1:00-1:10 Welcome 1:10-2:00 Esther Peterson Consumer Policy Forum Lecture by Devesh Ravel 2:00-2:20 Paper Awards 2:20-2:30 Best Journal Article Nominee Video 2:30-2:40 FINRA Foundation / ACCI Undergraduate Student Poster Competition Award 240-2:50 Early-Career Professional Development Mentorship Program 2:50-3:05 Poster Session 1 60-Second Previews 3:05-3:15 Announcements
Join us for a panel discussion with experts from the National Endowment for Financial Education (NEFE) and MissionSquare Research Institute (MSRI). This session is designed to empower conference attendees with the knowledge and tools needed to secure funding for impactful research.
NEFE's panelists will discuss their commitment to rigorous, innovative, and actionable research that increases the financial education community’s body of knowledge, provides insight into financial behavior, and contributes to the field’s understanding of effective educational practices. Attendees will learn about previously funded research topics, the current grant cycle, and receive tips for successful grant applications.
MissionSquare's head of research will highlight the institute's commitment to supporting research in key public sector workforce areas, including Financial Health and Wellness, Retirement and Workplace Benefits, and State and Local Government Excellence. Attendees will learn about preselected research topics, available data, and survey resources along with funded research opportunities.
In the marketplace, money serves as a utilitarian tool for economic exchange, but when it enters the home, it takes on different social and cultural meanings based on its source, earner, and allocation. In today’s digital world, online platforms enable the commodification of previously non-economic household items and activities, introducing new forms of money with distinct meanings. This study draws on Zelizer's "special monies" model to explore this process among Turkish housewives (THWs) using digital secondhand marketplaces (DSMs). Through thirteen in-depth interviews, the research examines how these women transform their culturally designated domain—the home—into a source of income and perceived empowerment, a phenomenon described as the "commodification of homes." The study introduces the concept of "upgrade money" for this income, which is used to enhance the social standing of their home, children, and themselves without directly challenging socio-cultural norms. Although often considered an undervalued domestic currency, upgrade money empowers THWs by shifting their roles from "cashless money managers" to "upgrade money owners." This paper provides qualitative evidence of culturally recognized paths to perceived empowerment for women in constrained contexts.
Homeownership is often referred to as, "the American Dream." However, rising cost of homeownership may restrict some households ability to purchase a home. Given the cultural significance of owning a home in America, this study seeks to understand the relationship between homeownership and financial satisfaction using data from the 2022 wave of the Survery of Household Economics and Decisionmaking (SHED). If homeownership positively influences financial satisfaction, it is possible that homeownership may lead to improvements in financial and overall wellbeing. This study provides a nuanced examination of the factors influencing financial satisfaction, focusing on home ownership, mortgage status, financial literacy, financial stress, financial behaviors, and socio-demographic characteristics. By leveraging established frameworks like the Life Cycle Hyptohesis (LCH), Bhevioral Life Cycle Hypothesis (BLCH), and the Joo and Grable Financial Satisfaction Framework, the study situates itself within the broader literature on financial well-being and adds depth to the undersrtanding of financial satisfaction determinants in the United States.
Using the weighted cross-sectional data from 2019 to 2022 Understanding American Study (UAS) different waives, this study investigates the association between U.S. household’s homeowner’s decisions and financial well-being by analyzing the moderating role of financial literacy. With the help of Ordinary least squares (OLS), we found that households who own homes freely without mortgages and have homeowner insurance are significantly and positively associated with households’ financial well-being. Further, we analyzed the moderating role of households’ financial literacy. We found a strong positive association between medium to high financial literacy after interacting with households who own homes with homeowners’ insurance on the household’s financial well-being. This suggests that financial literacy moderates households’ financial well-being when predicting various impacts on homeowners’ insurance decisions. We also found some heteroscedasticity problems, but with the help of bootstrapping and Robust Variance Covariance Estimates, we solved the heteroscedasticity problem and found consistent results with our original OLS model. This study also has implications for academicians, financial planners, and policymakers. Policymakers can use this study to incentivize homeowners’ insurance among mortgage-free households and improve mortgage and loan programs by adding financial literacy as a module. This paper should help academician base their discussion on the financial well-being of households, and financial planners can use this paper to examine clients’ demographics and socioeconomic differences and how these differences affect their financial well-being.
This research examines how cultural values predict financial health, focusing on two dimensions: financial security (the ability to manage financial shocks) and financial control (confidence in day-to-day financial management). Using data from Gallup's 2018 Financial Health Survey and the Global Preferences Survey across ten countries, the study explores cultural factors, such as patience, risk-taking, reciprocity, altruism, and trust, alongside demographic factors like age, education, income, and employment. A multilevel regression model enables an analysis of how these elements contribute to financial health outcomes. Results show that patience plays a crucial role in financial security and control, as individuals with greater patience tend to engage in stable, long-term financial planning. Conversely, a propensity for risk-taking is associated with less financial security, potentially due to impulsive financial choices that may hinder long-term security. Positive reciprocity supports financial control, whereas altruism, by focusing on others' needs, slightly diminishes personal financial security and control. The results highlight the need for financial education programs that encourage long-term planning and risk awareness, as well as policies that integrate cultural values and demographic insights. These tailored interventions can improve financial health across diverse populations, equipping individuals to face financial challenges effectively.
Results from a study in the United States with a primarily Catholic population show that there are indeed two discernible forms of religiosity (i.e., intrinsic and extrinsic), and both constructs were shown to be independent from spirituality. Furthermore, intrinsic religiosity was shown to negatively influence materialism, while extrinsic religiosity was shown to positively influence materialism and community connectedness. Spirituality negatively influenced materialism and positively influenced life satisfaction. Finally, materialism negatively influenced community connectedness but not life satisfaction while the latter two constructs were shown to be strongly positively correlated. Implications for understanding human values as well as future research questions are also discussed.
This study examines the relationship between human values and saving behavior and analyzes the concepts of personal and cultural values. Drawing from a globally representative sample, we utilized data from the seventh wave of the World Values Survey (2017–2020) and Hofstede Insights (2022), encompassing 67,278 respondents across 48 countries. Two analytical steps were employed: Principal Component Analysis (PCA) to ensure that the selected items accurately measured personal values and a multilevel logit regression to identify associations between personal (individual level) and cultural (country level) values and saving behavior. Based on the Functional Theory of Values, our findings reveal that individuals with personal values of personal orientation and survival needs tend to save more money, while those with personal values of social orientation and thriving needs are less likely to save. At the cultural level, people in individualistic societies save more, whereas those living in countries with high uncertainty avoidance tend to save less.
This study examines the relationship between mathematical confidence and financial literacy, exploring how both independently and interactively influence financial behaviors. Utilizing data from the 2021 National Financial Capability Study, the research investigates if confidence in mathematics complements financial knowledge in predicting positive financial actions, such as saving, emergency fund management, and retirement planning. Findings indicate that mathematical confidence is significantly associated with specific financial behaviors, including retirement contributions and planning, and that the interaction between mathematical confidence and financial literacy correlates with emergency fund ownership. The study underscores the potential of incorporating mathematical competence into financial education efforts to enhance financial well-being and suggests future research directions for understanding the nuanced roles of math skills in financial decision-making.
Financial literacy is essential for young people’s financial well-being. For young people striving for financial independence, financial well-being is a crucial part of life-satisfaction and identity. Frequent presence on social media and other online platforms makes young people particularly susceptible for commercial persuasion, also exposing them to scams and frauds. Therefore, young people also need digital financial literacy. In the current study, we examined, using structural equation modelling, how young people’s financial and digital financial skills and susceptibility to persuasion relate to online shopping scam victimization, and how online scam victimization affect indebtedness and subjective financial well-being. We found that a high level of financial literacy and digital financial skills reduced young people’s probability to become victims of online shopping scams. Susceptibility to persuasion increased the risk for online shopping scam victimization, which increased the likelihood of indebtedness and decreased subjective financial well-being. Based on our results we argue that financial and digital education should include advanced knowledge of the persuasion techniques in digital environments to help young people combat fraud and scams. In addition to schools and families, also other societal actors and networks are needed to build young people’s resilience to online persuasion and scams.
This study investigates how different indicators of FWB changed between 2017 and 2022 for individuals with varying levels of financial literacy across different income groups in the United States. By analyzing these trends, this study aims to provide insights into the interactive role of financial literacy, economic conditions, and social safety net generosity in shaping FWB. The findings of this study have implications for advancing the theoretical understanding of FWB and for informing financial advising practices and public policy initiatives aimed at enhancing financial stability and resilience among vulnerable populations.
The Low-Income Housing Tax Credit (LIHTC) program – created in 1986 as part of the Tax Reform Act – is the largest federal program to finance the development of affordable rental housing. This project aims to examine the short-, moderate-, and long-term impact of Low-Income Housing Tax Credit (LIHTC) developments on the educational outcomes of public school students. Specifically, it will investigate how proximity to affordable housing developments influences students’ outcomes, including both academic performance and behavioral outcomes. Focusing on the effects in the short-term (1 year) and long-term (5-10 years), the project seeks to explore the interplay between housing affordability, neighborhoods, and educational achievement in K-12 public schools. This project will examine how these impacts differ across race, gender, and socioeconomic status to better understand the extent to which the effect of affordable housing differs by these student characteristics.
Currently, there are ten million U.S. adults diagnosed with Attention-Deficit Hyperactivity Disorder (ADHD). The increasing prevalence of ADHD among students in higher education coincides with rising concerns about the impact of student loan debt. The primary objective of this phenomenological study was to explore, through scarcity theory lens, the cognitive and affective challenges faced by individuals experiencing ADHD in managing their student loans._x000D_ We analyzed user posts from from an online community of two million members r/ADHD (Reddit), where individuals experiencing ADHD shared their experiences related to student loan debt. Thematic analysis was employed to identify key themes surrounding scarcity. _x000D_ Our findings demonstrated various forms of cognitive and affective scarcities faced by individuals experiencing ADHD, including financial pressures, difficulties in effective budgeting, and a lack of adequate support systems. Users reported feelings of stress and anxiety due to the complexities of managing their student loans. Despite challenges, many users demonstrated resilience and adaptability, developing coping strategies that included seeking alternative financial planning resources and support. _x000D_ This study highlights an urgent need for targeted interventions that integrate financial knowledge, debt literacy, and mental health support to help improve the well-being of individuals facing this coexisting issue of student-debt burden and ADHD.
