A Methodological Issue in the Measurement of Financial Literacy

摘要: INTRODUCTION In order for an individual to function in our increasingly complex modern society, one must develop a basic understanding of investing, insurance, credit and debt management, other personal finance topics. Knowledge these topics is often referred as financial literacy. Unfortunately, the level literacy American society generally viewed being unacceptably low. press conference on January 22, 2008 President George W. Bush announced that he was responding problem with special presidential advisory group. Earlier today I signed executive establishing President's Advisory Council Financial Literacy. have asked people from business world, faith non-profit join this council come up recommendations how better educate all walks life about matters pertaining their finances future. ... if we want America be hopeful place it can be, owning assets. We investing. homes. But oftentimes, able do so requires when comes matters. And sometimes just simply don't know what they're looking at reading. lead crisis, accumulated too many folks, hurts country. Concern has been developing years, topic actively explored by academic community. Research into resulted extensive body literature developed explain general public's Many studies focused observed behavior individuals or surveys allowed researchers ascertain survey respondents' knowledge more areas finance. A discussion follows below. The results most show respondents answering half questions correctly, indicating relatively low does only right time imply are wrong time? Where failed correctly interpret own they treated responses correct incorrect. Understanding factual much than that. This study adds examining methodology issue measure Previous allow difference between knowing answers guessing those questions. (see Chen Volpe, 1998; Liu, 2006; Worthington, 2006, example) also frequently admit not answer posed them, implicitly recognizing aware lacking incorrectly thinking knows certain information. These two methodological errors result previous potentially overstating providing incomplete description contained "wrong" answers. By correcting first contribution broaden Our second demonstrate opportunities community students planners clients (and potential clients), greater some may anticipated. THE FINANCIAL LITERACY LITERATURE multitude over past couple decades tried different variables affect (or fail affect) individuals. …