Working Paper: NBER ID: w17077
Authors: Annamaria Lusardi; Olivia S. Mitchell
Abstract: As the world becomes more financially integrated and complex, average individuals and their families are increasingly faced with making highly sophisticated and all-too-often irreversible financial decisions. Nowhere is this more evident than with regard to retirement decision-making. Indeed, the global financial crisis suggests that poor financial decision-making can have substantial costs not only for individuals but also society at large. This paper focuses on key lessons for financial decision-making in the wake of that crisis, exploring how financial literacy can enhance peoples' skills and abilities to make more informed economic choices.
Keywords: financial literacy; retirement decision-making; financial education
JEL Codes: D91; E21
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| financial literacy (G53) | financial decision-making (G11) |
| financial literacy (G53) | saving behavior (D14) |
| financial literacy (G53) | investment choices (G11) |
| financial literacy (G53) | retirement planning (J26) |
| financial decision-making (G11) | financial literacy (G53) |
| financial literacy (G53) | financial outcomes (G39) |