This study examined the association between financial literacy and the decision to withdraw funds from different types of retirement accounts before retirement. Data from the 2012 and 2015 National Financial Capability Study were used to investigate if financial literacy may potentially influence the decision to dissave from funds already set…

The purpose of this study is to examine migration during retirement and its association with retirement satisfaction. Utilizing longitudinal data collected from the Health and Retirement Study, this study estimates a fixed-effects logit model to examine how changing U.S. Census divisions during retirement is related to retirement satisfaction. The…

A significant ongoing initiative is to identify the conditions under which financial education is most effective, as it has been shown to work much better in some circumstances than others. One factor to consider is mathematical capability, as it has been linked to improved financial knowledge and financial outcomes. In this paper, we investigated…

Financial behavior disparities across race and gender persist in the United States. Historical and structural factors contribute to such disparities. It is important to understand the psychological mechanisms underlying these disparities to begin to achieve wealth equity. This study addressed one potentially relevant psychological construct:…

We examined the association between financial knowledge overconfidence and the perception of emergency fund needs using the 2016 Survey of Consumer Finances (SCF) dataset. Only 28% of respondents reported a perceived amount of emergency funds needed that would cover at least three months of estimated spending. We conducted an OLS regression…

The Survey of Consumer Finances (SCF) has included a 4-level risk tolerance measure since 1983. In 2016, the SCF also included an 11-level risk tolerance measure. We compare the two measures, and develop suggestions for using the new measure. While the new measure is seemingly simpler than the old measure, we demonstrate that it does not have a…

This study examines the effects of financial advice on college-saving decisions using data sets from the 2009 and 2012 U.S. National Financial Capability Study. After controlling for self-selection bias through propensity score matching, the findings show that receiving financial advice is associated positively with the likelihood of saving for…

This article examined the relationship of household financial behaviors and accesses. Using the 2015 National Financial Capability Study, the current study conducted latent class analysis of financial behaviors to identify latent classes (N = 27,564). The distribution of access was investigated among latent classes, which were regressed on the…

This study used the 2017 National Financial Well-Being Survey to investigate the relationship between cognitive ability and seeking financial advice. Three aspects of cognitive ability were examined: memory, objective numeracy, and subjective numeracy. The results showed that in general, the three were not associated with seeking financial advice.…

This study establishes an integrated conceptual framework to examine the influences of financial socialization on young adults' financial and subjective well-being. Using the National Financial Well-Being Survey and structural equation modeling methods with a national sample of young adults aged 18-35, this study highlights two key potential…

This study explores the association between financial knowledge and financial fragility. Data from the 2015 National Financial Capability Study were used to create an index of financial fragility. Relationships between this index and three different measures of financial knowledge were assessed. To mitigate potential endogeneity in the financial…

Financial literacy scales are often used as a diagnostic tool to assess financial knowledge levels among various populations, although few of them have undergone empirical testing. This study utilized exploratory factor analysis (EFA) with a sample of Chinese rural migrant workers to identify the underlying structure of a financial literacy scale…

Why do people give away their money? Charitable giving has traditionally been modeled using socioeconomic (i.e., age, income, education) and psychographic variables (i.e., self-esteem, guilt, pity). However, given that charitable giving is, inherently, a financial activity, would financial variables with a psychographic element (i.e., financial…

We examined the relationship between holding a student loan and financial satisfaction and financial education's moderating role using the 2015 National Financial Capability Study dataset. Households with a student loan had lower levels of financial satisfaction than those without one. We found a moderating role of receiving both formal and…

As defined contribution (DC) plans become more popular than defined benefit (DB) plans, American workers are increasingly responsible for their retirement savings. Because retirement plan participants' portfolio allocation is constrained by the available funds in the plan, the construction of a plan's investment menu has become extremely…