Financial Literacy in the Media
American Financial Literacy
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.
3 Questions That Predict Your Retirement Readiness — Jun. 10, 2011
Individuals who have more financial knowledge have a greater likelihood of planning for retirement, according to a new National Bureau of Economic Research study. The survey asked respondents three financial literacy questions and found that those with all correct answers are likely to be the most prepared for retirement.
Most Americans Haven’t Planned for Retirement and Other Areas of Concern — Jun. 6, 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.
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.
Many Employees Don’t Understand Retirement Packages — Dec. 27, 2010
Employees often misunderstand their retirement packages and plan their golden years using inaccurate assumptions, a new study shows. Employees near retirement age incorrectly gauged when their retirement plans would kick in—and used those misconceptions to choose a retirement age. Many didn’t know how much post-retirement income they would earn either.
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.
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?
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.
In Queens, a New Project: Learn the Art of the Deal — Oct. 25, 2010
A group of counselors and speakers from New York City's Financial Empowerment Centers (there are 20, according to the Department of Consumer Affairs) came to Queens to host the Art of Money, a "financial literacy fair" targeting members of the creative economy.
As R.I. Treasurer, Raimondo Would Stress Financial Literacy — Oct. 20, 2010
"The time to financially empower our citizens is now," [Gina M. Raimondo] said. "Rhode Islanders are being asked to do more with less. It's more important than ever that they have the knowledge they need to avoid risky credit products and knowledge about the resources available to help them make ends meet."
Survey: One in Four Troops Has More Than $10,000 in Credit Card Debt — Oct. 15, 2010
A new survey of 800 U.S. servicemembers by the Financial Industry Regulatory Authority's Investor Education Foundation found that military families often carry more debt and pay more penalties than civilians, and could face long-term financial problems as a result.
Communities to Focus on Financial Education — Oct. 15, 2010
Financial literacy takes center stage over the next few days during Money Smart Week.
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E*TRADE Bank Announces $2 million, 15-month Commitment to Operation HOPE — Sep. 21, 2010
E*TRADE Bank announced its continued commitment to improving financial literacy and education in low income and minority communities with a new $2 million, 15-month pledge to Operation HOPE (HOPE), an international non-profit dedicated to delivering financial education, access and empowerment to the underserved.
Bob Johnson Calls for U.S. Department of Education Secretary to Incorporate Financial Literacy and Savings Curriculum in Federally Funded Schools — Sep. 20, 2010
Robert L. Johnson, founder and chairman of The RLJ Companies, calls upon the U.S. Department of Education Secretary, Arne Duncan, to encourage federally funded schools to incorporate mandatory financial literacy and savings courses into existing curriculum.
Uncle Sam Wants You to Learn from Your Financial Mistakes — Sep. 9, 2010
As we continue to assign blame for the nation's economic mess, perhaps it would do us well to look in the mirror. Then ask yourself whether you helped push this country into the recession.
The Missing Mandate: Financial Literacy — Aug. 11, 2010
As legislators and lobbyists congratulate themselves on the 2300 pages of legalese drafted to reform Wall Street banks and the financial services industry, not one paragraph addresses a major reason why the meltdown occurred: how American consumers learn to manage money.
Many Shun Bank Accounts but Pay More for Financial Services — Aug. 9, 2010
Nearly 8% of U.S. households, or about 17 million people, don't have bank accounts, according to a 2009 study by the Federal Deposit Insurance Corp. An additional 18%—43 million people—are "underbanked," which means they have bank accounts but occasionally use check-cashing companies, pawn shops, liquor stores or other alternatives to cash checks, pay bills and borrow money.
We All Must Learn to Handle Money — Aug. 8, 2010
Do we—you and I—make good financial decisions? We all want to think so, but there's troubling evidence to the contrary.
Financial Literacy Is More Critical Today than Ever — Aug. 5, 2010
Preparing our children for college really requires a twofold approach. First, students have to be ready for the academic challenges that college presents. Second, students and their families must have the financial means to afford the expenses associated with a college education.
Experts: Minority Seniors Particularly Vulnerable to Financial Insecurity — Jul. 30, 2010
Assemblyman Mike Eng understands firsthand the importance of addressing financial insecurity and the vulnerability of seniors. His nearly 90-year-old mother, who resides in a Hawaii nursing home, was recently approached by an individual who convinced her to sign a power of attorney letter.
Money Management a Difficult Lesson for NFL's Rookie Class — Jul. 29, 2010
As they begin life in the NFL, rookies also can ponder sobering fine print that tempers the allure of becoming rich and famous. They could also wind up broke.
Ex-NFL Player Luther Elliss Says NCAA Should Teach Money Skills — Jul. 29, 2010
Luther Elliss has a suggestion for college programs which continually pump out players that fuel the big business of football: Stress money management.
Efforts Increased to Reach the 'Unbanked' — Jul. 23, 2010
This spring, Memphis Mayor A.C. Wharton Jr. announced the launch of "Bank On Memphis," a financial literacy campaign whose goal is to bring "unbanked" Mid-Southerners into the financial mainstream.
Teaching Financial Literacy — Jul. 23, 2010
Tess Vigeland talks to personal finance expert Beth Kobliner about the Office of Financial Literacy, which will conduct two studies on financial literacy.
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Manhattan's Poor Urged to Open Bank Accounts — Jul. 22, 2010
Pricier check-cashing and money-order services charge typical "unbanked" household in Manhattan about $530 per year in fees, Borough President Scott Stringer reports.
Raise Your Financial IQ — Jul. 19, 2010
Help is on the way for those needing to brush up on finances at the Maryland CASH Academy, which will offer online financial literacy classes.
Tinker Federal CU Includes Prisoners in Financial Literacy Outreach — Jul. 13, 2010
Tinker Federal Credit Union has expanded its financial education outreach to include prison inmates and at-risk youth.
Think You're a Savvy Investor? Better Read This — Jul. 2, 2010
You don't need to know much about the mutual fund industry to know that the Dunning-Kruger effect is alive and well in the field of personal investing, a fact that many mutual fund managers exploit to their benefit.
For NFL Rookies, Playbook Includes Money Matters — Jun. 29, 2010
NFL rookies received some lessons this week on how to manage their finances as part of the league's annual four-day rookie symposium at the La Costa resort in Carlsbad, Calif. The 252 draft picks, most of them fresh out of college, sat through a presentation from NFL sponsor Visa Inc. that reviewed the importance of saving part of what they earn and keeping track of their credit score.
Opinion: Wanted—Better Financial Literacy — Jun. 25, 2010
As millions of Americans struggle to recover from the economic crisis, financial educators and financial services companies are searching for new ways to raise financial awareness. And among them, a consensus is emerging that a fundamental change is needed—one that redefines the concept of financial education, from increasing consumers' knowledge to actually changing their behavior, or developing "financial capability."
4 Things Financial Reform Won't Do For You — Jun. 25, 2010
Sweeping new rules on banks are meant to protect consumers against greedy lenders and risky financial offerings. What they wont do is protect consumers from themselves.
3 Things Your Advisor's Too Scared to Tell You — Jun. 24, 2010
Fudging the truth is fine when discussing your best friend's new hairdo, nephew's orchestral debut, or delicious pot roast your in-laws served. But in matters of money, you should seek nothing but the whole truth from any financial professional you hire. That is, if you can get it.
Financial Tough Love — Jun. 23, 2010
"Tough love" when it comes to money and children is difficult for any parent, especially when a child's financial condition can be quite dire.
Is There a Cure for Financial Illiteracy? — Jun. 19, 2010
Tucked into the new financial-overhaul bill that Congress is working to finish is a new Office of Financial Literacy to help consumers learn about savings, debt and credit scores.