Prior research has established through a variety of techniques that Black and Latinx consumers generally have lower credit scores than white and Asian consumers. However, this research has often relied on datasets lacking respondents’ self-reported racial identity or has not been nationally representative, which can introduce bias into estimates. Further, while a substantial amount of recent research has uncovered racial and ethnic disparities in debt repayment and delinquency, there has been limited exploration into how other aspects of consumers’ credit histories, such as length of credit history, are contributing to credit score gaps. In this paper, we address these gaps by debuting an innovative data source – credit records matched to a nationally representative probability-based survey panel – to better understand disparities in credit scores. We use this data to estimate racial and ethnic gaps in credit scores and to explore one important source of score disparities: differences in length of credit history. We find large disparities in credit scores and length of credit history by race and ethnicity. We also find that two mechanisms used to establish and lengthen credit histories – joint account ownership and authorized usership – are less frequently utilized by Black consumers.
Existing research highlights significant racial and ethnic disparities in economic hardship, leading to reduced consumer well-being. Financial capability is positively associated with financial well-being, suggesting that enhanced financial capability should correlate with a reduced risk of economic hardship, thereby decreasing these disparities. However, the role of financial capability in mitigating economic hardships during crises, such as the COVID-19 pandemic, remains underexplored. This study addresses this gap by utilizing decomposition analysis of the 2022 Survey of Consumer Finances data to examine whether financial capability reduces racial and ethnic disparities in economic hardship during the pandemic._x000D_ The findings of this research are crucial for policymakers, financial educators, community organizations, and other stakeholders dedicated to addressing financial hardship and promoting economic equity. By implementing targeted policies and programs that cater to the specific needs of minority groups, these stakeholders can work towards reducing financial disparities and promoting equity. This study not only advances our understanding of the dynamics between financial capability and economic hardship but also provides practical insights to improve consumer well-being and foster economic equity.
This study examines racial/ethnic differences in household debt payment delinquency among U.S. renters and homeowners. Using the 2022 Survey of Consumer Finances (SCF), the research investigates racial/ethnic disparities in delinquency rates controlling for the financial obligation ratio, financial knowledge confidence levels, and other household characteristics. Renter and homeowners are analyzed separately. Renters typically experience higher financial burdens, dedicating a larger share of their income to rent, leading to increased vulnerability to debt delinquency. The study utilizes logit regression models to explore the impact of racial/ethnic status on debt payment delinquency. Renter households have much higher delinquency rates than homeowner households. Black renters have significantly higher delinquency rates than White renters, and Black homeowners have significantly higher delinquency rates than White homeowners, even when controlling for household characteristics. Asian and Hispanic renters and homeowners do not have significantly different delinquency rates than corresponding White renters and owners. The results highlight the importance of separating renters and homeowners in debt analysis and suggest the need for targeted interventions to reduce racial and ethnic disparities in financial vulnerability.
Basic Social Justice Orientation (BSJO) is a scale measuring value orientation of consumers regarding socially distributive justice in European areas and consists of 4 components: Equality, Need, Equity, and Entitlement. This study examines the relationship among Big Five personality traits, BSJO, and charitable giving behavior, using 2022 Koreans' Happiness Survey data. While controlling previously well-known antecedents of charitable giving behavior, including religion and various aspects of life satisfaction, this study concluded the following. First, Big Five personality traits influence BSJO. Second, even after controlling Big Five and religion, BSJO influences charitable giving participation. Specifically, BSJO components such as "Need" and "Entitlement" positively influence charitable behavior, while "Equality" and "Equity" have a negative effect. In addition, “Equity” within BSJO is an important social justice value that differentiates regular from non-regular donors. Third, the relationship between Big Five and charitable giving participation is mediated by the BSJO component, specifically “Need.” Both Openness and Conscientiousness demonstrated significant effects on charitable giving through “Need” mediation. Overall, this study provides valuable insights into the impact of Big Five personality traits and BSJO on consumer donations. Advice for nonprofit foundations and suggestions for future research are discussed at the end.
This study investigates how personality traits, specifically neuroticism and extraversion, influence retirement timing among older adults across Europe and Israel. Utilizing data from the Survey of Health, Ageing, and Retirement in Europe (SHARE), the research explores the psychological dimensions of retirement decisions, which are often overlooked in favor of economic and policy-driven factors. By integrating personality traits into the analysis, this study offers a more comprehensive understanding of what drives individuals to retire earlier or later. The findings reveal that neuroticism is associated with delayed retirement, likely due to heightened concerns over economic security, while extraversion correlates with earlier retirement as individuals seek social engagement and leisure outside of work. The study also examines the other three Big Five personality traits—agreeableness, conscientiousness, and openness—finding no significant impact on retirement timing. This cross-national analysis contributes to more nuanced retirement planning and policy development by acknowledging the diverse psychological profiles of retirees. The insights gained can inform targeted financial guidance and adaptive retirement policies that align with individual needs, enhancing economic stability and quality of life for older adults. The study underscores the importance of considering psychological traits alongside traditional factors in retirement research.
This study explored the skincare preferences and satisfaction levels of Japanese teenagers and young adults to shed light on trends within the cosmetics market. By applying text mining and structural topic modeling (STM) to consumer reviews from the Japanese beauty platform @cosme, we examined six product categories over the period from 2008 to 2024. Findings reveal distinct skincare priorities by age: teens tend to favor basic skincare products and celebrity-endorsed items, while young adults focus more on targeted solutions for concerns like acne and hydration. Positive reviews often highlighted basic moisturizers and serums, whereas products like sunscreen, seasonal skincare, and those for irritated skin frequently received negative feedback, suggesting a gap between product expectations and actual performance. Age-related trends also indicated a growing emphasis on serums, possibly driven by social media’s promotion of structured skincare routines. These results underscore the impact of marketing, social media, and consumer needs on product selection, providing valuable insights for brands aiming to create and promote products tailored to these age groups.
As social media is an important part of Generation Z, it is imperative to conduct a study collecting both qualitative and survey data about the experiences of using social media in relation to their mental health. Awareness of the potential negative impacts of social media will help young people make better decisions in their social media use. Studying the impacts of social media on consumers' mental health will help businesses and organizations develop better and more ethical marketing strategies in the future. Lastly, the insights from this research will help public policy makers develop better regulation of social media marketing.
Sleep has been identified as playing a critical role in enhancing memory and improving physical functions. As a central nervous system stimulant, caffeine functions as an adenosine antagonist, impacting sleep. Similarly, nicotine disrupts sleep by affecting neurotransmitters involved in sleep regulation. This study aims to examine the bidirectional relationship between sleep problems and caffeine and nicotine consumption using large longitudinal data representative of the U.S. population and employing a fixed-effects model. I found that households with sleep problems consistently showed a higher rate and larger volumes of caffeinated products and cigarette purchases compared to those without sleep problems. This pattern was even more pronounced in cigarette purchases. Regression analysis demonstrated a bidirectional relationship between sleep problems and the purchase of caffeinated products and cigarettes. However, when household fixed effects were included, the relationship between sleep problems and caffeine product purchases was no longer insignificant, whereas the association with cigarette purchases remained robust.
The primary goal of this study is to analyze the relationship between credit scores and the financial well-being of consumers in Mexico in three dimensions: present, future, and overall. During November and December 2022, we sent a survey to assess consumers' financial well-being to a private company that already had records of their credit scores and other sociodemographic variables. Data from 1305 consumers were collected. _x000D_ This study follows a quantitative, cross-sectional, and correlational approach. First, latent variables (FWB present, FWB future, and FWB overall) were estimated. Later, three multiple linear regression models based on OLS were constructed, one for each financial well-being dimension._x000D_ Our study confirms that credit score is positively related to financial well-being among Mexican consumers. The coefficients in all three models are positive and significant. Additionally, the analysis shows that financial well-being is positively related to income level and having extra income._x000D_ This research contributes to the knowledge of financial well-being and credit behavior. Its results are helpful for policymakers and financial institutions seeking to assist financial consumers in improving their financial resilience. One of its primary applications is strengthening financial education strategies that help consumers improve their healthy credit behavior.
This study examines the influence of sustainable attributes on beauty retailers’ online platforms and topics extracted from consumer reviews on consumer ratings for skincare products, with a focus on the moderating effect of vegan status. Analyzing 109,599 consumer reviews from Ulta Beauty using Latent Dirichlet Allocation (LDA), 11 key topics were identified, including product texture, hydration, and long-lasting effect, underscoring the importance of intrinsic cues like texture and hydration in consumer evaluations. Hierarchical multiple regression analysis reveals that price positively influences consumer ratings, whereas product texture, skin texture, and long-lasting effect negatively impact ratings. Vegan products generally receive higher ratings; however, adding sustainable attributes yields mixed results. Clean ingredients, cruelty-free labels, and sustainable packaging improve ratings for non-vegan products but can reduce ratings for vegan products due to heightened expectations. Interaction effects show that product texture and long-lasting effect enhance ratings for both vegan and non-vegan products, with stronger effects for vegan products, while skin texture increases ratings for vegan products but decreases them for non-vegan products. These findings highlight the importance for brands to align product qualities with consumer expectations to foster trust and satisfaction. This research provides insights for marketers aiming to balance sustainable claims with intrinsic product qualities to build loyalty and competitive differentiation.
This study uses pilot study results to investigate how consumer education strategies and cultural factors shape graduate students' intention to change their fruit and vegetable consumption. The three strategies being tested include a baseline neutral education strategy, positive language with positive imagery, and negative language with negative imagery, which will be compared to a control group that receives no intervention. The effectiveness of these educational interventions is assessed through their impact on students' intention to adopt healthier eating habits. These intentions may also be shaped by variables such as the students' cultural background and demographic characteristics, which will also be tested in the study. The findings from the pilot study provide insights into which strategies are most effective in promoting dietary change intentions and offer guidance on refining education strategies for future interventions. The pilot study results provide actionable insights for developing targeted interventions aimed at promoting healthier eating habits among diverse populations.
This study examines consumer engagement in circular economy practices, specifically focusing on routine waste management behaviors such as waste sorting and reducing single-use items. Given the substantial greenhouse gas emissions from waste management and projected 50% increase in global waste by 2050, the urgency for sustainable practices is evident. Through the application of the Knowledge-Attitude-Practice (KAP) model and the Health Belief Model (HBM), this research investigates the influence of objective (factual) and subjective (self-assessed) knowledge on key attitudinal factors—perceived severity, susceptibility, benefits, and barriers—and their subsequent impact on circular economy behaviors. Utilizing data from the Public Attitudes towards the Environment: 2023 Survey, which includes 3,088 respondents, findings indicate that objective knowledge primarily informs attitudinal development, while subjective knowledge exerts a notably direct influence on behavior. Attitudinal factors, including perceived severity, susceptibility, benefits, and barriers, emerge as critical determinants of pro-environmental actions within a circular economy context. These findings underscore the necessity of promoting both factual understanding and consumer confidence through targeted policy and educational interventions, facilitating sustainable behavioral engagement. This integrated approach offers substantial implications for climate change mitigation by fostering consumer participation in circular economy initiatives.
