Financial Decision Making and Cognition in a Family Context

38 Pages Posted: 22 Sep 2010

See all articles by James P. Smith

James P. Smith

RAND Corporation; IZA Institute of Labor Economics

John J. McArdle

University of Southern California - College of Letters, Arts and Sciences

Robert J. Willis

University of Michigan at Ann Arbor - Department of Economics; National Bureau of Economic Research (NBER)

Multiple version iconThere are 3 versions of this paper

Date Written: September 21, 2010

Abstract

In this paper, the authors studied the association of cognitive traits and in particular numeracy of both spouses on financial outcomes of the family. They found significant effects, particularly for numeracy for financial and non-financial respondents alike, but much larger effects for the financial decision maker in the family. They also examined who makes these financial decisions in the family and why. Once again, cognitive traits such as numeracy were an important component of that decision with larger effects of numeracy for husbands compared to wives.

Suggested Citation

Smith, James P. and McArdle, John J. and Willis, Robert J., Financial Decision Making and Cognition in a Family Context (September 21, 2010). RAND Working Paper Series WR- 785. Available at SSRN: https://ssrn.com/abstract=1680650 or http://dx.doi.org/10.2139/ssrn.1680650

James P. Smith (Contact Author)

RAND Corporation ( email )

P.O. Box 2138
1776 Main Street
Santa Monica, CA 90407-2138
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

John J. McArdle

University of Southern California - College of Letters, Arts and Sciences ( email )

Playa Vista, CA
United States

Robert J. Willis

University of Michigan at Ann Arbor - Department of Economics ( email )

611 Tappan Street
Ann Arbor, MI 48109-1220
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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