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An Analysis of Personal Financial Literacy Among College Students
H a i y a n g C h e n and Ronald P. V o l p e
This study surveys 924 college students to examine their personal financial literacy; the relationship between the literacy and students' characteristics; and impact of the literacy on students' opinions and decisions. Results show that participants answer about 53% of questions correctly. Non-business majors, women, students in the lower class ranks, under age 30, and with little work experience have lower levels of knowledge. Less knowledgeable students tend to hoM wrong opinions and make incorrect decisions. It is concluded that college students are not knowledgeable about personal finance. The low level of knowledge will limit their ability to make informed decisions.
The ability to manage personal finances has become increasingly important in today's world. People must plan for long-term investments for their retirement and children's education. They must also decide on short-term savings and borrowing for a vacation, a down payment for a house, a car loan, and other big-ticket items. Additionally, they must manage their own medical and life insurance needs. Unfortunately, studies have shown that Americans have inadequate knowledge of personal finances (EBRI, 1995; KPMG, 1995; PSRA, 1996, 1997; Oppenheimer Funds/Girls Inc., 1997; Vanguard Group/Money Magazine, 1997). They fail to make correct decisions because they have not received a sound personal finance education (HSR, 1993; Hira, 1993; O'Neill, 1993). This study has three purposes. First, it provides evidence of personal finance literacy among college students. Second, it examines why some college students are relatively more knowledgeable than others. The analysis may help us identify factors that determine the level of competency possessed by college students. The third purpose is to examine how a student's knowledge influences his/her opinions and decisions on personal financial issues.
Haiyang C h e n • Professor of Finance, The Williamson College of Business Administration, Youngstown State University, Youngstown, Ohio 44555; Phone: (330) 742-1883; Fax: (330) 7421459; E-mail: email@example.com. Ronald P. Volpe • Professor of Finance, The Williamson College of Business Administration, Youngstown State University, Youngstown, Ohio 44555.
FINANCIAL SERVICES REVIEW 7(2)
The paper is organized as follows. Section II reviews previous studies on financial literacy. Section III discusses methodology. Section IV presents results. Section V concludes the paper.
Most of the previous studies are conducted by practitioners in the financial service industry. They focus on money management and investment-related issues. This emphasis is consistent with findings of the Certified Financial Planners, indicating these issues are important areas of personal financial planning (NEFE, 1993-1996). The results of these studies show that the participants generally answered fewer than 60% of survey questions correctly. Prior studies of high school students consistently find that they are not receiving a good education in personal financial fundamentals and have poor knowledge (Bakken, 1967; CFAJAMEX, 1991; HSR, 1993; Langrehr, 1979; NAEP, 1979). In a recent study of 1,509 high school seniors from 63 schools, Mandell (1997) reports an average correct score of 57% in the areas of income, money management, savings and investment, and spending. His conclusion is that students are leaving schools without the ability to make critical decisions affecting their lives. Do adults have a good command of personal finance and investments? Results of several studies suggest that they do not. Princeton Survey Research Associates (1997) surveys 1,770 households nationwide on their financial knowledge and find an average correct score of 42%. This result shows that household financial decision makers do not have a good grasp of basic finance concepts. In another study of 522 adult women, 56% are found not very knowledgeable about investing (Oppenheimer Funds/Girls Inc., 1997). Workers do not save adequately for retirement and make investment decisions that are too conservative. A KPMG (1995) survey of 1,183 employers finds employees contribute only about 5% of their income to 401K plans, although the typical plan allows a 14% contribution. The evidence indicates that employees are not maximizing their benefits. Additionally, the low savings rate and the low return from conservative investments may not provide enough income for a financially secure retirement. Employee Benefit Research Institute (1995) provides further evidence that most Americans do not save sufficient retirement funds and may have a false sense of financial confidence and security. The study surveys 1,000 current workers and retirees on financial knowledge issues. About 71% of all workers and 81% of retirees score 60% or less. The Institute of Certified Financial Planners (1993) surveys 123 Certified Financial Planner licensees and finds that financial illiteracy is a major problem when it comes to making individual financial decisions. Poor knowledge of investment fundamentals is the most common problem encountered by their clients. The results of two national surveys suggest that investors do not have a solid knowledge of investment issues. Princeton Survey Research Associates (1996) interviews 1,001 investors and finds that only 18% of them are financially literate. Vanguard Group/Money Magazine (1997) survey 1,467 mutual fund investors at 59 shopping malls across the country. The average correct score on a 20-question quiz is approximately 45%.
Volpe. These limitations are compounded by the fact that many prior studies only report the levels of financial literacy without analyzing the factors that influence people's knowledge. savings and borrowing.Financial Literacy 109 Most published studies focus on financial literacy among high school students and adults. III. (2) 60% to 79%. Chen. and Pavlicko (1996). Many studies cover selected areas in personal finances. Chen. The validity and clarity of the survey are further evaluated by two individuals who are knowledgeable in personal finance. Danes and Hira (1987) survey 323 college students from Iowa State University using a questionnaire covering knowledge of credit card. and business majors are more knowledgeable than non-business majors. but females know more about issues covered in the section of overall financial management knowledge. Previous research suggests that levels of financial literacy vary among subgroups of students (Volpe. For example. Married students generally are more knowledgeable about personal finance. While the prior research has provided evidence of people's personal finance knowledge and improved our understanding of the issue. eight questions of their opinions and decisions. insurance. This study provides further evidence of the dif- . & Pavlicko. & Pavlicko. it suffers from several weaknesses. neglecting others. record keeping. Chen. 1996). Furthermore. The responses from each participant are used to calculate the mean percentage of correct scores for each question. Chen. 1996). and Pavlicko (1996) focus on knowledge of investment. and overall financial management. A copy of the questionnaire can be found in the Appendix. section. The survey participants are asked to answer 52 questions including 36 multiple-choice questions of their knowledge on personal finance. and investments. Few of them have examined college students except for Danes and Hira (1987) and Volpe. It includes financial literacy on general knowledge. credit cards. Volpe. insurance. They find that the participants have a low level of knowledge regarding overall money management. and (3) below 60%. Consistent with the existing literature (Danes & Hira. The second category represents a medium level of knowledge. The quality and consistency of the survey are further assessed using Cronbach's alpha. personal loans. None of the previous studies have examined how an individual's knowledge impacts their opinions regarding personal finance issues and financial decision making. The third category represents a relatively low level of knowledge. and the entire survey. They survey 454 students from a state university in the Midwest and find that the average correct score of the participants is 44%. 1987. the mean percentage of correct scores is grouped into (1) more than 80%. They also find that males know more about insurance and personal loans. and insurance. both studies on college students use samples from a single university. suggesting that they have inadequate knowledge. the validity of the survey instruments is questionable because of the limited number of items included in the questionnaires. and eight questions on demographic data. The survey is used in a pilot study to refine the instrument. They also find that male students are more knowledgeable than female students. The first category represents a relatively high level of knowledge. METHODOLOGY This study uses a comprehensive questionnaire designed to cover major aspects of personal finance.
