...Students Need Financial Literacy Our economy is a system that produces and consumes goods or services and we, as a society, should carefully manage those resources to the best of our ability. This is where being financially literate becomes valuable because it guides the planning, budgeting, and accounting of all resources. It also provides stability with saving, spending, and debt management. Financial lessons can be useful in other aspects of life, such as, knowing how to prioritize deadlines and making sure to utilize time effectively. These lessons could also assist in saving a relationship or help differentiate between right and wrong, and that is why students need financial literacy. Each state throughout the country has their own policies for integrating financial literacy into their curriculum. However, some states are more superior to others with regards to teaching this topic. Jump$tart Coalition, a non-profit organization interested in advancing financial literacy among students, shows a map of only five states that “Requires at least a one-semester course devoted to personal finance” (Jump$tart). Most schools offer economics, advanced math, accounting, or current events as electives. Yet, many schools disregard financial literacy and it should be considered a requirement because students need to understand the basics of money. They need to understand how it works, the consequences of misuse, and the accomplishment of succeeding. A lot of students have...
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...University of Pennsylvania, Clarion, Pennsylvania FINANCIAL LITERACY AND FINANCIAL DECISION MAKING CAPACITY: THE GENDER BALANCE ISSUE Ebiringa, O. T. and Okorafor, E.O. Department of Management Technology, Federal University of Technology, Owerri, Nigeria ABSTRACT This paper investigates the extent to which age, level of education, nature of work and experience affects the financial literacy levels of Master of Business Administration students of Federal University of Technology, Owerri Nigeria. It equally assesses the extent to which gender difference discriminates in financial decision making, as there seems to be inconclusive notion that female students are better at financial decision making than their male counterpart. Students who took a three credit hours course in Financial Economics during the 2009/2010 academic session as well as participated in a financial literacy capacity program jointly organized by GTBank Plc and SIFE a part of the continuous assessment for the course constituted the study population. Quota and simple random sampling was adopted in the selection of 165 respondents whose responses provided the primary data used for analysis. Correlation coefficients and linear regression tools were adopted for analysis. The conclusion of the study based on results obtained is that gender difference though having inverse correlation with financial literacy level is not a significant predictor of financial literacy level, implying that there is no valid evidence to...
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...2008 was the public’s overall lack of financial literacy, in addition to unchecked mortgage and investment industries. To fend off further economic mishaps, school districts have been compelled to teach financial literacy. While there is broad agreement on the importance of teaching financial education and capability to children and youth, there is little agreement about what constitutes effective financial education and capability initiatives. Without regulation, curriculum is taught differently in every school and can be outdated and irrelevant when applied to a rapidly changing global economy. Although the concept of Common Core State Standards (CCSS) in education has met with debate, most states have adopted the standards for mathematics and language arts, and require students to think mathematically about real-world issues. Therefore, including financial education within existing Common Core curriculum – rather than a standalone class or graduation requirement – is an appropriate solution to financial literacy concerns in American education. A blending of courses addresses an immediate need, provides readily implementable standardization and establishes funding and research for financial education, using an existing program as a catalyst for change. Resolves an acute need “Financial literacy” was first championed by the Jump$tart Coalition for Personal Financial Literacy in its inaugural 1997 study “Jump$tart Survey of Financial Literacy among High School Students.” In this...
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...Determinants of Financial Literacy among Youth: Case of Amritsar City Dr. Arwinder Singh Assistant Professor/Department of Commerce Guru Nanak Dev University Regional Campus, Gurdaspur, Punajb, India #08968092299 arwinder.gndu@yahoo.com Nitika Bhandari (Corresponding Author) Assistant Professor/Department of Commerce Khalsa College for Women, Amritsar, Punjab, India #08146993589 Nitika3088@gmail.com Determinants of Financial Literacy among Youth: Case of Amritsar City Abstract Financial markets around the world have become increasingly accessible to everyone but financial products are becoming more complex and difficult to grasp for an average individual. Therefore it is of paramount importance to equip the Youth with Financial Literacy so that they can manage their own finances and securing their financial future. The present study is carried out with the objective to find out the determinants of financial literacy of the youth. The major determinants that influence the financial literacy are required to be sought in order to deal with the complexities of current financial markets and products. Data has been collected through primary sources by framing questionnaire answered by 100 respondents in Amritsar. Factor Analysis has been used to analyse the data. The analysis revealed five underlying dimensions namely Interest in Financial Issues, Financial Behaviour, Saving habits, Financial Attitude and Financial Awareness. The results...