This project uses pilot data to explore financial well-being among an exploratory sample of urban households in India. Particular emphasis is placed on household attitudes and behaviors, with a focus on financial frugality. In addition, this project explores the broader application of the Consumer Financial Protection Bureau's measure of Financial Well-Being (FWB).
This study analyzes the determinants and impacts of household expenditure on education in South Korea with the financial, socio-economic, regional, and psychological factors influencing educational costs. Because education is regarded as crucial for economic property and social status in South Korea, severe private education expenses lead to heightened financial strain on families. By using data from the 15th National Survey of Tax and Benefit (NaSTaB), the research examines 14,897 households, addressing variables such as household debt, tax burden, income inequality perceptions, and residential satisfaction. The key findings reveal that greater household debt and tax burdens significantly impact higher private education spending, while psychological factors—like perceptions of income inequality and time preference—also significantly impact educational expenditures. This study underscores policy implications for equitable education budget distribution and reducing financial pressures on households, thereby supporting public education improvements and addressing educational disparities. Overall, the research highlights the interplay of financial, social, and psychological factors in shaping educational spending patterns, advocating for strengthened public education policies to mitigate reliance on private education. Further research on regional disparities in educational spending is recommended.
This study utilizes recent waves of the National Health and Nutrition Examination Survey to investigate how the impact of new school nutrition standards on added sugar intake among youths varies based on their household food security status.
This study applies machine learning (ML) techniques to predict default risk among disabled adults in South Korea, utilizing data from the Panel Survey of Employment for the Disabled (PSED). Disabled individuals face unique socioeconomic challenges, including limited employment opportunities, inadequate social support, and significant medical expenses, which contribute to financial instability and heightened default risk. Existing financial risk models typically overlook these multifaceted aspects of disability, resulting in a critical gap in accurately assessing default risk within this population. Our research aims to develop predictive models specifically tailored to the socioeconomic backgrounds of disabled adults, enhancing the precision of default risk assessments._x000D_ The methodology involves comprehensive preprocessing of PSED data, such as demographics, income levels, disability type and severity, and employment status. We employ various machine learning algorithms, including logistic regression, random forests, and extreme gradient boosting, validated through cross-validation and performance metrics. Preliminary results indicate that ensemble learning models, especially extreme gradient boosting, exhibit superior predictive performance. Key predictors of default risk include employment, disability severity, and dependence on social support._x000D_ The findings could inform financial institutions and policymakers by highlighting overlooked factors in risk assessments and promoting inclusive financial practices that support the economic well-being of disabled individuals.
Sponsored by the U.S. Bureau of Labor Statistics (BLS), the Consumer Expenditure Surveys (CE) are the most detailed source of expenditure data collected directly from households by the Federal government. In addition, information on income, assets and liabilities, and demographics are collected from a large, nationally representative sample of consumers. The result is a unique and rich source of data of interest to researchers, educators, advocates, policymakers, and others in a variety of fields. Moreover, these data, both tabular and at the household level (i.e., microdata), are publicly available for free download.
The goal of the session is to introduce attendees regardless of their career stage (undergraduate to experienced professional) to a new data set, and to CE staff who can assist them in use of these data. The data are useful to those interested in consumer economics generally, and/or in financial planning and related topics.
This session features a panel of presenters, all of whom are early in their careers. For most or all, the CE data compose the first major data set with which they have worked professionally. Five are from the CE program, while one is a professor of economics who is not affiliated with the BLS.
Understanding financial risk is an integral part of making decisions about investing. Without adequate knowledge of financial risk, a consumer’s investment decisions may be based on misperceptions. Conversely, a sound understanding of financial risk may help consumers deploy risk-mitigation strategies, like diversification, and assess various investment products to identify those that align with their goals and risk tolerance._x000D_ To examine how consumers think about financial risk — as well as the relationships among risk comprehension, risk tolerance, and asset holdings — we fielded a survey to a nationally representative, probability-based sample. The survey gauged respondents’ financial risk comprehension, financial risk tolerance, asset holdings, recognition of risk-mitigation strategies, and specific risk-related investing concerns._x000D_ Results indicate that, while most consumers have a rudimentary understanding of investment risk, fewer are able to recognize risk-mitigation strategies. We find that those with higher risk comprehension tend to be more willing to take financial risk, and that investors and non-investors have different risk-related concerns about investing. We also find that investors’ risk comprehension and risk tolerance generally align with portfolio choices._x000D_ Findings suggest that consumers’ concerns about inflation and liquidity may be especially important for financial educators when beginning conversations about investment risk and how to manage it.
Previous studies have demonstrated the benefits of using financial planners (Hanna, 2011, Elmerick et al., 2002; White & Heckman, 2016; Reiter & Qing, 2024). However, there are other sources that consumers use to obtain financial advice such as asking friends and family, using online services, calling around, or asking other non-financial planner professionals such as bankers and attorneys. Most studies have not examined the other sources of information that consumers use to seek financial advice. Therefore, this study mainly focuses on the specific service that consumers utilized including internet/online services, friend/relative, banker, call-around, and financial planner. To our best knowledge, little research has been conducted by comparing the specific help-seeking resources. In addition, to map out the decision differences between borrowing and investing, this study examined them separately. _x000D_ This study used the 2022 Survey of Consumer Finances (SCF) to examine the decision-making for borrowing and investing. Data from the SCF are widely used in financial planning and economic areas. For the 2022 wave of the survey, 4,595 households were interviewed. This study mainly focused on the most frequently used when making decisions about borrowing and investing; therefore, 3,807 observations were included for the estimation.
This study examines the association between financial literacy confidence and financial satisfaction among Asian Americans using the 2021 National Financial Capability Study (NFCS) AAPI oversample. The findings emphasize the significant role of financial confidence—both overconfidence and underconfidence—in shaping retirement planning behaviors and overall financial satisfaction among Asian Americans. Underconfident individuals were less likely to engage in retirement planning and reported lower financial satisfaction. In contrast, overconfident individuals, despite not exhibiting more proactive retirement planning, reported higher levels of financial satisfaction. Mediation analysis further indicates that underconfidence leads to reduced retirement planning, which, in turn, results in lower financial satisfaction. The findings of this study suggest that financial professionals could benefit from helping underconfident individuals build their financial literacy and encourage proactive retirement planning, while also tempering overconfident individuals' decision-making to ensure they make informed, long-term financial choices. Additionally, promoting the value of retirement planning, particularly non-employer-sponsored accounts, could improve financial satisfaction.
This study investigates the relationships among perceived competitive wage, job satisfaction, employee morale, and perceived financial well-being through a serial mediation model. Using a nationally representative dataset of 2,036 U.S. full-time employees under 50 years old, split evenly between state and local government and private sector workers, the study examines whether job satisfaction and employee morale mediate the impact of perceived competitive wage on financial well-being. Grounded in Self-Determination Theory and Equity Theory, the model hypothesizes that competitive wage perceptions improve financial well-being both directly and indirectly by fostering job satisfaction, which in turn enhances morale. Structural Equation Modeling (SEM) with control variables for age, gender, income, ethnicity, and marital status confirms significant direct and indirect effects. Results show that perceived competitive wage positively affects financial well-being, with job satisfaction and morale as significant mediators in this relationship. These findings underscore the importance of fair compensation and supportive work environments for enhancing financial well-being, suggesting that organizations can benefit from wage policies and workplace practices that promote satisfaction and morale. This study contributes to the understanding of workplace factors influencing employee financial health, with implications for human resource management and organizational policy.
Access to pediatric healthcare remains limited for many families, with provider shortages, financial constraints, and geographical obstacles restricting access. Virtual healthcare (telehealth) represents a promising tool to address these gaps, yet its effectiveness in improving pediatric health outcomes remains underexplored. This study leverages a unique dataset combining data from the only pediatric-focused telehealth provider in the United States and the University of Michigan's National Neighborhood Data Archive (NaNDA) Health Care Services Data. By assessing telehealth's potential to enhance access and improve health outcomes for underserved children, this study aims to inform policies and practices that align with ACCI's mission to improve economic well-being and consumer health outcomes, identifying effective models for telehealth implementation in pediatric care.
This study examined racial/ethnic, age, and gender differences in wealth persistence among U.S. older adults, focusing on housing wealth (non-liquid assets) and non-housing wealth (liquid assets), alongside household income, and further evaluated whether sense of purpose in life moderates these wealth differences in later life. Data were from the Self-Administered Questionnaire in the 2018 Health and Retirement Study. We estimated ordinary least squares regression models with interaction terms to evaluate moderation effects, adjusting for health, family statuses, and socioeconomic characteristics. Multiple moderation analyses revealed evidence that sense of purpose in life buffered against racial/ethnic and age differences in wealth, but not gender. Specifically, sense of purpose in life and income interacted uniquely for Hispanic older adults. Higher self-reported purpose in life is associated with higher levels of household income, non-housing wealth, and housing wealth. This effect was most pronounced among the youngest age subgroup (ages 51-64) and the oldest age group (ages 80+). We discuss the protective effect of sense of purpose in life in mitigating differences in wealth across various groups of older adults. Through further research and interventions, there is potential to bolster sense of purpose in life and systematically address wealth differences across the life course.
Buy Now, Pay Later (BNPL) is one of the newest short-term credit options available in the marketplace today. It is designed to be an interest-free way of splitting the cost of a good or service into smaller payments, to be repaid in full over the course of six weeks. BNPL has seen exponential growth over the last five years, yet it is still a highly unregulated form of credit. The study will explore the profile of the typical BNPL user financial behavior with the ultimate goal of answering the question of whether BNPL is a prudent financial practice utilized by the financially savvy or a predatory form of credit designed to target the financially vulnerable. The 2023 Survey of Household Economics and Decision-Making (SHED) to attempt to answer these questions. Finally, this study advocates for regulatory bodies in the United States to devise legislation to protect the most vulnerable from some of the most potent risks of BNPL products, including loan stacking and overextending for the study results show that BNPL is predatory.
