Financial literacy and the design of retirement plans

Dvořák, Tomáš; Hanley, Henry

doi:10.1016/j.socec.2010.06.013

Cited by 60 publications

(40 citation statements)

References 22 publications

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“…Several papers have, however, questioned the efficacy of financial education and suggest that other factors, such as experience, play a significant role in improving financial literacy (Mandell 2008;Dvorak and Hanley 2010). As we report, much of the existing literature is unable to determine the causal effect of financial experience on financial literacy or vice versa due to methodological issues.…”

Section: Discussionmentioning

confidence: 62%

Learning by doing: the role of financial experience in financial literacy

Frijns¹,

Gilbert²,

Tourani‐Rad³

2013

J. Pub. Pol.

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In this paper, we examine the impact of financial experience on financial literacy. Exploiting a unique feature of New Zealand, whereby domestic students can obtain interest-free student loans and can fully participate in the national retirement scheme while international students cannot, we employ an instrumental variables approach to identify the causal effect of financial experience on financial literacy. We conduct surveys on a sample of 338 business students and find that there is a positive and causal effect of financial experience on financial literacy. Our results have important implications for financial education programmes and may explain why many of these programmes to date have had limited success.JEL Codes: A20, G00.

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Section: Discussionmentioning

confidence: 62%

Learning by doing: the role of financial experience in financial literacy

Frijns¹,

Gilbert²,

Tourani‐Rad³

2013

J. Pub. Pol.

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“…Regarding the relationship between education level and these three variables, researches Malone et al (2010), Cude (2010), Lusardi et al (2010), Dvorak and Hanley (2010), Peng et al (2007), Volpe et al (2002 ), Tamimi and Kalli (2009) (2009), Joo and Grable (2004 and Chen and Volpe (1998) have confirmed the positive relationship between education and financial literacy. Kim and Garman (2003) found a positive relationship between education and financial concerns and Cude (2010) concluded that higher education leads to less financial concerns.…”

Section: Conclusion and Discussionmentioning

confidence: 90%

“…The relationship between gender and financial well-being is denied in Joo and Grable (2004) survey. Lusardi et al (2010), Dvorak and Hanley (2010), Peng et al (2007), Volpe et al (2002) and Chen and Volpe (1998) concluded higher financial literacy in men, and Kindle (2010) has rejected the relationship between financial literacy and gender. Our results showed that men are better than women in financial literacy but the existence of relationship between gender and financial literacy as well as financial concerns is rejected.…”

Section: Conclusion and Discussionmentioning

confidence: 99%

The Relation between Financial Literacy, Financial Wellbeing and Financial Concerns

Taft¹,

Hosein²,

Mehrizi³

2013

IJBM

203

136

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Increased variety of products and the instability of the global economy in twenty first century caused increasing complexity of financial decisions and also caused consumers faced with the challenge in economic and financial activities. For this reason, in the last decade, the importance of financial management skills in personal and work life has increased and researches in this area has been done. In this regard, this study tries to evaluate the relation between financial literacy, financial wellbeing and financial concerns. For this purpose, a questionnaire was designed and distributed using random sampling among people. Data was analyzed using correlation test, Independent two-sample test based on the T distribution and regression. The results showed that age and education are positively correlated with financial literacy and financial wellbeing. Married people and men are more financially literate. Higher financial literacy leads to greater financial well-being and less financial concerns. Finally, financial wellbeing leads to less financial concern.

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“…Studies in retirement planning show that Americans with a lower financial literacy are less likely to plan their retirement and do not create a savings and wealth plan for retirement (Lusardi and Mitchell, 2007a, 2007bDvorak and Hanley, 2010). Clark et al (2012) present empirical evidence that shows that American workers with a higher financial literacy are more likely to engage in 401(k) retirement plans.…”

Section: Introductionmentioning

confidence: 89%