Are Fathers Good Financial Role Models? — Jun. 17, 2010
The National Foundation for Credit Counselings (NFCC) 2010 Financial Literacy Survey addressed the topic of where consumers learned the most about personal finance. The majority of respondents, 41 percent, said they learned their personal finance skills from their parents or at home.
Dallas Wants Residents to Improve Financial Acumen — Jun. 16, 2010
City officials have started a campaign to help low- and moderate-income Dallas residents improve their finances.
Financial Literacy: The Key to Equality—Operation Hope Launches BBDO Campaign to Promote Empowerment — Jun. 16, 2010
Promoting financial literacy, Operation Hope has launched its first TV PSA campaign. The three spots, featuring the nonprofit's founder, John Hope Bryant, promote the importance of financial empowerment, including becoming financially literate, serving as a role model for young people and getting foreclosure help.
MORTGAGES; Weak Math Skills Linked to Default — Jun. 13, 2010
If you can't divide 300 by 2, should you qualify for a loan? That is one of the questions raised by a new study led by a Columbia University assistant business professor, Stephan Meier, who found that borrowers with poor math skills were two times more likely than others to go into foreclosure.
New Policy Doesn't Charge Homeless with a Job to Stay in City Shelters—It Makes Them Save Cash — Jun. 5, 2010
Homeless people with jobs won't have to pay rent to stay in city shelters under a new deal announced Friday - but they will have to start saving money to get their own apartments.
Consumer Literacy Needs Realistic Approach: Bloch — May 17, 2010
The financial services sector must take a more realistic approach when dealing with consumer literacy and understanding, according to Mercer member services and advice leader Jo-Anne Bloch.
Cars and Loans and Consumers — May 16, 2010
Creating a new Consumer Financial Protection Agency is a good idea, and car dealers should not be exempted from its reach.
We're Flunking Personal Finance — May 9, 2010
Researchers at the University of Wisconsin at Madison surveyed K-12 educators, and, not surprisingly, most instructors don't think they are suitably trained to teach their students the basics of personal finance.
Financial-Literacy Courses Benefit Parents, Children — May 7, 2010
With her 18-year-old daughter ready to strike out on her own, Kellie Wager decided to do some leading by example. Rather than give a lecture or two about the need to save, watch expenses and manage money wisely, Wager decided to go through the paces herself.
Crossroads for Retirement Investments Nears — May 5, 2010
We save too little, too late. We fail to do the homework to understand the financial products we already own. As a consequence, we often make poor investment decisions.
How Close Are You to the Financial Edge? Take This Quiz — May 2, 2010
April was financial literacy month. Did you learn anything?
Study Shows Correlation between Financial Literacy and Foreclosure — Apr. 29, 2010
Financial literacy is often touted as the tool to avoid future financial missteps. It may even be enough to keep homeowners out of foreclosure, according to a recent study by the Federal Reserve Bank of Atlanta.
Personal Finance: It's Time to Brush up Your Financial Know-How — Apr. 25, 2010
When it comes to personal finances, it's hard to feel savvy. So many choices, so many confusing concepts.
Cleaning Up Your Finances Starts with Baby Steps — Apr. 13, 2010
The mere thought of trying to overhaul your personal finances can leave even the best-intentioned consumers frozen in place. But that's because a lot of us take an all-or-nothing approach, says Kimberly Allman, a Brooklyn, N.Y., financial advisor.
Fed Boss: Bone Up on Your Financial Know-How — Apr. 13, 2010
Americans would make smarter investment choices if they sharpen their financial know-how, Federal Reserve Chairman Ben Bernanke said Tuesday.
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.
Why Lack of Financial Literacy Is Crippling Consumers, and What You Can Do About It — Apr. 9, 2010
April is National Financial Literacy Month, and it's the perfect time to make a commitment to learning more about your personal finances.
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.
Fed's Duke Says Financial Literacy Should Be School Requirement — Apr. 8, 2010
Federal Reserve Governor Elizabeth Duke said that financial literacy should be a standard part of the curriculum in U.S. schools. "The need in this country for financial education is so great that we must continue to tackle it at all levels and with all available resources," Duke said.
A Consumer Watchdog for Your Wallet — Apr. 6, 2010
The new regulator could ban penalty fees charged when high-interest mortgages are paid off early. It could let you take credit card disputes to court rather than be forced into mediation. and it could start a financial literacy drive to warn seniors about financial fraud.
April Is Perfect Month to Improve Our Financial Skills — Apr. 3, 2010
April is National Financial Literacy month. the current economic downturn reminds us daily how important it is for each of us to be making good financial choices, saving for emergencies, and planning for our financial future.
Financial Literacy Now at Click of a Mouse — Apr. 3, 2010
A new University of Iowa center aims to spread financial literacy and help people make shrewd decisions about their money.
Financial Literacy Month: Test Your Financial IQ — Apr. 2, 2010
Even the most financially savvy have had their knowledge tested as the Great Recession led to a call for a complete overhaul of the financial system. But the basics are the basics.
Impulse Is Bliss — Apr. 1, 2010
The capacity to make decisions, including financial decisions, changes dramatically over the life cycle. What is the defining characteristic of the elderly client? "Vulnerability," says Nicole Maestas, an economist at the RAND Corporation.
What Our Parents Taught Us—And Didn't Teach Us—About Money — Mar. 17, 2010
The tooth fairy was generous, never was a birthday card empty and allowance could be counted on like the days on the calendar.
We Live a Lifestyle We Can't Afford — Mar. 14, 2010
Dennis Talbert doesn't bring up Michigan's miserable economy when he talks about helping people learn how to manage money. Instead, he describes a young woman he knows who has a modest job in Detroit, but lives in West Bloomfield and drives a Mercedes-Benz.
Gen Y to Banks: Do Better — Mar. 10, 2010
Members of generation Y, the group of Americans currently in their late teens to early 30s, have watched as the housing market collapsed, the stock market faltered, and financial institutions received massive government loans to stay afloat. As a result, many of them are skeptical about handing over their hard-earned money to traditional banks.
Even the Rich Can Be Dumb About Money — Mar. 10, 2010
The goal, says Larry Glazer, a managing partner of Boston's Mayflower Advisors, is a next generation of adults who live within their means, avoiding untold stress and frustration. But the bigger picture is preventing a future financial meltdown."
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."
Study: Americans Want Greater Financial Literacy — Feb. 18, 2010
If there is one positive fall-out from the credit crisis and the prolonged financial downturn, it is that it has prompted many Americans to look to acquire greater financial know-how.
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.
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.
Obama Creates Financial Literacy Council — Jan. 29, 2010
U.S. President Barack Obama signed an executive order Friday creating an Advisory Council on Financial Capacity to help improve Americans' financial literacy.
Charity Pushes for Financial Literacy in the Workplace — Jan. 28, 2010
Educational charity Life Academy is urging employers to help increase financial literacy among staff.
Study Says Many Americans Are in the Dark on Basic Financial Concepts — Jan. 16, 2010
Seventy percent of Americans rate their financial knowledge as high. But Americans, including many who give themselves high marks on math and finances, make common mistakes that cost them a bundle in needless charges, penalties, and fees.
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.
6 Old-School Savings Tricks Are Back — Sep. 14, 2009
It's no secret that consumers have grown more frugal: excessive spending is out and saving is in. "It's become chic to talk value," says Julie Winskie, the chief client officer at marketing firm Porter Novelli, which tracks consumer behavior for retailers.
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.
Financial Literacy: The Time Is Now — Jul. 22, 2009
When it comes to financial matters, Americans are functionally illiterate. That's the growing consensus among policymakers and educators, many of whom contend that the country's lack of financial sophistication is one cause of its current economic problems.
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.