0 otherwise. 1 if a participant has 4 to less than 6 years of experience. 1 if a participant is Hispanic. If the logistic coefficient of the variable is negative. 0 otherwise.110 FINANCIAL SERVICES REVIEW 7(2) 1998 ferences using analysis of variance (ANOVA). 1 if a participant has more than 0 to less than 2 years of experience. race. 1 if a participant is White. 1 if a participant is in the age group of 18-22. 1 if a participant has no experience. 1 if a participant has 2 to less than 4 years of experience. 1 if a participant is African American. 0 otherwise. 1 if a participant is a junior. The reference category is a business major. The participants are classified into two subgroups using the median percentage of correct answers of the sample. 1 if a participant is a freshman. For example. and income. The coefficients represent the effect of each subgroup compared with a reference group. This dichotomous variable is then used in the logistic regression as the dependent variable. 0 otherwise. 0 otherwise. age. the non-business majors are associated with decreased log odds ratio of being more knowledgeable about personal finance. 0 otherwise. 0 otherwise. then it means that compared with business majors. M A J O R is coded as 1 if a participant is a nonbusiness major. 0 otherwise. The independent variables used in the logistic regression are variables such as academic discipline. 1 if a participant is a non-business major. 0 otherwise. 1 if the participant is a male. 1 if a participant is a sophomore. 0 otherwise. The differences are further analyzed using logistic regression models. 0 otherwise. 0 otherwise. 1 if a participant is a senior. 1 if the participant is a foreign student. EXPERIENCE3 = EXPERIENCE4 = AGE1 AGE2 = = . The logistic model takes on the following form: log [ p / ( 1 -p)] = B 0 + B I ( M A J O R ) + B2(CLASSRANK1 ) + B3(CLASSRANK2 ) + B4(CLASSRANK3) + Bs(CLASSRANK4) + B6(GENDER) + BT(RACE1) + Bs(RACE2) + B9(RACE3) + Blo(RACE4) + B 11(NATIONALITY) + BI2(EXPERIENCE1) + BIa(EXPERIENCE2) + BI4(EXPERIENCE3) + B15(EXPERIENCE4) + BI6(AGE1) + BI7(AGE2) + B18(AGE3) + B19(INCOME1) + B2o(INCOME2) + B21 (INCOME3) + e i (1) where P MAJOR CLASSRANK1 CLASSRANK2 CLASSRANK3 CLASSRANK4 GENDER RACE1 RACE2 RACE3 RACE4 NATIONALITY EXPERIENCE 1 EXPERIENCE2 = = = = = = = = = = = = = the probability of a student who is more knowledgeable about personal finance. which is arbitrarily selected. gender. 0 otherwise. which is explained simultaneously by all of the independent variables. 0 otherwise. work experience. 1 if a participant is American Indian. Students with scores higher than the sample median are classified as those with relatively more knowledge. 1 if a participant is in the age group of 23-29. class rank. 0 otherwise. nationality. Students with scores equal to or below the median are classified as students with relatively less knowledge. 0 otherwise. 0 otherwise. 0 otherwise.
7 32.999 d) $50. 184 224 192 248 21.2 17. Academic Disciplines a) Business Majors b) Non-Business Majors 2.$ 4 9 . Years of Age a) 18 to 22 b) 23 to 29 c) 30 to 39 d) 40 and over Income I. 0 0 0 .2 . 0 o t h e r w i s e . 0 0 0 .4 17.3 17. 0 0 0 .2 1. 0 otherwise. 0 otherwise.000 b) $10. 0 otherwise.7 B.3 23.9 9.6 29.7 36.6 85.7 93.000 or more Percentage 431 389 156 157 160 326 106 52. 0 0 0 .999 c) $30. 1 if the p a r t i c i p a n t is in the i n c o m e g r o u p o f $ 1 0 .0 16. Class Rank a) Freshman b) Sophomore c) Junior d) Senior e) Graduate Demographic Characteristics I. 395 495 763 59 47 14 15 740 52 44.Financial Literacy 111 AGE3 INCOME 1 INCOME2 INCOME3 = = = l i f a p a r t i c i p a n t is in the a g e g r o u p o f 3 0 .4 22. Years of Work Experience a) None b) Less Than Two Years c) Two to Less Than Four Years d) Four to Less Than Six Years e) Six Years or More 2. Education 1. TABLE 1 C h a r a c t e r i s t i c s o f the S a m p l e Number of Participants A.6 C.3 9 . 9 9 9 . Nationality a) USA b) Foreign (other than USA) Experience 2.0 l 1.000 to $29.6 46.6 47. Last Year's Income a) Under $10.7 43. = 1 if the p a r t i c i p a n t is in t h e i n c o m e g r o u p o f $ 3 0 .$ 2 9 .6 5.000 to $49.0 6.7 26.4 55. 1 if the p a r t i c i p a n t is in the i n c o m e g r o u p o f less t h a n $ 1 0 . 32 78 134 194 384 395 289 151 69 3.7 7.4 6.5 16.6 D.6 1. Gender a) Male b) Female Race a) White b) African-American c) Asian d) Hispanic e) Native American 3.