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...According to the article, many Americans flunk when it comes to financial literacy. Suppose you had $100 in a savings account and the interest rate was 2 percent a year. After five years, how much do you think you would have if you left the money to grow? Imagine that the interest rate on your savings account was 1 percent a year and that inflation was 2 percent. After one year, would you be able to buy more than, the same as or less than you could today with the money? This question allows for many economists and writers to explore life through a different lens. One that most Americans aren’t too familiar with. Anyone with even a basic understanding of compound interest, inflation and diversification should know that the answers to these questions are “more than,” “less than” and “false.” Yet in a survey of Americans over the age of 50 conducted by the economists Annamaria Lusardi of George Washington University and Olivia S. Mitchell of the Wharton School of the University of Pennsylvania, only a third could answer all three questions correctly. This is particularly troubling given the inherent complexity of our modern economy. Whether it is a student taking out a loan, buying a house or saving for retirement, people are being asked to make decisions that are difficult even if they have graduate training in finance and economics. Throwing a financially illiterate into such chaos is like taking students currently learning how to drive and asking them to compete in the Indianapolis...
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...Financial Planning and Literacy: A College Student’s Guide The American Dream of the 20th century is considered dead by most of today’s college students and recent graduates who find that getting a job that they are not vastly overqualified for is almost just as difficult as graduating. For those few students who gratefully find themselves at the bottom of the corporate ladder, the next difficult task is appropriately managing their new $45k salary. Financial literacy is defined as “the ability to make informed judgments and to take effective actions regarding current and future use and management of money” (LaBorde, Mottner, and Whalley 2014). Financial literacy and planning have long been considered issues in the US, but more now than ever, in the wake of a recession, they are of critical importance to those entering the work force. My research has led me to make three primary claims: (1) the US is mostly financially illiterate, (2) financial literacy and financial planning are positively correlated, and (3) good financial habits must be developed early. Financial Literacy All of the data supports the claim that a large portion of the US is financially illiterate; also, young adults and college students have even lower levels of financially literacy than the general public. Research indicates that college students today have an exceptionally low level of financial literacy. One financial literacy survey found that only 53 percent of students...
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...Financial literacy is defined by Wikipedia as “the ability to understand finance. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances” (Wikipedia, 2012). In the United States has taken several steps over the past decade or so to increase education and understanding of finance. The U.S. Treasury established the Office of Financial Education in 2002, which is responsible for expertise and education of persons within the Department of the Treasury. In 2003 the U.S. Congress also established the Financial Literacy and Education Commission. This department was charged with improving financial literacy of all people in the United States. We can see good and bad financial decisions being made every day just by looking around us. Even though the government has established several different consumer protection agencies some people still do not use them or don’t know how to use them. In turn this leads to bad financial decisions. Looking at the way the government and employers were running things several years ago by making financial decisions for us, “for example by providing health insurance, defined benefit retirement plans and social security” (Cooley, 2010). Now people have to make their own financial decisions for everything. Health insurance within the next few years will be decided by the family as some companies will opt out of their own coverage...
