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Rates of advance financial care planning are low in the United States, increasing the risk of fraud, exploitation, financial mistakes, and loss of autonomy in later life. This study sought to identify older adults' perceptions and experiences with advance financial care planning to inform ways to motivate planning behavior and communication around future money management. Four focus groups were conducted in Baltimore, Maryland, with African American, Hispanic, low-income, and low–middle-income adults aged 65 and older. Data were transcribed, analyzed, and coded thematically. Five themes were identified: dignity , privacy , and independence ; lack of knowledge/resources ; prior experience ; social influence ; and family relationships. Findings suggest that older adults need education on advance financial care planning and that cultural differences affect motivation to plan. Financial advisors and other practitioners may leverage older adults' core values around dignity and independence to promote advance financial care planning, appealing specifically to the desire to reduce burden on future decision-makers and strengthen family relationships. [ABSTRACT FROM AUTHOR]

This study used data from the 2018 National Financial Capability Study State-by-State Survey to examine the role financial capability plays in financial education and financial anxiety among a sample of consumers who received financial education (N = 4,824). Financial education was explored through two lenses, quantity and quality. Results of the mediation analyses within the structural equation models suggest that the quality of financial education is more impactful than the quantity on financial capability. The mediator, financial capability, has a significant effect on decreasing financial anxiety. The direct effect of additional hours of financial education appears to alleviate financial anxiety whereas higher quality financial education increases financial anxiety. The implications of these findings are that financial education programs should strive for quality to ensure financial capability; however, providing multiple touchpoints over time for financial education may ensure just-in-time learning and decrease financial anxiety for participants. In addition, educators can provide insights into how to cope with financial anxiety (e.g., problem-focused, emotion-focused, meaning-making, and social support). [ABSTRACT FROM AUTHOR]

Financial scales were developed to understand and explain the financial behavior of adults in the United States using data from the 2018 National Financial Capability Study (NFCS) and the Spanish-Language Supplement. The main difference between them is that the Spanish-Language Supplement was composed only of Hispanics who prefer Spanish as their first language. Researchers combined various related questions using factor analysis (principal component analysis) to create the scales for financial anxiety, financial capability, financial readiness, financial self-efficacy, and financial technology. These scales and their corresponding scores allowed researchers to better measure specific concepts related to consumer financial management. Cronbach's alpha showed scales were reliable and the Kaiser–Meyer–Olkin index confirmed the appropriateness of factor analyses. Except for financial capability, all financial scales using the 2018 NFCS State-by-State Survey were validated using the 2018 NFCS Spanish Supplement. [ABSTRACT FROM AUTHOR]

Financial coaching, a hands-on financial wellness approach, has emerged as a go-to strategy to help clients establish and reach their personal financial goals. We analyzed the borrowing and repayment behavior of 1,790 clients who received financial coaching through a program sponsored by the state of Delaware. Relative to a matched comparison group, financial coaching clients cure 0.24 more delinquent accounts, reduce credit card utilization by 5 percentage points, reduce the number of debts in collections by an additional 0.37 accounts, and have $422 less in credit card debt. Findings also show a 7 percentage point increase in the share of clients with a credit card and a 6 percentage point increase in the share of clients with a student loan. We do not see consistent differences in personal installment loans or mortgage holding. These estimates provide evidence that financial coaching can provide benefits for clients while being provided on a state-wide scale, illustrating the potential of public–private programs to provide services. [ABSTRACT FROM AUTHOR]

This article uses unique survey data to examine the determinants and potential impacts of financial capability on the savings decisions of Thai industrial workers. A random sample of 352 individuals was interviewed, using the questionnaire to gather information on demographics and financial capability. It finds that less than half of the respondents were able to handle an emergency expense of 1 month's income without borrowing. The results indicate that socioeconomic factors including education level, household income, and age are the key determinants of financial capability. Migrant workers from remote regions of the country are more likely to have a lower financial capability, especially in the financial knowledge component. An instrumental variable approach is used to investigate its potential impact on saving behavior. Overall, the strong and positive association between financial capability and savings adequacy suggests that financial education initiatives should place a strong emphasis on household budgeting and savings. [ABSTRACT FROM AUTHOR]

