State Mandates for Financial Literacy
This study examines the relationship between state mandates for personal finance education and a person's, including high school students, knowledge of personal finance. One critical concern is whether financial knowledge will translate into more effective consumer behaviors. Making the right decision about retirement savings is the most important consumer behavior that has been analyzed. Research of past surveys point to a lack of understanding of financial principles and the lack of financial knowledge. Well-informed, well-educated people have the potential to make better decisions for themselves for their future retirement. Recent observations have been conducted on two retirement plans: 401(k) and Defined Benefit Pension Plan. Financial literacy is needed to comprehend and manage both personal retirement plans. Therefore, basic skills of financial literacy are important to make the right retirement decision for every individual. After examining the states' high school requirements, we found that states are not doing a great job at promoting financial literacy. Also, after running several regression analyses, we found that financial literacy requirements are not related to socio-economic factors.
School:
Livingstone College
Department:
Accounting
Research Advisor:
Virginia France and Michael Sandretto
Department of Research Advisor:
Finance and Accounting
Year of Publication:
2005