A state-by-state survey of people’s financial knowledge was released Wednesday by the FINRA Investor Education Foundation, and the results aren’t pretty. But the information can be invaluable to advisors as they try to figure out not just what clients know, but why they behave the way they do.
In a conference call announcing the results of the survey, John Gannon, president of the FINRA Foundation; Christopher B. Bumcrot, cofounder of Applied Research & Consulting LLC; and Annamaria Lusardi (left), professor of economics at Dartmouth College discussed the data, their findings and how the information can be used.
The survey, developed in consultation with the U.S. Department of Treasury and the President’s Advisory Council on Financial Literacy, complements data from the smaller-scale National Financial Capability Study. That survey was released in late 2009. It also builds on a military survey that was released in October of 2010.