33 %. According to a survey by Gitman and Bacon (1985). In terms of demographic background. The mean percentage of correct scores is grouped into three categories: over 80. 1987). About 75. The highest score is presented first. which is followed by lower scores within each section. . which further increases its validity. & Zietlow. representing a response rate of 51. and Pennsylvania. Most of the higher education institutions put little emphasis on students' personal finance education (Danes & Hira. As in the logistic regression analysis.85. Detailed characteristics of the sample are presented in Table 1. and graduate students. The overall mean percentage of correct scores is 52. Even business schools do not require students to take a Personal Finance Management course (Bialaszewski. IV. A.112 FINANCIAL SERVICES REVIEW 7(2) 1998 To determine the impact of financial literacy possessed by the participants on their opinions.87%. junior. citizens. only 5% of business school offers an undergraduate major in finance services. it is not surprising the results show that college students have inadequate knowledge on personal finance. somewhat unimportant. Nine hundred twenty-four students from 13 campuses participated in the survey.7% of the students are from 18 to 29 years of age. Missing responses cause the sample size to vary from 792 to 905. Thirty-six percent of the participants are seniors with the rest evenly distributed among freshman.56%. Overall Results of the Survey The overall results are presented in Table 2. 1993). Ohio. They include both public and private schools. indicating on average the participants answered only about half of the survey questions correctly. and small community colleges in California. Florida. The findings suggest that college students' knowledge on personal finance is inadequate. and below 60. Female participants represent about 55.6% of the sample. In terms of education. main and branch campuses of large universities. the sample is partitioned into two groups of students with relatively more knowledge and those with relatively less knowledge. not sure. the section median percentage of correct answers is used to classify the sample. 60-79. students are asked to rank personal finance issues using five categories: very important. Most participants have more than two years of work experience. various sample sizes have been used to calculate valid percentages in Table 1. somewhat important. Massachusetts. sophomore. Given the lack of personal finance education.800 students from 14 college campuses. Pencek. about 52. The reliability of the 36-question survey is 0. They are also asked to make decisions on the related financial issues. Since the issues are related to each section in the survey. One reason for the low level of knowledge is the systematic lack of a sound personal finance education in college curricula. RESULTS AND ANALYSIS The questionnaires are sent to 1. Cross-tabulations and Chi-square tests are used to determine if the difference of the two groups' opinions and decisions are statistically significant. The large Cronbach alpha indicates that the questionnaire is reliable.S. therefore. most of the participants are white and U.6% of the participants are business majors. The median percentage of correct scores is 55. and very unimportant. Kentucky.
94 48.49 52.87 55.1)9 29.67 64. Saving Pattern Checking Account Reconciliation Net Worth Calculation Personal Financial Planning Tax Credit vs.89 62. Investments Mutual Fund Selection Common Stock Investing for Selected Investment Goals Retirement .38 63.90 34.67 76.14 59.39 50.Financial Literacy 113 TABLE 2 Mean Percentage of Correct Responses to Each Survey Question.31 33.70 48.23 23.24 66.67 52.08 69.23 30.03 73.Return Investment Suitability Interest Rate Changes and Treasury Bond Price Municipal Bond Investment Dollar-cost-averaging Investment Diversification Mutual Fund Charges Foreign Exchange Rates Mutual Fund Ownership Characteristics Mean Correct Responses for the Section Median Correct Responses for the Section Mean Correct Responses for the Entire Survey Median Correct Responses for the Entire Survey I.32 44.16 63.56 . Each Section.70 66.47 55.11 74. Medium 60-79% High Over 80% 80.47 74.8 ! 32.35 64.81 54.95 75.00 28.95 72.56 86.64 56. Tax Deduction Mean Correct Responses for the Section Median Correct Responses for the Section II.35 36.08 45. and the Entire Survey Level of Personal Finance Knowledge Low Below 60% General Knowledge Personal Finance Literacy Legal Requirements for Apartment Lease Apartment Leasing Costs Asset Liquidity Spending vs.45 40.55 56. Insurance Auto Insurance Rate Determination Reason to Buy Insurance Health Insurance Characteristics Insurance Conflict Resolution Homeowners' Insurance Characterb ~ics Term Insurance Characteristics Mean Correct Responses for the Section Median Correct Responses for the Section IV.57 12.68 47.70 33.48 70.50 53.94 64. Savings and Borrowing Creditworthiness Consumer Credit Report Sources Deposit Insurance Checking Account Overdrafts Compound Interest Certificate of Deposit Terms Loan Co-Sign Consequences Annual Percentage Rate Credit Card Use Mean Correct Responses for the Section Median Correct Responses for the Section III.Benefits of Early Investment Mutual Fund Investment Return High Risk .37 41.38 27.
they are exposed to a limited number of financial issues related to general knowledge. These factors may explain the differences in the mean percentages of correct answers for the sections of General Knowledge (63. they earn low scores in these areas. and insurance. Section III (Insurance). Although the different scores are statistically significant. The percentages of correct answers from the female participants (50. At this stage of the cycle. On average. During this period.70%). They know more about these issues because they need to rent apartments during their college years. savings and borrowing.01 level. work experience. The findings also suggest that participants from different class ranks have different levels of financial knowledge. A further look into the scores on individual questions shows that students score higher on issues with which they are familiar. B.94%. and the entire survey by different subgroups. Students are familiar with the issue because many of them own cars and have to pay a higher auto insurance premium. As shown in Table 1. Again. the relationship between personal financial literacy and participants' education. Foreign students also earn lower scores than their American counterparts. The testing results of ANOVA indicate that the differences are statistically significant at the 0. Section IV (Investment). Savings and Borrowing (54. students have little experience with tax. The majority of them are in a very early stage of their financial life cycle. the non-business majors. The results for the entire survey clearly show that business majors are more knowledgeable than non-business majors. and Investment (40. This pattern of business majors answering about 8% to 12% more questions correctly than non-business majors is persistent throughout the individual sections. graduate students know more than the undergraduate students. term life insurance. In contrast. Subsequently. Participants from dissimilar ethnic backgrounds have different levels of financial knowledge. the business majors answered 60. Students also score relatively high on apartment leases. Analysis of Results by Subgroups of the Sample In this section. and junior and senior students are more knowledgeable than those from the lower ranks. the highest score is related to auto insurance.77%) are lower than those from the male participants (57. This pattern persists among all sections including the overall results. The values of F-statistic suggest that these differences are highly significant. Table 3 shows the mean percentage of correct responses for Section I (General Knowledge). the differences in the level of literacy among different ranks are statistically significant at the 0. For example.114 FINANCIAL SERVICES REVIEW 7(2) 1998 Another reason for the low level of knowledge can be attributed to the young ages of the participants.24%).37%). 49.47%). and about 76% are under 30.01 level. ANOVA has been used to detect if participants from various subgroups have different levels of knowledge. and most of investment topics. Generally. . Participants' educational background has a significant impact on their knowledge. African-American participants earn the lowest scores throughout the various sections. about 44% of the participants are 18 to 22 years of age. most of their incomes are spent on consumption rather than investment. Insurance (59.40%). no single subgroup can claim the highest scores throughout the four sections. Section II (Savings and Borrowing).72% of the survey questions correctly. Table 3 shows participants' knowledge varies with their demographic characteristics. income and other demographic background are examined.