Bridging the gap between theory and practice, this study yielded a reliable and valid measure for responsible financial behaviors with the potential to serve practitioners when working with consumers. This research utilized Bandura's Triadic Model of Causation (Bandura, 1985) to investigate and predict responsible financial behaviors. Data from the 2009, 2012, and 2018 National Financial Capability Study surveys were used to construct a responsible financial behaviors index with five subconstructs for time horizon, money management, risk management, debt awareness, and ownership of baseline financial accounts. Results from a series of regression models identified consistent relationships between the index and variables categorized as cognitive factors (financial knowledge, financial self-efficacy, and financial risk tolerance) and background characteristics (educational attainment, income, and marital status). [ABSTRACT FROM AUTHOR]

The purpose of this article is to utilize decision tree (DT) analysis to examine the relationship between income level, financial satisfaction, financial confidence, financial knowledge, and several demographics with a goal of better understanding desirable financial behavior. The emphasis of this analysis is focused particularly upon better understanding the role of financial knowledge in desirable behavior outcomes. DT analysis is most useful when an analysis includes numerous variables and solving problems where the cumulative learning process is inherent. Our DT analysis of four FINRA National Financial Capability datasets (2009, 2012, 2015, and 2018) suggest that financial knowledge is a relevant variable only under specific circumstances and for respondents with relatively higher income levels. Key variables in the DT analysis included income level and financial satisfaction. [ABSTRACT FROM AUTHOR]

This article summarizes a field-based experiment exploring an individual and small-group financial coaching intervention. Both types of coaching programs had the same goal: To develop clients' financial capability through a series of planned meetings focusing on client driven goals. Results indicated clients who were coached either individually or in groups demonstrated increases in financial knowledge, gains in confidence, reductions in stress, and positive changes in behavior. The findings provide support for coaching as an intervention for developing financial capability and suggests group coaching as an alternative for reaching more clients and spreading financial capability more widely in a cost-effective way. [ABSTRACT FROM AUTHOR]

Financial coaching is an emerging strategy to help people enhance financial capability and well-being. However, few studies of coaching practices have been completed. A survey of 273 coaches in the United States provides insight into current coaching practice. The average coach in the survey served 19 clients per month and saw each client about four times. The range of coaches varied widely; many coaches operated at a relatively small scale, often embedded in social service programs. Coaches generally reported coaching had positive impacts on clients, especially coaches with more training and those who served more clients. Overall, this study shows the financial coaching field includes an array of approaches but may benefit from capacity building and adoption of standards of practice. [ABSTRACT FROM AUTHOR]

Since 1990, financial counseling, literacy, and capability services have emerged in Canada, Australia, New Zealand and the United States (CANZUS nations) as practice-based approaches to support the economic participation and financial resilience of Indigenous peoples. This systematic scoping review of the published and grey literature explored how these programs have evolved and whether such approaches are effective. The review found an emerging movement toward Indigenous-specific practice, reflecting the growth of Indigenous voices in financial counseling practice and highlighting the critical case for embedding Indigenous knowledge and practices into program design and delivery. However, there was little evidence in this emerging field regarding the quality or impact of program delivery. A theoretical framework is needed to guide further research. [ABSTRACT FROM AUTHOR]

An evaluation was implemented over a 3-year period to assess a statewide financial capability program for low-income, diverse clientele in Michigan. Pre- and post- program evaluation data was used to determine knowledge gain and intended behavior change. Follow-up evaluation data confirmed behavior changes across 10 financial practices. Using the Transtheoretical Model of Behavior Change, research findings revealed participants were better able to maintain change in key financial practices including making wise money decisions, creating a spending plan, and managing debt as a result of the educational program. Recommendations are provided to support future programs with similar clientele. [ABSTRACT FROM AUTHOR]