Financial Literacy Center Staff in the News
Mitchell Quoted in TownTalk Commentary — Mar. 15, 2012
In "A challenge for our (old) age," the author cites FLC associate director Olivia Mitchell that "we need to advance financial literacy the way we do public health" if people are to be prepared for their old age.
Financial Literacy Low Among Vulnerable Populations: NBER — Feb. 15, 2012
While the last few decades have made new products more accessible to “small investors,” this puts undue pressure on investors who are “financially unsophisticated” and may have difficulty understand complex products, according to a National Bureau of Economic Research working paper by Annamaria Lusardi.
When 401(k) Loans Are a Smart Move — Aug. 22, 2011
After two weeks of volatility in the stock market, and the potential for plenty more ahead, some unlikely winners may have emerged: The growing number of workers who have taken loans from their 401(k) plans recently. Many have avoided significant stock market losses, while paying themselves what now looks like a handsome, and guaranteed, rate of return.
Read the Article at blogs.smartmoney.com Read More about Olivia Mitchell at wharton.upenn.edu
Baby Boomers Worry About Finances, Health Costs — Jul. 28, 2011
The "golden years" may lose some luster for many baby boomers worried about the financial pressures that come with age. The oldest boomers are turning 65 this year, but it's the younger ones who might be feeling more apprehension."Boomers are not all created equal," says Olivia Mitchell, professor at the Wharton School of the University of Pennsylvania and executive director of the Pension Research Council.
Test Your Financial Literacy Knowledge — Jul. 12, 2011
One of the biggest barriers to learning any new skill is overconfidence. Even the best of them can find themselves guilty of overconfidence, but quickly acknowledging your weaknesses can make the learning processes much easier. Surprisingly, Americans seem to be suffering from a bit of overconfidence when it comes to their money savviness—at least according to a study called Financial Literacy and Retirement.
Read the Article at mybanktracker.com Read More about Olivia Mitchell at wharton.upenn.edu
Most Americans Haven’t Planned for Retirement and Other Areas of Concern — Jun. 6, 2011
On the Consumer Financial Protection Bureau’s website, you can track the daily movements of former Harvard Law Professor Elizabeth Warren, the agency’s champion and, for now at least, its de facto leader. But if some members of Congress have their way, Warren’s calls for transparency won’t be heard by many Americans.
Read the Article at blogs.wsj.com Read More about Annamaria Lusardi at dartmouth.edu
Elizabeth Warren and the CFPB: How to demonize an agency before it even opens — May 21, 2011
The financial status of American households may be even darker than we thought. More Americans may not be prepared for retirement. The "troubling picture of the state of financial capability in the United States" comes from a new working paper published by the National Bureau of Economic Research, authored by Annamaria Lusardi.
Read the Article at understandinggov.org Read More about Annamaria Lusardi at dartmouth.edu
Financial Illiteracy Hinders Savings — Mar. 20, 2011
Few would argue that we have a retirement crisis in America. What people might debate is how we solve the problem. Slowly but surely, however, researchers are producing work that offers much-needed insight into how we can reduce the severity of the problem.
Read the Article at pittsburghlive.com Read More about Olivia Mitchell at wharton.upenn.edu
Trend of Late Retirement Might Be a Good Thing — Dec. 22, 2010
The FLC's Olivia Mitchell talks to Marketplace about the AARP report released today indicating that baby boomers are postponing retirement, a boon for both the federal government and younger workers.
Read the Article at marketplace.publicradio.org Read More about Olivia Mitchell at wharton.upenn.edu
3 Reasons Your Boss Should WANT You to Keep Working Past 60 — Dec. 20, 2010
It's no secret that delaying retirement has become the go-to strategy for Baby Boomers scrambling to shore up their finances in the wake of the financial crisis. Yet the big question is whether business will be receptive to keeping older workers around, let alone hiring them as the economy recovers.
