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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. …