Digital Commons Network^™

Financial Literacy And French Behaviour On The Stock Market, Luc Arrondel

Numeracy

This article looks back over the different dimensions of financial literacy: theoretical, methodological, empirical and political. The theoretical foundations of the notion of financial literacy are presented with reference to recent contributions by psychological or behavioural economics: “household finance” refers to the concept of financial literacy based on the empirical dead-ends of standard saver theory. This raises the fundamental question as to how to measure and evaluate financial literacy. Here, we are especially interested in the empirical robustness of a standard measure of financial literacy based on three straightforward questions (interest calculations, notion of inflation and risk diversification). Is this …

Keeping It Real: Information Literacy, Numeracy, And Economic Data, Diego Mendez-Carbajo, Charissa O. Jefferson, Katrina L. Stierholz

Numeracy

We describe a pedagogical strategy aimed at developing both quantitative and information literacy skills through a social justice lens. This lesson plan is suitable for a variety of high school and introductory college courses. The student learning goals associated with this pedagogical strategy span three intellectual domains: social justice, through a critical exploration of either the purchasing power of minimum wages across states or the earnings gap between men and women employed full time; numeracy, through the computation of ratios between variables with different rates of growth over time; and information literacy, through a series of activities …

The Ultimatum Game: An Introduction To Quantitative Literacy In A Social Justice Context, Robert G. Root

Numeracy

The Ultimatum Game is a two-person, multiple-strategy game widely used in the experimental social sciences to demonstrate the human propensity for costly punishment in response to inequitable treatment. The game serves to provide quantitative evidence for a diversity of fairness norms across cultures. The play of the game and its interpretation offer nuanced views of the nature and importance of quantitative literacy. Its use in a writing seminar connecting quantitative literacy and social justice is described.

Actual And Self-Assessed Financial Literacy Among Employees Of A South African University, Gizelle D. Willows

Numeracy

This study examines the level of financial literacy and self-assessed financial literacy amongst members of a South African tertiary institution’s retirement fund. Based on surveys of the fund’s members, I employ descriptive statistics and multivariate regression analyses to examine differences in financial literacy within and across groups. The results show that, despite working for an employer implementing many best practices identified by financial literacy advocates, respondents from all demographic subgroups possess relatively low levels of financial knowledge. Men, White respondents, and those with a higher cost of employment or higher educational attainment were more likely to have a higher level …

Review Of Demographics And The Demand For Higher Education, By Nathan Grawe (2018), Michael T. Catalano

Numeracy

Nathan D. Grawe. 2018. Demographics and the Demand for Higher Education (Baltimore: John Hopkins University Press). 175 pp. ISBN 9781421424132.

Grawe introduces the Higher Education Demand Index (HEDI), a new probabilistic model designed to produce more nuanced forecasts of college attendance in the US than one-dimensional predictions based on the declining number of 18 year-olds. Using HEDI, Grawe confirms that nationwide attendance at both 2-year and 4-year schools is likely to decline over the next decade, but that the nature of this decline will vary by type of institution, geography, race and ethnicity, and parental income and education levels; some …

Lynn Steen's Imprint On Demographic Change And The Demand For Higher Education, Nathan D. Grawe

Numeracy

Nathan D. Grawe. 2018. Demographic Change and the Demand for Higher Education (Baltimore, MD: Johns Hopkins University Press) 192 pp. ISBN 978-1421424132.

This essay introduces and excerpts my Demographic Change and the Demand for Higher Education, published by Johns Hopkins University Press. The book reflects Lynn Steen's vision of quantitative reasoning as more to do with the quality of thought than the impressiveness of the mathematical tools involved. The excerpt lays out the basic demographic challenge facing higher education and how a refinement of simple headcount forecasts can support institutions of higher education as they make preparations.