TopRetirement Planning
The Easiest Way to Get People to Save More — Mar. 27, 2012
In a marriage of financial literacy and behavioral economics, researchers were able to boost retirement-plan contributions simply by telling people the benefits of doing so. Besides reminding people about the general benefits of retirement savings, the large-scale test also showed different groups exactly how much their future assets would grow and how much income those assets would regularly produce during the person's retirement years.
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.
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.
3 Questions That Predict Your Retirement Readiness — Jun. 10, 2011
Individuals who have more financial knowledge have a greater likelihood of planning for retirement, according to a new National Bureau of Economic Research study. The survey asked respondents three financial literacy questions and found that those with all correct answers are likely to be the most prepared for retirement.
Most Americans Haven’t Planned for Retirement and Other Areas of Concern — Jun. 6, 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.
Your New Year’s Resolution to Save More: How to Make It Stick — Jan. 3, 2011
Is saving more for retirement one of your New Year’s resolutions? If so, you’re not alone. According to a recent poll sponsored by Fidelity Investments, more than half of the survey respondents listed this goal as their top financial priority for 2011. For a few tips on how to really stick to your New Year’s resolutions, let’s take a look at behavioral finance, a fascinating field that examines how your emotions influence your spending and saving.
Many Employees Don’t Understand Retirement Packages — Dec. 27, 2010
Employees often misunderstand their retirement packages and plan their golden years using inaccurate assumptions, a new study shows. Employees near retirement age incorrectly gauged when their retirement plans would kick in—and used those misconceptions to choose a retirement age. Many didn’t know how much post-retirement income they would earn either.
Saving More a Popular 2011 New Year's Resolution — Dec. 27, 2010
A new Harris Poll finds 22% of those surveyed pledging to save more for retirement, with 40% planning to save more overall in 2011. Eight percent intend to make less risky investments in the new year, while 41% will pay down their debt level and 22% intend to ditch one of their credit cards.
Behavioral Economics: The Missing Link in the Financial Crisis? — Dec. 25, 2010
In the United States, the Obama administration has embraced behavioral economics when designing new incentive programs for retirement saving and financial oversight, but the impact is unclear. Americans are still spending more than they are saving. Wall Street is playing the same risky game as ever. So what has changed?
Most Companies Restore 401(k) Employee Matches — Dec. 23, 2010
The stock market has rebounded nicely, yet there's still more good news when it comes to 401(k)s. Most of the companies that suspended their matching contributions as the economy tanked have either restored the match, or plan to within the next six months.
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.
Despite Saving More, Americans Retire Later — Dec. 21, 2010
Even though compared with the rest of the world Americans save more for retirement and start at a younger age, they still retire later in life than their international counterparts. That's the assessment by AXA Equitable Life Insurance in its Retirement Reality Study.
Many Empty-Nesters Spend More, Not Less — Dec. 21, 2010
The kid(s) has finally left home, and you and your spouse are all alone. Now's a great time to boost the retirement savings you've been neglecting. But a study by the Center for Retirement Research at Boston College found the opposite occurs in many households: The empty-nesters start spending more on themselves.
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.
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.
Common Myths on Retirement — Nov. 2, 2010
Retirement as our parents know it may be obsolete because of changes in the economy, society and the demographics of our country. What follows are five common myths about retirement you should consider.
The Downside of Low Inflation — Nov. 2, 2010
The effect of super low inflation could be seen in recent days when the government announced changes to savings bond rates and retirement account limits that are pegged to inflation. Savers can now expect meager returns on the inflation-protected Series I Savings Bonds, if they even still want to buy them. And employees won't be able to sock away more next year in a 401(k) or similar workplace plan, a setback if they're trying to make up for lost time or low returns.
Retirement Planning Gets More Complex as Companies Reconsider 401(k) Plans — Nov. 2, 2010
If you work for a company, either large or small, one of your benefits probably includes a way to save for retirement. In most cases it is a 401(k) or a defined contribution plan in which you make a contribution and your company matches all or part of it. There are a few lucky workers who still have access to an old fashioned pension, even though those are disappearing faster than you can say defined benefit plan. Now comes word that the 401(k) could face a similar fate.
The Opt-Out Solution — Nov. 1, 2010
In 2005, Americans' personal savings rate was negative for the first time since the Great Depression. Only 28 percent of savers are on track to retire on 70 percent of our final salaries—and 70 percent may not be adequate to pay for health costs or travel. Worse, only one third of American workers participate in 401(k) savings plans at all. Getting people to save more is a crucial challenge, and you might assume that it's complex. But some solutions are stunningly simple.
6 Investing Mistakes Young People Make — Oct. 27, 2010
Do you feel like you need to have "extra" money before saving for retirement? Or that you'd rather invest in specific companies instead of broad index funds? RAND research is cited in this article about common mistakes that young people make when they start thinking about putting money into the stock market.
Many Doomed Americans Aren't Saving For Retirement — Oct. 18, 2010
TIAA-CREF, which is promoting the start of National Retirement Savings Week, found that more than one in three Americans (39%) are not saving anything toward retirement.
Working Hard To Save For Retirement? Work Harder — Oct. 17, 2010
Each year since 2006, Congress has declared the third week of October to be National Save for Retirement Week. But because of the weak economy and falling home prices, retirement experts say many Americans are in worse shape for retirement now than they were four years ago.
Why Women Get a Raw Deal on Retirement — Sep. 20, 2010
Because they live longer, women need more money than men for a comfortable retirement—up to 40 percent more for health care expenses alone, according to the Employee Benefit Research Institute. And the gap isn't expected to close for decades.
In Weak Economy, More People Are Filing Early for Social Security — Aug. 9, 2010
Jason Fichtner, the associate commissioner at the Social Security Administration, said the weak economy has led more people who lost their jobs to retire early. However, it also has forced some people hit hard by the recession and in need of a bigger paycheck to stay in the workforce longer. "But we're seeing more people taking early benefits than staying in the workforce longer," Fichtner said.
Five Ways to Cure Retirement Anxiety — Aug. 4, 2010
Whether it's the latest data from EBRI showing half of Americans are at risk of running out of money in retirement, or the endless stream of surveys pointing out that a whole lot of Americans are worried about their retirement prospects and the fate of Social Security, I think we have a clear consensus that we've got a big case of national retirement blues.
Boehner, Others Say Fix Social Security By Raising Retirement Age — Jul. 21, 2010
The time has come for the nation to face some facts and, according to Republican Rep. John Boehner, the House minority leader, that means fixing Social Security by hiking the normal retirement age to 70 for future retirees, from the current 67.
Nine Factors That Affect When You Retire — Jul. 6, 2010
A generation ago most Americans could count on being able to retire right around age 65, but this traditional certainty is rapidly becoming a thing of the past.
6 Biggest Retirement Mistakes — Apr. 12, 2010
Saving for retirement is an intimidating task and everyone makes mistakes. to mark financial literacy month, we asked financial experts about the missteps they see most often and how to avoid them.
Financial Literacy for Feds — Apr. 9, 2010
Did you know that April is Financial Literacy month? in 2003, President Bush declared the United States should use the month to promote healthy financial habits.
Two Major Barriers to Your Retirement Plans — Mar. 22, 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.
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.
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.
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."
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."
From Retirement Planning to Lifelong Planning: An Interview with Maliz E. Beams of TIAA-CREF — Jan. 17, 2010
Maliz E. Beams is executive vice president, client services, at TIAA-CREF, the retirement-investing giant to universities, hospitals, and other nonprofits. She spoke recently with Globe reporter Beth Healy about last year's market rally, on the heels of the historic decline in 2008, and the challenges facing retirement savers.