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...SELF-CONTROL, FINANCIAL LITERACY, AND THE FINANCIAL BEHAVIORS OF YOUNG ADULTS Dissertation Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Jodi C. Letkiewicz, B.S., M.S. Graduate Program in Human Ecology ******* The Ohio State University 2012 Dissertation Committee: Dr. Jonathan Fox, Advisor Dr. Catherine P. Montalto Dr. Robert Scharff Dr. Caezilia Loibl Copyright by Jodi C. Letkiewicz 2012 ii ABSTRACT The objective of this paper is to determine whether financial literacy can moderate the effects that self-control has on financial outcomes. Financial literacy is an oft cited solution to the myriad financial complexities faced by consumers. If financial literacy is effective it should help consumers overcome issues of self-control to encourage more fiscally responsible behaviors. Both economic and psychological theories of self-control are explored, and a conceptual model using the Big Five personality trait of conscientiousness as a measure of self-control is utilized. Data for this study come from the 1997 National Longitudinal Survey of Youth (NLSY). Asset data in the study was collected in Rounds 9-13 when the respondents were 25 years old. The measure of conscientiousness was collected in Round 13 as part of the Ten-Item Personality Inventory...
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...1. Adjustable rate mortgage loan gives you a lower interest rate than a fixed one. 2. Unlike mortgage payments, which include complicated yearly amortization of the principal loan amount, interest-only payments are calculated easily. 3. The appraised value for our home turned out to be a lot less than we were hoping to receive. 4. Asset Pricing is not a book to be missed. 5. Chase Bank offered me 0% interest on balance transfers for an entire year. 6. The balloon payment due to pay off your balance is $1,234, or you can refinance with us for the remainder of the bill. 7. My family filed for bankruptcy after the seventh child was born. 8. As the borrower, I take great pride in making payments on time. 9. The interest rate charged on my cash advance was so high I thought I would never pay it off. 10. We got a cash-out refinance on our home so when the loan is paid off we will have extra money. 11. Chapter 7 Bankruptcy filers often have little money to pay their bills each month. 12. The CEO filed for Chapter 11 Bankruptcy to save his business. 13. The farmer filed for Chapter 12 Bankruptcy so he can save his ranch. 14. Since I filed for Chapter 13 Bankruptcy, I can pay it off over time. 15. The lender gave me a Charge-Off after he found out I couldn’t pay off my debt. 16. My bounced check affected my ChexSystems record for three years. 17. His parents covered the closing cost as a gift for buying his first house. ...
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...In some form or fashion, financial literacy applies to everyone. Financial literacy is the ability to understand how money works in the world; to be knowledgeable about one’s finances. Financial literacy is also about how someone manages to earn or make money. In addition, financial literacy is about how a person manages money, and how they invest it. Financial literacy applies to me in several ways. First and foremost the fact that I chose to attend college is an implication that I have some form of financial literacy. There is evidence that college graduates make more money. So overall, by me attending college reflects that I am financially literate about making money. Going to college is a financial benefit and make me more employable....
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...FINANCIAL LITERACY AS A TOOL OF FINANCIAL INCLUSION A SUMMER INTERNSHIP REPORT Submitted by KHUSHBOO VERMA Registration No: 11400462 In partial fulfillment of Summer Internship for the award of the degree of MASTER OF BUSINESS ADMINISTRATION School of Business LOVELY PROFESSIONAL UNIVERSITY Phagwara, Punjab July, 2015 1 ACKNOWLEDGEMENT: I am very much obliged to Mr. Vikram Jain (Chartered Accountant) for his valuable suggestion to take up the project in Appu International Ludhiana. This project report could not complete without the guidance of Mr. Vikram Jain and their timely help and encouragement helped me to complete this project successfully. I am thankful to Vikram Jain for their suitable guidance at every stage of my training. I thanks to Mrs. Rimpy, Sangeeta jangra. And miss. Pushpa Mehta for giving me opportunity to work at Accounts, Records, purchases and sales items maintained of Appu International as a finance trainee. 2 (INDEX):Chapters Name Page No. 1. Executive Summary 7 2. Industry Introduction 8-9 3. Organization Introduction 10-19 4. Literature Review 20-23 5. Introduction To Financial Literacy As A Tool Of 24-33 Sr. No. Financial Inclusion 6. Hypothesis 33-34 7. Research Methodology 35-39 8. Result And Discussion 40-73 9. Finding 74-77 10. Suggestion 78-79 11. Limitation 80 12. Future Scope 80 13. ...
