Managing Personal Finance Literacy in the United States: A Case Study

Richard O Garris,Joshua J Beck

doi:10.3390/educsci9020129

Abstract

This study investigates the perspectives and impact that personal finance education had on participants in Western Pennsylvania. The researchers begin with a literature review of personal finance courses in the United States (U.S.). The U.S. housing market collapse is also discussed as a key component of the financial crisis that is often overlooked and can be partly attributed to the lack of financial literacy. The findings of this study indicate that participants want personal finance courses offered in K-12 schools and at the collegiate level. They also want personal finance elements to be co-curricular in the K-12 setting. A recommendation based on responses from participants is that co-curricular teaching of personal finance should be tied in with math courses. The participants of this study either have benefited from personal finance lessons themselves or are a strong advocate for the teaching of personal finance in the future. The financial future does also bring worry to the different generations. Generation X is more worried about the financial choices of the upcoming generations, while Millennials and Generation Z are concerned about the future of the economy and how this will affect them.

Highlights

Increasing financial literacy through increased education and awareness is crucial to the financial future of the United States and its citizens [1,2,3]
Based on a review of related literature, it is apparent that personal finance courses can be beneficial, and the lack of financial literacy amongst U.S citizens is low and often overlooked [26]
The findings of this study demonstrated a correlation between age, education, and personal finance knowledge

Summary

Introduction

Increasing financial literacy through increased education and awareness is crucial to the financial future of the United States and its citizens [1,2,3]. The lack of financial literacy in the United States, in particular, is displayed by the 2008 financial crisis that coincided with the collapse of the housing market [7]. Researchers have differing opinions on what caused the financial crisis. Notable factors include debt rising in the financial sector significantly [8]. There were careless ratings, lack of understanding, and underestimated risks with collateralized debt obligation and credit default swaps. Predatory mortgage practices were rampant leading up to the financial crisis

Methods

Results

Discussion

Conclusion