1. Using the Panel Study of Income Dynamics (PSID) for the FCAB Research
Jin Huang, Saint Louis University
Terri Friedline, University of Kansas
David Rothwell, Oregon State University
The Third Convening on Financial Capability and Asset Building
January 10, Washington DC

2. Panel Study of Income Dynamics
Longest longitudinal household survey ( ) following the same group of households
Nationally representative sample: 4,802 families (1968)—9,048 families (2015); oversampling of low-income populations; inclusion of post-1968 immigrant families in 1997
(1) Housing utilities, computer usage/internet access; (2) employment; (3) housework, food/education/health/other expenditures; (4) income; (5) health, health behaviors; (6) marriage and fertility; (7) philanthropic giving and volunteering; (8) wealth, savings, and pensions; (9) child development supplement; (10) Transition to adulthood; (11) disability; and (12) restricted data (e.g., geographic and administrative linkages)

3. FCAB Contents
Wealth, savings, and pensions : Net worth; homeownership, home equity and housing-related financial services (e.g., mortgage); types of debt (e.g., credit card, student, medical, family); retirement savings (e.g., pension, IRAs, and 401k); savings and financial assets; and vehicles
Savings for children: Financial assets (e.g., stocks, mutual funds, savings) and college preparation; financial behaviors of children (e.g., bank accounts, saving for education, and donations)
Savings, wealth, and debt in young adulthood: account ownership; vehicle and wealth; debt
Financial literacy scale: in the 2016 Well Being and Daily Life Supplement (section K), similar items in HRS

4. Pros and Cons PROS: CONS: Longitudinal panel data
Intergenerational and family dynamics
Oversampling of low-income populations
Associations of assets/wealth with other important factors
CONS:
Small sample size on specific populations
Limited topics on FCAB contents
Missing data over longitudinal data collection

5. Potential Research Questions
1. Descriptive
2. Exploratory
3. Association
(Causation)
4. Evaluation
A. Determinants of FCAB Content ×
B. Effects of
FCAB Content
A1. Longitudinal trajectory of asset accumulation of African American families
A2. Race and wealth disparity (Life course perspective)
A3. Race, education, and asset accumulation (mechanism of racial disparity in wealth)
A4. Retirement savings plans and asset accumulation
B2. Asset accumulation and health/mental health
B3. Asset accumulation, parental expectations, and educational achievement