The cryptocurrency Bitcoin has been prominently featured in the news recently. Its ascension in value has been nothing short of extraordinary. This article briefly explains what Bitcoin is and how it works. The more challenging question is what Bitcoin--this cryptographic breakthrough--really is: currency, like the U.S. dollar, an asset, more like…

Behavioral economics and its concept of nudges are rapidly influencing the design of community-based financial education programs. This article addresses why nudges can be useful tools for effective financial education, explains the different types of nudges introduced by behavioral economics research, presents evidence of their effectiveness from…

This position article proposes that bankruptcy counseling and education should be tailored so that bankrupts and consumer debtors can attain "solvency literacy," a new construct developed for this initiative. They need to (a) handle their financial affairs "during" the insolvency process while (b) concurrently striving for a…

Consumers face hard choices when they need cash quickly. Hard choices can lead to emotional or economically unsound decisions. Traditional classroom discussions of raising funds to pay for expenses usually focus on generating income, borrowing, or the sale of real and financial assets, if hardship is discussed at all. However, many families have…

Investing in postsecondary education ought to be as clear and transparent as any other purchase, including clear pricing up-front that allows consumers to make well-founded school, degree, and borrowing choices that fit their personal circumstances, talents, and ambitions. Yet that is not how college financing works today. Instead, students and…

Strong basic literacy and numeracy skills are important foundations for making sound financial decisions. Curriculum design, pedagogical methods and stakeholder involvement can all be harnessed to build student financial knowledge and well-being. This "Trends Shaping Education Spotlight" touches on growing financial risks for…

The Federal Reserve System is the central bank of the United States. The system includes 12 Federal Reserve Banks (and their associated branches) located throughout the country, with oversight by the Board of Governors in Washington, D.C. The diverse structure is designed to ensure that the interests of Main Street are represented along with those…

Students with an understanding of economics are better equipped to comprehend the forces that influence people's standard of living and overall financial well-being. Broad-based economic literacy supports an environment where students can participate in America's democracy as well-informed and responsible citizens, whose collective actions may…

In the fall of 2008, the Federal Reserve Banks of Atlanta and St. Louis began a systematic evaluation of their economic and personal finance educational outreach programs. Both banks were interested in developing tools to assess the success of their existing economic and financial education programs. However, before any assessment could begin, a…

Many textbooks define economics as the social science that studies how people make choices when faced with scarcity; or how a society decides what to produce, how to produce, and for whom to produce. Regardless of the definition, students' economic understanding is fundamental to their financial well-being and their ability to build successful…

According to the Jump$tart Coalition, Oklahoma is one of 24 states to adopt financial education requirements for students (Jump$tart Coalition, 2010). The Passport to Financial Literacy Act of 2007, Oklahoma House Bill 1476, requires Oklahoma students in grades 7 through 12 to fulfill established financial literacy requirements to graduate with a…

Twenty-nine scholars from public and private universities, non-profit organizations, and the federal government participated in a National Research Symposium on Financial Literacy and Education in October 2008 in Washington, DC. The purpose was to identify critical research questions that could inform outcomes-based financial education, relevant…

The near-collapse of the American financial system has led to a search for its causes and ways to prevent it from happening again. Many political leaders blame at least some of the sub-prime mortgage crisis on mistakes caused by financially "illiterate" consumers and propose to solve that problem with mandatory classes in personal finance.…

Earning, spending, saving and investing, and using credit are important aspects of money management that teens need to understand as they move into adulthood. Family and consumer sciences (FCS) professionals have a long history of addressing this important life skill. This brief article describes the High School Financial Planning Program (HSFPP),…

Describes the Bank Ed School Series: (I) for upper elementary, which focuses on basic money management and math skills; (II) for junior high, which emphasizes goal setting, savings, money making, and related math skills; and (III) for high school, which focuses on the family as a mini-society operating with the same economic principles as the…