Using The Quantitative Literacy And Reasoning Assessment (Qlra) For Early Detection Of Students In Need Of Academic Support In Introductory Courses In A Quantitative Discipline: A Case Study, Nathan D. Grawe, Kristin O'Connell

Numeracy

As the number of young people attending college has increased, the diversity of college students’ educational backgrounds has also risen. Some students enter introductory courses with math anxiety or gaps in their quantitative training that impede their ability to master or even grasp relevant disciplinary content. Too often professors learn of these anxieties and gaps only during the post mortem of the first midterm. By that time, a good portion of a student’s grade is determined and successful recovery may be impossible. During the 2016-17 academic year, the Department of Economics at Carleton College ran a pilot project using the …

Review Of Developing Quantitative Literacy Skills In History And The Social Sciences: A Web-Based Common Core Approach By Kathleen W. Craver, Victor J. Ricchezza, H L. Vacher

Numeracy

Kathleen W. Craver. Developing Quantitative Literacy Skills in History and Social Sciences: A Web-Based Common Core Standards Approach (Lantham MD: Rowman & Littlefield Publishing Group, Inc., 2014). 191 pp.
ISBN 978-1-4758-1050-9 (cloth); ISBN …-1051-6 (pbk); ISBN…-1052-3 (electronic).

This book could be a breakthrough for teachers in the trenches who are interested in or need to know about quantitative literacy (QL). It is a resource providing 85 topical pieces, averaging 1.5 pages, in which a featured Web site is presented, described, and accompanied by 2-4 critical-thinking questions purposefully drawing on data from the Web site. The featured Web sites range from …

Financial Literacy And Household Savings In Romania, Elisabeth Beckmann

Numeracy

We present new evidence from the Euro Survey of the Austrian Central Bank on the level of financial literacy in Romania and analyze how financial literacy is related to household savings. Less than 5% of respondents were able to correctly answer the three “core” financial literacy questions on interest compounding, inflation, and risk diversification, with the risk diversification question posing the greatest difficulties. Twenty percent of respondents are able to answer both the interest compounding and inflation questions correctly. Financial literacy levels differ between regions and across rural and urban areas. Older and less-educated individuals perform worst on the financial …

Financial Literacy And Financial Planning In France, Luc Arrondel, Majdi Debbich, Frédérique Savignac

Numeracy

We study financial literacy in France using the PATER survey and following the Lusardi and Mitchell (2011c) approach. We find that some subpopulations are less financially literate than others: women, young and old people as well as less-educated people are more likely to face difficulties when dealing with fundamental financial concepts such as risk diversification and inflation and interest compounding. We also find some differences in financial knowledge depending on the political opinion of the respondents. Finally we show that these differences in financial knowledge are correlated with differences in the propensity to plan: people who score higher on the …

Financial Literacy And Retirement Planning In Switzerland, Martin Brown, Roman Graf

Numeracy

We use a representative survey covering 1,500 households to document the level of financial literacy in Switzerland and to examine how financial literacy is related to retirement planning. We measure financial literacy with standardized questions that capture knowledge about three basic financial concepts: Compound interest, inflation, and risk diversification. We measure retirement planning by the incidence of a voluntary retirement savings account. Our results show that financial literacy in Switzerland is high by international standards--a result which is compatible with the high ranking of Switzerland on the PISA mathematical scales. Financial literacy is lower among low-income, less-educated, and immigrant, non-native-speaking …

Financial Literacy And Financial Behavior Among Young Adults: Evidence And Implications, Carlo De Bassa Scheresberg

Numeracy

This paper uses data from the 2009 National Financial Capability Study to examine financial literacy and financial behavior in a sample of approximately 4,500 young adults age 25 to 34. The paper finds that most young adults lack basic financial knowledge. Financial literacy is especially low among certain demographic groups, such as women, minorities, and lower-income or less-educated people. A high level of education, however, is not a guarantee of financial literacy. Only 49% of young respondents with a college education and 60% of young respondents with postgraduate education could correctly answer three simple questions designed to assess financial literacy. …