Financial Sustainability and Personal Finance Education

Abstract

Financial stability refers to having the ability to manage financial resources to meet family financial needs throughout one’s life cycle and through ups and downs of economy at large. Size, allocation, and composition of household’s financial resources play a critical role in achieving such financial stability. The composition of a household’s financial resources is a function of financial habits, values, beliefs, and practices. Complexity of financial behavior calls for a multidisciplinary approach to future education and research efforts. The goal of all financial educational efforts must be to ensure that people gain knowledge leading to the development of habits and behaviors resulting in long-term financial security of their households and society at large. Research results must guide government policies and business practices ensuring a safe financial environment where individuals can demonstrate sound financial behaviors and sustain healthy financial status for the long term.