Dartmouth Study Finds Ways to Boost Retirement Saving — Jan. 14, 2010
Dartmouth College researchers have found effective ways of increasing the retirement savings participation rate of female and low-income employees—people who have historically been more skeptical of their ability to save.
FINRA Study Finds Only 51% of Ages 45-59 Have Calculated Money Needed for Retirement — Jan. 12, 2010
The recently released survey entitled "Financial Capability in the United States" by the FINRA Investor Education Foundation and developed in consultation with the U.S. Department of the Treasury and the President's Advisory Council on Financial Literacy shows that less than half of all working Americans have ever tried to figure out how much they need to save for retirement.
The Best Life: Fact and Fiction Blur in 401(K) Fund Story — Jan. 11, 2010
It is an out-of-body experience to hear the retirement fund industry talk about how well it has performed during the past two years. But that was the party line at a recent panel session in Washington. It was held to discuss recent research into public attitudes toward retirement accounts and the performance of the accounts themselves.
Study: Only Half of Americans Planning for Retirement — Dec. 15, 2009
For workers without a traditional pension, retirement is a do-it-yourself affair. But the majority of Americans have not done any retirement planning, according to research released today. Only 42 percent of working Americans have ever tried to figure out how much they need to save.
10 Resolutions for Retirement Readiness — Nov. 24, 2009
Get your retirement finances in order in 2010 with these tips.
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.
Kids and Money
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
Survey Finds Big Gaps in Students' Understanding of Simple Financial Matters — Oct. 22, 2010
A survey conducted by Gallup and the financial literacy empowerment nonprofit Operation HOPE, found that one-third of American students do not believe in the American Dream of owning their own home. And 40% do not believe that staying in school and getting a good education will help them earn more money.
Junior Achievement Learning Lab Teaches Financial Literacy to Students — Oct. 17, 2010
Junior Achievement and Capital One Bank rolled out a new mobile lab aimed at bolstering financial literacy among local high school students.
Wyoming Area School District Opens Student Credit Union Branch — Oct. 17, 2010
Wyoming Area School District, in conjunction with UFCW Federal Credit Union held a ribbon cutting ceremony inside the school's Secondary Center's cafeteria during the Grand Opening of the Warriors Student Credit Union Branch.
Kids and Money: The No. 1 Reason They Don't Learn at School — Oct. 15, 2010
The bad news is that no matter how much we require schools to teach kids about money it doesn't seem to work. Student financial literacy test scores haven't improved in a decade, according to the JumpStart Coalition for Personal Financial Literacy.
What Kids Should Know About Money At 9, 13, 18 and 23 — Sep. 16, 2010
By age 5 your child should know what coins are worth; by 18 they should understand what interest can do to help—and hurt—them.
For the Young Set to Learn about Saving, Debt and Money Management, It All Starts at Home — Sep. 5, 2010
Some families watch TV after dinner. Others review white papers on economics.
Credit Reforms Reach Campuses — Aug. 27, 2010
The landmark federal legislation that overhauled the credit card industry is reaching into college campuses to protect students as they return to school and attempt to juggle not only their education and social lives but also how to pay for it all.
Financial Education — Aug. 10, 2010
The financial education of our youth is the joint responsibility of schools, parents and a supporting community, all working together to ensure that they are prepared for the fiscal challenges of adulthood.
Financial Literacy 101 — Aug. 3, 2010
Students and parents typically sit down to figure out how to pay the tuition, room and board. But your college financial planning shouldn't end there.
Financial Literacy for Kids a Big Worry for Parents, BofA Says — Jul. 28, 2010
Teaching children how to be financially savvy is almost as important as maintaining a close relationship with family, according to Bank of America Corp.
Does Financial Lit Change Student Behavior? One Researcher Says 'Yes and No' — Jul. 20, 2010
Financial-literacy training has become increasingly common on college campuses, fueled by rising student borrowing and a tough economy. But little research has been done to measure if such training actually influences students' financial behavior.
Read the Article at chronicle.com (subscription may be required)
3 Tips for Kids and Money — Jul. 19, 2010
According to a survey from CollegeGrad.com, 80 percent of all college graduates in 2009 moved back in with their parents after graduation.
Making Money Matters Count — Jul. 9, 2010
More than 30 would-be businesswomen are participating in Girls Inc.'s Youth Empowerment and Self Sufficiency (YESS) summer program, where skills such as managing a checking account, paying rent, and even how to apply for a business license are covered in an interactive setting.
Financial Literacy a Priority in Tenn., Nationally — Jul. 8, 2010
A new program geared to teach Tennessee's students and their parents how to save money for college is part of a growing national emphasis on financial literacy education.
School Finds Economics of Success — Jul. 6, 2010
"To me, financial literacy is the fourth 'R'," said Ramon Gonzalez, 38, the school's principal and one of its founders.
Tennessee Financial Literacy Commission Program Enriches Financial Smarts Will Give U of M Program Stability — Jul. 4, 2010
The creation of a new Tennessee Financial Literacy Commission is likely to benefit a University of Memphis program that trains teachers in grades K-8 how to teach children about personal finance.
Financial Literacy Diploma Requirement — Jul. 1, 2010
Maryland Comptroller Peter Franchot is working to change the graduation requirements for the state's high school students. Franchot wants to make financial literacy requisite for receiving a diploma.
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."
Nearly Half of High School Seniors Lack Confidence in Money Matters — Jun. 17, 2010
Results of a Capital One survey released today found that nearly 45 percent of all high school seniors polled say they are unsure or unprepared to manage their own banking and personal finances. However, of those who have taken a personal finance class—30 percent of the sample—75 percent said they feel prepared to manage their finances.
CA Teachers Support Financial Literacy Education — Jun. 15, 2010
A majority of teachers (65%) believe that financial literacy instruction should begin in elementary school (defined as grades K6), with most respondents choosing kindergarten and sixth grade as the grade levels most suitable for beginning instruction.
Student Debt: Can You Teach Financial Literacy? — May 28, 2010
"You are going to get junk mail beyond your wildest dreams," business teacher Jeff Balch tells the room of 15- and 16-year-olds, who in two years will be off to college and university. "And it's going to be credit cards."
Kids & Money: Learning Some Financial Lessons on the Way to a National Title — May 22, 2010
In front of an audience of educators and financial executives gathered at the Federal Reserve Bank of Kansas City, the students displayed their financial savvy over four hours in tackling questions on topics ranging from budget deficits and stock market indexes to credit cards, 401(k) retirement plans and annuities.
Connecting Students to Aid — May 20, 2010
Millions of dollars in federal financial aid go unclaimed each year by eligible low-income students at community colleges, according to the inaugural report from the College Board's new Advocacy & Policy Center.
Learning Before Earning—Should Kids Have More Financial Education in Schools? — May 18, 2010
For those people involved in education, one of the issues which has come up over and over again is whether there should be more financial education in schools.
Financial Literacy, a Key to Success for Low-Income Students — May 9, 2010
President Obama's focus on college access and completion has drawn new attention to the retention rates of students—particularly those from low-income families, who have long been discouraged from earning college degrees.
Read the Article at chronicle.com (subscription required)
Teaching Financial Literacy at a Student-Run Bank — May 6, 2010
At a bank branch of the Thurgood Marshall Academy in Harlem, student bankers educate their classmates in the art of saving money.
View the Video and Read the Post at cityroom.blogs.nytimes.com
Government Program Shows Students Need More Financial Education — Apr. 30, 2010
The Obama administration has taken steps to try and improve financial literacy among all consumers in the nation, including its younger citizens. And given the results of a recent national campaign, high school students have plenty to learn about what it takes to be financially successful.
How to Teach Financial Literacy to Pre-Schoolers — Apr. 29, 2010
Usually, it's easy for children to ask for money from their parents to buy the things they want. But do parents know that they're not really teaching their kids the right value of money?
