Financial Literacy, Retirement Planning and Household Wealth
2012/02/07 by Maarten C.J. van Rooij, M.C.J. van Rooij, Annamaria Lusardi +2 · 30 citations
Business, Management and Accounting · Economics, Econometrics and Finance · Social Sciences · #Financial Literacy, Pension, Retirement Analysis #Housing Market and Economics #Insurance, Mortality, Demography, Risk Management
paper · doi:10.1111/j.1468-0297.2012.02501.x
Abstract
Relying on comprehensive measures of financial knowledge, we provide evidence of a strong positive association between financial literacy and net worth, even after controlling for many determinants of wealth. We discuss two channels through which financial literacy might facilitate wealth accumulation. First, financial knowledge increases the likelihood of investing in the stock market, allowing individuals to benefit from the equity premium. Second, financial literacy is positively related to retirement planning and the development of a savings plan has been shown to boost wealth.
Citations
Cited by
- Household Finance
- The Economic Importance of Financial Literacy: Theory and Evidence
- Financial Literacy, Financial Education, and Downstream Financial Behaviors
- Does Financial Education Impact Financial Literacy and Financial Behavior, and If So, When?
- Financial literacy: A systematic review and bibliometric analysis
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