Gauging the Financial Capability of Americans

Johnson, Mark A; Lamdin, Douglas J.

doi:10.1057/be.2015.24

Cited by 13 publications

(37 citation statements)

References 10 publications

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“…However, if the number of respondents who chose DK/RF is high, researchers need to consider the unintended results of these responses. Despite this concern, most studies that have examined these survey data have treated DK/RF responses as incorrect answers and used binary or binomial regression models with a probit or logit link (Lusardi and Mitchell ; de Bassa Scheresberg ; Xiao, Chen, and Sun ; Johnson and Lamdin ). To our knowledge, there is no paper that addresses the DK/RF response issue in personal finance research.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Knowledge and “Don't Know” Response

Kim¹,

Mountain²

2019

Journal of Consumer Affairs

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We investigate the effect of group characteristics and educational interventions on young respondents' objective financial knowledge level. We examine six questions about personal finance and covariates selected from the 2015 National Financial Capability Study. Because these questions include “Don't Know” or “Refuse” (DK/RF) responses, a simple regression model could cause researchers to reach misleading conclusions if DK/RF responses are not random. Thus, we suggest a binomial‐latent regression model to evaluate the effect of educational interventions and group differences that are hidden in DK/RF responses. The estimation result shows that rejecting financial education opportunities is disadvantageous to obtaining proper financial knowledge. In addition, both formal and informal financial education are less effective in improving objective financial knowledge in our preferred model. We also find few or no gender, income, and age differences in young adults' objective financial knowledge level after controlling for financial education interventions.

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Section: Literature Reviewmentioning

confidence: 99%

Financial Knowledge and “Don't Know” Response

Kim¹,

Mountain²

2019

Journal of Consumer Affairs

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“…In other studies, adults have not fared much better. One study, which utilized the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation's 2012 Financial Capability Study, found that half of the respondents did not achieve a minimally passing score (60 percent) on the five financial knowledge questions (Johnson and Lamdin ). Financial knowledge scores in a low‐income population were below the already poor, average American scores (Zhan, Anderson, and Scott ).…”

Section: Literature Reviewmentioning

confidence: 99%

Barriers to Banking: A Mixed‐Methods Investigation of Previously Incarcerated Individuals' Banking Perceptions and Financial Knowledge

Mielitz¹,

Clady²,

Lurtz³

et al. 2019

Journal of Consumer Affairs

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Minimal research currently exists on the financial aspects, including financial knowledge and capability, that impact previously incarcerated individuals. However, the reality is that many currently and previously incarcerated individuals have never interacted with financial services and, if they have, they had limited exposure. The focus of the current research study was to examine previously incarcerated individuals' banking perceptions, banking behaviors, and financial knowledge by employing a mixed methodology using a sequential explanatory design. Across case analyses discovered three themes of (a) barriers to banking, (b) prudency of banking, and (c) confidence versus trepidation. The findings in this study provide implications for financial institutions and policymakers and suggested solutions are addressed.

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“…The increased complexity of the financial marketplace highlights individuals and households' need for increased financial capability to best navigate decisions on spending, savings, borrowing, investing and insuring (Johnson & Lamdin, 2015).…”

Section: Financial Capabilitymentioning

confidence: 99%

“…Consumers must have the financial capabilities and financial resources to access their banking institutions and other financial providers for services. Non-White consumers struggle the most and have lower levels of financial education with the worst financial outcomes (Johnson & Lamdin, 2015). Black men faced with low financial literacy and limited access to financial services coupled with technological barriers are in dire need of financial education.…”

Section: Financial Capabilitymentioning

confidence: 99%

“…The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted July 2010, created the Consumer Financial Protection Bureau (CFPB) to protect consumers and to help them gain access to fair affordable financial products and services (Johnson & Lamdin, 2015). A combination of financial education and appropriate regulation is necessary to improve the conditions for consumers to gain access to financial solutions and help them with clear understanding in making important financial decisions (Johnson & Lamdin, 2015). Financial capability measurement across a range of skills, behaviors, and knowledge of one's ability to effectively manage their income with sound decision making has been difficult to measure by surveys (Taylor, 2015).…”

Section: Financial Capabilitymentioning

confidence: 99%

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Examination of Black Men's Perceptions Of Personal Finance And Lived Experiences Developing Financial Literacy and Building Financial Capability Through The Lens of Institutional Racism

Abdullah¹

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First, I acknowledge that this achievement would not be possible without the grace and power of God almighty. I thank God for giving me life and the power to learn and grow as a global citizen. Next, I want to gratefully acknowledge my major professor Dr. Thomas G. Reio, Jr. for his incredible guidance, mentoring, and friendship that supported me through this incredible journey. Dr. Reio's exceptional intellect is matched by his boundless empathy. I will cherish our thoughtful conversations, the laughter we shared during this experience, and his willingness to take me on as doctoral student after progressing through the program completion of my coursework. His consistent responsiveness to my questions, unconditional advocacy, and highly effective scholarly consultation on my research was essential to my excellent program experience.

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Gauging the Financial Capability of Americans

Cited by 13 publications

References 10 publications

Financial Knowledge and “Don't Know” Response

Financial Knowledge and “Don't Know” Response

Barriers to Banking: A Mixed‐Methods Investigation of Previously Incarcerated Individuals' Banking Perceptions and Financial Knowledge

Examination of Black Men's Perceptions Of Personal Finance And Lived Experiences Developing Financial Literacy and Building Financial Capability Through The Lens of Institutional Racism

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