88 (10.48 42.84)** 60.74 53.93)** 41.32 F Statistic (13. 63.60)** B.78 42.49 e) Native American 60.57)** D.58)** 66.37 44.25 36.21 51.79 63.69)** .63 50.14 c) Two to less than four years 58.74 71.91 (37.02 63. Nationality a) USA 67.22 63.58 c) $30.37 (12.66 (19.64)** 43.35 (27. Experience 1.43)** 29.42)** 56.69 36.32)** (20. 1.78 62. Race a) White 64.20 (20.66 58.13 41.68 59. Education 1.34 (13.11)** 50.32 (17.36 39.73 (94.61 56.85 65.73 31.20 61.38 57.05)** 3.66)** 46.53) 57.54 58.05 38.89 55.97 44.63 c) 30 to 39 61.78 59.68 55.64)** (4.000 62.99 55.77)* 51.74) 39. **significant at the 0.71 (6.05)** 56.11 63.01 level or greater.34)** 48.65 34.72 F Statistic (7.06 59.47 57.94 (103.97 61.60 b) African-American 56.55 51.47 (30.15 63.82 d) Four to less than six years 65.28 52.45 58.95)** 54.98 (87.70)** (11.56)* (6.39 b) $10.62 48.92)** C.25 46.40 50.98)** 42.91 58.46 59.81 63.23 53.68)** 61.97 42.25 (10.45 (17.17 50.77 (31. Income 1.53 48.74 46.73 d) Hispanic 73.36 35.16 57.01)** 54.62 (2.22)** 45.26)** (I 1. Years of Work Experience a) None 57.98 42.79)** 2.000to $29.77)** 45.24 43.14 60. Last Year's Income a) Under $10.34 49.82 55.50 F Statistic (3.22 48.19 57.72 F Statistic (22.83 52. Academic Disciplines a) Business Majors b) Non-Business Majors FStatistic 2.01 b) Less than two years 57. Years of Age a) 18 to 22 60.32 b) 23 to 29 68.09 52.09)** 36.50 51.67 (3.68 53.67 F Statistic (2.72 49.75 58.00 66.78 (24.00 (5.07 62.16)** 60.69 67.94 56.53 57.13 b) Female 62.07 49.04 52.51 37.78 41.12 61.64 67.67 50.30 e) Six yearsor more 73.74 57.93 56.02 75.41 (4.20 55.69 44.38 40.71 (0.85 (33.48)** 61.74 (11.78)** 49.44 51.42 53.96 5 i.12 (20. DemographicCharacteristics Gender a) Male 67.48 63.85 59.Financial Literacy 115 TABLE 3 Mean Percentage of Correct Responses to Each Section by Characteristics of Sample and Results of ANOVA General Knowledge A.90 39.82 c) Asian 61.000 or more 68.999 65.58)** Notes: *significant at the 0.62 d) $50.12 54.96)** (21.08 d) 40 and over 74.999 67.49)** 31.05 level.18 48.48)** 2.97 (29.25 68.01 F Statistic (13. Class Rank a) Freshman b) Sophomore c) Junior d) Senior e) Graduate F Statistic Savings & Borrowing Insurance Investments For the Sample 72.48 36.000 to $49.63 55.34)** 56.71 b) Foreign (not USA) 59.40)** 63.07 (5.52 48.09 63.40 (2.
07 and 0. The differences between those with six or more years of experience and those with no experience and those with less than two years of experience are significant at the 0. They are regrouped into the adjacent groups of "40 and over" and "Under $10. GENDER. Few coefficients of RACE. One explanation is that by staying in universities longer. They learn the subject through a business course. or their own mistakes." Results of the logistic regression are shown in Table 4. They must have prior exposure to personal finance. While RACE. the models have high explanatory power. The significant negative coefficients for CLASSRANK variables indicate that participants from lower class ranks are more likely to be less knowledgeable than those from graduate classes. The survey has an age category of "60 or older" and an income category of "No income.47% of the observations are correctly classified as compared with 50. Participants in the age subgroups of 23 to 29 and 40 or older exhibit greater knowledge than the other age groups. Consistent with findings of ANOVA. students will naturally pick up more about personal finance. As suggested by the high Chisquare values. A similar line of reasoning would apply to why the participants who are older or have more work experience earned high scores in the survey. and INCOME variables affect level of knowledge in oneway ANOVA.06 levels respectively. Participants under age 30 are more likely to be less knowledgeable as compared with those 40 or older. they no longer have any significant impact in the logistic regression where all the variables are used simultaneously to explain the level of knowledge. the result suggests that non-business majors are more likely to be less knowledgeable about personal finance than business majors. Similar patterns can be found in the individual sections. Finally. the coefficient of MAJOR for the entire sample is negative and significant at the 0." However. the number of participants in these categories are very small. NATIONALITY. Participants who are more senior in class rank have earned higher scores in the survey. For the entire sample. The result that business majors are more knowledgeable is consistent with findings of previous research. 71. participants with more years of work experience are more knowledgeable than those with less experience. the results from logistic regressions for the individual sections are consistent with that of the entire sample.03% chance classification. the business majors perform consistently better than the non-business majors in every section of the survey. it seems that participants with higher personal income answered more questions correctly than those with lower income. They are not more literate just because they are older. Our argument is that students do not gain more knowledge of personal finance by just spending more time in college learning other unrelated subjects. Our view is consistent with the finding of this study that business majors are more knowledgeable than non-business majors. and INCOME are significant in the individual sections. Although the coefficient of AGE3 still exhibits a negative sign. NATIONALITY. Similarly. the difference between those who are in their thirties and forties or older is statistically insignificant. The finding is not surprising because curriculum requirements of business majors give them more opportunity to take finance and related courses. seminars. many coefficients for CLASSRANK. Women participants are more likely to be less knowledgeable than men. and AGE variables in the individual sections carry the same signs and are significant as shown for the entire sample. In addition to the overall fit of the model.01 level.116 FINANCIAL SERVICES REVIEW 7(2) 1998 In terms of participants' work experience and ages. Participants with less work experience have high probability of being less knowledgeable than those with more experience. For example. Another widely used measure of the overall fit of the model is to examine its ability to correctly classify observations.000. . With few exceptions.
