These institutions published several works in journals such as The Journal of Financial Counseling and Planning and the Journal of Personal Finance.Īs the concerns about consumers' financial capability increased during the early 2000s, various education programs emerged, catering to a broad audience or a specific group of people, such as youth and women. However, several American universities such as Brigham Young University, Iowa State University, and San Francisco State University started to offer financial educational programs in both undergraduate and graduate programs since the 1990s. īefore 1990, the study of personal finance received little attention from mainstream economists and business faculties. Meanwhile, AFS cooperates with Certified Financial Planner (CFP Board). AFCPE started to offered several certifications for professionals in this field, such as Accredited Financial Counselor (AFC) and Certified Housing Counselor (CHC). Attendances of the two societies mainly come from faculty and graduates from business and home economics colleges. The establishment of the Association for Financial Counseling and Planning Education (AFCPE) in 1984 at Iowa State University and the Academy of Financial Services (AFS) in 1985 marked an important milestone in personal finance history. Professional bodies such as American Association of Family and Consumer Sciences and the American Council on Consumer Interests started to play an important role in developing this field from the 1950s to the 1970s. Research into personal finance is based on several theories, such as social exchange theory and andragogy (adult learning theory). In 2009, Dan Ariely suggested the 2008 financial crisis showed that human beings do not always make rational financial decisions, and the market is not necessarily automated and corrective of any imbalances in the economy. Simon, a Nobel laureate, suggested that a decision-maker did not always make the best financial decision because of limited educational resources and personal inclinations. Margaret Reid, a professor of Home Economics at the same university, is recognized as one of the pioneers in the study of consumer behavior and Household behavior. Her dissertation at University of Chicago laid the foundation of consumer economics and family economics. The earliest known research in personal finance was done in 1920 by Hazel Kyrk. When planning personal finances, the individual would consider the suitability to their needs of a range of banking products ( checking, savings accounts, credit cards and consumer loans) or investment in private equity, ( companies' shares, bonds, mutual funds) and insurance ( life insurance, health insurance, disability insurance) products or participation and monitoring of and- or employer-sponsored retirement plans, social security benefits, and income tax management.īefore a specialty in personal finance was developed, various disciplines which are closely related to it, such as family economics, and consumer economics, were taught in various colleges as part of home economics for over 100 years. Personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
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