Mathematics in everyday financial decisions: developing adult financial literacy courses based on mathematical thinking

Source abstract

Probability-based lucky-draw promotions embedded in retail activities create hidden consumption traps for consumers. Many working-age adults make purchasing decisions based on subjective intuition rather than objective computation and lack practical knowledge of mathematical expectation and compound interest, which leads to impulsive buying and preference for immediate consumption over long-term saving. This study selects two typical everyday financial scenarios and develops practical mathematical courses for adults aged 18-45. Based on questionnaire data collected from 210 employed residents in Jinan, mathematical modeling is adopted to compare benefits of fixed discounts and paid lotteries, and compound-interest asset appreciation. Two supporting video courses and worksheets are designed for teaching experiments. Survey results indicate that 76.2 % of respondents overspend in probability-driven promotions and 82.4 % cannot distinguish simple and compound interest. After course intervention, participants' test performance on marketing-trap identification and compound-interest calculation improved by an average of 68.7 %, and impulsive-shopping desire decreased noticeably. Such courses can fill gaps in adults' quantitative financial-thinking capacity. Nevertheless, short-term learning can only improve theoretical awareness temporarily; sustained practice is required to reshape long-term financial-behavior habits.