Consumer Financial Education and Financial Capability

The purpose of this study was to explore potential effects of financial education on the financial capability of American consumers. Data from the 2012 National Financial Capability Study were used to test the hypothesis that financial education is positively associated with financial capability. Four financial literacy and behaviour variables were used to form a financial capability index. Multivariate linear regression results showed that, after controlling for demographic and financial variables, respondents who ever received financial education had higher scores in all financial capability indicators (objective financial literacy, subjective financial literacy, desirable financial behaviour, perceived financial capability and the financial capability index). In addition, high school, college and workplace financial education variables showed positive associations with these financial capability indicators. Additional state comparison analyses provided evidence suggesting high school financial education may have direct impacts and spillover effects on consumer financial capability

Leading the Way for Financial Literacy Education: A Case Study on Collaboration

Academic libraries have been involved in financial literacy education, and this will likely increase in the future. This article demonstrates how the author, a business and economics librarian, led the way at her institution to bring financial literacy to the campus by participating in the national Money Smart Week (MSW) program sponsored by the Federal Reserve Bank of Chicago. She formed a planning committee that included individuals from several campus units. This team organized, planned, and delivered 11 events during MSW. The author also discusses survey results and the instrument that was used to gather data from MSW attendees