M.J. Kabaci is a retired assistant professor in the Family Financial Planning master’s program at Montana State University. She taught online courses in the Family Financial Planning master’s program as part of the Great Plains Interactive Distance Education Alliance. Her interest... Read More →
This study examines the relationship between financial capability and vulnerability to financial fraud, with a focus on perceived targeting and actual financial loss. Using nationally representative data from the 2024 National Financial Capability Study (N = 21,980), we estimate logistic regression models to assess the effects of objective and subjective financial knowledge and financial education across diverse demographic groups. Results reveal that individuals with greater objective financial knowledge and formal financial education are more likely to perceive themselves as fraud targets, suggesting heightened awareness and detection. At the same time, both knowledge and education significantly reduce the likelihood of experiencing monetary loss among those targeted, underscoring their protective role. In contrast, subjective financial knowledge does not predict either targeting or loss, highlighting potential overconfidence risks. Additional analyses indicate that high school–based financial education is particularly effective in reducing financial loss, while employer or multi-source education primarily increases fraud awareness. Findings emphasize the importance of distinguishing between psychological and material dimensions of fraud and suggest that policy initiatives should prioritize expanding structured financial education, especially at early stages, to build resilience against fraud.
Mobile fintech (e.g., banking and payment) has become increasingly prevalent due to its convenience in managing personal finance, but it also raises concerns about increasing exposure to financial fraud and scams. This study utilized the 2024 wave of the State-by-State National Financial Capability Survey (NFCS) dataset from FINRA, conducting logistic regressions and ad-hoc subgroup analyses based on age to examine the relationship between mobile fintech adoption (both general usage and each service) and the likelihood of perceiving fraud targeting and actual financial loss. The results indicate that mobile fintech users are more likely to perceive themselves as target of financial fraud, and conditioned on perception, more likely to suffer from financial loss. The results were also confirmed by the ad-hoc subgroup analysis. These findings called for the need for consumer protection and financial education regarding the diversified mobile fintech services and possible fraud or scam exposures that may emerge, and provided practical implications for financial practitioners and policymakers.
The determinants of financial awareness are a widely researched area in consumer economics and related fields. Financial awareness is usually measured using a Likert scale-based variable, with the various levels of the variable indicating the underlying latent utility, which is unobserved. Given the discrete nature of the financial awareness variable, it is not possible to use methods such as quantile regression methods to capture how changes in a covariate affect different quantiles of the financial awareness variable in its Likert-scale form. In this study, we utilize ideas from the Bayesian econometrics literature to uncover the underlying latent utility for the Likert measured financial awareness variable. Specifically, Albert and Chib (1993) outlined how one can uncover the underlying latent utility in both a standard and ordered probit model using the Gibbs sampler. We then use quantile regression methods to examine the relationship between commonly used covariates and the transformed latent utility representation of financial awareness. Using a quantile regression method allows for a more nuanced explanation of how changes in covariates affect the dependent variable.
Author(s): Nasima Khatun, Sandra Huston, Donald Lacombe
This study utilized the data from the 2024 National Financial Capacity Study to explore the dynamic changes in an individual's savings behavior when facing both long-term and short-term savings goals simultaneously. The results show that the interaction between college education savings and emergency savings significantly increases the probability of regular contributions to retirement accounts, but neither alone has a significant impact on retirement contribution behavior. The research further explored the related factors of retirement planning behavior and found that regardless of the type of savings held, it would prompt individuals to be more inclined to think about the amount needed for retirement. Furthermore, comparing the results of the two models indicates that young people are more likely than older people to make regular contributions to their retirement accounts, but they are less likely to plan the amount needed for retirement. The responsibility of supporting parents has no impact on regular contribution behavior, but it increases the possibility of making retirement savings plans. The results of this study provide inspiration and direction for financial advisors, scholars, and future research.
This study examines the impact of borrowing from and cashing out of retirement accounts on the perception of retirement preparedness among the working population in the United States. Grounded in the Theory of Planned Behavior, our research explores how attitudes, subjective norms, and perceived behavioral control influence these financial behaviors and their subsequent effect on retirement confidence. We used logistic regression to analyse the 2023 Survey of Household Economics and Decision-making (SHED) data. We found that cashing out retirement savings significantly diminishes the perception of retirement preparedness, whereas borrowing does not exhibit a similar effect. Key determinants, such as health status, income, education level, and availability of emergency funds, significantly influence perceived retirement readiness. These findings underscore the critical need for financial literacy and strategic retirement planning to mitigate the adverse effects of early withdrawal behaviors on long-term financial security.
