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Parts Of The Whole: The Educational Sieve, Dorothy Wallace

Numeracy

This essay argues that the structure of course prerequisites affects retention of students in a course of study. The same argument suggests that the structure of degree requirements, including quantitative reasoning courses, affects retention in college. In particular, the same set of courses required in a rigid sequence will cause more students to exit the program early than if the same courses were offered in a flexible order.

Simplified Data Envelopment Analysis: What Country Won The Olympics, And How About Our Co2 Emissions?, Alexander Vaninsky

Numeracy

This paper introduces a simplified version of Data Envelopment Analysis - a conventional approach to evaluating the performance and ranking of competitive objects characterized by two groups of factors acting in opposite directions: inputs and outputs. Examples of DEA applications discussed in this paper include the London 2012 Olympic Games and the dynamics of the United States’ environmental performance. In the first example, we find a team winner and rank the teams; in the second, we analyze the dynamics of CO₂ emissions adjusted to the gross domestic product, population, and energy consumption. Adding a virtual Perfect Object – one …

Does Completion Of Quantitative Courses Predict Better Quantitative Reasoning-In-Writing Proficiency?, Nathan D. Grawe

Numeracy

Using data from Carleton College, this study explores the connection between students’ completion of a range of quantitative courses and the quality of their quantitative reasoning in writing (QRW) as exhibited in courses throughout the undergraduate curriculum during the first two years of college. Because the assessment takes place in the context of a campus-wide initiative which has improved QRW on the whole, the study identifies course-taking patterns which predict stronger than average improvement. Results suggest QRW is not exceptionally improved by taking courses in statistics, principles of economics, or in the social sciences more broadly. QRW performance is, on …

Making College Count: An Examination Of Quantitative Reasoning Activities In Higher Education, Louis M. Rocconi, Amber D. Lambert, Alexander C. Mccormick, Shimon A. Sarraf

Numeracy

Findings from national studies along with more frequent calls from those who employ college graduates suggest an urgent need for colleges and universities to increase opportunities for students to develop quantitative reasoning (QR) skills. To address this issue, the current study examines the relationship between the frequency of QR activities during college and student and institutional characteristics, as well as whether students at institutions with an emphasis on QR (at least one QR course requirement for all students) report more QR activity. Results show that gender, race-ethnicity, major, full-time status, first-generation status, age, institutional enrollment size, and institutional control are …

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 Australia, Julie R. Agnew, Hazel Bateman, Susan Thorp

Numeracy

Financial literacy and numeracy are closely tied. Furthermore, financial literacy has been shown to relate to important financial behaviors. This study examines the relationship between financial literacy and retirement planning using a measure that includes questions requiring numeracy. We implement a customized survey to a representative sample of 1,024 Australians. Overall, we find aggregate levels of financial literacy similar to comparable countries with the young, least educated, those not employed, and those not in the labor force most at risk. Our financial literacy measure is positively related to retirement planning in our sample.

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. …

In Our Best Interest: Women, Financial Literacy, And Credit Card Behavior, Gary R. Mottola

Numeracy

Data from the FINRA Investor Education Foundation’s National Financial Capability Study revealed that women were more likely to engage in costly credit card behaviors--like incurring late and over-the-limit fees--than men. After controlling for a number of demographic variables, including financial literacy and a self-assessment of mathematical ability, the gender-based differences in credit card behavior were eliminated. These findings suggest that credit card management differences between the sexes could be reduced if parity existed between men and women on important variables that women tend to trail men on, such as income and financial literacy.

Financial Literacy And Credit Card Behaviors: A Cross-Sectional Analysis By Age, Sam Allgood, William Walstad

Numeracy

In this study, we use a measure of financial literacy that includes both a test score of actual financial literacy and a self-rating of perceived financial literacy to investigate how financial literacy affects five credit card behaviors: (1) always paying a credit card balance in full; (2) carrying over a credit card balance and being charged interest; (3) making only a minimum payment on a credit card balance; (4) being charged a fee for a late payment; and (5) being charged a fee for exceeding a credit limit. Probit analysis was used to assess each behavior with a large nationally …

The Geography Of Financial Literacy, Christopher Bumcrot, Judy Lin, Annamaria Lusardi

Numeracy

This paper explores how well equipped today’s households are to make complex financial decisions in the face of often high-cost and high-risk financial instruments. Specifically we focus on financial literacy. Most importantly, we describe the geography of financial literacy, i.e., how financial literacy is distributed across the fifty US states. We describe the correlation of financial literacy and some important aggregate variables, such as state-level poverty rates. Finally, we examine the extent to which differences in financial literacy can be explained by states’ demographic and economic characteristics. To assess financial literacy, five questions were added to the 2009 National Financial …

Financial Literacy And Quantitative Reasoning In The High School And College Classroom, Annamaria Lusardi, Dorothy Wallace

Numeracy

This overview frames the eight articles devoted to financial literacy in this issue of Numeracy. The survey questions used to assess financial literacy in the United States, Romania, France, Switzerland, Australia, and elsewhere include mathematics that is routinely covered in mathematics and quantitative reasoning courses. Financial literacy, wherever it is received, appears to benefit people throughout their lives. The close tie between quantitative and financial literacy may be exploited to introduce more of both into the high school and undergraduate curriculum.

