Prefrontal systems in financial processing

Prefrontal systems of the brain are logical regions to study in terms of finances, given their roles in executive functions. Individuals with neurological insults to prefrontal systems often show poor financial management, and healthy individuals consistently show activation of prefrontal systems during financial tasks. This paper reviews studies done in four community samples using self-rating scales of prefrontal system dysfunction. Three studies showed modest but consistent inverse relationships between income and three separate measures of prefrontal system dysfunction, relationships which remained significant after controlling for age, sex, and education. In a fourth study, credit card debt correlated positively to self-ratings of measures of prefrontal system dysfunction, which also remained significant after controlling for age, sex, education, and income. These results are convergent with prior studies, but extend the results into larger community samples, confirming that prefrontal systems play a role in specific aspects of finances including income and credit card use.