This study examines the relationship between widowhood, depression, and financial strain, with a focus on gender differences in these pathways. Using longitudinal data from the Health and Retirement Study (HRS), we investigate how the transition into widowhood affects individuals’ mental health and financial well-being. While prior research suggests that women experience greater direct financial consequences of widowhood, men often report higher levels of depression. Our analysis applies a moderated mediation model based on the Stress Process Framework to test whether depression mediates the relationship between widowhood and financial strain, and whether marital history (length and number of prior marriages) moderates these effects. Findings indicate that women face both direct financial shocks and indirect effects through depression, while men’s financial strain occurs primarily through the psychological pathway of depression. Results highlight that depression is a universal risk factor for financial difficulty, regardless of gender. These findings have significant implications for financial planners, consumer educators, and mental health professionals by emphasizing the importance of tailored interventions that recognize gendered vulnerabilities. This research contributes to consumer well-being by providing insights that support the development of more effective financial planning and counseling strategies for widowed individuals.
Youth transitioning from foster care face steep challenges in education, employment, housing, and financial stability as they move into adulthood without the safety net of family support. This study presents Year 1 findings from a five-year longitudinal project examining how prepared transition-age foster youth feel in core domains of adulthood, including school and job training, employment, money management, housing, and independent living. Results show youth feel most confident in daily living skills and job readiness, but less prepared in financial literacy and housing stability. While many remain enrolled in school, a concerning subset is disconnected from both education and employment, signaling high risk for long-term instability. Employment patterns largely reflect developmental priorities, with part-time work typical among students. These findings highlight the need for targeted financial literacy programs, housing supports, and education completion initiatives. Insights directly inform policy and practice to strengthen economic well-being and self-sufficiency among this vulnerable population.
Author(s): Selena Garrison, Martie Gillen, Diamond Whitley, Morgan Cooley
The ability to delay gratification has long been linked to favorable life outcomes, including financial well-being. Yet, most existing evidence comes from small-scale or cross-sectional studies, often limited to WEIRD (Western, Educated, Industrialized, Rich, and Democratic) populations. This study draws on longitudinal data from more than 207,000 adults across 22 countries and one territory who participated in the Global Flourishing Study, surveyed at two time points approximately one year apart (2022–2024). We examined whether individuals’ propensity to delay gratification predicted subsequent financial well-being, measured with four indicators: financial security, material security, subjective perception of household income, and high-income attainment. Country-specific multivariate regression models, adjusted for demographic and childhood variables, were estimated and synthesized using random-effects meta-analysis. Robustness tests were conducted. Results showed that delayed gratification prospectively predicted greater financial security, material security, and more positive perceptions of household income, but not actual income attainment. Effect sizes were modest and varied across countries, with the strongest associations observed in WEIRD societies and for subjective financial outcomes. These findings highlight delayed gratification as an important, though culturally contingent, predictor of financial well-being. They also point to the need for culturally informed consumer education and policy strategies.
Author(s): Dorota Weziak-Bialowolska, Piotr Bialowolski, Ying Chen, Eric Kim, Richard Cowden, Noah Padgett, Byron Johnson, Tyler VanderWeele
This research, “Beyond Financial Education and Knowledge,” explores how objective financial knowledge and past exposure to financial education shape individuals’ future long-term investment motivation. Using a quantitative, correlational study design, the research uses existing data from the 2021 United States Financial Industry Regulatory Authority’s (FINRA) National Financial Capability Study (NFCS), analysing a nationally representative sample of 2,824 respondents. Results from regression analysis reveal an upbeat and statistically positive relationship between objective financial knowledge and long-term investment motivation, confirming that objective financial knowledge is a strong predictor. Financial education did not demonstrate a significant impact on long-term investment motivation. Demographic variables of gender, ethnicity, education, and income were significantly associated with motivation, while age was not. These findings provide insights for policymakers and financial educators to improve the finance education topics offered in the K-12 curriculum and other financial education interventions to strengthen this foundational offering and enhance future financial decision-making.
When faced with a financial question, a person may answer correctly, answer incorrectly, or state that they don’t know the answer. The purpose of this study is first to explore the significance of answering a financial question incorrectly in contrast to answering “don’t know”. Second, to investigate how taking a financial education course may be associated with the responses a person provides. We will look both at the behaviors associated with answering don’t know compared to answering incorrectly, as well the relationship between taking a financial education course and what kind of responses a person makes to financial knowledge questions. Our analysis suggests that answering incorrectly rather than answering “don’t know” is associated with an increase in problematic financial behavior. Therefore, we should be cautious in suggesting people trust they know the answer to financial questions, as if it pushes them to answer incorrectly it could have harmful consequences. We also find that taking a course in financial education is associated with an increase in the number of incorrect responses a person provides. This suggests there are some previously under-appreciated risks to financial education as it is currently being provided.
