Not Just Literacy: Some Control Required

Control. Control. You must learn control. – Yoda, Star Wars Episode V: The Empire Strikes Back Approximately 57% of Americans are financially literate, typically measured by answering simple financial literacy questions correctly. The work of Anna Maria Lusardi and her colleagues have demonstrated the woeful state of the world related to financial knowledge and education in the United States and around the world. Often, this group of researchers measures financial literacy with a few questions[…]

Rewards

Race through your work, and loudly proclaim you are finished. Such is the pattern of some elementary school students (and adults, by the way). You’ll undoubtedly see this tonight: kids racing up to a door, quickly getting their reward (and hopefully saying thank you…or at the least, “trick or treat”), and then they are off to the next task, the next house. A wise teacher in one of my children’s classes is teaching that in writing,[…]

From the West Coast: XYPN16

Earlier this week the DataPoints team had the privilege of attending the XY Planning 2016 conference in San Diego, and presented its technology solution to the advisors there in the conference’s inaugural fintech competition. The XY Planning network is a group of fee-only financial advisors that are committed to serving as fiduciaries to their clients and have a special focus on serving those clients that may not fit with more traditional financial services. The culture[…]

Behavioral Science and The Job of Financial Management

Back in 1999, I worked as a consultant to a large fiber-optic cable company that was staffing a new plant in Pennsylvania. For months, our crew of grad students and industrial psychologists administered validated tests, interviews, and work samples to thousands of potential candidates to fill manufacturing roles. In the work sample, applicants had to coil thin, translucent cables into circles and pack them into thick, zipper-top bags while racing against a clock. Only some applicants[…]