Sessions & Readings

The 2nd Annual Personal Finance Workshop has been cancelled due to COVID-19.


 

Below please find Workshop materials from our April 2019 Workshop.
 

Session 1: The Basics (Professors Campbell & Dynan)

Session 2: The Working World (Professors Miron & Dynan)

Session 3: Risk & Return (Professor Campbell) 

Session 4: Behavioral & Cognitive Issues in Personal Finance (Professor Laibson) 


    Session 1: The Basics (Professors Campbell & Dynan)
     

    Part 1—Professor Campbell (slides)

    • The problem of financial illiteracy
    • Outline of the Workshop
    • Budgeting case study
    • Interest rates

    Part 2—Professor Dynan (slides)

    • The basics of credit
    • Credit scores
    • Credit cards
    • Student loans

    Suggested Reading:

    Session 2: The Working World (Professors Miron & Dynan)
     

    Part 1—Professor Miron (slides)

    • The Life Cycle Model

    Part 2—Professor Dynan (slides)

    • Features of the real world that complicate the Life Cycle Model
    • Taxes
    • Insurance: Health, Life
    • Retirement: 401k, pensions, health shocks

    Suggested Reading:

    • Skinner, Jonathan. 2007. “Are You Sure You're Saving Enough for Retirement?” Journal of Economic Perspectives 21(3): 59-80. 
       
    • Ariely, Dan and Aline Holzwarth. 2018. “How Much Money Will You Really Spend in Retirement? Probably a Lot More Than You Think.” The Wall Street Journal. https://www.wsj.com/articles/how-much-money-will-you-really-spend-in-ret...
       
    • Modigliani, Franco and Richard H. Brumberg. 1954. “Utility Analysis and the Consumption Function: An Interpretation of Cross-Section Data.” In Post Keynesian Economics, ed. Kenneth K. Kurihara, 388-436. New Brunswick, NJ: Rutgers University Press.
       

    Session 3: Risk & Return (Professor Campbell) (slides)
     

    • Principles of risky investing
    • The Efficient Markets Hypothesis
    • Home ownership
    • Insurance

    Suggested Reading:

    • Barber, Brad and Terrance Odean. 2000. “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors.” Journal of Finance 55: 773-806. 
       
    • Goodman, Laurie S. and Christopher Mayer. 2018. "Homeownership and the American Dream." Journal of Economic Perspective 32(1): 31-58.
       
    • Malkiel, Burton Gordon. 2007. A Random Walk down Wall Street: The Time-Tested Strategy for Successful Investing. New York: W.W. Norton.
       

    Session 4: Behavioral & Cognitive Issues in Personal Finance (Professor Laibson) (slides)
     

    • Introduction to behavioral economics
    • Three examples in financial decision-making
      • Present bias 
      • Loss aversion 
      • Shrouding and other types of misselling
    • David's 30 Pieces of Advice for a Healthy Financial Life

    Suggested Reading:

    • Beshears, John, James J. Choi, David Laibson, Brigitte C. Madrian. 2018. “Behavioral Household Finance.” In Handbook of Behavioral Economics - Foundations and Applications 1, ed. D. Bernheim, D. Laibson, and S. DellaVigna, 177-276. Elsevier.