Financial Literacy Is Elementary — Apr. 27, 2010
Ariel Academy in Chicago teaches kids the ABC's of investing beginning in the first grade.
When It Comes to Money, Teens Need Reality Check — Apr. 26, 2010
Although the down economy continues to pound on job seekers and young adults coping with record levels of student loan debt, a recent survey of teenagers reveals that they're pretty optimistic about their financial future. The problem: That optimism doesn't seem to jibe with reality.
Tips for Training Children on the ABCs of Money — Apr. 25, 2010
The advice for raising money-smart children usually goes something like this: Once children become interested in money, start teaching them to handle it wisely. Trained well, they will have a foundation for a lifetime of making sound financial decisions.
Pay Dirt: Spending and Saving for the Sippy-Cup Set — Apr. 22, 2010
Kids start asking about—and for—money not long after they stop trying to eat it. I've often wondered why we wait so long to teach financial literacy to little ones.
CPS Students Take Lessons to the Bank — Apr. 21, 2010
Chicago Schools CEO Ron Huberman on Tuesday touted a new "personal finance" class that is helping more than 900 high school students learn how to budget for college, do their taxes and make their money work for them.
Chicago Public School Students Get Money-Savvy — Apr. 20, 2010
Learning how to prepare taxes, open checking accounts and invest in bonds and stocks are just some of the lessons taught in Dunbar's financial literacy class. the course began in February and is taught in 11 other Chicago public high schools as a pilot program and aims to teach students about everyday personal finance issues.
Allowance Tips to Promote Financial Literacy — Apr. 16, 2010
If you're considering paying your children an allowance for household chores, follow these tips to ensure they pick up some money management skills along the way.
How 'Financially Literate' Are You? — Apr. 12, 2010
What's happening inside our classrooms? and how many schools even broach the topic? As it turns out, for a country that prizes personal responsibility, we're doing very little.
Teach Students Financial Literacy — Apr. 1, 2010
Barack Obama's new student loans legislation won't help young people who have grown up accepting that debt is the norm.
In-School Banks Dispense Financial Sense — Apr. 1, 2010
When students at Carter High School in Strawberry Plains, Tenn., forget their lunch money, they don't have to worry about going hungry. Instead, they wander over to one of the five tellers who work at the student-run bank, where they can withdraw money from their savings accounts or fill out short applications for a $5 loan.
The 15 Money Rules Kids Should Learn — Mar. 28, 2010
It's a simple calculus, kids and money: From birth until college graduation, children consume dollars like they're chicken nuggets.
Learning Financial Literacy: Experts Say Students Need to Enroll in Money 101 — Mar. 4, 2010
Kelsey Steinke thought of herself as a fairly bright college student—except when it came to managing her finances. Compared to some of her peers, however, she was a prodigy. "I mean, there are some girls who don't know how to do laundry," she said. "If they can't do their laundry, how can they handle their finances?"
Cheers and Cautions on Credit Cards — Feb. 19, 2010
There are plenty of reasons to cheer the new legislation but there are several particularly troubling aspects of the new law: one is the product of omission and the other an act of commission. Both have a negative impact on financially vulnerable individuals, most particularly college students.
State Should Ensure That Every Student in Maryland Has Basic Financial Literacy — Feb. 10, 2010
As the nation slowly recovers from the worst recession since the Great Depression, states across the country are looking for ways to better protect themselves from future economic downturns. While long-term economic development planning is vital, perhaps the most effective tool Maryland can use to combat future downturns is to take the important steps necessary to educate our children in the basic principles of financial literacy.
New Lesson Plan: Students to Learn Financial Literacy — Feb. 7, 2010
When she leaves Arundel High School for college next year, Chrisha Okocha will have a financial advantage over her peers. As one of just a handful of students who took the county's financial planning course, she can balance a checkbook and calculate interest, and knows to be wary of credit card offers.
Personal Finance Joins Phys Ed and Driver's Ed in Schools — Jan. 29, 2010
Starting the next school year, North Dakota schools are required to expose students to the basics of personal finance somewhere in its curriculum.
In Downturn, Kids Get New Money Lessons — Jan. 27, 2010
In this time of collective national anxiety over the state of our finances, students of Carter Community School—ages 12 and younger—are learning financial lessons that their elders should have been taught in the classroom, but never were.
Teen Money Management Course Has 1,000 Graduates — Jan. 26, 2010
LaShae Robinson of the North Side is the owner of a car, thanks in part to the lessons she learned in a financial literacy program aimed at teaching teens how to save money and manage money.
How to Teach Kids About Money — Jan. 25, 2010
Of all the lessons taught by the financial crisis, the most personal has been that Americans aren't too slick with money. We take out home loans we can't afford. We run up sky-high credit-card debt. We don't save nearly enough for retirement.
Interest Up in Students Learning Personal Finance — Jan. 22, 2010
Each day after school, 17-year-old Phyllis Quach goes to a warehouse filled with silk flowers, stuffed animals and other gift items her parents sell through their South Florida wholesale business. the recession hit the family hard and they can no longer afford the building.
Games Evolve as Tools for Teaching Financial Literacy — Nov. 18, 2009
Although a majority of states do not require financial-literacy classes in K-12 schools, the nation's recent economic struggles have spurred growing interest in the subject by educators—many of whom are turning to digital-game-based approaches to teach students about personal finance and investing.
Read the Article at edweek.org (subscription required)
Suze Orman's Rules on College Funds, Kids' Financial Literacy — Oct. 26, 2009
Suze Orman is a stickler for rules. for more than 20 years, the financial adviser, author, talk show host and motivational speaker has been preaching about following a basic game plan to be financially successful.
Getting Schooled About Money — Sep. 2, 2009
During her junior year of high school, Candice Backus's teacher handed her a worksheet and instructed the 17-year-old to map out her future financial life. Backus pretended to buy a car, rent an apartment, and apply for a credit card. Then, she and her classmates played the "stock market game," investing the hypothetical earnings from their hypothetical jobs in the market in the fateful fall of 2008. "Our pretend investments crashed," Backus says.
Financial Literacy: Reaching the College Crowd — Jul. 23, 2009
Cash-strapped families taking out large student loans to pay tuition. College students graduating with thousands of dollars in debts. Stressed-out seniors working double-shifts to pay off loans. These aren't new stories, but they're becoming increasingly common.
Financial Crises and Assistance
Most Companies Restore 401(k) Employee Matches — Dec. 23, 2010
The stock market has rebounded nicely, yet there's still more good news when it comes to 401(k)s. Most of the companies that suspended their matching contributions as the economy tanked have either restored the match, or plan to within the next six months.
Study: Single Moms Crushed by Recession — Oct. 14, 2010
A new report from NYU's Women of Color Policy Network, "At Rope's End," offers a definitive examination of wealth in families headed by single mothers. The findings are not surprising: women of color, who bear the compounding and accumulating weight of racial and gender inequities in the economy, are most likely to be left with no wealth.
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.
Breaking Patterns That Derail Their Lives: Cash Rewards Motivate Single Parents to Improve — Feb. 16, 2010
The Career Family Opportunity program gives 19 single parents anything from $50 for showing up for a doctor's appointment to $500 for finishing a year of college. Organizers hope the rewards will help motivate its participants to take many small steps toward a life free of poverty and welfare.
Budget Plan Essential for Couples — Feb. 14, 2010
Couples new and old often find financial compatibility one of the biggest hurdles to marital bliss, but financial counselors say couples can increase their chances for happiness by talking candidly with each other about money and how they want to use it.
