Over the last 70 years, financial decisions for U.S. households have become more complex. Workers now have defined contribution plans like 401(k)s or 403(b)s, requiring them to decide how much to save, how to invest and how fast to spend in retirement. Homeowners also face choices between fixed-rate and adjustable-rate mortgages. Health insurance has become more complex, too. While more choices can help consumers find better products, it can also lead to confusion and poor decisions. Financial literacy education helps consumers make better decisions given the choices they face. |
