Saturday, May 19 • 9:45am - 11:15am
F2b-A Longitudinal Study on Antecedents and Evolution of Financial Overconfidence Among Young Adults (APLUS)

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Melody Harvey, Jeremy Burke, Joyce Serido, Soyeon Shim - Consumers whose subjective financial knowledge exceeds their objective financial knowledge tend to make mistakes that impact their economic well-being. Much is known about how overconfidence impacts financial behaviors, but little is known about what factors shape it. Using the APLUS, we will estimate individual fixed-effects models to investigate how overconfidence and its components change with respects to financial education obtained, economic shocks experienced, and incidences of adverse financial practices. Descriptive statistics reveal that objective financial knowledge increased over time but subjective financial knowledge (and therefore overconfidence) decreased. At the onset of adulthood, high school financial education is not associated with objective financial knowledge, but is associated with higher subjective financial knowledge and overconfidence. Future analysis will account for poor financial behaviors and college-level financial education.

Winner of the National Endowment for Financial Education Paper Award

avatar for Melody Harvey

Melody Harvey

National Poverty Fellow, University of Wisconsin-Madison
Melody Harvey, Ph.D., is a postdoctoral fellow in the National Poverty Fellows Program at the University of Wisconsin-Madison's Institute for Research on Poverty. Her research focuses on effects of consumer, social, and higher education policies on economically vulnerable populations... Read More →

Saturday May 19, 2018 9:45am - 11:15am

Attendees (2)