-08; Loyola-LA Legal Studies Paper No. 2008-06.

Abstract: Financial literacy education has long been promoted as key to consumer financial well-being. Yet the claim has never had more than negligible statistically significant empirical support. This review (1) sets forth the model of financial literacy education underlying public support for these programs today, (2) identifies pervasive and serious limitations in existing empirical research used by policymakers as evidence of the effectiveness of this education, and (3) recommends a number of alternative public policies suggested by the existing research.

Xiao, J., Ed. (2007). Handbook of Consumer Finance Research. NY: Springer Publishing.

Abstract: Debt consolidation; pension givebacks; Social Security under siege; bankruptcies and foreclosures; Americans' financial lives are fraught with issues, challenges, and potential threats, in record numbers. The Handbook of Consumer Finance Research surveys the social aspects of consumer behavior, offering latest data and original research on current consumer needs as well as identifying emerging areas of research. This volume starts with current concepts of risk tolerance, consumer socialization, and financial well-being, and moves on to salient data on specific settings and populations, including: Healthcare spending and retirement savings; Online shopping and e-banking; Family finances: marriage, parent/child communications, student spending; Financial concerns of special groups: minorities, seniors, the poor; Management issues of business-owning families; Consumer protection in fair lending. Given the current climate of rising debt and negative savings, the Handbook is timely and instructive reading for educators, researchers, and policymakers who wish to develop or evaluate financial education programs, design research initiatives, and understand better how to help families with the economic problems of our times. It can also serve as a graduate text in economics, finance, consumer science, business, and family studies.

Financial Services and Education Project: Publications, Events and More

Urgency for New Rules for Finance Is Slipping Away | The Associated Press

Economic Inclusion – Consumer Product Updates

Overcoming Account Opening Impediments to the Bank Secrecy Act

National Consumer Protection Agency Would Upend Fragmented Structure | Los Angeles Times

Treasury Department Considers SAFE-T Proposal

The Savings and Financial Electronic Transaction (SAFE-T) Account

The Effectiveness of Youth Financial Education

Coaches for a Game of Money | New York Times

Financial Education in the Workplace

Too Small to Fail

Financial Education in the Workplace

Building Financial Stability

Ellen Seidman on NPR | 'FDIC, Treasury At Odds Over Use Of Bailout Money'

Foreclosures: What are Fannie And Freddie Doing to Stem the Tide?

Ellen Seidman in The Washington Independent | 'The Best Explanation so Far for Paulson’s Bailout Behavior'

Ellen Seidman in The Washington Independent | 'The Expectations Game and the Government’s Mortgage Plan'

Ellen Seidman in CongressNow | 'Experts Urge Caution in Financial Regulatory Overhaul'

Ellen Seidman in American Banker | 'Why $700B Now Seems Like a Down Payment'

The Effectiveness of Youth Financial Education

Executive Summary

Promising Practices

Controversies

Evaluation and Impacts

Gaps in Knowledge and Suggestions for Research

Introduction

Purpose and Methodology

Youth Financial Literacy, Education and Capability: Some Definitions

Effectiveness of Financial Education

The Current State of Financial Education for Youth

Promising Practices in Youth Financial Education

Timing of Financial Education

Teacher Training and Professional Development

Incorporate Savings Tools to Make Education Relevant

Evaluation and Assessment

Evidence of Impact: Data

The Evaluation Dilemma

Controversies

Gaps in Knowledge and Suggestions for Further Research

Conclusion

Works Cited

Descriptive Bibliography

Clarke, M., M. Heaton, C. Israelsen and D. Eggett (2005). "The Acquisition of Family Financial Roles and Responsibilities." Family and Consumer Sciences Research Journal 33 (4), 321-340.

Financial Literacy and Education Commission (FLEC) (2006). Taking Ownership of the Future: The National Strategy for Financial Literacy. Washington, DC: FLEC. See also "Taking Ownership of the Future Quick Reference Guide."

Fox, J., S. Bartholomae, and J. Lee (2005). "Building the Case for Financial Education."Journal of Consumer Affairs 39 (1), 195-214.

Fox, J. and S. Bartholomae (2007). "Financial Education and Program Evaluation." In Xiao, J., Ed., Handbook of Consumer Finance Research, 47-68. See entry under Xiao, J.

