
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