Consumer Financial Savvy Peaks at 53

Middle aged consumers make better decisions—and fewer mistakes—than their younger and older counterparts.  A study of  thousands of credit card and home and car loan documents shows that they are the most  likely to get the lowest interest rate available  and the least likely to pay unnecessary fees, David Wessel reports.

t

This magic "age of reason," researchers theorize, is the combination of  what economists call "analytic capital" and "experiential capital."  Wessel concludes "At younger ages, the lack of experience offsets analytical ability; at older ages, declining cognitive abilities offset experience."