Gauging the Financial Capability of Americans

Business Economics, Forthcoming

35 Pages Posted: 29 Jul 2015 Last revised: 31 Jul 2015

See all articles by Mark A. Johnson

Mark A. Johnson

Loyola University Maryland

Douglas J. Lamdin

University of Maryland, Baltimore County (UMBC) - Department of Economics

Date Written: May 1, 2015

Abstract

There is an increasing interest in the economic and financial knowledge of the public. Former Federal Reserve Chairmen Greenspan and Bernanke often stressed the importance of improved economic and financial knowledge of the general public. Using recent survey results from the 2012 National Financial Capability Study, we examine the state of financial capability of Americans. We examine the actual knowledge of individuals, investigate how they self-assess their financial capability and knowledge, and analyze the way these relate to financial outcomes. We also examine the way these measures relate to demographic variables. The evidence suggests that there is room for improvement in financial knowledge, decisions, and capability, which varies among demographic groups.

Keywords: financial knowledge, personal finance

JEL Classification: D12, D14

Suggested Citation

Johnson, Mark A. and Lamdin, Douglas J., Gauging the Financial Capability of Americans (May 1, 2015). Business Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2637115

Mark A. Johnson (Contact Author)

Loyola University Maryland ( email )

4501 North Charles Street
Baltimore, MD 21210-2699
United States

Douglas J. Lamdin

University of Maryland, Baltimore County (UMBC) - Department of Economics ( email )

1000 Hilltop Circle
Baltimore, MD 21250
United States
410-455-2672 (Phone)
410-455-1054 (Fax)

HOME PAGE: http://www.umbc.edu/economics/faculty_cv/lamdin.html

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