Financial Knowledge and Financial Literacy at the Household Level

TitleFinancial Knowledge and Financial Literacy at the Household Level
Publication TypeJournal Article
Year of Publication2012
AuthorsGustman, AL, Steinmeier, TL, Tabatabai, N
JournalThe American Economic Review
Volume102
Issue3
Pagination309-313
KeywordsNet Worth and Assets, Other, Public Policy, Retirement Planning and Satisfaction, Social Security
Abstract

There is evidence of a relation between numeracy and wealth held outside of pensions and Social Security. With pensions and Social Security accounting for half of wealth at retirement, and evidence that those with pensions save more in other forms, one would expect to find knowledge of pensions and Social Security influencing retirement saving. Yet we find no evidence that knowledge of pensions and Social Security is related to nonpension, non-Social Security wealth, to numeracy, or that it plays an intermediate role in the numeracy-wealth relation. Our findings raise questions about policies that would enhance numeracy to increase retirement saving. PUBLICATION ABSTRACT

DOI10.1257/aer.102.3.309
Endnote Keywords

numeracy/retirement planning/social security/Wealth/public policy

Endnote ID

69526

Citation Key7729