Time Perspective & Financial Literacy 31 July, 2014

Time Perspective & Financial Literacy

31 July, 2014

Agenda

• Why we did the study

• How we did the study

• Results

• Applications

Why we did the study

Why we did the study

Why we did the study

Why we did the study

• Marketing rarely focuses on product value

• Products are frequently complex

• Complexity usually means expensive

Why we did the study

Why we did the study

Why we did the study

• How do people make financial decisions?

• Is financial literacy sufficient to be financially healthy?

How we did the study

• Zimbardo Time Perspective Inventory (36 questions)

How we did the study

• Time Perspective– Professor Zimbardo (Stanford Prison

Experiment)– Past, Present & Future–We all have an approach to time – it

impacts our decisions

How we did the study

• Traditional financial literacy quiz

• Self-assessment of financial literacy (scale of 1 – 7)

How we did the study

• Bankruptcy, foreclosure, non-bank borrowing

How we did the study

How we did the study

• Over 3,000 people

How we did the study

Results• Traditional financial literacy (acumen)

can not be used to predict financial health

• Time perspective is correlated to financial health

Results

Results

Results

Results

Results

Results

• Financial Health Rankings:

Applications

• Improving financial health requires a more balanced time perspective

• There are many public policy, educational and economic consequences

Applications

Applications

Applications

• And there are more

Thank You

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