Posts Tagged "financial education"

Two Steps Back for Financial Education

Consider these grim outcomes for financial educators:

  • One study found that the seniors who had the least financial knowledge were most confident about their knowledge;
  • The most successful educational tools – stock market games – send the message it’s okay to gamble;
  • When Illinois required consumers to attend a workshop for certain types of mortgages, homebuyers avoided those mortgages;
  • Scores for national financial literacy tests administered to high schools by the JumpStart program declined between 1997 and 2008;
  • Soldiers exhibited worse budgeting behaviors after taking a financial course than before.

In the past decade, foundations, governments, and non-profits have poured millions into financial literacy efforts in grade schools through college and among low-income neighborhoods and specialized groups, such as homebuyers and the military.Learn More

Cartoon of five orange heads with microchip like lines extending from their brains.

High School Influences Life Knowledge

It’s been well-established that most people have low levels of financial literacy and struggle to manage and plan their personal finances. Now two Wisconsin researchers have taken the conversation to the next level by trying to explain why.

According to their study, featured in a webinar posted online today, the financial literacy of people entering retirement is significantly determined by high school IQ level or by whether the individual took high-level math classes in school.

University of Wisconsin professors Pamela Herd and Karen Holden arrived at this finding by analyzing 6,000 individuals from a unique longitudinal data set of people who graduated from Wisconsin high schools in 1957 – and were in their mid-60s at the time of the study. …Learn More

12