Personal Financial Behavior: The Influence of Quantitative Literacy and Material Values

dc.creator	Pete Nye
dc.creator	Cinnamon Hillyard
dc.date	2013-01-01T00:00:00Z
dc.date.accessioned	2015-07-20T22:09:48Z
dc.date.available	2015-07-20T22:09:48Z
dc.identifier	1936-4660
dc.identifier	https://doaj.org/article/e87a5dad2de847d2902923f9ccb57fa0
dc.identifier.uri	http://evidence.thinkportal.org/handle/123456789/13116
dc.description	Some consumers finance discretionary spending at extremely high interest rates. Many carry substantial balances on their credit cards at effective annual rates as high as 36 percent, and some pay annual rates on “pay day” loans as high as 400 percent. High interest debt can rapidly cascade into an overwhelming financial burden, threatening the consumer’s credit and long-term financial health.This survey study investigates how quantitative literacy may promote forward-looking financial decisions, decisions that recognize the long-term consequences of current choices and may favor the future over the present. In addition, we examine the consumer’s confidence in their quantitative skills. Confidence in working with numbers could help consumers think through the implications of their financing choices. Although quantitative literacy and consumer education matter, we propose that consumer values also may be important in explaining financial behavior. In particular, materialism may drive many American consumers to take on high levels of debt. Understanding consumer financing choices may require a better understanding of the consumption behavior that motivates those choices.Results from a diverse sample (n = 267) of consumers confirm that both quantitative literacy and subjective numeracy, the individual’s confidence in applying quantitative skills, are positively related to forward-looking financial behavior. The impact of materialism on financial behavior is largely mediated by impulsive consumption, the tendency to make frequent purchases without forethought or consideration of the financial consequences. Finally, subjective numeracy may encourage a less-impulsive, more-considered approach to consumption decisions.
dc.language	English
dc.publisher	University of South Florida Libraries
dc.relation	http://dx.doi.org/10.5038/1936-4660.6.1.3
dc.relation	https://doaj.org/toc/1936-4660
dc.rights	CC BY-NC
dc.source	Numeracy, Vol 6, Iss 1, p 3 (2013)
dc.subject	financial decision-making
dc.subject	financial quantitative literacy
dc.subject	Special aspects of education
dc.subject	LC8-6691
dc.subject	Education
dc.subject	L
dc.subject	DOAJ:Education
dc.subject	DOAJ:Social Sciences
dc.subject	Mathematics
dc.subject	QA1-939
dc.subject	Science
dc.subject	Q
dc.subject	DOAJ:Mathematics
dc.subject	DOAJ:Mathematics and Statistics
dc.subject	Special aspects of education
dc.subject	LC8-6691
dc.subject	Education
dc.subject	L
dc.subject	DOAJ:Education
dc.subject	DOAJ:Social Sciences
dc.subject	Mathematics
dc.subject	QA1-939
dc.subject	Science
dc.subject	Q
dc.subject	DOAJ:Mathematics
dc.subject	DOAJ:Mathematics and Statistics
dc.subject	Special aspects of education
dc.subject	LC8-6691
dc.subject	Education
dc.subject	L
dc.subject	Mathematics
dc.subject	QA1-939
dc.subject	Science
dc.subject	Q
dc.subject	Special aspects of education
dc.subject	LC8-6691
dc.subject	Education
dc.subject	L
dc.subject	Mathematics
dc.subject	QA1-939
dc.subject	Science
dc.subject	Q
dc.subject	Special aspects of education
dc.subject	LC8-6691
dc.subject	Education
dc.subject	L
dc.subject	Mathematics
dc.subject	QA1-939
dc.subject	Science
dc.subject	Q
dc.title	Personal Financial Behavior: The Influence of Quantitative Literacy and Material Values
dc.type	article