Gender- and Education-Related Effects of Financial Literacy and Confidence on Financial Wealth PDF Download
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Author: Christina E. Bannier
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
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Book Description
This study examines the influence of actual and perceived financial knowledge (i.e., financial literacy and confidence) on financial wealth. We show that consideration of gender and education as moderators helps to uncover intricate effects. Greater financial literacy increases wealth, with higher education strengthening this effect for women, but weakening it for men. Men's wealth also rises strongly in confidence, regardless of their education, while there is hardly any confidence effect for women. Our results are robust against one-time wealth effects, mode of financial decision making and the employment of different instrumental variables and confidence measures.
Author: Christina E. Bannier
Publisher:
ISBN:
Category :
Languages : en
Pages : 44
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Book Description
This study examines the influence of actual and perceived financial knowledge (i.e., financial literacy and confidence) on financial wealth. We show that consideration of gender and education as moderators helps to uncover intricate effects. Greater financial literacy increases wealth, with higher education strengthening this effect for women, but weakening it for men. Men's wealth also rises strongly in confidence, regardless of their education, while there is hardly any confidence effect for women. Our results are robust against one-time wealth effects, mode of financial decision making and the employment of different instrumental variables and confidence measures.
Author: Christina E. Bannier
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This study examines two dimensions of financial sophistication, actual and perceived, (i.e., financial literacy and confidence) and their effects on financial wealth accumulation. We employ a novel identification strategy introduced by Lewbel (2012) which utilizes a heteroscedastic covariance restriction to construct instrumental variables. This allows us to estimate causal effects in a setting where conventional instruments are frequently weak and unlikely to satisfy the exclusion criterion. We find strong gender- and education-related differences in the distribution of financial literacy and confidence that moderate their influence on financial wealth: Women's wealth increases particularly strongly in their financial literacy. Higher formal education strengthens this effect, but reduces it for men. Men's wealth rises strongly in (excess) confidence, regardless of their education, while women show a much weaker confidence effect. For highly-educated women, this even turns into a negative impact in case of overconfidence. Programs intended for improving financial literacy will hence be particularly helpful to raise women's wealth levels. Surprisingly, closer alignment between perceived and actual financial sophistication appears less relevant.
Author: OECD
Publisher: OECD Publishing
ISBN: 9264202730
Category :
Languages : en
Pages : 100
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Book Description
This book provides policy guidance to help policy makers address women's and girls' needs for financial education, and a comprehensive analysis of the current status of knowledge on gender differences in financial literacy and policy responses in terms of financial education for women and girls.
Author: Thérèse Lind
Publisher: Linköping University Electronic Press
ISBN: 9176850609
Category :
Languages : en
Pages : 27
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Book Description
I wrote this thesis to create a better understanding of how individual characteristics influence our feelings, our behavior and our way of interpreting information. My focus is on financial behavior and financial information, however I also consider a political context. I investigate the (usually) enabling abilities of financial literacy and numeracy. I also consider impediments such as stereotype threat and motivated reasoning, which can prevent people from engaging in certain behaviors or from interpreting information objectively. Both processes stem from valued beliefs and psychological foundations, consequently peoples’ efforts, decisions, and evaluations are based on them. The first essay, “Competence, confidence, and gender: The role of perceived and actual financial literacy in household finance,” broadens our understanding of the benefits of financial competence. I contrast perceived and actual levels of financial literacy, and consider the role of numeracy and cognitive reflective ability. I conclude that perceived and actual levels of financial literacy positively affect behavior and wellbeing; however, perceived financial literacy more so than actual financial literacy. No such effect is observed for numeric ability and cognitive reflection. Furthermore, women are more anxious about financial matters even though they tend to engage more frequently in the considered financial behaviors. The second essay, “Threatening finance? Examining the gender gap in financial literacy,” continues my exploration of the relationship between gender and financial literacy. In a series of studies, I investigate whether the observed gender gap in financial literacy can be identified in nonnumerical contexts, if it can be associated with confidence in financial matters, and if it can be attributed to stereotype threat, which posits that inbuilt prejudices about gender and finance undermine women’s performance of tasks that involve finance. The results show that the observed gender gap in financial literacy is robust even in nonnumerical financial contexts and suggest that a stereotype threat for women in the financial domain might be present. The gender gap in financial literacy could not be attributed to a difference in (displayed) confidence. In the third essay, “Preferences for lump-sum over divided payment structures,” I investigate whether or not people display systematic preferences for lump–sum or divided payment structures and how these preferences differ in gain (benefit) and loss (payment) situations. I investigate what happens when payments belong to a single underlying event, such as when people can choose to pay immediately or in installments. I also examine whether or not individual differences in time preferences, risk preferences, numeracy, and financial literacy are associated with preferences for one payment structure or the other. The aggregate results show a tendency for people to prefer obtaining and paying money in lump sums. I find no systematic indication that the considered individual differences play a role in this type of decision. The fourth essay, “Motivated reasoning when assessing the effect of refugee intake,” inquires into differences in worldview ideology, whether people identify as nationally or globally oriented, hinder them from objectively interpreting information. I use an experiment to find out if people display motivated reasoning when interpreting numerical information about the effects of refugees on the crime rate. Our results show evidence of motivated reasoning along the lines of worldview ideology. However, individuals with higher numeric ability were less likely to engage in motivated reasoning, leading to the conclusion that motivated reasoning is more likely to be driven by feelings and emotional cues than by deliberate analytical processes.
