In this chapter we review the literature on financial counseling, financial literacy, and consumer decision making and look at a financial counseling/planning program in India where consumers revealed their risk appetite, future financial goals, and current assets and liabilities. The results...

Institutions often offer a menu of contracts to consumers in an attempt to create a separating equilibrium that reveals borrower types and provides better pricing. We test the effectiveness of a specific set of contracts in the mortgage market: mortgage points. Points allow borrowers to exchange...

We analyze the effects of cognitive abilities on two examples of consumer financial decisions where suboptimal behavior is well defined. The first example refers to consumers who transfer the entire balance from an existing credit card account to a new account, but use the new card for...