Read the Article at moneywatch.bnet.com Read More about Olivia Mitchell at wharton.upenn.edu
Why Women Risk Retirement Disaster, and How They Can Avoid It — Dec. 8, 2010
Retired women and pre-retired women alike fail to plan long-term for their retirement, according to a study by the Society of Actuaries (SOA). Offering an actuarial perspective on ways to address these concerns, the report, titled "The Impact of Retirement Risk on Women," uses findings from the "2009 Risks and Process of Retirement Survey Report" to identify specific concerns for women and retirement.
Read the Article at advisorone.com Read More about Olivia Mitchell at wharton.upenn.edu
The Best Money Lesson for Kids? Independence. — Nov. 17, 2010
While personal finance experts continue to search for the best way to impart money lessons, there's something parents can do today to help prepare their children for financial independence. That is resisting the urge to be overly protective and supportive—something that doesn't always come naturally to today's hovering moms and dads.
Read the Article at money.usnews.com Read More about Annamaria Lusardi at dartmouth.edu
Invest Like a Man or a Woman? — Nov. 16, 2010
If there's one constant in almost every study about investing, it's that a real gender divide exists in financial behaviour. But when do women do it better, and when is it prudent to follow where men tread?
Read the Article at theglobeandmail.com Read More about Annamaria Lusardi at dartmouth.edu
Can Regulations Create More Financially Savvy Consumers? — Oct. 27, 2010
Observers agree that consumers need to be better educated when it comes to the financial markets. While it is unclear whose job it is to provide that education, most agree that if consumers were more financially literate, the recession and its aftermath might not have been so severe.
Read the Article at knowledge.wharton.upenn.edu Read More about Olivia Mitchell at wharton.upenn.edu
Who Says Women Can't Get Rich Investing? — Sep. 28, 2010
When it comes to attaining financial security, women face a steeper climb than men. But we also have a few advantages.
Read the Article at fool.com Read More about Annamaria Lusardi at dartmouth.edu Read More about Olivia Mitchell at wharton.upenn.edu
Director Annamaria Lusardi to Chair Financial Literacy Experts Group that Evaluates Financial Literacy of Young People Worldwide — Sep. 13, 2010
Director Annamaria Lusardi will chair the Financial Literacy Experts Group at the OECD, which has taken on the mission of designing a module on financial literacy for the Programme for International Student Assessment (PISA). The Programme is a worldwide evaluation of 15-year-old students' scholastic performance, evaluated first in 2000 and repeated every three years. A new module will be proposed for the 2012 survey to measure financial literacy among 15-year-olds in 19 countries.
Read More at annalusardi.blogspot.com
Read More about Annamaria Lusardi at dartmouth.edu
Olivia Mitchell to Get RIIA Award at Annual Meeting — Sep. 3, 2010
FLC's Olivia S. Mitchell is being honored with the Achievement in Applied Retirement Research Award for her field, advancing research in retirement income management and financial planning, during the Retirement Income Industry Association's annual meeting and awards dinner October 4-5.
Read the Announcement at advisorone.com Read More about Olivia Mitchell at wharton.upenn.edu
Study by Annamaria Lusardi and Peter Tufano Finds that the Economic Crisis Has Led to Reductions in the Use of Routine Medical Care — Aug. 16, 2010
The economic crisis in the United States has reduced the use of routine medical care, and the cutbacks here are much deeper than in countries with universal health care systems.
Read the Article at nytimes.com
Read More about Annamaria Lusardi at dartmouth.edu Read More about Peter Tufano at people.hbs.edu
Mortgage Rates at 50-Year Lows. Should You Refinance? Maybe Not. — Aug. 12, 2010
An online calculator, developed by three economists, tells homeowners when refinancing can save them enough money that it doesn't make sense to wait anymore.
Read the Article at csmonitor.com View the Refinance Calculator at nber.org
Read More about David Laibson at economics.harvard.edu
David Laibson Suggests Six Ways to Raise Domestic Savings Rate — Aug. 6, 2010
The Economist asked, "What actions, if any, should countries with persistent current account deficits take to boost net exports? Is the use of any form of industrial policy ever justified?" The responses have been nearly unanimous in their assessment: to address the trade deficit governments need to encourage domestic saving.
