Numeracy is defined as the ability to understand and use numbers. In addition to basic reading and writing skills, today's consumers need an understanding of numbers and basic mathematical skills to use any numerical information presented in text, tables or charts. This is especially true in many financial and healthcare settings, where a basic understanding of numerical concepts is arguably as important for informed decision making as reading ability.Although systematic research on numeracy has been growing steadily over the last several years, there have been few comprehensive reviews of this literature. In addition to summarizing key findings, a review could serve to identify gaps in our knowledge and suggest paths for future research in the field. The primary goal of this paper is to review current directions in numeracy research, and, in particular, to examine the relationship between numeracy and decision making in health and selected non-health domains.
3In recent years, there has been a drastic shift in the way consumers are expected to make important health and financial decisions. Ever increasing amounts of information are made available to the public, with the expectation that consumers will use this information for decision making. For example, employees may be presented with several retirement account plans and presumed capable of making informed decisions about the optimal plan for their goals (Thaler & Sunstein, 2003). Current policy approaches toward Medicare beneficiaries serve as another example of this shift. Here, patients are expected to utilize information about the various Medicare drug options, make trade-offs, and ultimately produce wise choices regarding their care (Hibbard, Slovic, Peters, Finucane, & Tusler, 2001;Woloshin, Schwartz, & Welch, 2004). This change is consistent with a move toward a more consumer-driven approach to healthcare, in which consumers share in both healthcare decision-making and the healthcare associated cost (Hibbard & Peters, 2003).The information provided to consumers to facilitate these choices come from numerous sources and are presented in a variety of formats. This can be confusing and daunting for even for the most motivated and skilled consumer. Financial and healthcare providers, while generally supplying sufficient information for consumers, often overlook the importance of presenting information in a way that can be easily comprehended and used by the vast majority of consumers (Fagerlin et al., 2004). With the increasingly important decisions being left to the consumer, it is critical that information providers are sensitive to the skills of the consumers they are trying to reach.
4Researchers have long recognized the importance of literacy for informed decision making (see Rudd, Colton, & Schacht, 2000). A great deal of our information comes in textual form, particularly in light of today's reliance on the Internet for disseminating information. Thus, individuals with limited literacy skills are at a marked disadvantage in this information ...