Pawn loans, payday loans, check cashers, and other non-bank financial products provide a crucial credit source to lower income households, although empirical literature on how these “fringe banks” affect well-being is mixed. We test whether the Affordable Care Act's Medicaid expansion reduced demand for these controversial products by assisting households with medical expenditure risk. _x000D_ We show reductions in use of fringe banks result from increases in insurance and reductions in medical expenditures. We find that Medicaid eligibility decreases use of fringe bank products on average, particularly fringe credit products. Importantly, however, the effect of the Medicaid expansion on fringe bank use varies substantially by state. Using detailed information on state policies and machine learning, we show that how states expanded Medicaid is crucial to whether individuals in that state report improved financial outcomes as a result of the Medicaid expansion.
After the 2018 Supreme Court decision overturning Professional and Amateur Sports Protection Act, which had effectively banned sports betting nationwide, 38 states legalized sports gambling. As a result, between 2019 and 2023, the total amount legally wagered on sports increased tenfold. This study assesses the causal impact of sports gambling legalization on alternative financial service use using a nation-wide 1% sample of individual-level payday loan application data from Clarity from 2014 to 2021. I leverage state-quarter level variation in the legality of sports gambling after the 2018 Supreme Court decision using a two-way fixed effects framework with staggered treatment timing introduced by Callaway and Sant’Anna (2021). The convenience of app-based betting platforms, offering the ability to place bets at any time from any location, raises concerns about the potential for exacerbating gambling problems that increase financial hardships. Research has yet to explore these potential consequences of legalized sports gambling on alternative financial service use. This study provides empirical evidence for policymakers and advocacy groups to consider in the development of regulations to mitigate the negative externalities of gambling legalization on personal and household financial well-being.
Every day, consumers interact with products that are necessary or make life function in more accessible and interesting ways - whether that’s the toys our children play with, the roads we drive on, or the smoke detectors that keep us safe. Consumers expect products to work as intended and to be tested to be safe and reliable. What most people may not realize is that many of the products and services they interact with are produced, and in some cases, regulated by safety standards. Standards play a vital role in setting product performance requirements, consumer warnings and messaging, and testing and certification protocols. Additionally, consumers, academics and others may be unaware of the standards development process in the United States and that they can participate in, and have a voice in, the development and implementation of the safety standards that impact their everyday lives.
The aims of this study were to determine whether financial knowledge is related to risk-taking behavior after controlling for a financial decision-maker’s degree of risk aversion and risk tolerance and to identify the variables that are most important when describing the amount of portfolio risk taken at the household level. It was determined that financial knowledge is positively related to the amount of risk taken by financial decision-makers in their portfolios. Additionally, financial knowledge was found to be inversely related to risk aversion but positively associated with risk tolerance. It was further determined that risk tolerance has the greatest effect in describing portfolio risk. Financial knowledge ranked second in importance, whereas, risk aversion was the least important in describing portfolio risk.
This study develops and evaluates a Retrieval-Augmented Generation Large Language Model (RAG-LLM) system to enhance investment decision-making among financial consumers in South Korea. By integrating Large Language Models with Retrieval-Augmented Generation techniques, the system provides personalized, data-driven investment advice tailored to individual risk profiles inferred from demographic and financial characteristics. Utilizing publicly available financial data and consumer behavior literature, the model retrieves relevant information and generates recommendations regarding asset selections. The system's performance is assessed using portfolio metrics like expected returns, risk levels, Sharpe ratios, and utility based on constructed mean-variance optimal portfolios, and compared against naive random selection and traditional LLM-based systems. Preliminary results indicate that the RAG-LLM significantly outperforms baseline models, leading to higher Sharpe ratios and utility with reduced risk. This approach enhances financial decision-making, particularly benefiting financially marginalized groups who lack access to traditional advisory services. The research underscores the potential of AI-driven solutions in promoting financial inclusion, reducing disparities in investment outcomes, and contributing to a more equitable financial ecosystem.
This study examines how personality traits and stock market expectations influence portfolio decisions among investors aged 50 and older during periods of market volatility. Using data from the 2018 and 2020 waves of the Health and Retirement Study, the research reveals associations between psychological characteristics and investment behavior during the COVID-19 market volatility. Drawing on the Meta-theoretic Model of Motivation and Personality, the study analyzes how elemental traits (Big Five personality characteristics) and compound traits (positive and negative affect) relate to stock market expectations and subsequent portfolio decisions. Results suggest that stock market expectations play a key role in connecting broader personality dispositions to investor behavior. The findings have important implications for financial practitioners, policymakers, and consumer advocates. Financial professionals can use these insights to identify clients who may be more prone to reactive decision-making during market uncertainty. Consumer protection policies can be enhanced by understanding which investors might be more vulnerable to potentially harmful portfolio adjustments. Additionally, the research informs how educational initiatives and financial technology can be tailored to support more effective consumer financial decision-making during periods of market volatility, particularly for older investors approaching or in retirement.
Focusing on the households enrolled in the WIC program, a particular federal food assistance program targeting at at-risk women, infants, and children, this study analyzed Nielsen consumer panel data and examined WIC-Nielsen participating households’ brand choice preference of their grocery shopping. The results suggest WIC-Nielsen participating households typically allocate less of their grocery shopping dollars on private label brand type stores than non WIC-Nielsen participating households.
People with the lowest socio-economic status, often ethnic minorities residing in impoverished neighborhoods, are disproportionately affected. Research studies employing a “bottom-up” approach offer excellent insights into the intersection of poverty and health. This research investigates the effectiveness of the Veggie Rx program by exploring participants’ sustained lifestyle changes and the dissemination of these new practices within their families and social networks 12 months after program completion. Despite the potential benefits of Veggie Rx, not everyone who participates in the program is able to make sustainable lifestyle changes. This is often due to various barriers, such as macroenvironment, socio-cultural environment, and patients’ internal factors, such as mental state and other health issues. By examining the lived experiences of individuals from underserviced communities, we can gain a deeper understanding of behavior change over time and assist health advocates in developing strategies to enhance community well-being.
The Supplemental Nutrition Assistance Program (SNAP), one of the few safety net programs universally available to low-income households, mandates work requirements for able-bodied adults without dependents (ABAWDs). SNAP work requirements have emerged as a significant point of contention in recent SNAP reauthorizations. Leveraging variation in work requirement exposure—based on recipient age and county-level waivers from 2014 through 2019—we examine how ABAWD work requirements affect household spending patterns. Analysis of NielsenIQ Consumer Panel data reveals that waiving SNAP work requirements for likely affected recipients increases total household spending by 7 percent and food expenditure by 6 percent, with more pronounced effects among households at or near poverty levels. Additionally, we find modest improvements in dietary quality, notably a 9 percent increase in fruit and vegetable consumption. While previous research finds that SNAP work requirements have minimal impact on labor supply, our findings suggest that SNAP work requirements may adversely affect the food security and nutritional quality of low-income households.
Consumer financial access has been measured through a wide range of financial services and products in the literature, while the psychometric properties of such measures are not clear. This study explores the dimensions underlying consumer financial access related to mainstream financial products and services in the United States. Using Exploratory Factor Analysis (EFA), three factors of 14 financial services and products were extracted, explaining 52% of the cumulative variance. Results suggest categorizing financial products and services into three distinct components: basic banking services (two items: checking and savings accounts); advanced financial services (nine items: retirement accounts, Certificate of Deposits (CDs), investments, disability insurance, life insurance, bank loan, line of credit, financial counseling/coaching, and credit score); and mobile/online banking services (three items: mobile banking, transfer applications, and debit cards). When measuring and evaluating financial access, it is important to include a comprehensive list of financial services and products from these three categories. These findings have significant implications for research, practice, and policy._x000D_
Transgender Americans are a growing demographic with unique financial concerns. This study analyzes data from the “transpop survey”, the first national probability sample of transgender Americans. We use regression analysis to examine the financial situation of transgender people._x000D_ We find that transgender Americans are significantly more likely to display signs of financial vulnerability than the population as a whole - for example, struggling to meet everyday expenses and skipping a doctor's appointment for financial reasons. We also find that variation in financial outcomes within the transgender population, does not display the same gender patterns as within the population as a whole.
Consumers experiencing lower levels of intimate social support are often left to navigate the requirements of life using only the resources available to them. In at least some cases, those resources are insufficient to cope with the demands of life. Supportive services represent one external source of coping resources that an individual might employ to maintain well-being in the absence of intimate social support. In this study we argue that the use of services can be an effective coping resource for people experiencing a lower level of social support. Using data from 600 U.S. adults, we explore the use of services as a mediating role in the relationship between social support and well-being. We find that while the use of supportive services promotes greater well-being, people experiencing lower levels of intimate social support are not more (or less) likely to seek such services. We feel this finding represents opportunities in the design of services and the education of consumers as to the benefits of their use.
This session aims to explore multidimensional poverty as a framework to capture the diverse and complex aspects of poverty in developed country contexts. Moving beyond traditional income-based measures, this session underscores the need for innovative indicators that reflect diverse dimensions of poverty encompassing education, health, digital access, social connectedness, and more. Papers in this session address the relationship between multidimensional poverty and depressive symptoms, systematic review of multidimensional poverty in developed countries, and comparative analysis of multidimensional poverty in the US and South Korea. Through critical evaluations of existing literature and the development of nuanced, actionable indicators, this session seeks to contribute to the relevant research and inform policy responses aimed at addressing the multifaceted nature of poverty in higher-income settings.
This study aims to explain why charitable giving and volunteering enhance consumer well-being, with a particular focus on the role of trust. We conducted a mediation analysis using Hayes’ Process Macro Model 4 to examine the indirect effects of generosity, including charitable giving and volunteering, on the Satisfaction with Life Scale (SWLS) through trust. The results confirmed that all the hypotheses were supported, demonstrating that charitable giving and volunteer work enhance consumer well-being through the mediation of social trust. That is, the benefits derived from these altruistic actions contribute to social trust, making them valuable for consumer well-being. Engaging in these activities can lead to a richer, more meaningful life. Based on the results, several policy and educational recommendations and suggestions for follow-up studies were made.
This study examines the role of charitable giving, both time and money, in bequest motivation. Andreoni (1990) combined the public goods model and the private consumption model to uncover that an individual’s utility may not only come from increasing public goods but also from the act of giving. Monetary contributions are a way of distributing wealth. Alternatively, the price of volunteering, the shadow value of time, depends on the opportunity cost. To investigate whether charitable giving may crowd out the bequest expectation, this study utilized the Survey of Consumer Finances (SCF) through the logistic model to demonstrate the association between charitable giving and bequest expectation. The results indicate that households without any charitable behavior are less likely to expect to leave sizable estates than those who only engage in volunteer activities. Also, compared with households that only participate in volunteer activities, those who only make financial contributions are less likely to expect to leave a substantial estate. To evaluate the magnitude of the difference between volunteer activities and monetary contributions, this study also utilized the interactions to support our results.