1.6306** -1.3037 -0.5012* * -0.0573 * * -0.9773 899.7248* 0.5337 -0.1.1670 0.1. .2517 -0.03% --" -1.3495* .1.1877 -0.650)** 0.2644 -0.3886 -0.1914"* -0.5263 -0.6331 ** 0.29% 50.7823* 0.4050 -0.5972 -0.4867"* -1.2136 -0.8546 0.47% 50.7166 1.165 72.0459 -0.4497 -0.1. Demographic Characteristics.630)** 0.7995** -0.0992 -0.6985* -0.4050* -0.2013 -1.5661 -0.0135 -0.01 level or greater.2985 0. and Income on Their Financial Literacy Estimated Coefficients and the Level of Significance for Various Sections and the Entire Sample General Knowledge Insurance -0.1.6697* 0.8083** -0.0899'* -0.74% Constant -2 log Likelihood Overall Chi-Square Adjusted R 2 Correct Classification Chance Classification Notes: *significant at the 0.3251 * * .1664 Savings & Borrowing Investments -0.1.826 (150.6778 -0.7156 .1846 0.215 66.7044 -0.1628 -0.05 level.4145 0.7854 .1.64% 51.02% For the Sample MAJOR CLASSRANK1 CLASSRANK2 CLASSRANK3 CLASSRANK4 GENDER RACEI RACE2 RACE3 RACE4 NATIONALITY EXPERIENCE 1 EXPERIENCE2 EXPERIENCE3 EXPERIENCE4 AGEI AGE2 AGE3 INCOMEI INCOME2 INCOME3 -0.3771 -0.2644 0.8965** .1893 2.323 72.1480 0.0784"* -0.1.1623 -0.328 71.6123 -0.5615 .0149 0.3623 0.1.5379** -0.9911"* .9326* 0.0620 -0.0320 -0.9428 0.8234 -0.6339 0.72% 2.4888** 842. Experience.1905 -0.9968 1.451 (95.3594 -0.2291 -0.4709* -1.5209 1.88% 50.9173** -0.6371 ** -0.6611 -0.3456 -0. **significant at the 0.1491 * * .4667 -0.4133** -0.040)** 0.9402 -0.239 70.6407 -0.00% 2.2280 0.3382 0.9343** -0.5574** -1.9248 0.6862** 0.9298** 0.2234* * -0.4770 -0.2138"* 924.753 (134.1148"* 833.51% 56.TABLE 4 Logistic Regression Analysis of the Impact of Participants' Education.485)** 0.1753"* -2.955 (215.1.2412"* -0.0381 * * .1515 -0.0668 0.2740 .2873 -0.5516"* -1.1613 0.2717 * * -0.6071 ** .3631'* -1.8613 * * .1772* 1.1107* * -0.365 (210.9844** -0.3096 858.1.446)** 0.3630* * -2.7925 -0.
6% Students with Less Personal 149 Finance Knowledge 29.0% Students with Less Personal 336 Finance Knowledge 67.4% 128 24.001 level. .903.6% Somewhat Unimportant Very Unimportant Students with More Personal 260 Finance Knowledge 69.1% Students with More Personal 169 Finance Knowledge 45. Number and percentage of participants who view that spending less than their income is: < N t~ Not Sure 11 2.4% 8 1.0% Chi-Square = 65.098 level.8% 374 100% 530 100% Somewhat Important Total 93 24.6% Chi-Square = 50.7% 9 2.1% 30 5. Number and percentage of participants who view maintaining adequate financial records as: Very Important Not Sure 8 2. Z > Z B.7% Somewhat Important Somewhat Unimportant 2 0. 2.835.8% Very Important 53 13.1% 4 0. significant at the 0.5% Chi-Square = 7. Number and percentage of participants who actually maintain financial records: Detailed Records No Records 20 5.7% Very Unimportant 3 0.1% 68 13.2% Total 406 100% 497 100% < Students with More Personal 337 Finance Knowledge 83.5% 4 1.9% 125 23. Savings and Borrowing 1.7% 39 7. General Knowledge 1.813.7% 11 2.5% 43 8.001 level.9% 371 100% 54 I 100% Minimum Records Total 182 49. significant at the 0. significant at the 0.TABLE 5 oo Impact of the Participants' Financial Knowledge on Their Opinion and Behavior A.5 % Students with Less Personal 363 Finance Knowledge 68.1% 237 46.
223.3% Chi-Square = 56. C.5% 22 3. Number and percentage of participants who choose to act on their spending: Correctly 45 11.1% 2 0.5% 265 100% 659 100% Incorrectly Total Students with More Personal 68 Finance Knowledge 25.005 level. (continued) .4% 83 31.020.1% Somewhat Important Somewhat Very Unimportant Unimportant Total 263 100% 641 100% Students with More Personal 145 Finance Knowledge 55.0% Students with Less Personal 351 Finance Knowledge 68.6% 193 30. 1% 4 1.8% 7 1.844.584 level.2.0% 65 I 0. Number and percentage of participants who view that maintaining adequate insurance coverage is: Very Important Not Sure 29 I 1. significant at the 0.5% Chi-Square = 8. significant at the 0. Number and percentage of participants who choose to act on their insurance: Correctly 197 74.2. 2. Insurance 1. significant at the 0.2% Chi-Square -.7% 410 100% 514 100% Incorrectly Total Students with More Personal 365 Finance Knowledge 89.3% 544 82.7% Students with Less Personal 115 Finance Knowledge 17.001 level.0% 163 31. 1% Students with Less Personal 354 Finance Knowledge 55.
Number and percentage of participants who view planning and implementing a regular investment program is: Very bnportant Not S u r e 24 6.o 7~ o¢ .774.0% 4 1.8% Chi-Square = 52.7% 115 21. < . significant at the 0. Correctly 72 20% 273 48.6% 100 27.TABLE 5 (cont.001 level.4% Somewhat Important Somewhat Very Unimportant Unimportant Total 358 100% 544 100% Students with More Personal 220 Finance Knowledge 61. 2.102.5% Students with Less Personal 222 Finance Knowledge 40.9% 171 31.) D.4% 360 100% 564 100% Number and percentage of participants who choose to act on their investments: Incorrectly Total Z Z t" t~ < Students with More Personal 288 Finance Knowledge 80% Students with Less Personal 291 Finance Knowledge 51. significant at the 0.8% 22 4.. Investments 1. 1% 14 2.001 level.1% 10 2.6% Chi-Square = 74.