Read the Article at economist.com Read Related Article at economist.com
Read More about David Laibson at economics.harvard.edu
Retirement Income Gap Poses Another Challenge for Women — Jul. 21, 2010
"Traditionally, husbands paid the bills and balanced the check book, and women managed the household," says Olivia Mitchell. "But with 50 percent of marriages ending in divorce, the specialization means that women end up single without any knowledge about where their money is or how it's invested."
Read the Article at huffingtonpost.com Read More about Olivia Mitchell at wharton.upenn.edu
FLC Codirector Olivia Mitchell Agrees with Rep. John Boehner's Suggestion to Fix Social Security by Raising the Retirement Age — Jul. 6, 2010
"As Americans live longer and fewer young workers are around to tax so the government can pay retiree benefits, the system is becoming increasingly unaffordable," Mitchell said. "Revenues fell below benefit costs this year with the economic crisis, as more people retired early and fewer workers were paying in benefits. So the Social Security system urgently needs reform."
Read the Article at marketwatch.com Read Related Post at cnn.com Read Related Article at fa-mag.com
Read More about Olivia Mitchell at wharton.upenn.edu
Annamaria Lusardi Mentioned in The New Yorker — Jul. 5, 2010
The depth of our financial ignorance is startling. In recent years, Annamaria Lusardi, an economist at Dartmouth and the head of the Financial Literacy Center, has conducted extensive studies of what Americans know about finance. It's depressing work. Almost half of those surveyed couldn't answer two questions about inflation and interest rates correctly, and slightly more sophisticated topics baffle a majority of people. Many people don't know the terms of their mortgage or the interest rate they're paying. And, at a time when we're borrowing more than ever, most Americans can't explain what compound interest is.
Read the Article at newyorker.com Read Related Article at theatlantic.com
Read Related Article at nytimes.com
Read More about Annamaria Lusardi at dartmouth.edu
Retiring Right — Jun. 25, 2010
Experts agree that wealth alone is no guarantee of retirement security; saving too little "runs up and down the income scale and wealth scale," says Olivia S. Mitchell, an insurance and risk-management professor at Wharton. Comfortable living inevitably translates to spending. Though the wealthy save, Mitchell explained in the Wharton study, "people with high earnings also spend a lot" to keep the lifestyle they enjoy going.
Read the Article at pnwlocalnews.com Read More about Olivia Mitchell at wharton.upenn.edu
Economics for (and by) 10th Graders — Jun. 24, 2010
It's a well-documented truth that many Americans are financially and economically illiterate—a handicap that some believe contributed to the recent financial crisis. A 2008 paper by Annamaria Lusardi, Olivia S. Mitchell and Vilsa Curto found that "[F]ewer than one-third of young adults possess basic knowledge of interest rates, inflation, and risk diversification." While experts disagree on the effectiveness of financial education, it seems likely that teaching economics at the middle- and high-school levels are a pretty good idea.
Read the Article at nytimes.com Read More about Annamaria Lusardi at dartmouth.edu Read More about Olivia Mitchell at wharton.upenn.edu
New Authority: Women Take Charge of Managing Money — Jun. 23, 2010
According to research by Annamaria Lusardi, professor of economics at Dartmouth College and the director of the Financial Literacy Center, women are not as interested in personal finance as men. "This is true of young women, old women, and rich and poor women, and women in other countries. It's something inherent in finance."
Read the Article at ft.com (subscription required) Read More about Annamaria Lusardi at dartmouth.edu
Needed, Now: New Approaches to Financing Old Age — May 26, 2010
Following the global financial crisis, troubled retirement systems around the world face new challenges that may result in sharply reduced income for retirees—as well as the possibility that younger workers will need to work much longer.