When Facing Eviction or Foreclosure, the Neediest Cases Fund Offers Hope — Jan. 20, 2010
A New Yorker seeking shelter and warmth underneath cardboard boxes and ratty blankets along the city's wind-whipped streets is a typical image of homelessness—and the image that springs to mind for many people when they fall into a financial crisis. the seven agencies supported by the New York Times Neediest Cases Fund explain how they are able to keep people in their homes or are able to provide more secure housing by pulling from the emergency reserve.
Savers Get a Boost for College, Housing and Businesses — Jan. 14, 2010
When Tory Myles first heard about a program that would triple the money she was saving for college, it sounded too good to be true. She did research to make sure it wasn't just a gimmick. Even now, with more than $4,000 in savings, her first semester at Virginia Commonwealth University paid for without debt, and money still rolling in, she laughs incredulously when she thinks about it.
Personal Bankruptcy Filings Rising Fast — Jan. 7, 2010
The number of Americans filing for personal bankruptcy rose by nearly a third in 2009, a surge largely driven by foreclosures and job losses.
The Housing Meltdown: Why the Blame Game Is Useless — Jan. 4, 2010
In her weekly commentary, host Michel Martin talks about the human factor that sometimes goes unnoticed amid the focus on who did what to contribute to the housing meltdown.
Finding Opportunity in the Recession: Financial Literacy a Potential Mine for Start-Ups — Oct. 16, 2009
Every wannabe entrepreneur wants to know: what businesses are recession proof? Perhaps if you're asking the question, you're already too late. for first-time entrepreneur Reggie Gore, finding a recession proof business idea wasn't a conscious decision.
Wall Street
Behavioral Economics: The Missing Link in the Financial Crisis? — Dec. 25, 2010
In the United States, the Obama administration has embraced behavioral economics when designing new incentive programs for retirement saving and financial oversight, but the impact is unclear. Americans are still spending more than they are saving. Wall Street is playing the same risky game as ever. So what has changed?
The Missing Mandate: Financial Literacy — Aug. 11, 2010
As legislators and lobbyists congratulate themselves on the 2300 pages of legalese drafted to reform Wall Street banks and the financial services industry, not one paragraph addresses a major reason why the meltdown occurred: how American consumers learn to manage money.
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.
Advisors Tout Financial Literacy — Jan. 28, 2010
This week, the National Association of Personal Financial Advisors holds its ninth annual "Jumpstart Your Retirement Plan Days," where advisors answer consumers' financial planning questions by phone or online for free at financial Web site Kiplinger.com.
Mind the Gap: Time to Tackle Wall Street's Diversity Problem — Jan. 22, 2010
The reality is that Wall Street boards and executive committees still score incredibly low when it comes to any kind of real diversity—the inclusion of different perspectives from professionals of both genders and different backgrounds that have requisite core competencies.
Sallie Krawcheck's Advice to Financial Advisers: Start Speaking Plain English — Jan. 21, 2010
The idea that the wealth management industry never changes is mistaken, says Sallie Krawcheck. It changes—very slowly. and the head of global wealth management for Bank of America has some suggestions on how it can change for the better.
Secrets of the Economist's Trade: First, Purchase a Piggy Bank — Jan. 1, 2010
Academic economists gather in Atlanta this weekend for their annual meetings, always held the first weekend after New Year's Day. That's not only because it coincides with holidays at most universities. a post-holiday lull in business travel also puts hotel rates near the lowest point of the year. Economists are often cheapskates.
Minorities and Business/Financial Planning
E*TRADE Bank Announces $2 million, 15-month Commitment to Operation HOPE — Sep. 21, 2010
E*TRADE Bank announced its continued commitment to improving financial literacy and education in low income and minority communities with a new $2 million, 15-month pledge to Operation HOPE (HOPE), an international non-profit dedicated to delivering financial education, access and empowerment to the underserved.
Wharton Announces Campaign to Educate Memphians about Predatory Lending — Aug. 18, 2010
A new program will inform citizens about predatory lending that targets Memphis homeowners who are attempting to refinance mortgages or prevent foreclosure.
Women of Color Lag Behind in Wealth — Aug. 11, 2010
A recent study found that single black and Hispanic women have an average net worth of $100 and $120 respectively. That's thousands less than what single men in those groups have, and far below the average of more than $41,000 for white women. Mariko Chang, author of the report "Lifting As We Climb: Women of Color, Wealth and America's Future," discusses the looming gap.
Read the Article at npr.org Listen to the Interview at npr.org
Experts: Minority Seniors Particularly Vulnerable to Financial Insecurity — Jul. 30, 2010
Assemblyman Mike Eng understands firsthand the importance of addressing financial insecurity and the vulnerability of seniors. His nearly 90-year-old mother, who resides in a Hawaii nursing home, was recently approached by an individual who convinced her to sign a power of attorney letter.
Landmark Financial Overhaul Will Protect African Americans — Jul. 22, 2010
President Barack Obama said sweeping new financial regulations passed by the U.S. Senate Thursday will protect consumers from "the predatory practices of unscrupulous lenders" and prevent future financial crises.
African-American Women Struggle to Overcome Wealth Gap — Jul. 5, 2010
A recent academic study found that the gap in wealth between white and black Americans had more than quadrupled between 1984 and 2007. A quarter of all black families, it said, have no assets at all.
Credit Card Debt Hitting Latinos Hardest — Jul. 2, 2010
A study by the NAACP showed 79 percent of Latino households carry credit card debt, compared with 54 percent of white households.
Martin Luther King's Atlanta Church Adds Financial Literacy Training — Apr. 9, 2010
The Martin Luther King Sr. Resource Facility will be the flagship for Operation HOPE, a Los Angeles-based non-profit organization that educates underserved and low-income Americans about personal financial responsibility.
Financial Literacy, Helping Youths Are Grants' Goals — Feb. 18, 2010
This year, the Black Philanthropy Initiative focused on grants that support financial literacy, said Brenda Diggs, who served as the 2009 chairman of the initiative. "Oftentimes in the African-American community, financial literacy and just plain old money management is something that is just not taught."
Tough Words at King Breakfast — Jan. 11, 2010
Kevin Powell delivered a sober and critical assessment of racism and black culture to a predominantly African American crowd in Baltimore County. He referred to crime, violence and economic disparities within the black community.
For Many Minorities, Saving Isn't So Easy — Jul. 7, 2009
Many Americans fear they'll outlive their savings, but African Americans and Hispanics face an even greater risk of spending the end of their lives in poverty.
Women and Business/Financial Planning
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.
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
Early Lessons Are Key to Helping Girls Manage Their Personal Finances as Adults — Oct. 16, 2010
It's not just older women who leave the big money questions to their husbands. Women as young as their 20s frequently defer financial decision making to their spouses or even their fathers.
Study: Single Moms Crushed by Recession — Oct. 14, 2010
A new report from NYU's Women of Color Policy Network, "At Rope's End," offers a definitive examination of wealth in families headed by single mothers. The findings are not surprising: women of color, who bear the compounding and accumulating weight of racial and gender inequities in the economy, are most likely to be left with no wealth.
Government of Canada Supports Financial Literacy for Women in Victoria — Oct. 14, 2010
The Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, today announced Government of Canada support for a project to increase financial literacy and self-sufficiency among women residents of transitional housing in Victoria.
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.
Why Women Get a Raw Deal on Retirement — Sep. 20, 2010
Because they live longer, women need more money than men for a comfortable retirement—up to 40 percent more for health care expenses alone, according to the Employee Benefit Research Institute. And the gap isn't expected to close for decades.
Women of Color Lag Behind in Wealth — Aug. 11, 2010
A recent study found that single black and Hispanic women have an average net worth of $100 and $120 respectively. That's thousands less than what single men in those groups have, and far below the average of more than $41,000 for white women. Mariko Chang, author of the report "Lifting As We Climb: Women of Color, Wealth and America's Future," discusses the looming gap.
