This book presents selected papers
on the factors that serve to influence an individual's capacity in financial
decision-making. Initial chapters provide an overview of the cognitive factors
affecting financial decisions and suggest a link between limited cognitive
capacity and the need for financial education. The book then expands on these
cognitive limitations to explore the tendency for overconfidence in
decision-making and the interplay between rational and irrational factors.
Later contributions show how credit card companies benefit from limitations in
consumer financial literacy, how gender and cognition intersect to play an
important role in financial decision-making, and how to improve financial
capacity through financial literacy and education campaigns, including those
addressing developed marketplaces. This comprehensive collection of papers will
be of value to all readers who seek to better understand the multi-factorial
and complex nature of personal financial management in today's economic
climate.