Financial Literacy and the Limits of Financial Decision-Making [Paperback]

This book presents selected paperson the factors that serve to influence an individuals capacity in financialdecision-making. Initial chapters provide an overview of the cognitive factorsaffecting financial decisions and suggest a link between limited cognitivecapacity and the need for financial education. The book then expands on thesecognitive limitations to explore the tendency for overconfidence indecision-making and the interplay between rational and irrational factors.Later contributions show how credit card companies benefit from limitations inconsumer financial literacy, how gender and cognition intersect to play animportant role in financial decision-making, and how to improve financialcapacity through financial literacy and education campaigns, including thoseaddressing developed marketplaces. This comprehensive collection of papers willbe of value to all readers who seek to better understand the multi-factorialand complex nature of personal financial management in todays economicclimate.

Introduction; Tina Harrison.- Chapter 1: Cognitivedrivers of suboptimal financial decisions: Implications for financial literacycampaigns; Hooman Estelami.- Chapter 2: How mutual fund investors objective andsubjective knowledge impacts their information search and processing behaviour; Sanjay Kumar Mishra and Manoj Kumar.- Chapter 3: Do investors show anattentional bias toward past performance? An eye-tracking experiment on visualattention to mutual fund disclosures in simplified fund prospectuses; AndreasH?sser and Werner Wirth.- Chapter 4: Overconfidence and emotion regulationfailure: How overconfidence leads to the disposition effect in consumerinvestment behaviour; Wujin Chu, Meeja Im and Hyunkyu Jang.-Chapter 5: Consumer rationality/irrationality and financial literacy in thecredit card market: Implications from an integrative review; lÓ$