In the course “Financial Literacy and Household Decision Making” we will dis-cuss the theoretical foundation and its applications of two main topics:

1.) Financial literacy: The concept of financial literacy itself and different methods for measuring it will be introduced. Furthermore, awareness regar-ding psychosocial factors associated with financial literacy will be raised. In the applied part, we will work on increasing our financial IQ’s by transferring the theoretical knowledge to daily live situations.

2.) Household decision making: This part starts with an overview of various household decisions and a discussion of the connection between them (e.g., the connection between a households’ consumption level and its equity expo-sure). Furthermore, the concept of the “homo oeconomicus” will be tackled and its optimal decisions in various situations will be determined. As the ave-rage household is not rational and determining optimal decisions is too diffi-cult for it, we will discuss heuristics for (mostly financial) decision making that can be easily be applied in daily live.