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May 2014 » Promoting Financial Literacy
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Alexander L. Gabbin, PhD, CPA, and Judith A. W. Thomas, EdD
The repeal of the Glass-Steagall Act in 1999 represented a milestone in the deregulation of the U.S. financial sector. Since then, there has been an increase in adjustable-rate loans, a shift from defined-benefit to defined-contribution retirement plans, and similar developments. These changes have contributed to a complex financial landscape that requires significant skill in financial planning and risk assessment. Americans are beginning to realize that the knowledge needed to be financially literate has increased exponentially from what high school graduates needed to know 30 years ago.
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