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.