Listen to the Interview Read the Article at upenn.edu Read More about Olivia Mitchell at wharton.upenn.edu
Improving Our Financial IQs: Why Managing Money Should Be a Lifetime Skill — May 26, 2010
FLC Director Annamaria Lusardi—along with Michelle Greene, deputy assistant secretary for financial education and financial access at the U.S. Treasury Department—spoke with Knowledge@Wharton about the need for financial literacy training and tools, the reasons why Americans tend to be ignorant when it comes to money matters, and why it's especially important to teach smart spending and savings habits at a young age.
Listen to the Interview
Read the Article at upenn.edu Read More about Annamaria Lusardi at dartmouth.edu
Two Major Barriers to Your Retirement Plans — May 17, 2010
When it comes to retirement, there are lots of things to consider: tax rates, earthquakes, and drug interactions to name a few. But experts say there are two big elephants in the room with which many of us will have to deal, sooner or later.
Read the Article at foxbusiness.com Read More about Olivia Mitchell at wharton.upenn.edu
Financial Illiteracy Prevails, Especially for Over-55s — May 6, 2010
There is some momentum building to increase the teaching of personal finance in K-12 schools. That may help younger Americans, but what about those soon-to-be or already retired? A huge amount of wealth and well-being is at stake.
Read the Article at philly.com Read More about Annamaria Lusardi at dartmouth.edu Read More about Olivia Mitchell at wharton.upenn.edu
The Savings Sweepstakes — May 5, 2010
Lottery-like savings programs aren't widely legal in the U.S., but Peter Tufano, a Harvard Business School professor, believes they could inspire more low and middle-income Americans to save.
Read the Article at retirementincomejournal.com Read More about Peter Tufano at people.hbs.edu
Despite Crisis, Money Classes for Teens Are Rare — May 5, 2010
"The financial crisis taught us a very valuable lesson," said Annamaria Lusardi, the director of the Financial Literacy Center and a professor of economics at Dartmouth College. "We'll either pay by educating or pay by rescuing."
Read the Article at dallasnews.com Read More about Annamaria Lusardi at dartmouth.edu
Who Are the 50 Top Women in Wealth? — May 3, 2010
What do Nancy Pelosi, Mary L. Schapiro, Elizabeth Warren, and Denise Voigt Crawford have in common with Maria Elena Lagomasino, Deborah McWhinney, Mary Erdoes and Sallie Krawcheck? These women are collectively responsible for the financial well-being of millions of Americans.
Read the Article at wealthmanagerweb.com Read More about Olivia Mitchell at wharton.upenn.edu
Full Disclosure: Most Risks Hide in Plain Sight — Apr. 24, 2010
Even if disclosures are easy to think about, investors still may not focus on what matters most. A team of economists, including David Laibson of Harvard, tested whether investors would favor the lowest-cost choice among four index funds if the importance of fees was hammered home in a one-page "cheat sheet."
Read the Article at wsj.com Read More about David Laibson at economics.harvard.edu
Women and Money: We Earn Less and Invest Poorly (If at All) — Apr. 24, 2010
"Research has shown that women, even professional women with good jobs and successful careers, tend to be less financially literate than men," said FLC Director Annamaria Lusardi. "The gap in financial literacy between women and men is large not only among older people."
Read the Article at trueslant.com Read More about Annamaria Lusardi at dartmouth.edu
They've Got It: Fixes for the Financial System — Apr. 23, 2010
FLC Director Annamaria Lusardi is one of the six academics cited in The New York Times on creative proposals to change the financial system. "Financial literacy is an essential piece of knowledge that every student should have," Ms. Lusardi wrote.
Read the Article at nytimes.com Read More about Annamaria Lusardi at dartmouth.edu
Financial Advice by Women for Women — Apr. 23, 2010
"One reason that women might be better financial decision makers, despite displaying, in general, lower literacy than men, is that women know what they do not know," said Professor Lusardi, who is director of the RAND Financial Literacy Center.
Read the Article at nytimes.com Read More about Annamaria Lusardi at dartmouth.edu
A Look at Financial Literacy — Apr. 13, 2010
Annamaria Lusardi, Director of the Financial Literacy Center, speaks with VPR's Jane Lindholm about the importance of knowing basic skills to manage money and understand the financial system.