The Great Wealth Transfer, projected to continue until 2045, represents a significant shift in wealth across generations in the United States. This study utilizes data from the 2021 National Financial Capability Study (NFCS) to investigate the demographics of individuals expecting an inheritance. Our findings reveal that about 31% of respondents expect to receive an inheritance of $10,000 or more, primarily among those aged 25-44. Women, white respondents, and individuals with higher educational attainment are strong predictors to expect an inheritance. Additionally, respondents with higher income levels and greater risk tolerance have higher odds of expecting inheritance. These results suggest wealth transfers predominantly occur in financially affluent families, often characterized by educational advantages and familial obligations. However, the study's implications suggest further research to explore the demographics of those inheriting larger financial amounts, providing a more comprehensive understanding of inheritance expectations._x000D_
The study explores the relationship between savings and employment stability using the Survey of Consumer Finances (SCF) of 2022 and found that higher expectations of remaining with the current employer are associated with a reduction in savings. Additionally, net worth and having a college degree are associated with higher savings amounts, but age has the opposite relationship. The study also finds evidence that higher employment stability increases the odds of using other options to address financial needs rather than using their savings, specifically by working more. These results are relevant to the recent government intention in the US to improve the emergency savings of households with the SECURITY Act of 2022.
Households experience constraints around the use of total resources and must consider the cost of time when allocating their resources to maximize utility. When earnings increase, the relative cost of time also increases. This leads households to allocate more time to the workforce and outsource household tasks, such as childcare. The purpose of this research is to understand better the decisions married couples with young children make with their use of time and its impact on savings rates. Using data from the Panel Study of Income Dynamics (2021) this study provides information that will help couples with children make informed decisions about their allocation of time between household production and workforce labor.
In this study, I employ text analysis to examine the wide range of personal finance courses available to high school students in the US. I focus on text information available in the course names and course descriptions collected for more than 19,000 courses offered in high schools across the US. Course descriptions and course names include important information that is used by many decision makers, including students, instructors, prospective employers, and post-secondary educational institutions (Oregon State University, 2024). I will analyze trends in the content and objectives of high school personal finance courses across time and geography. The findings from this study will contribute a new perspective on differences in the implementation of personal finance course mandates at the local level.
This study investigates the impact of financial literacy on financial well-being, accounting for state-level variations across the United States. Grounded in Human Capital Theory, which posits that individuals' knowledge and skills significantly influence their economic outcomes, this research employs a multilevel ordinal regression model to explore how subjective and objective financial literacy affect individuals' financial well-being. Using data from the NFCS 2021 dataset, the analysis captures individual and state-level variations in financial well-being. The study finds that objective and subjective financial literacy strongly predict financial well-being. While state-level factors contribute to variations in financial well-being, their influence is relatively minor compared to individual-level financial literacy and demographics. These findings highlight the importance of promoting financial literacy to improve financial well-being across diverse populations. For policymakers and educators, the study emphasizes the need for targeted financial education programs that address gaps in both knowledge and confidence, particularly among vulnerable groups, while acknowledging the role of state-level interventions in enhancing financial outcomes. Furthermore, the insights from this study can guide financial planners and advisors in developing more tailored strategies to improve financial literacy and support better financial decision-making, ultimately reducing financial stress and enhancing long-term financial security.
This study examines the impact of state-mandated high school financial education on banking decisions using FDIC survey data (2009-2023). While unbanked households decreased steadily from 8.2% to 4.2% (2011-2023), decline has slowed, with 5.6 million households still unbanked. Establishing a causal link between financial education and inclusion will be insightful, as prior research only shows correlation. This research employs a two-way fixed effects difference-in-differences model, exploiting variation in state mandates to analyze their effect on individuals’ likelihood of being banked and on future banking interest among those unbanked. Findings reveal that exposure to personal finance coursework significantly reduces the likelihood of being unbanked and decreases the likelihood of being uninterested in opening a bank account among the unbanked population. These results underscore the importance of mandated high school financial education for future financial decision-making and promoting financial inclusion.
My submission is geared towards analyzing household decisions on debt management and the influence of socioeconomic (income and educational level) and macroeconomic factors in this decision-making. Research has shown a rise in the debt portfolio of households in the U.S., and this paper seeks to analyze which of these variables households consider in managing their debt, such that initiatives can be taken to help households practice better management in terms of their debt accumulation and repayment. Using panel regression, I will analyze 10-year data from the Consumer Expenditure Survey and the National Financial Capability Study. The sample of this dataset and time period contains the variables and the different economic trends that will enable generalization of the findings of this study to similar populations._x000D_
Buy Now, Pay Later (BNPL) services offer consumers the option of making retail purchases using short-term, interest-free loans. BNPL products are defined by the Consumer Financial Protection Bureau (CFPB) as installment loans – typically one down payment followed by three installment payments – for the purchase of goods and services, which retailers may offer as a payment option (CFPB, 2024b). In place of charging interest on their loans, BNPL providers typically charge fees for late or missed payments and charge a fee to retailers for each purchase, similar to retailer credit card fees (CFPB, 2024a). Afterpay, Affirm, and Klarna are among the first providers of BNPL (Clere, 2023). _x000D_ Initially, these products featured predominantly on online retail fashion and electronic stores. However, in recent years, BNPL has experienced rapid expansion and adoption by both consumers and merchants alike (Alcazar & Bradford, 2021). Major retailers like Walmart, Kroger, and Target now offer BNPL as a payment option for purchases made both online and in-store (Sezzle, 2024; Target, 2024; Walmart, 2024). Beyond retailers, banks have also begun incorporating BNPL features into their credit cards for large purchases (Alcazar & Bradford, 2021). For some low-wage cash-strapped workers, this product may present a timely alternative to address their needs.
This study explores whether the popcorn brain can be the focal strategic element to develop the desired shopping motive of consumers in the context of perceived ease of use, usefulness, and trust connecting to involvement in prevailing social media and market offerings. Following a descriptive research design, this study made an extensive literature review to identify the research gaps and ultimately to obtain the inferences for practical & theoretical implications. The results of this study indicate that the popcorn brain phenomenon, rapidly changing consumers’ mindsets with shorter attention spans towards a stimulus (market offering in this study), can be managed strategically by developing perceived ease of use, perceived usefulness, and trust of consumers through their level of involvement in social media for desired shopping motives of consumers. Therefore, the public planners by understanding and managing the popcorn brain of consumers, can help them in preventing from aspects such as buying remorse, loss of their hard-earned money, stress and can formulate various policies regarding consumer interests which will protect them from misleading & false information and ensure transparency, promote digital literacy and data-driven policies. Future researchers can use these insights to produce useful applications, and better consumer education initiatives.
Student loan debt has become a significant burden for many households and policymakers in America. According to Schulz (2024) Americans owed $1.74 trillion dollars further stating that approximately 51% of Bachelor degree holders had student loan debt with an average of about $29,400 owed._x000D_ _x000D_ Retirement savings which is an important decision that needs to be made in preparation for life after work is postponed or inadequately funded in the presence of budget constraints and debt obligations. This paper investigates the impact financial knowledge has as a moderating factor in retirement savings for working graduates paying off their student loans._x000D_ _x000D_ Dataset:_x000D_ Survey of Household Economic Decision-making 2022.
This paper investigates the relationship between the Federal Funds Rate (FEDFUNDS) and the University of Michigan Consumer Sentiment Index (UMCSENT). This study uses Johansen cointegration tests, Vector Error Correction Models (VECM), and Threshold Vector Error Correction Models (TVECM); this study explores the cointegration, short-term dynamics, and threshold effects between these macroeconomic indicators. Results show that there is cointegration between FEDFUNDS and UMCSENT. Further, findings also reveal a stable long-term relationship between FEDFUNDS and UMCSENT. The VECM analysis shows short-term adjustments in both variables, which suggests their interdependence. The TVECM analysis indicates a threshold effect, indicating a change in the relationship when FEDFUNDS passes a specific threshold value.
Using the 2021 National Financial Capability Study (NFCS), this study examines the association of employer-sponsored, retirement-plan participation with financial literacy. It also decomposes the association into its explained and unexplained portions using the Oaxaca decomposition. The explained portion measures how much of the gender gap in employer-sponsored, retirement-plan participation is due to the differences in the level of financial literacy. The unexplained portion measures how much of the gender gap in employer-sponsored, retirement-plan participation is due to the difference in the return to financial literacy between men and women. The results show that the explained portion of the gap due to financial literacy is -0.0195, and the unexplained portion of the gap due to return to financial literacy is -0.0321. The negative explained gap due to financial literacy means women have a lower average value of financial literacy than men. A negative unexplained gap due to financial literacy means women have a lower return to financial literacy than men.
This study investigates whether state-mandated financial education enhances subjective financial well-being and financial literacy, focusing on long-term impacts such as debt reduction, wealth accumulation, and overall economic stability. While prior research has shown that financial literacy can improve specific financial behaviors, there is limited evidence on whether state-mandated programs lead to sustained improvements in financial outcomes. Using a staggered difference-in-differences approach, this study leverages variations in financial education mandates across states and over time to assess their causal impact on subjective financial well-being. Data is primarily drawn from the FINRA Investor Education Foundation’s National Financial Capability Study (NFCS), with the Understanding America Study (UAS) data used for robustness checks. This research aims to provide insights for policymakers, educators, and financial practitioners on the effectiveness of financial education policies in promoting economic stability. Findings could support expanded financial education initiatives and help develop targeted programs to enhance financial well-being across various populations.
Consumer Reports applied the Fair Digital Finance Framework to evaluate the Safety, Privacy, Transparency, User-Centricity, Support for Financial Well-Being, and Inclusivity of popular digital finance apps. Through app testing and documentation review of banking apps and digital wallets, we found inconsistent availability of digital tools for financial well-being and inconsistent availability of accessibility features across the sector.
Thist study aims to examine the factors related to the susceptibility to investment fraud, using the investor survey conducted in South Korea. Especially, the current study focuses on how financial knowledge (both objective and subjective) is associated with investment fraud vulnerability and utilized two mediating variables (financial information seeking behavior and risk tolerance) to explain the psychological and behavioral mechanisms behind the protective role of financial knowledge on consumer vulnerability to investment fraud. The results highlight the importance of objective financial knowledge and self-research before making investment decisions. The findings contribute to the existing body of literature by highlighting both the direct and indirect role that objective financial knowledge plays in diminishing susceptibility to investment fraud. A key implication of this study is the strategic importance of fostering self-reliant financial behavior. The findings suggest that financial consumers may not be able to discern sound advice from misleading advice provided by financial professionals. Therefore, promoting the ability to distinguish fraudulent financial suggestions and encouraging self-reliance in financial decision-making are effective methods for reducing fraud risk. This approach encourages individuals to enhance their own financial capabilities and rely more on their analytical assessments.
