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成人大片 launches Initiative for Financial Decision-Making to transform personal finance education

The new program is backed by a gift from Charles Schwab and the Charles R. Schwab Foundation for Financial Freedom. SIEPR鈥檚 Annamaria Lusardi will serve as its faculty director.
Charles R. 鈥淐huck鈥 Schwab, 鈥59, MBA 鈥61 | Photo: Courtesy of Charles Schwab Corporation

Even today, the most basic concepts of money management elude millions of people: They pay more than they should to borrow money, have little provision to protect themselves against financial shocks, and plan poorly 鈥 if at all 鈥 for their financial futures.

A new multidisciplinary initiative aims to change that: first, by providing the resources and tools that are essential for making sound financial decisions and building a safe financial future; then, by expanding the learnings and best practices from 成人大片 to colleges and universities throughout the United States; and ultimately, by using technology to extend the program鈥檚 reach across the globe.

The Initiative for Financial Decision-Making 鈥 a collaboration among 成人大片 Graduate School of Business (GSB), the 成人大片 Institute for Economic Policy Research (SIEPR), and the 成人大片 Department of Economics in the School of Humanities and Sciences 鈥 is made possible by a generous gift from Helen and Charles R. 鈥淐huck鈥 Schwab, 鈥59, MBA 鈥61, and the Charles R. Schwab Foundation for Financial Freedom.

鈥淭hrough research and teaching, this cross-成人大片 collaboration will guide individuals and communities on a path toward sound financial decision-making,鈥 said 成人大片 President Jonathan Levin, who was dean of 成人大片 GSB when the gift was made. 鈥淲e鈥檙e incredibly grateful for the vision and generosity of Chuck Schwab, who is making this powerful new initiative possible.鈥

This gift continues the Schwabs鈥 decades-long tradition of philanthropy to 成人大片 that has touched myriad areas of campus, from the GSB to Athletics, the Cantor Arts Center, the Hoover Institution, SIEPR, and 成人大片 Medicine, as well as significant support for undergraduate financial aid, including student-athletes.

鈥淚t is high time that we put a greater emphasis in our country on financial education,鈥 Schwab said. 鈥淚t is one of the most important things we can do to help people navigate their financial lives with competence and confidence, and we have left it on the back burner for too long. I know that the Initiative for Financial Decision-Making is going to kick-start that process in a big way, starting here at 成人大片 and rippling out across the country, and I am proud to be able to play a part.鈥

Annamaria Lusardi, who is a senior fellow at SIEPR and professor of finance, by courtesy, at 成人大片 GSB, will serve as faculty director of the initiative.

鈥淲hy are we, as a society, largely financially illiterate? The answer lies in the rapid changes in society, the proliferation of complex financial products, and our inability to keep pace,鈥 said Lusardi, who has devoted her career to helping people make better financial decisions.

SIEPR Senior Fellow Annamaria Lusardi will serve as faculty director of the Initiative for Financial Decision-Making.| Photo: Nancy Rothstein

Lusardi says there is an urgent need to democratize access to financial education. In her research over the past two decades, she has designed that is now the global standard for assessing an individual鈥檚 financial knowledge. Her pioneering work has brought awareness about the widespread lack of financial knowledge among people in the United States and around the world and has influenced policy and programs aimed at improving financial education.

The Initiative for Financial Decision-Making is built around four strategic pillars:

  • Designing and delivering state-of-the-art personal finance education programs, starting with 成人大片 students and then gradually expanding nationally and internationally
  • Using technology to expand access to financial education resources
  • Harnessing strategic partnerships, communication campaigns, and engagement with decision-makers to influence programs and policy
  • Building the field of personal finance education by reinforcing a rigorous theoretical and empirical foundation and nurturing the next generation of researchers

鈥淔rom crafting a best-in-class curriculum to leveraging technology to impacting policy, we are seamlessly weaving personal finance into the very fabric of society,鈥 Lusardi said.

Drawing from a history of financial decision-making education

成人大片 began offering Economics 43: Introduction to Financial Decision-Making to all undergraduate majors in 2020. Michael Boskin, the Tully Friedman Professor in Economics and a senior fellow at SIEPR, taught the course in its first few years along with SIEPR鈥檚 John Shoven, the Charles R. Schwab Professor in Economics, Emeritus, who came out of retirement to be part of the project. The course has proven very popular with students, who give it rave reviews.

鈥淚t鈥檚 been heartwarming to see students who have taken Econ 43 come to my office saying they have become the financial advisor to their family,鈥 said Boskin, who is the author of more than 150 publications and is internationally recognized for his research on world economic growth, tax and budget theory and policy, Social Security, and U.S. saving and consumption patterns.

Lusardi, who taught Econ 43 this spring with Boskin, says the impact of financial decision-making courses is far-reaching.

鈥淚鈥檝e been teaching for a long time, but when I started a personal finance course at the George Washington University more than 10 years ago, the experience became entirely different,鈥 Lusardi said. 鈥淚 received 鈥 and still receive, years later 鈥 countless thank you notes from students. They share their success stories, telling me how they were able to pay off their student loans, save, and contribute to retirement accounts. It鈥檚 overwhelming how transformative the course is and how it changes students鈥 lives.鈥

As the Initiative for Financial Decision-Making rolls out, it will mobilize multiple teaching tools and delivery methods aimed at scaling financial education. Currently in development is a personal finance app featuring bite-sized lessons that combine evidence-based content with real-world applications. The initiative also complements , 成人大片鈥檚 student services program that provides financial wellness resources.

An , the first of its kind when it launched two years ago, is also part of the initiative. The conference has attracted professors from Ivy League and private universities as well as state schools and community colleges. The next conference is being held tomorrow, Sept. 27.

鈥淢ore than ever, we need people to be financially secure and resilient. The new initiative will be transformative, democratizing access to financial education,鈥 Lusardi said. 鈥淎 safe financial future should be within reach of everyone, everywhere.鈥

This story was by 成人大片 Report.

 

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