Financial literacy and financial behavior

By C. Asaad. Financial Services Review, 2015

163 citations recorded by the source corpus.

This article explores how financial literacy, comprised of both actual financial knowledge and perceived financial confidence, affect financial decisions. Using national survey data from the United States, results indicate that financial confidence is a critical component of financial literacy and is important across all knowledge levels. However, overconfident individuals, or those with high confidence (or self-assessed) knowledge but low actual knowledge, have a higher propensity to engage in risky (costly) financial behaviors. Together, results suggest that financial literacy initiatives should focus not only on factual knowledge, but on helping individuals achieve a healthy dose of confidence.

Subfields: Accounting

View Paper: https://www.semanticscholar.org/paper/b61f947e15dbceca3381350aa3822393f68a1de9

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In Accounting

1. Oscar Stolper
2. A. Walter

Citations in the corpus

• Financial literacy, financial advice, and financial behavior (2017, background): “Moreover, both types of measures have been shown to be individually associated with financial decisions (e.g., Hastings et al. 2013; Asaad 2015; Allgood and Walstad 2016).”