Financial literacy and its consequences: Evidence from Russia during the financial crisis

Klapper, Leora; Lusardi, Annamaria; Panos, Georgios A.

doi:10.1016/j.jbankfin.2013.07.014

Cited by 330 publications

(257 citation statements)

References 34 publications

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“…While some studies measure financial literacy using simple indicator variables (Jappelli 2010;Gathergood 2012), several other authors rely on more advanced techniques such as principal component analysis (e.g. Behrmann et al 2012;Klapper et al 2013;, iterated principal factor analysis (e.g. van Rooij et al 2011b), or cluster analysis (e.g.…”

Section: Test-based Measures Of Financial Literacymentioning

confidence: 99%

Financial literacy, financial advice, and financial behavior

2017

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In this survey, we review the voluminous body of literature on the measurement and the determinants of financial literacy. Wherever possible, we supplement existing findings with recent descriptive evidence of German households' financial literacy levels based on the novel Panel on Household Finances dataset, a large-scale survey administered by the Deutsche Bundesbank and representative of the financial situation of households in Germany. Prior research not only documents generally low levels of financial literacy but also finds large heterogeneity in financial literacy across the population, suggesting that economically vulnerable groups are placed at further disadvantage by their lack of financial knowledge. In addition, we assess the literature evaluating financial education as a means to improve financial literacy and financial behavior. Our survey suggests that the evidence with respect to the effectiveness of the programs is rather disappointing. We also review the role of individuals' financial literacy for the use of professional financial advice and assess whether expert intervention can serve as a substitute to financial literacy. We conclude by discussing several directions for future research.

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Section: Test-based Measures Of Financial Literacymentioning

confidence: 99%

Financial literacy, financial advice, and financial behavior

2017

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“…However, van Rooij et al (2012) are skeptical about the validity of the exclusion restriction for the instrumental variable they use, and they discuss the issue at length in the paper, adding a rich set of controls to their baseline specification. Other studies hinge on the idea that the respondent's financial literacy is influenced by financial knowledge of peers or reference groups Bucher-Koenen and Lusardi, 2011;Fornero and Monticone, 2011;Jappelli and Padula, 2013a;Klapper et al, 2013;Klapper and Panos, 2011;van Rooij et al, 2012). The assumption that lies behind this identification strategy is that the respondent cannot influence the peers' experience significantly, i.e., there is no "reflection problem" (Manski, 1993).…”

Section: Related Literaturementioning

confidence: 99%

Adult financial literacy and households’ financial assets: the role of bank information policies

2016

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We investigate the role of bank information policies in fostering the accumulation of financial knowledge. Exploiting the exogenous variability induced by the presence of a consortium of banks in Italy (PattiChiari), we find that these policies are effective for a small subsample of the population (5-10%) and lead to an increase in financial literacy by about 10%, on average. Compliance is highest among low-educated respondents older than 60 years. We use these policies as an instrumental variable to estimate the effect of financial literacy on financial assets. We find that one standard deviation increase in financial literacy determines an increase in household financial assets by 35% of a standard deviation (8,000 euros). Effects are heterogeneous in the population and highest among elderly low-educated households.

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“…Outra pesquisa que aborda a alfabetização financeira em uma de suas dimensões (conhecimento financeiro) é o estudo de Klapper et al (2013), o qual incluiu quatro questões de alfabetização financeira, que abrangem taxas de juros, juros compostos, inflação e descontos de vendas. De forma similar, Van Rooij et al (2011) desenvolveram um instrumento para relacionar a alfabetização financeira e o planejamento da aposentadoria na Holanda.…”

Section: Instrumentos De Avaliação Da Alfabetização Financeiraunclassified

“…Na última parte do questionário, foram expostas as questões referentes ao conhecimento financeiro, o qual foi construído por meio de um índice de conhecimento financeiro que teve por base questões de múltipla escolha adaptadas de Van Rooij et al (2011), OECD (2013a), Klapper et al (2013) e do National Financial Capability Study (NFCS, 2013). O fator, composto por 13 questões, visa explorar o nível de conhecimento do respondente em relação a questões sobre inflação, taxa de juros, valor do dinheiro no tempo, risco, retorno, diversificação, mercado de ações, crédito e títulos públicos.…”

Section: Procedimentos Metodológicosunclassified

Are you financially literate? Discover in the Financial Literacy Thermometer

Potrich

Vieira

Kirch

2016

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Este é um artigo de acesso aberto, licenciado por Creative Commons Atribuição 4.0 International (CC BY 4.0), sendo permitidas reprodução, adaptação e distribuição desde que o autor e a fonte originais sejam creditados. RESUMOEste estudo buscou desenvolver um indicador para a alfabetização financeira dos indivíduos, denominado Termômetro de Alfabetização Financeira. Para tal, realizou-se uma pesquisa survey com 1.572 rio-grandenses. Com base nas respostas, utilizou-se a análise fatorial confirmatória para definição dos construtos atitude financeira e comportamento financeiro. Em seguida, calculou-se o construto conhecimento financeiro. A partir dos três construtos, realizou-se uma análise de cluster, na qual foram obtidos dois conglomerados. O primeiro representa os indiví-duos que possuem baixa alfabetização financeira, e o segundo aqueles altamente alfabetizados financeiramente. De posse deste resultado, foi proposto um indicador que permite classificar qualquer indivíduo, calculando a distância euclidiana quadrática em relação ao centro de cada cluster, como possuidor de baixo ou alto nível de alfabetização financeira. Os resultados também sugerem que a maioria dos entrevistados possui um baixo nível de alfabetização financeira. Tais conclusões ratificam a necessidade urgente de se desenvolverem ações efetivas para reduzir o analfabetismo financeiro da população e, assim, minimizar os problemas dele decorrentes.Palavras-chave: termômetro, alfabetização financeira, análise de cluster. ABSTRACTThis study had as its objective to develop an indicator for the financial literacy of individuals, called Financial Literacy Thermometer. To achieve this objective, a survey with 1.572 inhabitants of the state of Rio Grande do Sul was done. Based on the answers to the survey, a confirmatory factor analysis was used to build the financial attitude and financial behavior constructs. Next, the financial knowledge construct was calculated. With these three constructs in hand, two clusters were obtained by means of cluster analysis. The first cluster represents individuals who have low financial literacy and the second one those who have high financial literacy. Based on the squared Euclidean distance in relation to the center of each cluster, the proposed indicator allows us to classify any individual as having low or high level of financial literacy. The results also suggest that the majority of respondents have a low level of financial literacy. Such find-

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Financial literacy and its consequences: Evidence from Russia during the financial crisis

Cited by 330 publications

References 34 publications

Financial literacy, financial advice, and financial behavior

Financial literacy, financial advice, and financial behavior

Adult financial literacy and households’ financial assets: the role of bank information policies

Are you financially literate? Discover in the Financial Literacy Thermometer

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