Researchers


 

Using IRS data from 2008 and prior years, this report describes characteristics of Refund Anticipation Loans (RAL) and Refund Anticipation Check (RAC) users by demographic factors, Earned Income Tax Credit (EITC) use, income and assets, and geography. The report also includes insights from industry stakeholders on use of RALs and RACs. Many factors--EITC receipt, filing as a head-of-household, having no interest income, and living in a low-income neighborhood--relate strongly to RAL/RAC use, controlling for other characteristics, such as income. Industry stakeholders report consumers demand RALs/RACs partially to pay for return preparation.


Agency: U.S. Department of the Treasury


This study uses new nationally representative survey data to examine the relationship between state-level alternative financial services (AFS) policies (prohibitions, price caps, disclosures) and consumer use of five AFS products: payday loans, auto title loans, pawn broker loans, refund anticipation loans, and rent-to-own transactions. Looking across five products rather than at one product in isolation allows a focus on patterns across products. In general, the results suggest that more stringent price caps and prohibitions are associated with lower product use.


Agency: U.S. Department of the Treasury


This document accompanies the report Prohibitions, Price Caps, and Disclosures, described above, by providing summaries of the types of state loan and financial services restrictions and state-by-state summary tables.


Agency: U.S. Department of the Treasury


This document is an overview of research on the following small-dollar credit products: auto title loans, pawnshops, payday lending, refund anticipation loans (RALs) and checks (RACs) , and rent-to-own (RTO). This review includes recently published research. It is not intended as an exhaustive treatment of these topics, but is designed to highlight key findings relevant for additional research.


Agency: U.S. Department of the Treasury


Developing a Research Agenda on Small-Dollar Credit and Financial Empowerment has 50 foundation representatives and researchers from academia, government, the nonprofit sector, and industry particiapating in this convening. This document briefly summarizes the convening, with a focus on what participants cited as important future research questions.  


Agency: U.S. Department of the Treasury


This report identifies patterns of investor behavior, including common investing mistakes, based on a comprehensive review of academic journal articles by the Library of Congress. Learn how to understand and avoid investing behaviors that can undermine investment performance, such as trading frequently, underdiversifying, and focusing on past performance.


Agency: Securities and Exchange Commission


According to Census data, more than 12 million adults in the United States report they do not speak English well or at all. Proficiency in reading, writing, speaking, and understanding the English language appears to be linked to multiple dimensions of adult life in the United States, including financial literacy--the ability to make informed judgments and take effective actions regarding the current and future use and management of money. The Credit Card Accountability, Responsibility and Disclosure Act of 2009 mandated GAO to examine the relationship between fluency in the English language and financial literacy. Responding to this mandate, this report examines the extent, if any, to which individuals with limited English proficiency are impeded in their financial literacy and conduct of financial affairs. To address this objective, GAO conducted a literature review of relevant studies, reports, and surveys, and conducted interviews at federal, nonprofit, and private entities that address financial literacy issues and serve people with limited English proficiency. GAO also conducted a series of focus groups with consumers and with staff at community and financial organizations. GAO makes no recommendations in this report. Available in Spanish


Agency: GAO


The U.S. department of Treasury and the U.S. Department of Agriculture convened the National Research Symposium on Financial Literacy and Education on October 6-7, 2008 in Washington D.C. The symposium met to provide a viewpoint on academic research priorities that could inform outcomes-based financial education, relevant public policy, and effective priorities leading to personal and family financial security.


Agency: Department of the Treasury and Department of Agriculture


The Banking Industry’s Role in Helping Consumers Manage Money and Build Assets. White Paper summarizing discussions about strategies for integrating the underserved into the financial mainstream and providing the financial education to help ensure consumers use banking services in a responsible way.


Agency: Federal Deposit Insurance Corporation


This survey provides insights into the size of the unbanked and underbanked markets. It also presents a wealth of previously unavailable data regarding households’ banking status and related issues. Teamed with the rich demographic and geographic data available through the Census Bureau’s Consumer Population Survey, this survey represents the first time such data on unbanked and underbanked households are available at the national, state, and large MSA levels.


Agency: Federal Deposit Insurance Corporation


This article discusses financial literacy, focusing on the development and delivery of financial education programs from both a theoretical and practical perspective. Money Smart is presented as a case study, and the results of a new survey of Money Smart instructors are assessed.


Agency: Federal Deposit Insurance Corporation


This article highlights the results of an FDIC study of the effectiveness of the Money Smart financial education program. Of importance to bankers, the study shows that financial education strengthens consumers’ relationships with banks and can improve their financial condition and outlook. The article describes some of the many ways banks are offering financial education to their customers and offers suggestions for banks as they try to enhance their education programs.


Agency: Federal Deposit Insurance Corporation


Using data collected from a pre-training survey, post-training survey, and telephone follow-up survey, this study analyzes the impact of the Money Smart financial education curriculum upon the financial opinions and behaviors of course participants during the survey period.  Participants were more likely to open deposit accounts, save money in a mainstream deposit product, use and adhere to a budget, and have increased confidence in their financial abilities when contacted six to twelve months after completing the course.


Agency: Federal Deposit Insurance Corporation


The Department of Education’s Institute of Education Sciences, National Assessment of Educational Progress project conducted a survey that measured the economics knowledge and skills of students in grade 12 for the first time in 2006. Questions assessed students’ knowledge, application, and reasoning in the following areas: market economy, national economy, and international economy.  The assessment consisted of both multiple-choice and constructed-response questions.


Agency: Department of Education


As part of its Special Initiative to Encourage Saving, SSA has established a new Financial Literacy Research Consortium. The FLRC is made up of research centers at Boston College, the RAND Corporation, and the University of Wisconsin. Supported through five-year cooperative agreements, the centers will develop innovative, research-based communications and programs to help Americans plan and save for a secure retirement.


Agency: Social Security Administration


This paper reports on research conducted by the Federal Reserve Board with the Department of Defense, Army Emergency Relief, and San Diego City College. The research concerns a longitudinal study involving two groups of soldiers-one receiving a two-day financial education course as part of their advanced individualized training, and a second comparison group that did not receive any financial education.  Findings suggest that the financial education course did not have a strong effect. The authors propose several explanations for this result.


Agency: Board of Governors of the Federal Reserve System


This report summarizes the findings from the First Accounts Program run by the Department of the Treasury between 2002 and 2004.  The First Accounts Program provided grant funds to 15 organizations across the country to implement approaches to open bank and credit union accounts for unbanked low- and moderate-income individuals.


Agency: Department of the Treasury


In consultation with the U.S. Department of Treasury and the President’s Advisory Council on Financial Literacy, the FINRA Investor Education Foundation, commissioned a national study of the financial capability of American adults. The purpose of this National Financial Capability Study was to establish a baseline measure of the ability of Americans to manage their money.


Agency: Department of the Treasury