Mindfulness in financial literacy

ABSTRACT

Financial education is becoming imperative in a society that has pitfalls for unwary consumers. To ensure effectiveness, educational strategies must take into consideration the readiness of consumers to learn the curriculum. Behavioral economics highlights the obstacles that educators face in promoting financial efficacy. Such obstacles include envy, fear, greed, and other all too familiar human failings. One innovative model, mindfulness, provides insight into the human dynamics of personal financial behaviors. This article ties together financial education, mindfulness techniques, and transtheoretical stages of readiness. The impact of gradually introduced educational tasks is presented with an eye toward clients’ stages of readiness, and mindfulness addresses the emotional burdens of altering a financially profligate lifestyle.