The study of and application of personal finances has been a part of our society for hundreds of years. Economics has its roots in early civilizations (such as ancient China, India, the medieval Islamic world, and the ancient Greco-Roman world), and personal finance has its roots in economics. Courses in the field of home economics were taught for years before the emphasis of personal finance really came about (Hira 5). In 1947, Herbert Simon, a Nobel Prize winner, began to suggest that because of the limited knowledge of people, financial decision making did not always result in the best outcome for the decision maker. This began a discussion about the need for financial literacy. Often this is thought to be literacy with regards to the most basic arithmetic and knowledge of the current markets, however it is so much deeper than that.
Just within the last few decades universities began to understand the complexities behind personal finance and offer programs dedicated to this genre of financial education (Hira 7). Since the increase of these programs within the university setting, there have been multiple theories and research teams created to understand and develop this discipline further. In 1984, the Association of Financial Counseling and Planning Education was founded and then a year later, in 1985, the Academy of Financial Services was founded. Both of these establishments were critical for the further development and discussion of personal finance. Both the AFCPE and the AFS continue to further the education of personal finance and advocate for the field today.