Author: Adeleke Titus
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659761560
Category :
Languages : en
Pages : 120
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Book Description
Financial literacy is an essential component in determining how successful one might be in their wealth management, retirement, and other financial goals. Unfortunately, many colleges and universities do not list financial literacy as a priority of its student's education. Some students are fortunate enough to be introduced to a personal finance course or cultivate their financial literacy through their selected major or discipline, whereas a vast majority learn from their peers, or from their childhood environment. This master's level thesis takes a curious look at gender, and perceived gender roles and how those roles might affect the financial knowledge that accompany an individual as they enter a college or university.
Author: Angelina Scholtysik
Publisher: GRIN Verlag
ISBN: 3668805067
Category : Business & Economics
Languages : en
Pages : 26
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Book Description
Seminar paper from the year 2014 in the subject Economics - Finance, grade: 1,0, , language: English, abstract: The purpose of this paper is to explain financial literacy, its measurement method and outcomes, particularly with respect to gender. Next, we analyze the gender gap by scrutinizing current research on this topic. Finally, we examine current initiatives providing help to women in need of financial education. Data from different household and health surveys revealed that the level of financial literacy is low worldwide. Particularly regarding the gender effect, this finding is concerning. Women tend to be less sophisticated in financial matters than men, whilst facing more demographic and economic barriers. Despite the effort to measure financial literacy, there is no consensus on the sources of gender differences. This suggests that, although policy makers and economies mount initiatives in order to enhance financial literacy among women around the world, research regarding factors affecting women’s financial education and attitude towards financial literacy is still in its infancy. In addition, to date little evidence is given on their efficacy of those new established financial education programs. In times of economic and demographic change, personal financial literacy is crucial in everyday life decisions and future planning. Since several countries changed their pension schemes from traditional defined benefit pensions to individual- account contribution schemes and financial instruments become more and more complex, individuals have been confronted with decision makings over savings, investments and consumption on their own, bearing the risk of wrong investment choices and bad liquidity management leading to an insecure financial future. Overall and regardless of the country’s economic development and pension scheme, the level of knowledge on financial matter referred to as financial literacy is suggested to be very low around the world.
Author: John E. Grable
Publisher: CFA Institute Research Foundation
ISBN: 1944960201
Category : Business & Economics
Languages : en
Pages : 27
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Book Description
This content provides financial analysts, investment professionals, and financial planners with a review of how financial risk-tolerance tests can and should be evaluated. It begins by clarifying terms related to risk taking and is followed by a broad overview of two important measurement terms: validity and reliability. It concludes with examples for practice.
Author: Kristof De Witte
Publisher: Waxmann Verlag
ISBN: 3830990634
Category : Philosophy
Languages : en
Pages : 194
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Book Description
In a world where individuals become increasingly responsible for their financial well-being, and where the complexity of financial markets and products is growing, financial education becomes crucial. Although it is well accepted to introduce financial education in compulsory education, there is no consensus on the optimal way to implement financial education. This book explores the current state and the future challenges of financial education in five European countries: Belgium, Estonia, Italy, Slovakia, and the Netherlands. Moreover, it provides a comprehensive review of the academic literature on financial literacy. The book is a product of a strategic partnership with professionals from 14 partners, including universities, secondary schools and intermediary organisations dealing with financial literacy promotion. The EUFin project supported by this partnership aims to develop evidence-based didactical material for financial literacy education for tertiary and secondary education levels and exchange best-practices.
Author: Luigi Guiso
Publisher: MIT Press
ISBN: 9780262072212
Category : Business & Economics
Languages : en
Pages : 552
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Book Description
Theoretical and empirical analysis of the structure of household portfolios.
Author: Angela Hung
Publisher:
ISBN:
Category :
Languages : en
Pages : 42
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Book Description