Considering economic breakdowns due to the COVID-19 pandemic, this study analyzed which U.S. households were more likely to experience consumer debt delinquency in the post-pandemic era, with a focus on the effect of changes in individual employment status during COVID-19 and pandemic-related federal stimulus payments. Since debt delinquency is a significant issue that can result in long-term harm to consumers’ financial health, this research contributes to consumer well-being by investigating factors that affect the likelihood of late repayment of mortgage, credit card, or student loans. We explored the interaction effect of employment changes and stimulus payments as well, considering economic impact and usage of stimulus payments can differ by individuals’ employment experiences during the pandemic. Using the 2021 National Financial Capability Study (NFCS) dataset, we categorized employment changes into four groups based on whether experienced a job loss during COVID-19 and whether currently working or not. Significant differences in the receipt of stimulus payments and consumer debt delinquency rate were found across these groups. The main and interaction effects of two focal independent variables on consumer debt delinquency were verified to be significant. This enables a deeper understanding of the post-pandemic financial hardships faced by U.S. consumers.
This paper examines the impact of a new policy implemented by the Federal Hous- ing Finance Agency (FHFA) on December 1st, 2020, called the Adverse Market Refi- nance Fee (AMRF), equal to 0.5% of the value of a refinancing loan. The AMRF was instituted by the FHFA as a mechanism to mitigate losses incurred from forbearance defaults and to support the Government Sponsored Enterprises (GSEs) — Fannie Mae and Freddie Mac — in managing the increased risk associated with lending during the COVID-19 pandemic. This paper measures the degree of bunching in response to a jump in interest rates, using individual loan-level data by Fannie Mae. Specifically, I identify the effect of interest rates on borrower behavior by exploiting the exogenous variation in the relationship between loan size and interest rates that results from the threshold used by the new fee policy. The estimates suggest average bunching weights ranging from 0.19 to 0.562. Moreover, this paper also provides estimates of the interest rate elasticity of mortgage refinancing demand ranging from 0.0002 to 0.001.
This study would like to analyze the various factors influencing financial bandwagon behavior. In this study, we assume that the Bandwagon Effect also appears in financial decision-making, similar to how people follow others when they invest. In other words, this means that financial consumers may follow the others—like professionals, news articles, friends, or family— as the resources for their financial decision-making. _x000D_ Specifically, it examines the impact of financial information resources (e.g., apps, news articles, friends) and financial psychological factors (e.g., self-esteem, locus of control, materialism) on financial bandwagon behavior. Additionally, it explores if there is a difference in factors affecting the financial bandwagon effect between the environment (urban and rural). The findings from this study will contribute to classifying financial consumers based on insights from previous research. Furthermore, these results will aid in understanding financial consumer behavior and spark interest in both academic discussions and practical applications within the financial sector.
Social media has become an integral part of young adults' daily lives, significantly influencing their perceptions, attitudes, and behaviors related to finances. How do these platforms influence young people’s financial knowledge and decision-making so critical in developing strategies for sound financial practices? This session showcases existing research on financial literacy, behavioral theory, and the potential for misinformation. It also highlights research design among high school students to investigate these influences.
Economic insecurity in older age can reduce the ability to cope with a costly disease and exacerbate racial health disparities. This study asks: How do different sources of financial resources associate with the control of type-2 diabetes, a common chronic condition in older age? We construct a new panel dataset that links electronic health records to employment and credit data for a sample of older adults in [name of state] from 2018-2022. We identify how wage earnings, access to credit, and debt are related to diabetes control and disability-related complications. We examine heterogeneity by race, gender, and income. The risk ratio for a 100-unit increase in credit score is 0.754 for being in the severely uncontrolled vs the controlled diabetes category, indicating a substantial decrease in risk for being in the severely uncontrolled diabetes group, pointing to the association between financial resources and diabetes control. Our high frequency data across diverse resource streams offers unique insights into early warning signs of economic insecurity in older age that contribute to racial disparities.
This study investigates how individual and regional factors influence health satisfaction in South Korea, focusing on disparities in healthcare access and economic resources across regions. Using multilevel analysis, it examines the combined effects of individual sociodemographic characteristics (e.g., subjective health status, chronic illness, disability) and regional variables (e.g., employment rate, fiscal independence, healthcare infrastructure) on health satisfaction. Data were sourced from the 2021 Koreans’ Happiness Survey and regional statistics from Statistics Korea, covering a representative sample of 17,357 individuals and 225 municipalities. Results reveal significant variation in health satisfaction across regions, with individual factors like education and income positively associated with satisfaction, while perceived stress and chronic illness have negative impacts. Regional healthcare resources and economic resilience were found to interact with subjective health, further influencing satisfaction levels. This study highlights the importance of regional economic support and healthcare accessibility in fostering health equity, offering policy insights for addressing health disparities. Through a comprehensive multilevel model, the research provides evidence of the resilience-building role of both individual and regional factors in shaping equitable health outcomes.
This study aims to explore the relationship between health and household wealth in couples using data from the 1996-2020 Health and Retirement Study (HRS). Employing a hierarchical linear modeling (HLM) approach, it examines the economic influences of health issues on household wealth, differentiating between the effects of husbands' and wives' health conditions. The results indicate that wives’ chronic diseases, such as diabetes, cancer, and stroke, are linked to significant reductions in household wealth, whereas similar health issues in husbands have a minimal effect. However, when health problems limit work capacity, the husband’s diseases tend to negatively impact household wealth more than the wife’s. These findings highlight the gender-specific effects of health on wealth and suggest that policymakers should consider these differences when designing policies aimed at health and financial security.
Financial socialization typically conceptualizes influences on children’s financial well-being through modeling, instruction through parent-child discussion, and experiential learning. However, helicopter parenting, which is marked by age-inappropriate parental involvement in emerging adults’ decision-making, does not fit into this model. The present study sought to examine the relationship between financial helicopter parenting and perceived financial well-being and financial self-confidence in 203 college students. Results indicate that financial helicopter parenting is related to having less confidence in financial abilities, engaging in financial strain behaviors, and reporting lower levels of financial well-being, though there was no relationship with student loan or consumer debt. This unique pattern of results suggests a need for modified interventions to improve financial well-being and behavior.
Recent evidence shows that there has been an increase in the number of parents who are financially supporting their adult children. The concern is whether this is affecting parents’ retirement planning negatively. This study uses data from the 2021 National Financial Capability Study (NFCS) to examine how financially supporting young adult children is associated with parents’ retirement planning. The results suggest that individuals who financially support their young adults are less likely to have retirement accounts and are more likely to worry about running out of money in retirement compared to those who do not have financially dependent children.
The antecedents of financial well-being have been explored in various methods to understand how to improve individuals' and families’ overall well-being. For instance, the role of family financial socialization is of particular importance since the family unit is the primary socializing agent for most individuals until they are young adults (Danes & Yang, 2014; Gudmunson & Danes, 2011; LeBaron-Black et al., 2022). Central factors to financial well-being typically include reviewing a person’s objective and subjective financial factors associated with financial wellness. Additionally, a person’s financial circumstances (e.g., having an emergency fund), mental health, lower levels of financial stress), and perception of their financial situation are all common factors associated with improved financial well-being (Asebedo & Wilmarth, 2017; Archuleta et al., 2013; Park et al., 2017). Given the multifaceted nature of financial well-being, researchers must take a holistic approach when examining this construct. The purpose of this study is to empirically examine the influence of family financial socialization on individuals’ financial well-being across generations. These differences underscore how financial stability improves with age. This study is important because previous studies have shown age, or generation, to be an important predictor of financial well-being.
This study investigates the association between disability status and the financial wellbeing of U.S. households, while also examining the moderating role of financial technology (Fintech) to explore the potential for technology-driven interventions for individuals with disabilities. Results from the 2021 National Financial Capability Study dataset show that disability status is negatively associated with financial satisfaction. Among the Fintech variables, online banking, mobile payment, and mobile task management are positively correlated with financial satisfaction, whereas mobile banking and mobile transfers are negatively correlated. Additionally, we found that Fintech plays a moderating role in the association between disability status and financial well-being, particularly for respondents with multiple disabilities. Specifically, mobile payment, transfers, and task management significantly improved financial satisfaction among individuals with multiple disabilities compared to non-users. These findings suggest that targeted Fintech solutions may help mitigate financial disparities faced by individuals with disabilities, underscoring the importance of accessible, inclusive financial technology.
The current study investigated the mediation effect of financial confidence on the relationship between fintech use and financial health among college students. From February to May 2023, a self-reported survey was conducted to collect primary data from college students. Structural equation modeling (SEM) was used to identify reliable factors with SPSS Macro Process Model 4. The results indicated that financial confidence fully mediated the relationship between fintech use and financial health. Fintech use was positively associated with financial confidence, and financial confidence predicted financial health. Moreover, the direct impact of fintech use on financial health was insignificant. The findings indicate that fintech should be adopted as a tool to shape young adult consumers’ financial health by building their financial confidence. Financial institutions, financial planners, and governments should apply these empirical findings to their potential young adult clients.
In today’s digital age, financial technology (fintech) innovations are revolutionizing the way individuals and businesses manage financial transactions and services. As more individuals rely on digital platforms for financial management, understanding the psychological and cognitive factors that influence the adoption of fintech becomes essential. A key aspect of this study is the incorporation of IT-mindfulness, a concept derived from mindfulness research but adapted to reflect how users engage with technology. This study employs the Technology Acceptance Model (TAM) to explore the determinants of fintech adoption. This study extends TAM by incorporating IT-mindfulness as a precursor to these traditional determinants, hypothesizing that users who exhibit higher levels of IT-mindfulness are more likely to perceive fintech platforms as easy to use and useful. Moreover, this study introduces digital technology self-efficacy and financial literacy as key variables in understanding fintech adoption. This comprehensive model aims to provide a deeper understanding of how cognitive factors like IT-mindfulness interact with traditional TAM variables and personal competencies to influence users' fintech adoption behaviors.
