Consumers’ Self-Protection—More Questions, Fewer Answers

When this special issue of the Journal of Consumer Affairs was first conceptualized, the subprime mortgage ‘‘crisis’ ’ was not yet front-page news. Even without the events that precipitated the crisis, there was, and is, a clear need for research in the area of financial literacy and con-sumer self-protection. As the scholars in this special issue suggest, the prob-lems and opportunities associated with financial education are many and varied. The articles in this special issue examine a host of topics and issues that are linked by a common question: how can we educate consumers in the most effective manner to help them realize their financial goals? A worthwhile financial education program starts with having the participants set a goal—whether it is to be a homeowner, save for retirement, reduce debt, increase human capital through education, or start a business. Like-wise, before consumer goals can be addressed, there is a need to clearly define the goals of financial education. The Cooperative Extension System has answered this question by stating that the goal is financial security. A 2005 Government Accountability Office (GAO) report places this goal of financial security within a macroeconomic context: Finally, I believe that a clear understanding of the country’s overall financial condition and future fiscal outlook is an indispensable part of true financial literacy. The financial futures of the American people are shaped not only by their own personal planning and The analysis and conclusions set forth in this article represent the work of the authors and do not indicate concurrence of the Federal Reserve Board, the Federal Reserve Banks, or their staff. Mention or display of a trademark, proprietary product, or firm in the article by the authors does not constitute an endorsement or criticism by the Federal Reserve System and does not imply approval to the exclusion of other suitable products or firms