HOUSEHOLD FINANCIAL MANAGEMENT – (PDF/EPUB Version)

This book is dedicated to showcasing the importance of household financial management through the lens of academic research, with the goal of enhancing the financial well-being of individuals.

Through an exploration of households’ financial choices over their lifecycle, the book aims to provide a comprehensive understanding of households’ financial decision-making processes, grounded in economic models, policies, and data.

This holistic perspective encompasses an awareness of the functioning of different market types and an appreciation of various cognitive and behavioral biases. As a result, readers would be better positioned to make informed financial choices.

By further integrating theories and empirical evidence from economics and finance, the book provides readers with insights into actions they can take to circumvent common financial pitfalls and offers solutions for effectively addressing them.

Supplementary Material Resources:Resources are available to students who adopt this textbook for their courses.

Contents:

• Introduction:
• Why Financial Literacy Matters
• Understanding Behavioral Biases
• Primer to Inflation
• Getting Started with Financial Planning
• Savings:
  • Intertemporal Choices
  • Building a Nest Egg
  • Retirement Income Support
  • Retirement Savings Puzzle
• Spending:
  • Weather
  • Peer Effects
  • Digital Payments
  • Online Privacy and Fraud
• Borrowing:
  • Credit Markets
  • Credit Cards
  • Overdrafts
  • Payday Loans
• Investing:
  • Stock Market Participation
  • Diversification
  • Portfolio Inertia and Overtrading
  • Mental Accounting
  • Interpreting Investment Performance
• Housing:
  • Buying and Selling Houses
  • Mortgages
  • Agents, Brokers, and Appraisers
• Risk Management:
  • Navigating the Insurance Market
  • Health Insurance
  • Annuity
• Gender:
  • Gender Pension Gap
  • Gender and Self-Confidence
  • Intra-Household Financial Decisions

Readership: Undergraduates, professionals and policy makers involving in household finance and personal finance.

Key Features:

• Summarizes research developed in household finance comprehensively
• Makes academic research accessible and relevant to all
• Integrates cutting edge economic research into practical tips for households