This study analyzed the 2021 National Financial Capability Study data set to explore the role of perceived and actual financial education on financial wellbeing. Using both the direct financial education question and the state of residence variable, we investigated the role of financial education on Financial Well Being. Based on previous literature, financial literacy (objective and subjective), use of Alternative Financial Services, and various socio-economic factors were included as control variables.
Author(s): Peter Kreysa, Soo Hyun Cho, Hofner Rusiana
This paper analyzes the college aspiration–expectation gap among young adults in the United States, utilizing the Panel Study of Income Dynamics (PSID) and its Transition to Adulthood Supplement (TAS). This study examines the impact of marital status, income, parental closeness, and health on the likelihood of a mismatch between educational expectations and aspirations. We estimate both linear and multinomial models of the gap using nationally representative survey data from 2005 to 2019. Results show that higher household wealth lowers the likelihood of under-aspiration, and closer proximity to mothers lowers the odds of over-aspiration. These results demonstrate how family dynamics and resources shape the young adults' perceptions of their future in school.
Family instability has become increasingly prevalent in the United States, raising concerns about its long-term financial implications. Grounded in life course theory, this study examines the relationship between childhood family stability and adult financial outcomes, specifically total net worth and reliance on public assistance. Using data from the National Longitudinal Survey of Youth 1979 (NLSY79), spanning 1985 to 2020, this study employed correlated random effects (CRE) models to account for unobserved heterogeneity. Results indicate that individuals who lived continuously with both biological parents until the age of 18 had, on average, approximately 66% higher net worth and received 9% less public assistance in adulthood. This study contributes uniquely to the literature by looking at both ends of the economic spectrum (i.e., net worth and public assistance). As family instability becomes more prevalent, financial professionals and policymakers must consider these developmental patterns when designing interventions to promote financial security.
Author(s): Mikel Van Cleve, Nicholas Kieren, Stuart Heckman
Mikel Van Cleve is a researcher and financial planning practitioner focused on how blended family dynamics shape financial decision-making and outcomes. His work examines the limitations of traditional planning frameworks, many of which assume nuclear family households, and explores... Read More →
BIPOC individuals can be defined as Black, Indigenous, and people of color (Watson-Singleton et al., 2023). BIPOC business owners have been growing for the past two decades. According to a recent report, it is estimated that about 30% of small businesses in the U.S. have been operated by owners with BIPOC background (Office of Advocacy, 2022). Previous research has focused on succession planning in family businesses and dichotomous exit strategies (e.g., stewardship or liquidation). However, few studies have examined how race and ethnicity shape small business owners’ preferences on stewardship exit intentions. This study included two important research questions: RQ1) How are exit strategies of BIPOC business owners different compared to White-American business owners? RQ2) How are business and business owner characteristics associated with the decision to engage in stewardship exit intentions?
This study investigates the link between long-term COVID-19 symptoms and financial hardship. Analyzing a large national survey from 2022-2024, it tracks how difficulty paying for usual household expenses varied among U.S. adults with different COVID-19 experiences. The findings suggest that 1.5% of U.S. adults, roughly 3.9 million people, who suffer from severe activity limitations due to long COVID face the highest financial burden, with over 7 in 10 experiencing persistent financial hardship. This group was nearly twice as likely to face financial hardship as those who were never infected. These extreme disparities persisted long after pandemic relief programs ended. These findings suggest that severe long COVID creates a cycle of health and financial crisis, underscoring the critical need for policy solutions like improved disability benefits and integrated financial support services to protect these vulnerable individuals and households.
This study examines the influence of household income on spending on education, savings, and insurance, using data from the 9th, 13th, and 16th Financial Panel Surveys in Korea, covering the years 2016, 2020, and 2024. Households were divided into three income groups: under 30 million won, between 30 and 60 million won, and over 60 million won. Ordinary Least Squares (OLS) with a robust method was applied to ensure reliable results. The findings show clear differences across income groups. Low-income households reduced their spending on education as income grew and showed only small increases in savings. Middle-income households raised both savings and insurance spending, especially after 2020. High-income households showed positive growth in all three areas, although savings and insurance spending fell in 2020 before rising again in 2024. These results suggest that income inequality is reflected in family investments in education, savings, and health, which may lead to wider gaps in opportunity and welfare over time. The study highlights the need for policy support for low-income households, such as higher interest rates for small savings or the provision of education vouchers. Overall, the findings indicate that income inequality creates unequal spending patterns that affect fairness and social cohesion.
