Teaching people about money doesn’t seem to make them any smarter about money – here’s what might.
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Making financial decisions is hard, but three promising ideas are helping Americans overcome barriers
If the average American went in for a financial checkup, he or she might get rushed to the emergency room. Forty-four percent of us can’t cover a $400 out-of-pocket expense, and 52% of American households have no retirement savings. We seem to be chronically poor at making financial decisions. We commit costly mistakes across all areas of personal finance including decisions about savings, investing, budgeting and borrowing.
This article co-authored by Leeds Associate Professor Philip Fernbach is published on Market Watch.
Professor Fernbach's research studies how people think, and he applies insights from his research to improve public discourse and help consumers and managers make better decisions.