NATIONAL FINANCIAL CAPABILITY STUDY MERGED WITH AMERICAN LIFE PANEL This research was supported by a grant from the FINRA Investor Education Foundation. All results, interpretations and conclusions expressed are those of the research team alone, and do not necessarily represent the views of the FINRA Investor Education Foundation or any of its affiliated companies. No portion of this work may be reproduced, cited, or circulated without the express written permission of the author(s). Christine Callahan, PhD, LCSW-C University of Maryland, Baltimore, School of Social Work/Financial Social Work Initiative FSWI

Background/focus of research The relationship between psychological well-being and financial capability Do those with overall higher life satisfaction exhibit greater financial capability? Do those experiencing fewer stressful life events exhibit greater financial capability? FSWI

DATA FINRA Investor Education Foundation developed National Financial Capability Study (NFCS) to measure four components of financial capability: making ends meet planning ahead managing financial products demonstrating financial literacy Commissioned national studies using NFCS 2009 and 2012 NFCS was administered to American Life Panel in 2012 FSWI

American life panel (ALP) Nationally representative sample of adults 18+ who have agreed to participate in occasional online survey About 5,000 people in the panel ALP surveys tend to be administered on a monthly basis (but not always to all respondents) Longitudinal in nature (can merge datasets) - most important feature for us FSWI

STUDY VARIABLES Four measures of financial capability (objective financial literacy, subjective financial literacy, desirable financial behavior, perceived financial capability) Two measures of psychological well-being (life satisfaction, stressful life events) Control variables (e.g., age, gender, education, marital status) FSWI