This study examines the role of Grit, a concept introduced by Angela Duckworth and defined as perseverance and passion for long-term goals, in predicting financial success during young adulthood. Relying on data from the National Longitudinal Survey of Youth 1997 (NLSY97), we investigate the relationship between individuals’ Grit scores and financial outcomes at age 30, including net worth, debt, assets, and income. Survey-weighted OLS regressions reveal that higher Grit is significantly associated with greater net worth and asset accumulation at 30, with a one-unit increase in Grit predicting an estimated $25,800 increase in net worth and $430 in additional assets. Grit was not a significant predictor of debt, though it was marginally related to higher income, suggesting that Grit contributes to positive financial behaviors such as saving, investing, and long-term planning, complementing traditional factors like education and financial literacy. While results highlight Grit’s potential as a psychological determinant of financial well-being, limitations include measurement concerns with the Short Grit Scale and reliance on self-reported data. The study builds on other non-cognitive, personality trait research in wealth-building and calls for further research to explore interventions that cultivate perseverance and persistence as pathways to financial stability.
Author(s): Loren Flood, Miles Sharpe, Stuart Heckman
As consumers rely more on social media for investment advice, it is important to consider how this new information platform is related to investor perception. This paper utilizes the 2021 NFCS dataset to explore the relationship between financial sentiment, as discussed in terms of optimism and pessimism, and social media use for investment advice. Furthermore, this study uses the lens of agency theory to explore these topics as they relate to investing in speculative assets. Initial findings show that social media use for investment advice has a positive relationship with consumers expressing more pessimistic financial sentiments. This finding, and others, are discussed in the context of a rapidly changing information landscape.
This study explores the financial well-being of college athletes, specifically examining the relationship between financial concerns, social support, and academic outcomes. Using survey data on financial well-being, perceived social support, and GPA, along with demographic factors, this research identifies financial challenges unique to college athletes and investigates how social support networks may buffer financial stress and impact academic success. The findings aim to highlight potential avenues for targeted support to enhance the well-being and academic performance of student-athletes.
Author(s): Isabella Martin, Sarah Burcher, Richard Stebbins, Erin Austin
This study investigates the relationship between household debt and perceived financial well-being. Using multivariate analysis over four waves of data from the National Longitudinal Surveys (NLS), findings from this study indicate the significant impact debt can have on the financial well-being of households across America, and that households look to available resources, including income and assets, to manage their debt situation. From a consumer impact vantage point, it is critical to assess the subjective nature of financial well-being through the lens of salient objective financial measures, while integrating individual coping strategies involving resource availability.
Author(s): Tairsa Mathews, Brandon Perry, Stuart Heckman
This study analyzes Consumer Expenditure Survey data from 2004 to 2023 to investigate cohort effects on expenditure in categories strongly associated with present orientation: food away from home, entertainment, alcohol, and tobacco. We use Ordinary Least Squares regression, logistic regression, and Tobit regression models and control for a rich set of individual and household sociodemographic characteristics in the analysis. Our findings reveal generational differences that are neither monotonic nor consistent across all categories. This indicates that present orientation in spending does not simply increase or decrease across generations. Instead, it manifests differently in each cohort depending on cultural norms, economic conditions, and shifting societal values.
This study explored an experimental survey aimed at increasing awareness of spending behaviors through a traditional (control) or well-being (intervention) lens across time, and investigated the relationships between general well-being, financial self-efficacy, financial skill, financial anxiety, and financial well-being in a large sample (N=1,174) of U.S. adults with diverse characteristics, although not nationally representative. The primary data were collected through five surveys using Qualtrics from June 3, 2024, through July 17, 2024. Given extreme attrition, only the data from wave 1 were used, and group differences were not detectable. The intervention result informs future studies regarding attrition rates for personal finance interventions. The wave one cross-sectional data from the full sample yields significant relationships across theoretical constructs. The results combine to indicate that greater general well-being has a consistent and robust relationship with improved financial well-being, with financial skill/efficacy accounting for a future, but not a current, time perspective. However, financial anxiety is more pervasive in that it crosses time perspective dimensions through its relationship with reduced expected future financial security and increased current money management stress.