Read the Article at npr.org Listen to the Interview at npr.org
An Abundance of Caution — Aug. 1, 2010
Women investors tend to avoid risk and need education. These qualities serve to make them prime financial planning clients.
Sisters Doing It for Themselves — Jul. 20, 2010
There is a social shift emerging that is transforming the way women control their finances.
Muriel Siebert on Financial Reform and Financial Literacy: The Weekend Interview — Jul. 5, 2010
Of all the things Muriel Siebert has done, the one she thinks is her real legacy is her financial literacy program, now in New York City high schools.
African-American Women Struggle to Overcome Wealth Gap — Jul. 5, 2010
A recent academic study found that the gap in wealth between white and black Americans had more than quadrupled between 1984 and 2007. A quarter of all black families, it said, have no assets at all.
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. Its something inherent in finance."
Read the Article at ft.com (subscription required)
Ask Jill: Sounding The Money Alarm For Women — May 27, 2010
I discussed some of the issues that should make women wake up and smell the financial coffee with reporter Sumi Das recently. To all of my sisters out there: please, please do take the time to understand your money and create a plan for achieving your goals.
Why Women Need Their Own Money Advice — May 25, 2010
Money books have long targeted women as a prime audience, and a slew of new titles takes that focus a step further with pink covers and images of shoes and purses. Recent entrees into the field include Shoo, Jimmy Choo!; A Purse of Your Own; Love It, Live It, Earn It; and Bitches on a Budget.
Feminine Finances — May 23, 2010
Whether they're facing divorce, widowhood or caring for an aging parent, women have a much greater chance of being the lone provider and fending for themselves at some point in their lives.
Women Must Focus on Investing — May 23, 2010
Every tax season brings the challenges of working through significant changes in my clients' lives. Most unsettling are the loss of a spouse to death or divorce. Often, it is the woman in the relationship who is least prepared for a change in circumstances.
Young Women Refocus Money Priorities in Recession — May 11, 2010
Since the economic recession young American women are rethinking their financial priorities, saving more and reducing their debt, according to a new survey.
From Mommy Track, to Money Track — May 9, 2010
What many a mom needs, according to research, is a thoughtful look into her future and the inclination to get serious about investing so she can turn small savings into a decent future.
On Mother's Day, Financial Advice for Mom — May 9, 2010
When it comes to the financial relationship between moms and their kids, it's all about giving—giving advice, giving a helping hand, giving to charity.
The Painful Necessity of Goal-Setting — May 6, 2010
Jane Berryman looked at the 20 women gathered in a Bryn Mawr living room and asked, "How many of you know the ballpark sum you'll need for your children's education?" About half raised their hands.
Fed's Duke Urges Women to Take Charge of Finances — May 1, 2010
Federal Reserve Board Governor Elizabeth Duke on Saturday urged women to take control of their own finances by frequently reviewing budgets and saving for the future.
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."
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.
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?
Single Moms Learn Financial Discipline — Mar. 19, 2010
Dulce Duarte said she didn't have a firm grasp on her finances until she participated in an educational program for low-income single mothers. "Money was controlling me. Now I'm controlling money," said the 32-year-old Omaha nurse and mother of two boys.
Why Don't Women Talk About Their Personal Finances? — Mar. 12, 2010
Why do women's magazines or lifestyle websites rarely publish "how-to" guides for selecting the best credit cards, tackling debt, setting up an IRA account or paying taxes?
Color of Money Challenge: Soon-To-Be-Former Inmates Ready to Rebuild Their Lives — Mar. 7, 2010
Christine Foote and Stephanie Harris are both about to be released on parole from the Maryland Correctional Institution for Women. the women have agreed to allow me to work with them to help manage their money. Over the next year, as part of my Color of Money Challenge, I'll be following the decisions these two need to make to strengthen their financial lives and keep them from going to prison again.
Untapped Market — Mar. 1, 2010
Only a small minority of financial professionals actively seek to attract female clients, leaving a vast and lucrative market for advice significantly underserved.
For Some Women Who Earn More Than Their Husbands, More Money Means More Marital Problems — Feb. 12, 2010
The current economy is speeding up the trend of women earning more than their male partners. in 2007, nearly 26% of wives earned more than their husbands in households where both spouses worked, according to the Bureau of Labor Statistics.
Financial Woes Add Anxiety to Breast Cancer Diagnosis — Feb. 8, 2010
Financial pressure puts low- and medium-income women at particularly high risk for anxiety and depression after being diagnosed with the noninvasive breast cancer ductal carcinoma in situ (DCIS), a U.S. study has found.
Women Worry More About Retirement Finances — Jan. 22, 2010
Men are more likely than women to want to work past 65, but women are more likely than men to worry about retirement finances, according to a survey that highlights the paradoxes of the gender gap.
International Financial Literacy
Hassan Urges Better Financial Education to Reduce Risk — Oct. 21, 2010
Finance Minister Raya Hassan and OECD called Wednesday for better financial education in Lebanon which will spare the country from random financial decisions. "Financial literacy is not a luxury, it is a necessity."
Financial Literacy Campaign on Track in Russia and India — Oct. 15, 2010
The Financial Literacy Train arrived at Moscow's Kazan Railway Station earlier this month, completing its tour of Izhevsk, Perm, Tyumen, Yekaterinburg, Chelyabinsk and Ufa, thus wrapping up Russia's second Financial Literacy Week organised by the Expert Group on Financial Education (the Federal Financial Markets Service).
Government of Canada Supports Financial Literacy for Women in Victoria — Oct. 14, 2010
The Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, today announced Government of Canada support for a project to increase financial literacy and self-sufficiency among women residents of transitional housing in Victoria.
Canada's Financial Literacy Task Force Releases Summary of Public Consultations — Sep. 22, 2010
The Task Force's mandate is to make recommendations to the Minister of Finance on a national strategy to improve Financial Literacy in Canada. In February 2010, the Task Force published a consultation document to help guide a national conversation with Canadians.
Financial Literacy Should Be Priority to Ugandans — Sep. 19, 2010
Acquiring knowledge about financial management should be everyone's priority, the chairman of the Uganda Investment Authority has said.
Students to Learn Financial Literacy — Aug. 18, 2010
High school students will be taught how to manage budgets, how to avoid exceeding their mobile phone plans. Students will also be taught how to plan for married life and retirement, under measures Labor plans to incorporate into the national curriculum.
PM Defends Financial Literacy Plan — Aug. 18, 2010
Prime Minister Julia Gillard concedes Labor's financial literacy policy isn't new, but says extra investment will help "turbo-charge" its implementation.
Time to Focus on Savings — Aug. 16, 2010
The need for greater levels of national savings is coming into focus with experts saying low income levels, an undeveloped financial system, and long term cultural issues remain key issues to be addressed.
Sharples Hopes Others Will Follow Ngai Tahu Example — Aug. 15, 2010
Maori Affairs Minister Pita Sharples hopes other iwi will follow Ngai Tahu in prioritising improving their people's understanding of financial matters.
Financial Literacy Training for 400 People — Aug. 13, 2010
More than 400 rural and disadvantaged people were taught how to manage their money through a basic financial literacy training program organised by Fiji Council of Social Services Microfinance Unit.
Behind the Gobbledegook — Aug. 5, 2010
Small business owners are the latest fall guys in the Coalition Government's attempts to reform and simplify pensions.
Institute Finds Risk to Pension Provision — Aug. 5, 2010
Scrapping compulsory annuitisation could lead to people on lower incomes using their retirement assets too quickly increasing their dependence on means-tested benefits, according to a new study.
