1. The 2015 National Financial Capability Study
2016 AMBA Fall Workshop
August 29, 2016
Gary Mottola, Ph.D.

2. Agenda About the NFCS Some National Findings
Better Understanding Veterans
The Military Sample
New Banking-Related Questions
What’s Next?

3. NFCS Background
Monitor and better understand financial capability in America
Four components of financial capability
National, Military, and Investor populations
Designed by multidisciplinary team
Three waves—2009, 2012, and 2015

4. NFCS Impact Hundreds of scholarly articles have referenced the NFCS
Citations of the NFCS publications are commonplace
Top-tier researchers continue to use the data
Capture respondents’ money management cycle (sources of income, methods of receiving funds, participation in banking, methods of spending/bill paying)
Revise and update mortgage section
Additional debt questions 3

5. Key 2015 National Findings Things have improved
But not for all demographic groups
Financial literacy levels are flat or slightly down
Capture respondents’ money management cycle (sources of income, methods of receiving funds, participation in banking, methods of spending/bill paying)
Revise and update mortgage section
Additional debt questions 4

6. Making Ends Meet
In a typical month, how difficult is it for you to cover your expenses and pay all your bills? 5

7. Satisfaction with Finances
Overall, thinking of your assets, debts and savings, how satisfied are you with your current personal financial condition? 6

8. Making Ends Meet by Ethnicity
Difficulty covering expenses and paying bills?
Not at all difficult
Very difficult
White
Black
Hispanic
Asian
Other

9. Financial Fragility by Education
How confident are you that you could come up with $2,000 if an unexpected need arose within the next month? 8

10. Financial Literacy Five financial literacy quiz questions:
Interest rate question
Inflation question
Bond price question
Mortgage question
Risk question
2009
2012
2015
Average number correct
2.99
2.88
2.82
High Financial Literacy
42%
39%
36%

11. Better Understanding Veterans
The 2015 NFCS has 27,564 responses—
of which, 3,170 are veterans
Have you ever been a member of the U.S. Armed Services,
either in the active or reserve component?
New questions…
When did you complete your service in the military?
Did you retire from the military?
What was your most recent military service branch
or component?
Capture respondents’ money management cycle (sources of income, methods of receiving funds, participation in banking, methods of spending/bill paying)
Revise and update mortgage section
Additional debt questions 10

12. Expanding the Military Sample
The 2015 Military sample has 1,940 responses
1,682 Active Duty and 258 Guard & Reserve
Component
Army
26%
Navy 9%
Marine Corps 4%
Air Force
11%
Capture respondents’ money management cycle (sources of income, methods of receiving funds, participation in banking, methods of spending/bill paying)
Revise and update mortgage section
Additional debt questions 11

13. New Banking-Related Questions
How often do you make payments using a reloadable prepaid debit card?
How often do you use your mobile phone to pay for a product or service
in person at a store, gas station or restaurant?
Do you have a budget?
In planning or budgeting saving and spending, which of the following
time periods is most important to you?
How would you rate your current credit record?
Capture respondents’ money management cycle (sources of income, methods of receiving funds, participation in banking, methods of spending/bill paying)
Revise and update mortgage section
Additional debt questions 12

14. Next Steps for 2015 Military NFCS
Analyze the military data and write the new report
Update website with 2015 military data
Release report and data in December 2016