3% of the less knowledgeable group. Consequencesof Having Inadequate Knowledge This section examines how a student's knowledge affects his/her opinions and decisions about some personal finance issues. For the less knowledgeable group. . The difference in opinions regarding record keeping is statistically significant at the 0. The difference in their decisions can be seen from the significant test results and the fact that a higher proportion of the more knowledgeable participants act according to their opinions and a higher proportion of the less knowledgeable participants do not. Students with section scores equal to or higher than the median are classified as those with more knowledge. C. The difference in opinions is not significant. and investment are similar to findings to be reported below.039 level. HSR. The more knowledgeable participants (96. There is a statistically significant difference in behavior between the two groups. ). When asked what they would actually do. The difference in opinions is significant at the 0.4% for the more knowledgeable group. In terms of insurance. while the number is 5. more than 80% of the participants from both groups rank maintaining adequate insurance coverages as important. Volpe.098 level. Lewin. compared to 68. and the rest of them believe otherwise. The difference in their decisions is significant at the 0.3%). Yet given the fact that more and more women are joining the work force and they are expected to live longer than men. About 25% of the less knowledgeable group keep no records at all. However. 89% of the more knowledgeable participants select the correct choice.001 level. About 95% of the participants from the more knowledgeable group rank keeping records as very important or somewhat important. Space limitations do not allow a comprehensive analysis of why women are less knowledgeable than men. and those with scores below the median as those with less knowledge. Students with scores equal to or below the median are classified as those with relatively less knowledge. 1997. more participants from the more knowledgeable group act correctly than the participants from the less knowledgeable group. The Chisquare tests suggest that the differences in opinions and decisions are highly significant. Martinez. The results are similar to what have been reported above. about 92% view keeping records as important. Participants' responses to the importance of keeping financial records are reported in Part 1 of Section A of Table 5 and what they actually decide to do in everyday life in Part 2. This classification scheme makes the sample size in the more knowledgeable group larger than that of the less knowledgeable group. In addition. 1996. & Pavlicko. 1994. missing observations cause the total sample size to vary from 903 to 924. 1995. Analysis has also been conducted using an alternative classification scheme. Since many students' scores are equal to the median scores.6% of students with more knowledge keep detailed financial records and only 29% of the less knowledgeable group are willing to keep such records. 1995. insurance. 1993. The sample is partitioned into two groups by each section's median score. When provided with a hypothetical situation of a spending decision. Goldsmith & Goldsmith. deficiency in their knowledge about personal finance needs to be addressed. the classification scheme changes the number of observations in the two groups from section to section.Financial Literacy 121 The finding that women score lower than men is consistent with the existing literature (Genasci. Chen.1%) rank spending less than their income more important than the less knowledgeable group (81. The results for savings and borrowing. about 45. Students with section scores higher than the median are classified as those with relatively more knowledge.
and only 51% of the other group. it becomes a problem for the society. the less knowledgeable participants are more likely to act incorrectly. and the consequences of having inadequate knowledge. and have little work experience. It is also found that participants with less knowledge tend to hold wrong opinions and make incorrect decisions in the areas of general knowledge.122 FINANCIAL SERVICES REVIEW 7(2) 1998 Section D shows that about 89. Without adequate knowledge. The authors also appreciate comments from three anonymous reviewers. They include those who are non-business majors. However. While there is little difference in their opinions regarding insurance. By far the weakest area is investment. The lack of education has resulted in serious financial illiteracy found in the American public. and discussant and participants at the 1997 Academy of Financial Services Meeting where an early version of the paper was presented. insurance. This challenging issue needs to be addressed. the overall mean of correct answers for the survey is about 53%. under age 30.2% for the less knowledgeable group. . Results suggest that college students need to improve their knowledge of personal finance. in the lower class ranks. 80% of the knowledgeable participants choose the correct action. When individuals cannot manage their finances. the findings of this study suggest that there is a systematic lack of personal finance education in our education system. savings and borrowing. the relationship between the financial literacy and participants' characteristics such as academic discipline. The illiteracy and its costly consequences have made individuals worry about their finances to the extent that their productivity in workplaces is affected (CHRGI. Not surprisingly. Our conclusion is that college students are not knowledgeable about personal finance. gender. 1995). savings and borrowing and investments. women. The above analysis suggests that the level of finance knowledge tends to influence people's opinions and affect their decisions. and investments are above 65%. they are more likely to make mistakes in the real world. The incompetency will limit their ability to make informed financial decisions. None of the mean scores for each area of general knowledge. Lower levels of financial literacy are found among subgroups. Acknowledgments: The authors are grateful to Karen Eilers Lahey (Editor) for her suggestions.4% of the more knowledgeable group view planning and implementing a regular investment program as important. The predictive ability of personal finance knowledge shows that improving college students' knowledge is important. The authors are responsible for all remaining errors. S U M M A R Y AND C O N C L U S I O N This study surveys 924 students from multiple universities across the country to examine college students' knowledge of personal finance. V. Together with evidence provided by the research conducted in the past three decades. but the number is about 72. Although the questions included in the survey are fairly basic. when offered an investment situation. Both the differences in the opinions and decisions are highly significant. In the case of insurance. where on average the participants answered about 40% of the questions correctly. Financial supports were provided by grants from the University Research Council at Youngstown State University. more participants from the less knowledgeable group make the wrong choices. and experience. a statistical difference cannot be detected in their opinions.
B. the difference between your bank borrowings and savings. B. D. C. C. a house. Security deposit B. money in a checking account. the difference between your expenditures and income. A $500 tax credit. a computer. The most liquid asset is A. D I R E C T I O N S : Please use a #'2 lead pencil to mark your responses on the enclosed answer sheet. B. E. avoid being victimized by financial scalns. After completing the survey. A. buy the fight kind of insurance to protect you from . minimizing taxes and insurance expenses. the difference between your liabilities and assets. examining your investment portfolios to maximize returns. 7. 2. Please select only O N E most appropriate answer for each question. learn the fight approach to invest for your future needs. This survey is intended to measure college students' knowledge o f personal finance. E. B. a car. Personal financial planning involves A. your monthly wages are $500 and credit charges $1. you frequently receive calls from collection agencies. Expenses incurred for non-compliance of lease terms D. none of the above. . the difference between your cash inflow and outflow. B. your security deposit. B. If you signed a twelve month lease for $300/ month but never occupied the apartment. Security deposit retained by the landlord for damages to property beyond normal wear and tear 8. your twelve month's rent of $3. C. Please make marks that fill the circle. money in a certificate of deposit account. Monthly rental payment C. C. 5. The results will be used to help students improve their knowledge and colleges improve curriculums. D. lead a financially secure life through forming healthy spending habits. C. do all of the above. C.catastrophic risk. developing a sound yearly budget of expenses and income. your fwst month's rent of $300. D. establishing an adequate financial record keeping system. 1.600. you write checks for more than what you have in your checking account. D. E. i s not a cost of leasing an apartment.000. please make sure that question numbers and answers correspond directly with those on the answer sheet. I. Depends on the number of children you have. E. A $500 tax deduction. GENERAL PERSONAL FINANCE KNOWE. your monthly debt payment is 30% of your take-home pay. They are the same. 3.Financial Literacy 123 APPENDIX Survey of Personal Financial Literacy Thank you for participating in our survey. 4. Assume you have dependent children. Depends on your tax bracket. you meet your minimum monthly credit card payments. is a $500 tax credit per child or a $500 tax deduction per child more valuable to you? A. D. You are not overspending if A. Your net worth is A. E. Medical expenses of your friend who fell and broke his arm on the icy pavement E. B. 6. D. LEDGE Personal finance literacy can help you A. C. preparing plans for future financial needs and goals. you legally owe the landlord A.
