Investor Behavior: The Psychology of Financial Planning and Investing

CHAPTER 17

Knowing Your Numbers: A Scorecard Approach to Improved Medical and Financial Outcomes

Talya Miron-Shatz

Founding Director, Center for Medical Decision Making, Ono Academic College; Senior Fellow, Center for Medicine in the Public Interest

Stephanie Gati

Global Health Intern, Johnson and Johnson

INTRODUCTION

Health literacy and chronic diseases are inextricably linked. In order to make healthy lifestyle choices to prevent chronic disease, such as exercising or limiting alcohol intake, a person must first be aware of the impact these kinds of decisions have on health, wealth, and well-being. This is not unlike the way financial literacy is associated with one's wealth, leading to decision-making that may be suboptimal. Health literacy and financial literacy are further connected because of the effect of health literacy on decisions that involve health, but have financial consequences, such as insurance and health care. This chapter proposes a short, clear, and actionable approach to overcoming health literacy barriers, thereby potentially preventing or curbing chronic disease. References to financial literacy are woven through the chapter based on the belief that a similar approach might be beneficial for improving financial decision-making and ultimately outcomes.

Health literacy is a person's ability to understand information about health and to incorporate this information into a healthy lifestyle. Key components of definitions converge, such as the degree to which ...