Microsoft Word Ed Horwitz Post Dissertation Fina docx

 
 Literature Review 
 Conceptual Framework 
This research utilizes Huston’s (2010) concept of financial literacy (Figure 4.1) and the 
model of financial literacy (Figure 4.2), which shows the relationship of financial literacy within 
the broader context of how it serves to impact personal financial behaviors.  
Figure 4.1 Concept of Financial Literacy 
 
(Huston, 2010) 

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Figure 4.2 Relations among Financial Literacy, Knowledge, Education, Behavior, and 
Well-Being 
 
 
This paper will test the link in the financial literacy relationship model between financial 
literacy and financial behaviors. Financial literacy is shown to influence financial behaviors 
using attained personal financial knowledge and skills, to optimally utilize resources over a 
lifetime of consumption (Huston, 2010). This definition is consistent with human capital theory 
(Becker, 1964) and is based in the lifetime consumption model of the lifecycle hypothesis 
(Modigliani & Brumberg, 1954). Historical literature supports associations between financial 
literacy and various types of financial behaviors (Chen & Volpe, 2002; Hilgert, Hogarth, & 
Beverly, 2003; Lusardi & Mitchell, 2007a, 2007b; Martin, 2007; Robb & Woodyard, 2011; 
Yoong, 2010). 
 
 

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