borrowing large amounts of money from your friends. E.124 FINANCIAL SERVICES REVIEW 7(2) 1998 D. interest is charged on the unpaid balalnce of $700. higher if the interest is compounded quarterly rather than weekly. 17. B o t h A a n d C . your balance in a year will be A.000 per account. If you co-sign a loan for a friend. All of the above. II. showing no record of personal bankruptcies in recent years.000 no matter how the interest is computed. D. $1. adding outstanding checks to your checkbook balance to improve your credit standing. C. 16. B. YOUR SAVINGS AND BORROWING 10. 18. D. APR is the actual rate of interest paid over the life of the loan. it means that your friend cannot receive the loan by himself. E. C. will result in fines. Passbook savings account.000. D. D. You will improve your creditworthiness by A. E. B. D. Checking account that pays interest. APR is a good measure of comparing loan costs. Government savings bond. All of the above. C. visiting your local commercial bank. 12. Certificate of deposit. 14.000 and you pay $300. B. APR is expressed as a percentage on an annual basis. Which of the following statements is TRUE about the annual percentage rate (APR)? A. FDIC to the maximum amount of $50. D.000. Your savings accounts in a federally insured commercial bank are insured by A. E. B.000 per account. C. a professor. subtracting outstanding checks to your checkbook balance to determine if your checks have been properly processed. a commercial bank. APR takes into account all loan fees. SLIC to the maximum amount of $100. The rate of interest on your credit card is normally higher than you can earn on a certificate of deposit. 15. D. you become responsible for the loan payments if your friend defaults. E. . a credit bureau. Money market mutual fund. 11. E. You cannot spend more than your line of credit. 9. D. E. balancing bank statement with your checkbook records to determine if there are errors.040 no matter how the interest is computed. E. $1. a credit union. C. FDIC to the maximum amount of $100. reconciling current bank statement with the previous m o n t h ' s statement to determine if there are errors. B. A credit card company will not charge you interest if you pay off the entire balance by the due date.000 today at 4 % for a year. If your credit card balance is $1. B. C. is a stop-payment order written by the payee. higher if the interest is compounded daily rather than monthly. If you invest $1. D. B. whatever the landlord requires. C. B. Which of the following investments requires that you keep your money invested for a specified period or face an early withdrawal penalty? A. donating money to charity. nothing. the Better Business Bureau. You can use your credit card to receive a cash advance. occurs when you write a $1. C. E. An overdraft A. SIPC to the maximum amount of $10. You can receive your credit report from A. Which is FALSE concerning credit cards? A.000 dollar check when you have $500 in your account. E. FNMA to the maximum amount of $100. higher if the interest is compounded yearly rather than quarterly. paying cash for all goods and services. 13. none of the above.000 per account. C. B. then A. Checking account reconciliation involves A. B.
a middle-aged couple needing funds for their children's education in two years. A mutual fund is a diversified collection of securities used as an in vestment vehicle. B. you are entitled to receive part of the loan. E. B. A policy purchased by the individual is cheaper than one purchased through a group. remain the same. none of the above because they are equally risk averse. C. C. None of the above. type and age of vehicle. B. C. E. Most policies contain deductible and coinsurance clauses. The main reason to purchase insurance is to A. D. an elderly retired couple living on a fixed income. You receive no benefits when your terminsurance policy expires. BothAandC. W a r B. provide you with excellent investment returns. Both A and B. B. you are normally covered for pre-existing conditions. A mutual fund is an investment corporation that raises funds from investors and purchases securities. E. county level. YOUR INSURANCE 19. D. A dollar-cost-averaging approach to investing involves A. D. 24. B. you have a right to tell fund managers what securities to buy. E. D. A term insurance policy is the least expensive form of life insurance. E. IV: YOUR INVESTMENTS 25. Your ownership in a mutual fund is proportional to the number of shares you own in the fund. complex calculations of risk and return. C. C. D. decrease. None of the above. B. selling securities to minimize capital 29. D. C. all of the above because they all need high return. 20. C. You have a better chance of resolving a complaint against an insurance company by bringing the issue to a government agency at the A. age of insured. completion of a driver education course. . E. Which of the following is FALSE? A. After buying health insurance. all of the above. a young married couple without children. Flood D. protect you from small incidental losses. be impossible to predict. buying low and selling high. would not ordinarily be covered under a homeowners policy.Financial Literacy C. the price of a Treasury bond will A. D. Term insurance is an excellent investment vehicle. D. A high-risk and high-return investment strategy would be most suitable for A. Which of the following statements is FALSE? A. C. 22. protect you from a loss recently incurred. 125 III. record of accidents. township level. All of the above 23. B. Earthquake C. trade at a premium. The main reason to purchase insurance is to A. 21. Auto insurance companies determine your p r e m i u m based on A. A level-term policy guarantees a fixedpremium over the life of the contract. E. E. B. Your being sued by someone for slander E. If interest rates rise. A. federal level. improve your standard of living by filing fraudulent claims. As shareholders of a mutual fund. increase. B. C. D. 26. state level. E. protect you from sustaining a catastrophic loss. None of the above. 30. You have a better chance to choose doctors with a health maintenance organization rather than with a traditional health care insurance company. A decreasing-term policy reduces coverage over time.
