Microsoft Word Ed Horwitz Post Dissertation Fina docx

Chapter 1 - Introduction 
Low levels of financial literacy cause Americans great difficulty in understanding basic 
economic concepts needed for proper budgeting, saving, and financial decision making (Lusardi, 
2008). The likelihood of making poor financial decisions increases with the inability to 
understand and apply basic financial concepts such as compound interest, inflation, and 
diversification (Martin, 2007). Low levels of financial literacy are widespread across the 
American population, and those most at risk for economic hardship fall within the subgroups of 
low income, low education, minorities, and women (Lusardi & Mitchell, 2007b; Lusardi, 2008). 
These findings highlight a troubling social problem in America, and if not properly addressed, 
can threaten our economic social structures (Lusardi & Mitchell, 2011).