Financial Management Behaviors and Skills

Studies have found that positive financial behaviors like establishing a bank account, increasing savings and investments, using credit wisely, managing debt and cash flow, avoiding mortgage delinquency, and budgeting, can lead to improved financial health and quality of life for individual and families.

Some financial behavior changes, like making a spending plan, can be observed immediately or soon after participation in a financial capability program; other behaviors may take a longer time to manifest themselves, like paying credit cards in full each month (Microfinance Opportunities, 2006; Xiao et al., 2004; Vitt et al., 2010).

Sources Cited

Microfinance Opportunities (2006), Assessing the Outcomes of Financial Education. Accessed July 5th, 2013 at

Vitt, Lois, Gwen M. Reichbach, Jamie L. Kent, Jurg K. Siegenthaler. 2005. Goodbye to Complacency: Financial Literacy Education in the U.S.: 2000-2005. Institute for Socio Financial Studies: Middleburg, VA. Report presented at the 2005 US-UK Dialogue on Pensions, sponsored by the AARP Global Aging Program in association with the British Embassy in the United States, the Employee Benefit Research Institute and the UK Department for Work and Pensions: Washington, D.C.

Xiao, J. J. (Mar. 2006), Financial Behaviours of Consumers in Credit Counseling, International Journal of Consumer Studies, Vol. 30, No. 2, pp106-121.