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...Gomez: Financial Literacy of El Paso (FLEP) is pleased to present this proposal for services to support the City of El Paso in achieving its goals for improving the financial literacy from youth to senior citizens by providing advocacy, research, standards and educational resources. The objective of the proposed personal high school finance class is to help high school students develop the ability to use knowledge and skills to manage financial resources effectively throughout their lifetime. In the past, high school students have been required to take an economics class which helped them get a basic understanding of the world of economics in today's world. We are now seeking to have a finance class which will not only help students get a basic understanding of finance but help students use the skills they develop to help them manage their personal finances responsibly. FLEP has partnered up with GECU, a local financial institution, to make this class possible. The class will teach students the basics of finance as well as teach students how to spend, invest, and save money effectively. The class will include setting up savings and checking accounts with GECU for the students and provide them with special support with their accounts. Our proposal requests that the FLEP personal high school finance class be a required course in the high school diploma curriculum. Thank You, Sincerely, Omar Gonzalez Cynthia Corella Damian Hurtado Financial Literacy of El Paso...
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...Socio-economic characteristics of financially illiterate people To draw out about which people is the most lack of financial knowledge, we turn to an assessment of the data. We briefly review the evidence of age, sex, race, income, employment types, and other factors of interest. * Financial literacy pattern in age Figure A: The financial literacy by age group (percent providing the correct answers to the question) Figure A: The financial literacy by age group (percent providing the correct answers to the question) The survey data confirm that financial literacy is lowest in the youth and the elder. This finding is occurring across countries as shown in figure A. However, it is in our interest that older people give themselves very high scores regarding their own poor scores on basic financial literacy question. In this case, Finke, Howe, and Huston (2011) had developed a multidimensional measure of financial literacy for the old and confirmed that, financial literacy falls with age, but peoples’ confidence in financial decision making abilities actually increase with age. The imbalance between real and perceived knowledge might explained why financial scams are often happened to the elder people. * Financial literacy pattern in gender (Figure B) Not only older men are generally more financial knowledgeable than older women but the same patterns hold across every respondents and countries. Researchers are seeking the explanation of the difference between male...
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...employability skills. In addition, customers often face anxiety, depression and low self-esteem, all of which impact their ability to find employment. To overcome these complex needs, CDG provides training, work experience and other support that can enable customers to achieve a better quality of life. Back to Work activities include job search; job brokerage; work experience placements; environmental and community sector placements; vocational qualifications; information, advice & guidance; pre-employment training; motivation and confidence building; literacy, numeracy and ESOL training. Role within Institutional Context The role of the Senior Personal Advisor (SPA) consists of delivering Literacy, Numeracy and ESOL Qualifications. In addition, internal and external vocational qualifications such as Security, Retail, Forklift and Construction are also organised and financed via the SPA. City & Guilds award the delivery of Literacy, Numeracy and ESOL qualifications and delivery levels range from Entry Level up to Level 1. General Sources of Funding to Lifelong Learning Major contributors to Lifelong learning Funding include the Skills Funding Agency (SFA); the Young People’s Learning agency (YPLA); the Higher Education Funding Council England (HEFCE) and the European Social fund (ESF). Major...
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...In this day and age of a pervasive mass media and seemingly a new social media outlet that is invented every month, the proliferation of information is all around us. Despite all of the advances in technology in the delivery of information, it may surprise you to learn that one in every five people on this planet are illiterate, two thirds of that number being women. Reflecting on this alarming statistic and Deborah Brandt’s essay on “Sponsors of Literacy”, I thought about what influences us to strive to learn how to read and write. Deborah Brandt refers to literacy sponsors as, “any agents, local or distant, concrete or abstract, who enable, support, teach, model, as well as recruit, regulate, suppress, or withhold literacy-and gain advantage...
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