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Financial education at the workplace: evidence from a survey of Federal Reserve Bank employees

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  • Kelly D. Edmiston
  • Mary Gillett Fisher

Abstract

There are a number of possible explanations for the seemingly irresponsible financial behavior of many Americans. In this paper we argue that an important explanation is simply ignorance: consumers often make poor financial decisions because they do not know how to make good ones. In particular, we stress that consumers may not realize the importance of saving for the future, and that they may not perceive the trouble they can bring upon themselves by incurring large amounts of unsecured debt. Using survey data from employees of the Federal Reserve Bank of Kansas City, we demonstrate that, at least for people sharing the characteristics of these employees, financial position is highly related to knowledge of personal finance. We also demonstrate a relationship between financial education and financial knowledge and behavior for this group.

Suggested Citation

  • Kelly D. Edmiston & Mary Gillett Fisher, 2006. "Financial education at the workplace: evidence from a survey of Federal Reserve Bank employees," Community Affairs Research Working Paper 2006-02, Federal Reserve Bank of Kansas City.
    • Handle: RePEc:fip:fedkcw:2006-02
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    File URL: http://www.kansascityfed.org/publicat/cap/gillettfisher_edmiston_financial_education_april_2006.pdf
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    References listed on IDEAS

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    Cited by:

    1. Arturo García-Santillán, 2023. "Educación financiera en los trabajadores del sector alimenticio en México," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 18(1), pages 1-25, Enero - M.
    2. Sumaira Khawar & Aamir Sarwar, 2021. "Financial literacy and financial behavior with the mediating effect of family financial socialization in the financial institutions of Lahore, Pakistan," Future Business Journal, Springer, vol. 7(1), pages 1-11, December.
    3. Mark L. Power & Jonathan M. Hobbs & Ashley Ober, 2011. "An Empirical Analysis of the Effect of Financial Education on Graduating Business Students’ Perceptions of Their Retirement Planning Familiarity, Motivation, and Preparedness," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 14(1), pages 89-105, March.
    4. Gagandeep Kaur & Manjit Singh & Sanjay Gupta, 2023. "Analysis of key factors influencing individual financial well-being using ISM and MICMAC approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(2), pages 1533-1559, April.

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