This study examines the relationship between technology readiness, adoption of digital financial services (DFS), and financial well-being among individuals in Maharashtra, India. Using primary data from 715 respondents and employing structural equation modeling, the research analyzes how technology readiness influences DFS adoption and subsequent impacts on financial well-being. The Technology Readiness Index measures propensity to embrace new technologies, while custom indices assess DFS adoption and financial well-being. Key findings indicate technology readiness positively influences DFS adoption, which in turn significantly improves financial well-being. Demographic factors like age, education, and income moderate these relationships. Notably, while DFS adoption generally enhances financial well-being, impacts vary across socioeconomic groups. The study provides insights for tailoring DFS offerings and financial education programs to different consumer segments, potentially improving equity in financial services access. Results can inform strategies to build consumer financial resilience through targeted interventions addressing DFS adoption barriers. This research contributes to understanding how digital financial inclusion can enhance consumer well-being, with implications for policymakers and financial service providers in developing economies.
The purpose of this study is to analyze differences in self-reported financial vulnerability among older adults by immigrant status. Overall, foreign-born Hispanic males have lower anxiety frequency related to day-to-day financial decisions than both U.S. born Hispanic males and foreign-born White males. However, foreign-born respondents have higher odds of being “very worried” about losing financial freedom when compared to US-born respondents who are “not worried” or “somewhat worried” about losing financial freedom. More specifically, foreign-born White males or foreign-born Hispanic females have 267.8% and 471.9% higher odds of being “very worried” about losing financial freedom than U.S.-born White males or U.S.-born Hispanic females who are “not worried” or “somewhat worried” about losing financial freedom, respectively. Finally, foreign-born respondents are more likely to have higher frequencies of being talked into spending or donating when compared to US-born respondents. In particular, foreign-born Hispanic females have 211.7% higher odds of having higher frequencies of being talked into spending or donating money when they initially did not want to than U.S.-born Hispanic females.
Families with mixed documented and undocumented legal statuses encounter significant challenges that impact their financial wellbeing (Ayon et al., 2023). This study explores family financial socialization within Latine mixed-status families, a relatively understudied group. Over the past decade, research has highlighted the crucial role parents play in shaping their children’s financial understanding. This process involves transmitting financial information, skills, attitudes, and behaviors through observation, discussions, and experiential learning. While previous studies have noted variations in family financial socialization based on race, ethnicity, and immigration status, there is limited research on mixed-status families. This study aims to fill this gap by examining the experiences and perceptions of 12 dyads of college students and their parents from Latine mixed-status families across the United States. By focusing on how immigration status influences financial socialization, the study seeks to uncover the unique challenges these families face and their strategies for financial education. This research will provide valuable insights into the dynamics of financial socialization in Latine mixed-status families, contributing to a broader understanding of how diverse family backgrounds impact financial well-being.
Despite the number of immigrants in the U.S., limited research exists on their financial fraud experience. Delving deeper into immigrants’ financial fraud experience including the types of fraud is important because it can be a barrier for them to be fully integrated into the U.S. economy. The primary purpose of this study was to understand the fraud experience of immigrant consumers in the United States and to identify possible associations between individual factors and state-level factors and financial fraud experience and type of fraud experienced. Individual factors include financial literacy and cognitive abilities (from the data of Understanding America Study), and state-level factors include measures for proportion immigrant population (from the American Community Survey) and fraud severity (from Federal Trade Commission) in the state of residence. The study found that financial fraud experience was more widespread for first- and second-generation immigrants compared to non-immigrants, and misrepresentation of information was the most frequently experienced type of financial fraud. The results from SEM showed that the lower financial literacy among second-generation immigrants and the trend that immigrants tend to reside in the states with more foreign-born population and with higher fraud severity partially contributed to immigrants’ fraud experience.
This study examines how citizenship and immigration status, along with distinct pre-migration and post-migration factors, shape financial engagement and inclusion among U.S. consumers, focusing particularly on immigrants. Financial resilience and equitable access to services are essential for consumer well-being, yet many immigrants face barriers rooted in both their countries of origin and experiences in the U.S. Using data from the FDIC-CPS, this study explores how pre-migration factors—such as financial norms, home-country banking system maturity, and language proficiency—interact with post-migration factors like citizenship status, age of arrival, and ethnicity enclave capital to influence financial engagement. These variables affect immigrants' interaction with formal financial services, which tend to have more regulation, and can also push them toward alternative financial services that often have less regulation, potentially higher interest rates, and additional service fees. Access to regulated financial services is essential for resilience against economic shocks. Findings will identify key barriers that immigrant populations face, guiding policies and initiatives aimed at promoting financial equity and resilience. By addressing these disparities, financial institutions and policymakers can create a more inclusive financial system that strengthens the economic well-being of underserved consumers.
This study examines the role of non-labor income relative to net worth in shaping retirement satisfaction. Specifically, the authors create a ratio comparing income from annuities, pensions, and social security to net worth to observe the role of non-labor income relativity and its contribution to financial stability and quality of life during retirement. Further, we attempt to answer if consistent non-labor income can reduce financial anxiety that may be associated with market fluctuations or economic downturns, which typically affect net worth. In this regard, retirees may feel more secure when they have guaranteed income sources that are independent of market outcomes, which directly impact overall well-being and life satisfaction. Plainly, the objective of this study is to test if non-labor income relative to net worth is associated with retirement satisfaction.
Evidence on child support – or court-ordered payments from the noncustodial parent to the custodial parent – shows receiving payments improves child welfare. Yet, many eligible families do not establish paternity, a prerequisite to child support, nor do they obtain an award. These families are also disproportionately never-married, low income, and have less education. Compounding their financial vulnerability, these same families have also been shown to become disconnected from the labor force and means-tested government support during periods of financial hardship. To measure how these financially precarious families respond to unexpected hardship, I combine the first five years of the Future of Families and Child Wellbeing Survey with restricted medical records (1998-2000). Then, I construct a sample of mothers who are child-support-eligible at the time of their child’s birth and exploit a medically determined, severe, and random health shock that effects the child. Importantly this health shock is medically determined to be exogenous to the mother’s behavior e.g., smoking, and has been shown to induce financial hardship. Exploiting this random variation, I measure the likelihood of the custodial parent establishing paternity or obtaining a child support order one year later. I find that in response to increased financial hardship, mothers are 9 percentage points more likely to establish paternity, but I find no significant relationship to establishing child support. These findings speak directly to the significant challenges this population faces and the need for program intervention directly targeted to reducing barriers for these parents. Broadly, they also highlight the additional barriers to financial barriers this group faces which is particularly concerningly in light of increasing precarity and a patch work safety net.
The study investigates the factors that shape subjective well-being (SWB), focusing on how financial satisfaction, job satisfaction, relationship happiness, physical health, and community engagement contribute to overall life satisfaction. Unlike traditional economic measures like GDP, SWB offers a comprehensive view of consumer quality of life, providing insights into personal fulfillment and resilience, especially during economic and health crises. Using data from the General Social Survey from 2016 to 2022, this study analyzes the impact of financial satisfaction and other well-being dimensions on SWB through ordered logit regression models with robustness checks. Findings show that relationship happiness, financial satisfaction, and physical health are critical to well-being, with relationship happiness emerging as the strongest predictor (OR=28.25, AME=.4018). This research highlights the need for policies and programs that address financial and non-financial aspects of life to enhance consumer holistic well-being. Recommendations include financial literacy programs, supportive workplace environments, and accessible healthcare, which together can foster resilience and improve subjective well-being across diverse populations. This study contributes to an understanding of consumer well-being, supporting actionable strategies for policymakers, educators, and financial practitioners.
Making optimal investment decisions is complex due to the inherent uncertainty and the influence of individual risk preferences. This study investigates the impact of major health events on financial decision-making, focusing on risk-taking behavior and investment horizons. Utilizing data from the SHARE project, which provides a comprehensive longitudinal view of individuals aged 50 and above in Europe, we examine how health shocks such as heart attacks, strokes, and cancer diagnoses alter financial behaviors. Our analysis employs propensity score matching and mediation analysis to understand these dynamics. Results indicate that health shocks significantly deteriorate household financial conditions, reducing income, wealth, and employment probability. However, contrary to expectations, these shocks do not substantially alter risk appetite or investment planning horizons, suggesting a limited mediating role of decreased life expectancy in financial decision-making.
This study investigated the association between personal debt and psychological well-being among older adults aged 51 and above, with a specific focus on unsecured debt. The research explored the role of health literacy in this relationship. Data from the 2018 and 2020 waves of the Health and Retirement Study were utilized with a sample size of 10,687, involving respondents who completed both a core survey and a psychosocial leave-behind questionnaire. The analysis revealed that 35.9% of respondents had unsecured debt, and the presence of such debt was significantly associated with lower psychological well-being. Health literacy was a significant mediator between the deleterious role of unsecured debt in psychological well-being. Given that medical debt constitutes a sizable proportion of unsecured debt for older individuals, possessing greater knowledge of one's health situation appears to mitigate the psychological distress associated with debt. Interventions aimed at enhancing the ability of older adults to access and comprehend health-related information and services may serve as a protective measure against the negative psychological consequences of grappling with unsecured debt.
The present study aims to bring conclusive findings on how an individual’s personal finance contributes to his/her subjective well-being. By following Amartya Sen’s Capability approach, the present study created a model and analysed the influence of personal finance on the subjective well-being of U.S. adults through three distinct dimensions of personal finance: objective financial well-being, subjective financial well-being and financial capability. The relationship has been analysed by taking 4705 U.S. adults data from the 2016 National Financial Well-Being Survey (NFWBS) conducted by the Consumer Financial Protection Bureau (CFPB). Structural equation modelling was used to analyse the relationships. The results reveal that subjective financial well-being significantly contributes to subjective well-being, whereas objective financial well-being does not. However, it is found that objective financial well-being has an indirect significant positive effect on subjective well-being through subjective financial well-being (full mediation). Further, the study revealed that financial capability has a positive impact on objective financial well-being, subjective financial well-being, and subjective well-being. A serial mediating relationship has been found between financial capability and subjective well-being through objective financial well-being and subjective financial well-being.
Financial discrimination is a complex issue that demands attention. It perpetuates poverty and inequality among people of color, women, and other marginalized groups, limiting their ability to accumulate wealth. This, in turn, fosters economic instability and undermines the nation’s economic health. In this study, we investigate whether racial and ethnic disparities in financial discrimination persist after controlling for various factors. First, we examine racial and ethnic disparities in overall societal discrimination using the full sample. Then, we focus on three domains of financial discrimination, measured by respondents' experiences in the (a) labor market, (b) financial market, and (c) housing market, using a subsample of those who had experienced societal discrimination. In addition to racial and ethnic disparities, we control socio-demographic characteristics.