Parts Of The Whole: When Variation Is The Goal, Dorothy Wallace

Numeracy

The goals of higher education are a population of extreme variability in expertise, a diffusion of specialized knowledge across disciplinary boundaries, and production of strong K-12 teachers. Promoting these three goals has implications at all granularities, from the pedagogy of an individual college professor to the incentives and policies that shape systemic change.

The Problem Of Too Many Statistical Tests: Subgroup Analyses In A Study Comparing The Effectiveness Of Online And Live Lectures, David M. Lane

Numeracy

The more statistical analyses performed in the analysis of research data, the more likely it is that one or more of the conclusions will be in error. Multiple statistical analyses can occur when the sample contains several subgroups and the researchers perform separate analyses for each subgroup. For example, separate analyses may be done for different ethnic groups, different levels of education, and/or for both genders. Media reports of research frequently omit information on the number of subgroup analyses performed thus leaving the reader with insufficient information to assess the validity of the conclusions. This article discusses the problems with …

Measuring Habits Of Mind: Toward A Prompt-Less Instrument For Assessing Quantitative Literacy, Stuart Boersma, Dominic Klyve

Numeracy

In this study, we offer a new “prompt-less” instrument for measuring students’ habits of mind in the field of quantitative literacy. The instrument consists of a series of questions about a newspaper article the students read. The questions do not explicitly solicit quantitative information; students’ habit of mind is assessed by their use of quantitative reasoning even when it is not asked for. Students’ answers were graded according to a modified version of the Quantitative Literacy Assessment Rubric (QLAR) published in this journal (vol. 4, issue 2). We applied the instrument and rubric to assess pre- and post-intervention habits of …

Using A Media-Article Approach To Quantitative Reasoning As An Honors Course: An Exploratory Study, Stuart Boersma, Dominic Klyve

Numeracy

In this study, we investigate student performance on a basic skills assessment of percentages and ratios in two cohorts of students: the general (non-STEM) student body (cohort G) and (non-STEM) honors students (cohort H). Both cohorts used a media-article approach to the study of quantitative reasoning. A pre- and a post-intervention assessment were administered with a two-week intervention period consisting of critical analyses of the use of percentages and ratios in media articles. Using non-parametric techniques, no statistically significant improvement was measured in cohort G while cohort H students showed statistically significant improvement on several items.

Quantitative Reasoning Learning Progressions For Environmental Science: Developing A Framework, Robert L. Mayes, Franziska Peterson, Rachel Bonilla

Numeracy

Quantitative reasoning is a complex concept with many definitions and a diverse account in the literature. The purpose of this article is to establish a working definition of quantitative reasoning within the context of science, construct a quantitative reasoning framework, and summarize research on key components in that framework. Context underlies all quantitative reasoning; for this review, environmental science serves as the context.In the framework, we identify four components of quantitative reasoning: the quantification act, quantitative literacy, quantitative interpretation of a model, and quantitative modeling. Within each of these components, the framework provides elements that comprise the four components. The …

Personal Financial Behavior: The Influence Of Quantitative Literacy And Material Values, Pete Nye, Cinnamon Hillyard

Numeracy

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. …

Dyscalculia: Characteristics, Causes, And Treatments, Gavin R. Price, Daniel Ansari

Numeracy

Developmental Dyscalculia (DD) is a learning disorder affecting the ability to acquire school-level arithmetic skills, affecting approximately 3-6% of individuals. Progress in understanding the root causes of DD and how best to treat it have been impeded by lack of widespread research and variation in characterizations of the disorder across studies. However, recent years have witnessed significant growth in the field, and a growing body of behavioral and neuroimaging evidence now points to an underlying deficit in the representation and processing of numerical magnitude information as a potential core deficit in DD. An additional product of the recent progress in …

The Scope Of Numeracy After Five Years, H. L. Vacher, Dorothy Wallace

Numeracy

The purpose of this editorial is to provide an efficient way for readers and potential authors to see (a) what type of papers are published in this journal and (b) what subjects are appropriate. The editorial consists mainly of about a dozen pages of tables including live links to the papers’ access/abstract pages to facilitate easy browsing. In the first table, the 85 papers that have been published in the journal’s first five years are classified into: review papers; research papers; case studies; essays; book reviews; columns; and editorials about the journal. In the second table, the papers are inventoried …