Listen to the Interview at vpr.net Read More about Annamaria Lusardi at dartmouth.edu
Working Financial Literacy in with the Three R's — Apr. 9, 2010
"We need to teach the basics of economics and finances so people can make financial decisions in a changing world," said FLC Director Annamaria Lusardi.
Read the Article at nytimes.com Read More about Annamaria Lusardi at dartmouth.edu
Women and Finance — Apr. 2, 2010
When was the last time you had a frank discussion about money with your friends? How aggressively did you negotiate your salary last time you got a new job or had a good review? Have you ever met with a financial planner to figure out what your savings goals should be?
Read the Article at ibtimes.com Read More about Annamaria Lusardi at dartmouth.edu
Think Like a Squirrel — Apr. 2010
Time plays tricks on our ability to make smart decisions, especially when it comes to money. "We care a lot more about today than about the future," explains David Laibson, Harvard economics professor and FLC researcher.
Read the Article at kiplinger.com Read More about David Laibson at economics.harvard.edu
Revise and Resubmit: The Crisis Is Changing How Macroeconomics Is Taught — Mar. 31, 2010
David Laibson, Harvard economics professor and FLC researcher, says students in his undergraduate macroeconomics course are "chomping at the bit."
Read the Article at economist.com (subscription required) Read More about David Laibson at economics.harvard.edu
Your Mind and Your Money—Spending vs Saving — Mar. 29, 2010
"We know we should save 10-15 percent of our income. the problem is we have to start doing that now if we're ever going to get around to it," says David Laibson, Harvard economics professor and FLC researcher.
Watch the Video at pbs.org Read More about David Laibson at economics.harvard.edu
Two Major Barriers to Your Retirement Plans — Mar. 22, 2010
"My recommendation to workers is to delay retiring as long as possible—another three to five years, or even longer where feasible," said Olivia S. Mitchell, associate director of the Financial Literacy Center.
Read the Article at marketwatch.com Read More about Olivia Mitchell at wharton.upenn.edu
One Small Step for Financial Literacy — Mar. 18, 2010
Annamaria Lusardi, one of the leading academic lights of financial literacy, has begun a new Financial Literacy Center "to develop and test innovative programs to improve financial literacy and promote informed financial decision-making."
Read the Post at freakonomics.blogs.nytimes.com Read More about Annamaria Lusardi at dartmouth.edu
Your Mind and Your Money—Animal Instincts for Saving and Spending — Mar. 15, 2010
"And the basic story is that humans, like lots of other animals, place full weight on what happens right now and half weight on what happens even a few days away," says David Laibson, Harvard economics professor and FLC researcher.
Watch the Video at pbs.org Read More about David Laibson at economics.harvard.edu
Americans Short on Financial Smarts, Experts, Surveys Say — Feb. 28, 2010
"The surprise is not that people do not know, but how little people know," said Annamaria Lusardi, director of the Financial Literacy Center. "There are some worrisome trends. and they stem from the young to the old."
Read the Article at pittsburghlive.com Read More about Annamaria Lusardi at dartmouth.edu
Experts Assess Upper Valley Economy — Feb. 24, 2010
The national financial crisis has highlighted the need to use increased financial literacy to bolster the economy in the Upper Valley, local financial experts said in a Tuesday panel discussion in Norwich, Vermont. the panel included Audrey Brown, assistant to the director of the Financial Literacy Center.
Your Investments: How to Become Financially Literate — Feb. 17, 2010
"There is nothing easy about finance," says Annamaria Lusardi, "These are often difficult decisions for people who don't have a lot of financial sophistication. My research shows over and over that financial illiteracy is widespread—not only among the poor or uneducated, but even people with college degrees."
Read the Article at jpost.com Read More about Annamaria Lusardi at dartmouth.edu
Workers Encouraged to Understand Importance of Saving for Retirement — Feb. 4, 2010
Any financial advisor worth his green visor says participating in an employer-sponsored retirement plan such as a 401(k) is a no-brainer, yet millions of Americans pass up the offer each year. "We are particularly interested in women and low-income employees because these groups face unique savings challenges," said Annamaria Lusardi.