Keep the same spending pattern as in the past. U. . DECISIONS. 18-22 D. What is your age? A. What should you do to improve your financial health? A. Graduate C. AND EDUCATION Assume you're in your early twenties and you would like to build up your nest egg for a secure retirement in 30 years. You have just graduated from college and found a job earning $28. C. all of the above. You will pay $600 per month for five years for student loans. C. C Not Sure D Somewhat Unimportant E Very C. which of the fol. No-load mutual funds are recommended over load funds because investors A. 23-29 E. 38. D. The returns from a balanced mutual fund include A. Maintain no records. Maintain very detailed records. Using the scale given below please rank the importance of items numbered from 41 to 44. AfricanD. 45. 36.000 per year. ABOUT YOURSELF What is your class rank? A. Apply for a consumer loan for a new car. E. C. believe that the funds have no management charges. C. You would buy a term insurance policy. dividends from common stock in the fund. B. 43. do not pay for 12b-I fees. Maintaining adequate financial records. You have a monthly balance on each of your three credit cards.126 FINANCIAL SERVICES REVIEW 7(2) 1998 31. E. What is your race or ethnic background? A. can reduce their tax liability. capital gains from stocks and bonds in the fund. unchanged if the Japanese Yen's value rises against that of dollar. B. Hispanic B. lowing would you do regarding your life insurance? A. Planning and implementing a regular investment program. Junior 46. You would buy flight insurance each time you travel by air. What is your sex? A. Start to build up your savings account at a federally insured bank. White C. 32. B. You would buy a life insurance policy from an insurance agent. are not charged with sales commissions. 37. D. Invest in long-term Treasury bonds. If other factors remain the same. Asian VI. B. 40-59 B. 44. Cut expenses and use your savings to pay down debt. You would buy a cash value insurance policy. D. interest earned on bonds in the fund. C. lower if the dollar's value rises against that of the Japanese Yen. dollar value of a J a p a n fund will be A. E. lower if the Japanese Yen's value rises against that of dollar. D. 42. B. Put monthly savings in a diversified growth mutual fund. A B Very Somewhat Important Important 41. Save money in certificate of deposit a~2ounts. interest earned on cash in the fund. D. Do you maintain financial records? A. E. Sophomore E. Freshman D. Spending less than your income. impossible to determine if exchange rate changes between Yen and dollar. Maintain minimal records.S. higher if the dollar's value rises against that of the Japanese Yen. Which of the following approaches would best meet your needs? A. Male B. Maintaining adequate insurance coverage. B. Assuming you are in your early twenties without any dependents. 39. You probably do not need to buy any life insurance policy. 40. American Indian American E. D. E. Eliminate debt by filing personal bankruptcy. 60 or older C. V: YOUR PERSONAL FINANCE OPINIONS. E. can avoid the funds' administrative expenses. Female 48. Use your credit card to pay for a vacation in the Bahamas. C. 30-39 47. Accumulate money in a safe-box rented from a local bank. B. Senior B.
INFORMED CONSENT FORM As we explained in the cover letter. D. 36-46. Washington. National Business Education Quarterly.000-$49.999. summer jobs. etc. S. What is your major field of study? A. December. and Zip THANK YOU FOR YOUR PARTICIPATION. Student consumer knowledge: Results of a national test.Financial Literacy 51. $30. D. The Vindicator. Journal of Financial Education. B. A.C. Finance requirements and computer utilization at AACSB accredited schools. $10. R. the purpose of this survey is to help you improve personal finance literacy. (1991).000 or more. Chicago. Money management knowledge of college students. Employee Benefit Research Institute (EBRI). Four to less than 6 years E. to comply with Youngstown State University's policy of human subject research. & Zietlow. Are workers kidding themselves? Results of the 1995 Retirement Confidence Survey. Two to less than 4 years D. C. . 6. (1995. & Bacon. (1995). B5. 4-16. Under $10. Others 52. L. Business B.000 E. please write down your address.or part-time experience. No C. Education C. Bialaszewski. Comprehensive personal financial planning: An emerging opportunity. 17(1). co-op. T. Cambridge Human Resource Group Inc. Yes B.. (1987.. DC. Danes. p. None B. Washington. Four to less than 6 years E. Are you a foreign sutdent? A. 50. No income D. Which best describes your or your family's personal income last year? A. P. Consumer Federation of America and American Express Company (CFAJAMEX).000 . Genasci. 36.. (1967). Fall. September 18). $50. Liberal Arts D. (1985).. How many years of working experience do you have? Include full. REFERENCES Bakken. (1995) Latest workplace issues survey. (CHRGI). Fall. Two to less than 4 years D. 133-139. L. Less than 2 years C. M.999. The Journal of Student Financial Aid. My participation is voluntary. Winter).$29. Financial Practice and Education. Gitman. If you would like to receive a copy of your personal finance intelligence report and summary of this research project. W. IL. K. internship. (1993). Anonymity will be kept throughout the survey. Sciences or Engineering E. & Hira. we would like to ask you to sign or initial below to verify that your participation is voluntary. State. Pencek. Women and retirement: An unpleasant surprise: You're retired and broke. J. Street address City. Six years or more 127 49. T. Six years or more VII. However. Money management understandings of tenth grade students. J.
(1993). (1997. Psychological Report. The New York Times. Planners say financial illiteracy plagues Americans: Inability to plan and poor understanding of investments cited. NY. (1997. KPMG Peat Marwick LLP (KPMG). (1995. Harris/Scholastic Research (HSR). consequences. p. R. Oppenheimer Funds/Girls Inc. VA. Vanguard Group/Money Magazine. D. NJ. (1997). & Pavlicko J. (1994). . Princeton Survey Research Associates (PSRA). Personal financial survey of high school seniors. NY. Gender differences in perceived and real knowledge of financial investments. CO.128 FINANCIAL SERVICES REVIEW 7(2) 1998 Goldsmith. National Assessment of Educational Progress (NAEP). B. Washington. (1996. Paper presented at the Personal Economic Summit '93. Investor knowledge survey. Washington. (1993).C. (1993). (1995). E. A19.. Hira. money and independence. CFP Survey of trends in financial planning. 13. June. (1997). March). (1997). Assessing America's financial IQ: Reality.C. CO. Personal investment literacy among college students: A survey. New York. Princeton Survey Research Associates (PSRA). L. (1979). Langrehr. T. 20). New York. Denver. NY. National Endowment for Financial Education (NEFE). Washington. March/April. CO. Institute of Certified Financial Planners (ICFP). (1979). R. Financial literacy of mutual fund investors.C. O'Neill. 41-53. Martinez. Arlington. Jump Start Coalition for Personal Financial Literacy. D.. Chen. November. 6(2). H. (1993). New York. (1996). & Goldsmith. T. Denver. J. (1993-1996). Teenage consumers: A profile. Income gaps for sexes is seen wider in retirement. M. F. Planning for the future: Are Americans prepared to meet their financial goals? Nations Bank~Consumer Federation of America. 236-238. Financial Practice and Education. E. W. D. Fall/Winter). 86-94. Denver. Consumer education: Does it change students' competencies and attitudes? The Journal of Consumer Affairs. Financial management knowledge and practices: Implications for financial health. and potential for change. Investor Protection Trust. Volpe. Liberty financial young investor survey. Retirement benefits in the 1990s: 1995 survey data. N. January. Lewin. April. HRMagazine. Princeton. Paper presented at the Personal Economic Summit '93.. P. Mandell. May. Girls. New York. 80. Why women should save and plan more. NY. 104105. January/February).