Franklin, I. (2004). "Financial Literacy Program Prepares Youth for Living on Their Own." Journal of Family and Consumer Sciences 96 (1), 22-23.

Godsted, D. and M. McCormick (2006). "Learning Your Monetary ABCs: The Link between Emergent Literacy and Early Childhood Financial Education." Networks Financial Institute Report 2006-NFI-03.

Gross, K. (2005). "Financial Literacy Education: Panacea, Palliative, or Something Worse?" St. Louis University Public Law Review 24: 307-312.

Haynes, D. and N. Chinadle (2007). "Private Sector/Educator Collaboration: Project Improves Financial, Economic Literacy of America's Youth." Journal of Family and Consumer Sciences 99 (1), 8-10

Johnson, E. and M. Sherraden (2007). "From Financial Literacy to Financial Capability among Youth." Journal of Sociology and Social Welfare 34 (3), 119-146.

Jump$tart Coalition. "Annual Survey of Personal Financial Literacy among High School Students." 2004, 2006, 2008 available from http://www.jumpstart.org.

Lucey, T. (2005). "Assessing the Reliability and Validity of the Jump$tart Survey of Financial Literacy." Journal of Family and Economic Issues 26 (2), 283-294.

Lucey, T. and K. Cooter (2008). Financial Literacy for Children and Youth. Athens, GA: Digitaltextbooks.biz.

Lucey, T. and Giannangelo, D. (2006). "Short Changed: The Importance of Facilitating Equitable Financial Education in Urban Society." Education and Urban Society 38 (3), 268-287.

Lusardi, A. (2008b). "Household Saving Behavior: The Role of Financial Literacy, Information, and Financial Education Programs." NBER Working Paper No. W13824.

Lusardi, A., Ed. (2008c). Overcoming the Saving Slump: How to Increase the Effectiveness of Financial Education and Savings Programs. Chicago: U of Chicago, P. 2008 (forthcoming).

Lyons, A., L. Palmer, K. Jayaratne, and E. Scherpf (2006a). "Are We Making the Grade? A National Overview of Financial Education and Program Evaluation." Journal of Consumer Affairs 40 (2), 208-235.

Mandell, L. (2007a). "Financial Literacy of High School Students." In Xiao, J., Ed., Handbook of Consumer Finance Research, 163-184. See entry under Xiao, J.

Mandell, L. (2008). "High School Financial Literacy." Forthcoming in Overcoming the Savings Slump, A. Lusardi, Ed. See entry under Lusardi, A.

Morton, J. (2005). "The Interdependence of Economic and Personal Finance Education." Social Education 69 (2), 66-70.

National Association for State Boards of Education (NASBE) (2006). Who Will Own Our Children: The Need for Financial Literacy Standards. Alexandria, VA: NASBE.

Organization for Economic Co-Operation and Development (OECD) (2005). Improving Financial Literacy: Analysis of Issues and Policies. Paris: OECD.

Peng, T., S. Bartholomae, J. Fox and G. Cravener (2007). "The Impact of Personal Finance Education Delivered in High School and College Courses." Journal of Family and Economic Issues 28 (2), 265-284.

Risinger, C. (2005). "Teaching Consumer Literacy with the Internet." Social Education 69 (2): 96-98.

Suiter, M. and B. Meszaros (2005). "Teaching about Saving and Investing in the Elementary and Middle School Grades." Social Education 69 (2), 92-95.

Thaler, R. and C. Sunstein (2008). Nudge: Improving Decisions About Health, Wealth and Happiness. New Haven: Yale UP.

Valentine, G. and M. Khayum (2005). "Financial Literacy Skills of Students in Urban and Rural High Schools." Delta Pi Epsilon Journal 47 (1), 1-9.

Willis, L. (2008). "Evidence and Ideology in Assessing the Effectiveness of Financial Literacy Education." U of Pennsylvania Law School, Public Law Research Paper No. 08-08; Loyola-LA Legal Studies Paper No. 2008-06.

Xiao, J., Ed. (2007). Handbook of Consumer Finance Research. NY: Springer Publishing.

Financial Literacy and Education Commission (FLEC) (2006). Taking Ownership of the Future: The National Strategy for Financial Literacy. Washington, DC: FLEC.
See also "Taking Ownership of the Future Quick Reference Guide."