Age differences in consumer financial capability

By Jing Jian Xiao, Cheng Chen, Lei Sun. 2015

154 citations recorded by the source corpus.

The purpose of this study is to examine age differences in financial capability. Financial capability is measured by five variables: objective financial literacy, subjective financial literacy, desirable financial behavior, perceived financial capability, and a financial capability index. Financial capability is expected to increase with age. Specifically, we expect older consumers to demonstrate higher levels of both objective and subjective financial literacy, more desirable financial behaviors, a higher level of perceived financial capability, and a higher score on the financial capability index. Data from the 2012 National Financial Capability Study in the U.S. was used to examine the associations between age groups and financial capability variables. One-way ANOVAs were used to examine age differences in financial capability variables. Then multiple regressions were used to examine age differences after controlling for socio-demographic and financial variables. The results indicated that age differences in four financial capability variables showed similar patterns. Young adults aged 18–24 had the lowest scores on objective financial literacy, subjective financial literacy, perceived financial capability, and the financial capability index. The results have implications for consumer educators to provide effective financial education for all age groups.

Subfields: Accounting, Demography, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/8c67341f7f4fa732324cdc0009ef447181036c32

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Barbara O'Neill
2. Jing Jian Xiao
3. Satish Kumar
4. Kirtika Goyal
5. Jeffrey Dew

In Demography

1. Barbara O'Neill
2. Jing Jian Xiao

In Economics and Econometrics

1. Barbara O'Neill
2. Jing Jian Xiao
3. Jeffrey Dew
4. Soyeon Shim
5. Cheng Chen
6. Chuanyi Tang

Citations in the corpus

• Consumer financial education and financial capability (2016, methodology): “A fourth approach is to use an index integrating both objective and subjective measures of financial literacy and financial behavior (Xiao et al. , 2015).”
• Propensity to plan, financial capability, and financial satisfaction (2018, background): “…defined as a consumer ability that is a skillful combination of financial knowledge and behavior, i.e., an ability to apply appropriate financial knowledge and perform desirable financial behaviors to achieve financial well-being (Xiao, Chen, & Sun, 2015; Xiao & O’Neill, 2016; Xiao & Porto, 2017).”