Sisters Doing It for Themselves — Jul. 20, 2010
There is a social shift emerging that is transforming the way women control their finances.
Overhaul of Retirement Regime Is Long Overdue — Jul. 17, 2010
The Government's new pension plans will be a breath of fresh air, but if you don't start saving early you will still lose out.
Consumers Face New Tests Before Taking out Loans — Jul. 14, 2010
Consumers could face new financial literacy tests to make sure they understand the detail of loans they want to take out.
Indians Score Over Americans in Financial Literacy — Jul. 9, 2010
According to a study by economists at the Federal Reserve Bank of Chicago, the majority of Indians (80 percent) responded correctly to a financial literacy test, while only 60 percent of respondents from the U.S. gave the right answers to the test.
Financial Literacy Is about Knowing the Basics — Jul. 4, 2010
One of the key lessons from the various collapses of finance and leasing companies across Sri Lanka was the lack of financial literacy displayed by extremely smart people. In their pursuit of extra returns, few showed any understanding of the basic relationship between risk and return.
Lack of Financial Literacy Will Lead to Problems Later — Jun. 30, 2010
International studies have found about five in 10 adults Canadians don't have adequate literacy skills, the economist says. When it comes to numeracy skills, six out of 10 Canadians don't make the grade. The federal government has set up a task force on financial literacy, to which Mr. [Craig] Alexander has made a 14-page submission.
Financial Literacy Vital to Achieve High Income Status — Jun. 26, 2010
The first report on the New Economic Model (NEM) for Malaysia presents a clear message for radical change in our approach to economic development. The stated goal is to enable Malaysia to reach high income status by 2020.
Financial Literacy, Credit Counselling Centre Opened — Jun. 11, 2010
Virudhunagar Collector (in-charge) B. Ganesan on Thursday inaugurated financial literacy and credit counselling centre 'Sneha', sponsored by the Indian Overseas Bank (IOB) here.
Student Debt: Can You Teach Financial Literacy? — May 28, 2010
"You are going to get junk mail beyond your wildest dreams," business teacher Jeff Balch tells the room of 15- and 16-year-olds, who in two years will be off to college and university. "And it's going to be credit cards."
Ignorance about Finance Universal, Says Professor — May 27, 2010
New Zealanders are average when it comes to financial literacy but this is not a problem unique to this country, according to the new chair of finance at Auckland University Business School.
Struggling with Literacy, Numeracy and Now, Recession — May 26, 2010
Inez Bailey, director of the National Adult Literacy Agency (Nala), says it's hard for most people to manage their money in a tough economic climate but "it's even more challenging for people with numeracy and literacy problems who are not able to educate themselves about financial matters."
Informed Investor, Better Investment — May 25, 2010
The financial crisis in the US and the recent Greece crisis drove home an important point: the nagging importance of a robust regulatory system.
Financial Literacy Programme to Empower Small Investors — May 20, 2010
What is a share? What are the rights of minority shareholders? What is the risk in buying equities? If you wanted to know the answers to these questions, help is on its way.
Encouraging a Head for Business — May 19, 2010
"Oligopsony" and "Fisher separation theorem" are meaningless terms to the average citizen, but the government nevertheless wants to see the general population get a stronger grasp of the fundamentals of economy and personal finance.
Learning Before Earning—Should Kids Have More Financial Education in Schools? — May 18, 2010
For those people involved in education, one of the issues which has come up over and over again is whether there should be more financial education in schools.
One Surefire Way to Increase Financial Literacy: Disclosure — May 13, 2010
"Financial institutions, if they really believed in literacy, would start disclosing more information," said David Hague, who retired from the financial industry early this year to focus on teaching and consulting. "This would open clients' eyes and force them to get more financially literate."
Literacy Debate — May 5, 2010
The government is developing a four year literacy action plan targeted at primary schools and focused on raising standards and on closing the gender gap .... both conservatives and liberal democrats agree that measures aimed at improving financial literacy skills should be part of the plan.
How to Teach Financial Literacy to Pre-Schoolers — Apr. 29, 2010
Usually, it's easy for children to ask for money from their parents to buy the things they want. But do parents know that they're not really teaching their kids the right value of money?
Developing a National Strategy on Financial Literacy — Apr. 20, 2010
The fact a poll found three quarters of investors don't consider the tax consequences of their investment actions suggests we have a long way to go in promoting financial literacy in this country.
Financial Literacy 'Must Be Introduced to Schools' — Apr. 20, 2010
Financial literacy should be introduced as a compulsory high school subject to prevent young homeowners from building up dangerous levels of debt, the head of Aussie Home Loans says.
Fiji Authorities Discuss Financial Literacy for Citizens — Apr. 15, 2010
Fiji's banks are all committed to increasing financial literacy in the country.
Task Force on Financial Literacy Kicks-off Public Consultation Sessions across Canada — Apr. 6, 2010
The Task Force on Financial Literacy begins its cross-Canada public consultations today in Vancouver, British Columbia and simultaneously in Yellowknife, Northwest Territories. The sessions will feature presentations by groups and individuals representing a cross section of Canadian society, including the private, public and voluntary sectors.
Moneylife Foundation Conducts Financial Literacy Workshop for Women — Mar. 27, 2010
Moneylife Foundation today held a second special financial literacy workshop for women. Speaking on the occasion was Ms. Ketaki Jayakar, a well-known senior advocate who specialises in marital law.
Uganda: Urgently Needed—Strategy to Increase Financial Literacy — Mar. 24, 2010
There has been a rise in information and tools about personal finance management but not so many people are keen on making use of them.
Pranab Asks Banks to Reach Out to Ignored Segments — Mar. 22, 2010
Finance Minister Pranab Mukherjee on Monday called for a change in the mindset of bankers and other stakeholders for financial inclusion of the hitherto un-reached and under-reached segments of the population.
Why Now? Making Financial Literacy a Priority — Mar. 15, 2010
The Task Force on Financial Literacy has begun an unprecedented round of consultations with Canadians, including cross-country face-to-face meetings, written submissions, Internet outreach and roundtables with key stakeholders.
Tougher Financial Regulation Needed Urgently — Mar. 10, 2010
A survey published earlier this week expressly reveals the extent of the lack of financial literacy among Kiwis.
Onishchenko Announces Financial Literacy Programme — Mar. 10, 2010
The head of Russia's consumer rights watchdog, Rospotrebnadzor, Gennady Onishchenko, announced the upcoming start of a national programme for raising financial literacy, which will help Russians to protect their rights in the financial services' market.
Retail Funds Not So Super — Mar. 5, 2010
It is often said "you get what you pay for", but that may not be the case with superannuation. a new report says that when it comes to super, the more you pay, the less you get.
Financial Literacy Task Force Seeks Comment From Public — Feb. 23, 2010
All manner of organizations have tried to teach us the value of a household budget, saving for retirement and checking our credit score. But a preliminary task force report cites a variety of studies, including a 2009 national survey by Statistics Canada, that indicate many of us have not gotten around to doing what's best.
Financial Literacy Task Force Launches Platform for Discussion with Canadians — Feb. 21, 2010
The federal government's Financial Literacy Task Force has launched a cross-country, multimedia fact-finding mission in a bid to better educate Canadians about the perils of amassing debt and increase their ability to manage personal finances.
Financial Literacy: A Skill to Be Mastered Early in Life — Feb. 16, 2010
"As a finance major, I never realized I knew so little about managing my own money, until now," Huang I-shun, a senior in the finance department at Shih Hsin University, said at a recent award ceremony.
Investing Test Stumps Canadians — Feb. 4, 2010
Only 13 percent of Canadians who took part in an international survey could correctly answer three basic questions about risk and return, a result that suggests most investors lack a solid foundation in financial literacy.
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