This study examined the link between overindulgence and buying impulsiveness and the link between buying impulsiveness and credit card misuse among undergraduate students from 2 Midwestern universities. Hierarchical multiple regression was used to examine these relationships. Overindulgence predicted buying impulsiveness when controlling for the effects of age, race, gender, public or private school, and whether or not the student was employed. Buying impulsiveness predicted credit card misuse while using the same control variables. Overindulgence was not found to predict credit card misuse.

Study investigates distal and proximal contextual influences of the American Indian culture that affect financial decisions and behaviors. Primary household financial managers were interviewed. Study was grounded in Deacon and Firebaugh’s Family Resource Management theory. Findings indicated that American Indians view many concepts differently than conventional disciplinary meanings. Most critical is that money is not the only currency used within the culture but relationships and nature are also used as other currencies. Further findings of note are (a) the cultural belief that resources must be shared with all family members is seen as an obligation and often creates major resource demands, (b) spirituality and nature are of major importance in resource decisions, and (c) the holistic, integrated view of health and well-being is essential to consider when working with American Indians on resource management. Three resource management patterns were discovered: mainstream, traditional, and hybrid. Expense and income worksheets were developed reflecting cultural nuances.

The purpose of this study was to examine the relationship between financial literacy and financial behaviors among various age groups. Financial literacy was measured in three ways: objective financial knowledge, subjective financial knowledge or confidence, and subjective financial management ability. The age groups were 18–24, 25–34, 35–44, 45–54, 55–64, and 65 and older. Long-term financial behavior referred to retirement saving and investing behavior, whereas short-term financial behavior referred to spending and emergency saving behavior. In the full sample, both objective and subjective financial literacy variables were positively associated with long- and short-term financial behaviors. In the age subsamples, subjective financial knowledge or confidence was more strongly related to long- and short-term financial behavior than either objective financial knowledge or subjective financial management ability in the younger age groups. In the older age groups, objective financial knowledge was more strongly related to long-term financial behavior than either of the other two measures of financial literacy.

The purpose of this study is to examine factors associated with households’ willingness to take financial risks, particularly the effect of households’ expectations. The data used in this study are the Survey of Consumer Finances 2007 by which researchers can examine the household financial issues before the financial crisis. By employing multinomial logit regression, the new finding of this study is that when the households expect that the future economy will be better, they are not willing to take either no or substantial financial risk. This study uses the uncertainty theory with the timing of the survey to interpret this seemingly unintuitive result. Other findings are that age, more working people in a household, male, education, and majority race are household characteristics positively affecting the probability of the household’s willingness to take average and above average financial risks.

We examine improvements in financial knowledge for 8th-grade participants in our financial fitness camp, part of our multifaceted financial literacy program. Eighty-three students enrolled in the camp, and 59 had individual development accounts (IDA). We address several issues raised in the literature by focusing on low-income, predominantly Hispanic students, varying the treatment intensity, comparing outcomes for students in our IDA program with those who are not, addressing the potential endogeneity of IDA participation, and testing for selection bias. Financial knowledge increased by approximately 12 percentage points from camp participation. Standardized Language Arts scores, rather than treatment intensity or IDA participation, most affected gains in financial knowledge. There was no evidence of selection bias. Parents with high “present bias” were less likely to enroll their students in the camp, implying that integrating financial literacy education in the regular school curriculum will better serve students in such families.

Low- and moderate-income tax filers often receive refund and tax credit checks that easily total a fifth or more of their total annual income. This study uses data collected in 2009 and 2010 from 79 clients of a volunteer income tax assistance (VITA) program to compare filers’ estimates of their returns before the tax preparation process with their returns calculated by trained VITA volunteers. Most filers (75%) underestimated their refunds, and 52% underestimated by $500 or more. Hence, at least some portion of the refund arrives as an unanticipated windfall. Counseling and planning work with low- and moderate-income families should take these significant lump sum income events into consideration.

We conducted an annual survey of undergraduate students taking finance courses over the past 5 years (2009–2014). Our results showed that although more than 70% of students considered the financial planning profession to some extent, the percentage of students who had seriously considered it declined over time, despite the increasing number of new hires in the area. Our regression models showed that students with a higher level of related experience were more likely to show increased interest over time and that male students were less likely to change their minds regarding their decisions to become a financial planner. These results suggest that academic programs need to form stronger partnerships with the industry and to facilitate better communications with female students regarding the profession.

The purpose of this study was to explore personality determinants of financial satisfaction using the Metatheoretic Model of Motivation and Personality (3M Model) as a theoretical framework. Such a framework can help researchers identify traits associated with financial satisfaction and ultimately assist practitioners working with clients on debt management and wealth building. The study used data from a survey of university alumni who had taken consumer economics and/or personal finance at the undergraduate level. Although the study’s initial, fully mediated model is fragmented, the modified model offers interesting insights into the determinants of financial satisfaction. The findings suggest that trait characteristics such as need for material resources and emotional instability affect financial satisfaction. Furthermore, the findings indicate that financial behaviors (compound traits) are related to financial situation (situational traits) and financial satisfaction (surface traits).

Financial planners face a consistent challenge to help clients understand the trade-off between risk and return. Most clients relate to the idea of a targeted level of expected return to achieve specific wealth goals but with limited understanding of the required risk. Extended investment horizons require client discipline when market volatility appears to be enhancing the possibility of loss of wealth. The purpose of this article is to illustrate that bearing the risk associated with market volatility can reward clients with the achievement of targeted portfolio returns, even during times of great financial and economic uncertainty. Data from 1994 to 2013 is used to create hypothetical portfolios consisting of stock and bond allocations designed to target specific client return objectives. Graphical charts illustrate the resulting annual volatility associated with multiyear investment horizons. Financial planners can use these examples to better communicate the historical volatility associated with portfolios constructed to deliver target levels of return to clients.

The objectives of this study were to evaluate the extent to which homeownership contributed to household financial strain as measured by loan delinquency after the onset of the recent housing market crash, and to examine if the impact of homeownership on household financial strain differed for Black and White households. Using data from the 2010 Survey of Consumer Finances, we found that, after controlling for other factors, a household's housing preferences had a potential effect on the likelihood of experiencing financial strain following the collapse of residential housing prices. In addition, Black homeowners were more likely to have experienced financial strain following the housing collapse than were White homeowners, regardless of the time period in which the home was purchased. The implications of the findings for public policy, personal financial planning and education, and further research are presented.