 The Haves  The Have Nots

Financial literacy is the ability to understand  How money works in the world.  How someone earns money  How someone manages money  How he/she invests it (turn it into more) More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources

 Analyze and evaluate the existing methodologies utilized by previous studies  Analyze mathematical models on retirement security and financial literacy for low income and minority communities.  Identify regional data sources

 Run, Walk, or Buy? Financial Literacy, Dual-Process Theory, and Investment Behavior  Markus Glaser and Torsten Walther  SELF-CONTROL, FINANCIAL LITERACY, AND THE FINANCIAL BEHAVIORS OF YOUNG ADULTS  Jodi C. Letkiewicz  Cognitive Abilities and Household Financial Decision Making  Sumit Agarwal and Bhashkar Mazumder

 Purpose: In this article, the authors examined or focused on the following question: Why do some financially literate people deviate from their “normal” investment strategy?  Methodology: Descriptive analysis  Conclusion: The major findings in this study was that financially literate people were more likely to deviate from their investment strategy if they tended to trust in their hunches.

 Purpose: The objective of this paper was to determine whether financial literacy can moderate the effects that self-control has on financial outcomes.  Methodology: Descriptive analysis  Conclusion: The major findings in this study were the strong and consistent effects of conscientiousness on financial behaviors, conscientiousness was positively related to wealth, there was overwhelming evidence of the positive effect of conscientiousness on financial outcomes and it appeared that financial literacy was more beneficial when focused on longer term investments and savings than on everyday management of money and budgets.

 Purpose: The primary objective of this study was to present new empirical findings on the relationship between cognitive ability and financial decision making by focusing on how financial mistakes are linked to cognitive ability.  Methodology: Empirical analysis  Conclusion: The major findings in this study were, One interpretation of these finding is that those with greater math ability are more patient and therefore less likely to make financial mistakes, that math ability is directly related to the ability to understand financial concepts, to analyze tradeoffs and to make relevant financial calculations.

 We have a large segment of the population who are economically illiterate consumers and do not understand how to spend intelligently, save wisely, invest, or do simple financial planning. Yes, the credit card companies and other credit granters are partially to blame for encouraging people to live beyond their means, which creates financial stress for individuals and their families. However, people who are poorly informed about money matters have to shoulder some of the responsibility for their own difficulties.

 Although some studies have shown some changes in spending and saving behaviors of certain individuals, most studies conclude that most individuals require extensive long-term counseling and or training to adequately be prepared to make informed decisions regarding their finances.

 Run, Walk, or Buy? Financial Literacy, Dual-Process Theory, and Investment Behavior by Markus Glaser and Torsten Walther  SELF-CONTROL, FINANCIAL LITERACY, AND THE FINANCIAL BEHAVIORS OF YOUNG ADULTS by Jodi C. Letkiewicz  Cognitive Abilities and Household Financial Decision Making by Sumit Agarwal and Bhashkar Mazumder