Read the Article at dailycourt.com Read More about Annamaria Lusardi at dartmouth.edu
Are Americans Financially Capable? — Feb. 3, 2010
While lack of financial knowledge and ability may seem like the least of our current problems, they are actually crucial markers of how well Americans can cope with financial adversity and prepare for their own futures.
Read the Article at ibtimes.com Read More about Annamaria Lusardi at dartmouth.edu
PROspective Features Annamaria Lusardi on How Financial Literacy Impacts 401(k) Plans — Feb. 2010
"If you give me an hour of physics, I am not going to run home and fix my car. If plan sponsors want to affect behavior, they have to listen to employees' needs and barriers to saving," said Annamaria Lusardi.
Read the Article at promanageplan.com Read More about Annamaria Lusardi at dartmouth.edu
Obama Makes Auto Ira, Retirement Savings a Focus — Jan. 28, 2010
President Barack Obama is launching an effort to help Americans save more for retirement, hoping a government nudge or two can get them to do what many are unable to do on their own. "It's not just lower-income people whom we need to provide incentives or help for," said Annamaria Lusardi, Director of the Financial Literacy Center. "The shrinking middle class also finds it difficult to afford a comfortable retirement. These initiatives should help both."
Read the Article at townhall.com Read More about Annamaria Lusardi at dartmouth.edu
Looking for a Fix for Retirement Security — Jan. 27, 2010
Good, but not enough. That's how academics and advisers characterize President Barack Obama's plans to help Americans save more for retirement. "The proposal to promote retirement savings and financial security after retirement is very important," said FLC Director Annamaria Lusardi, "But, Obama also needs to turn his attention to debt and debt management."
Read the Article at marketwatch.com Read More about Annamaria Lusardi at dartmouth.edu
America's Financial Illiteracy — Jan. 13, 2010
Many of the most important decisions consumers make in their lifetimes involve financial products: a mortgage to purchase a home, a loan to purchase an automobile, credit to make a large durable purchase, investments for retirement and insurance to keep one's family secure. All of these financial products have become increasingly complex over time, making decision-making more complicated. Two economists, Annamaria Lusardi and Olivia Mitchell, have been studying financial literacy and the effectiveness of efforts to promote it for many years.
Read the Article at forbes.com Read More about Annamaria Lusardi at dartmouth.edu Read More about Olivia Mitchell at wharton.upenn.edu
Financial Literacy: A Call to Action — 2009
Financial literacy has been receiving a good deal of special attention at the NC State College of Management in the past year or so. at one end of the spectrum is the growing interest in financial literacy among students of the college.
Read the Article at mgt.ncsu.edu Read More about Robert Clark at mgt.ncsu.edu Read More about Melinda Morrill at mgt.ncsu.edu
What You Need to Know About Saving for the Future — Oct. 28, 2009
More and more workers are expected to handle all the minute details related to their own retirement. with little financial knowledge and no planning, many people are taking on this task without the resources to help them. Professor Annamaria Lusardi has been named the inaugural director of a new financial literacy center that hopes to change all that.
Listen to the Podcast Read More about Annamaria Lusardi at dartmouth.edu
What Works in Financial Education — Jul. 23, 2009
FLC Director Annamaria Lusardi argues that financial literacy today is as important as learning to read and write. BusinessWeek's Amy Feldman spoke with Lusardi about what works, what doesn't, and how to get people to do the right thing.
Read the Interview at businessweek.com Read More about Annamaria Lusardi at dartmouth.edu
Protecting Consumers: Regulation Is Not Enough — Jun. 23, 2009
Financial literacy is an essential tool for consumers trying to navigate today's world, where they engage in a myriad of financial transactions in an increasingly complex financial marketplace. Consumers require financial literacy to make decisions related to saving, retirement planning, managing credit card debt, and acquiring mortgage loans.
Read the Article at ibtimes.com Read More about Annamaria Lusardi at dartmouth.edu
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