Financial behavior is crucial for young adults’ consumer protection. And even though the topic has been augmented with a beyond-rationality approach, it is predominantly researched on an ad-hoc basis. Available longitudinal studies are based primarily on panel data or tackle the effectiveness of educative programs. The main aim of this paper is to investigate how the diverse financial behaviors of young adults change over time and how rational thinking dispositions moderate financial behavior. The final sample of 862 young adults (16-28) in Croatia was collected in two waves with a minimum elapsed time of one year. Using a multilevel, mixed-effects model. For four out of six dependent variables (Responsible financial behavior, financial planning, impulsive consumption, and investing experience) the interaction between time and CFC difference was significant meaning that the difference in dependent variables was contingent on the CFC difference. These results indicate that the change in various (responsible) financial behaviors is accompanied by the change in rational thinking dispositions among young adults. The insights provide a valuable foundation for generating novel educational policies and for further experimental research in financial behavior.
This research utilizes the Panel Study of Income Dynamics dataset to examine the impact of the Affordable Care Act on labor force participation and overall well-being among workers with disabilities, with a particular focus on expanding individuals with Medicaid and access to healthcare exchanges. It also examines the ACA and Medicaid expansion associations on income level change for individuals with disabilities and compares labor force participation for individuals with disabilities between states that have adopted Medicaid expansion and those that haven't. The preliminary findings in this study add empirical evidence that the Affordable Care Act and Medicaid expansion positively impact labor participation levels and directly benefit family income levels due to better healthcare access, especially for individuals from lower incomes or with disabilities.
Financial anxiety is a crucial topic in financial well-being and public health issues. Financial resilience, as a specific financial capability for coping with adversity, can promote financial well-being and holistic health. However, the association between financial resilience and financial anxiety has yet to be examined, particularly considering cross-national heterogeneities. Built on resilience theory and international evidence, this study proposed and examined a framework of global financial health nexuses. Empirical data was extracted from the World Bank, United Nations, and Fraser Institute. Hierarchical linear modeling was used to analyze the multilevel data from 100,134 adults across 131 countries. After considering country-level indicators, there were still significantly negative associations between subjective or objective financial resilience and financial anxiety. Cross-national differences in financial anxiety were also significantly influenced by individual characteristics, human development index, and social welfare expenditure. Subjective financial resilience showed higher effects than its objective counterparts. Extreme poverty and social welfare expenditure were significant moderators. This study contributes to providing a global development perspective on relations and variations between financial resilience and financial anxiety, and it also suggests contextually adaptable implications for international policies and services on socioeconomic interventions, sustainable development, and financial health promotion.
This research examines the role of financial resilience in supporting well-being, particularly during and after adverse life events. Financial resilience is defined as a composite of four dimensions: economic resources, financial access and inclusion, financial knowledge and behavior, and social capital (Salignac et al., 2019). Our study utilizes data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, covering the period from 2014 to 2020. To explore how financial resilience impacts well-being, we employ fixed effects panel regression, focusing on indicators such as life satisfaction, financial satisfaction, and mental health. Additionally, we apply a difference-in-difference event study design to examine the "bounce back" effect, assessing how financial resilience influences recovery from adverse life events. The findings contribute to our understanding of how financial resilience acts as a buffer against declines in well-being following financial and personal shocks, helping individuals recover more quickly. These results highlight the crucial role of financial resilience in safeguarding both financial stability as well as mental health and well-being.
Research shows that consumers enjoy shopping and consuming with others but also that the enjoyment of companionship is diminished during consumption as compared to non-consumption activities. All else being equal, as commercial locations substitute for public spaces (parks, boulevards) as loci for social interaction in large cities, collective well-being should be expected to diminish. A better understanding of what drives enjoyment of companionship during consumption at retail locations, as well as the individual differences in responses to those drivers, may point to avenues to further collective well-being in urban areas. This research explores the role of fundamental social motives, specifically affiliation need, need for independence and fear of exclusion (Neel et al. 2016) in predicting the enjoyment of consumption experiences. As they drive social behavior, we expect social motives to predict enjoyment of consumption experiences.
This research aims to identify consumer segments in the United States with varying attitudes, beliefs, and preferences toward second-hand fashion, leveraging these insights for targeted nudging interventions. The study, using primary data collected via a Qualtrics survey, segments participants based on psychographic variables while considering social norms. The results can inform marketing strategies, policymaking, and fashion industry practices to promote sustainable consumption, enhance consumer economic well-being, and reduce the environmental impact of fast fashion. This research seeks to advance the economic well-being of consumers and families by promoting sustainable and mindful consumption practices.
The purpose of this study, which is part of a larger study, is to identify behavior change stages of consumer recycling behavior based on the transtheoretical model of behavior change (TTM) and examine differences of psychological and cognitive factors between these change stages with national data in the U.S.. In this study we answer following research questions:_x000D_
What are the statuses of consumer recycling behavior by behavior change stages;_x000D_ What psychological and cognitive factors associated with consumer recycling behavior differ by behavior change stages?_x000D_
The results show that most consumers (76.5%) engaged in recycling behavior at various behavior change stages, while a minority of consumers (23.5%) are still not engaging in recycling behavior. Among them, 12.8% never consider recycling._x000D_ One-way ANOVA results show that consumer change processes that can be considered change strategies used by consumers in behavior change are different from earlier stages to later stages. Behavioral skill is positively associated with behavior change stages. In addition, perceived cons of recycling behavior are negatively and perceived pros are positively associated with behavior change stages. Results also suggest that both objective and subjective recycling knowledge may encourage consumer recycling behavior.
Presidential elections can be unsettling for individuals as they consider changes that may not reflect their social and fiscal values and confront the specter that they could live the next four years under misaligned policies. At the same time, the stock market and the economy have historically fared well regardless of the political party in control or whether the election resulted in a change in leadership. With the political atmosphere in the United States becoming increasingly charged, the opportunity for panic is elevated, most notably for individuals who lean heavier into their political identity. Financial mistakes made today due to heightened emotional states can have a lifelong deleterious impact. The present study explores whether changes in economic and market expectations after an election were driven by political conviction and whether partisanship manifested in different actions to one’s portfolio. We also contemplate the election’s partisanship effects on financial well-being and financial self-efficacy, both of which have been shown to impact decision-making. We conclude this paper with practical techniques to help individuals look beyond the current political environment and refocus on long-term planning.
This study investigates the equity and resilience impacts of Farm Service Agency (FSA) loan programs on socially disadvantaged farmers, focusing on disparities in loan terms such as obligated loan amounts and interest rates across diverse demographic groups. Using borrower data from 2004 to 2014, it evaluates lending patterns for primary loan types (Operating and Farm Ownership Loans) and ad hoc loan types (Disaster Assistance and Emergency Loans). By applying a Multivariate Multiple Linear Regression (MMLR) model, the research assesses the influence of financial performance indicators and demographic factors, including race, gender, and marital status, on loan conditions. The findings reveal significant differences in loan terms, with minority and female borrowers often experiencing lower loan amounts and higher interest rates compared to White and male borrowers. These disparities persist despite FSA’s mandate to ensure equitable access to credit for disadvantaged groups. The results indicate that while FSA programs have made strides in improving access, challenges remain in achieving full equity. Policy recommendations include enhancing credit scoring models to reduce bias and providing targeted support programs to improve financial resilience for minority farmers. This study contributes to understanding the effectiveness of FSA loans in promoting equity and resilience and suggests pathways for further policy reform.
Cancer survivors often experience significant financial challenges due to the high treatment costs, a problem known as financial toxicity. The link between financial distress and financial well-being has yet to be thoroughly studied. This research examines financial toxicity and financial well-being among cancer survivors and identifies the demographic and clinical factors influencing these outcomes. Financial distress was measured using the 11-item COmprehensive Score for Financial Toxicity (COST), lower scores indicating greater financial toxicity. Financial well-being was assessed using the 5-item Consumer Financial Protection Bureau (CFPB), lower scores indicating poorer financial well-being. Linear regression analyses were conducted to identify significant COST and CFPB score predictors. _x000D_ Females had lower CFPB scores than males (Difference: -6.5, 95% CI: [-11.7, -1.3], p
This study aims to examine the association between financial knowledge, the use of a financial planner, and the financial planning horizon. Additionally, we investigate the moderating role of financial planner usage on the relationship between financial knowledge and the financial planning horizon. For the empirical analysis, we used a pooled dataset from the 2016–2022 Survey of Consumer Finances (SCF), allowing for a comprehensive view across multiple time points. Our findings offer valuable insights for educators, practitioners, and policymakers by highlighting how financial knowledge and professional guidance can shape individuals’ long-term financial planning behaviors. This research contributes to the broader understanding of how personal financial management strategies and access to financial expertise can influence financial preparedness and planning horizons.
Retirement planning faces the challenge of varying life expectancy, influenced by factors beyond standard age and gender measures, such as income, health, and environment. Traditional reliance on generalized actuarial tables may lead to suboptimal financial outcomes for individuals. This study emphasizes the benefits of integrating personalized longevity projections to enhance retirement strategies, especially for optimizing Social Security benefits. A Cox proportional hazard model is estimated using data from the Health and Retirement Study to project personalized longevity. Then, this study found that tailoring the estimated optimal claiming age for benefits significantly increases the present value of lifetime benefits. Findings reveal that personalization can yield an average lifetime increase of over $12,000 for men and $9,000 for women. The evidence suggests that personalized longevity approaches can better align financial plans with individual life expectancy, enriching clients' understanding and retirement readiness.
With the rise of social media and a growing interest in how it is related to mental health, it is becoming increasingly important to consider the relationship between social media and financial mental health. As regulators consider policy for social media in order to mitigate its potential negative impacts on adolescent mental health, often the element of financial mental health is overlooked. This study looks to better address this gap in research by exploring the association between social media and financial anxiety. By using data from the National Financial Capability Study, this project will explore how social media and other factors are related to financial anxiety and make recommendations for future research and potential regulation.
This research aims to address the literature gaps by investigating the associations between social media usage and investor optimism, especially when considering the interaction between subjective and objective investment knowledge. Utilizing the 2021 National Financial Capability Study (NFCS) main dataset and its supplementary Investor Survey, this study specifically examines how the use of social media as an investment information source affects investors’ portfolio performance expectations. Particular attention is paid to comparing investors who anticipate above-market performance versus those expecting market-equivalent returns, with investment knowledge serving as a potential mediating factor.
2:45-2:50 Welcome and Announcements 2:50 3:50 Editor Panel 3:40-3:50 JCA Awards-Rui Yao 3:50-4:00 Announce Next Year's Location & Door Prizes - Must be present to win! 4:15 Adjourn the Conference
