Financial Knowledge and Household Saving: Evidence from the Survey of Consumer Finances

Kim, Kyoung‐Tae; Yuh, Yoonkyung

doi:10.1111/fcsr.12270

Cited by 18 publications

(16 citation statements)

References 38 publications

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“…The roles of financial literacy and possession of adequate cognitive ability have been widely studied in various financial behaviors and outcomes. This has been shown in studies of alternative financial services (Lusardi and Tufano, 2015; Robb et al ., 2015; Birkenmaier and Fu, 2018), stock market participation (Van Rooij et al ., 2011) and savings behavior (Lusardi, 2008; Kim and Yuh, 2018). With respect to retirement savings, Lusardi (2008) demonstrated a positive link between financial literacy and planning for retirement.…”

Section: Introductionmentioning

confidence: 99%

Racial/ethnic differences in holding a retirement saving motive: A decomposition analysis

Kim

Cho

DeVaney

2020

Journal of Consumer Affairs

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Establishing a retirement goal facilitates one's long‐term financial planning behavior. Yet, the portion of U.S. households who achieve this goal is relatively small. Further, the percentage is much lower among racial and ethnic minorities. This study investigates racial/ethnic disparities in motives for holding a retirement savings and contributing factors to explain the gaps. Results from the 2016 Survey of Consumer Finances (SCF) indicate that White respondents were more likely to hold a retirement saving motive than were other racial/ethnic groups, even after controlling for various socio‐economic characteristics. Decomposition analysis shows that homeownership, objective financial knowledge, planning horizon, and age were the most important determinants that explain the racial/ethnic gap in withholding a retirement saving motive. This study provides evidence in support of the importance of tailored educational interventions among racial/ethnic groups.

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Section: Introductionmentioning

confidence: 99%

Racial/ethnic differences in holding a retirement saving motive: A decomposition analysis

Kim

Cho

DeVaney

2020

Journal of Consumer Affairs

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“…Henager and Cude (2019) found that both objective knowledge and subjective knowledge were positively associated with having emergency funds across all age groups. Kim and Yuh (2018) documented the positive roles of both objective knowledge and subjective financial knowledge for the likelihood of spending less than income. Perceived financial capability is one’s self‐assessed money management ability.…”

Section: Literature Review and Conceptual Frameworkmentioning

confidence: 99%

The Influence of Financial Education Sources on Emergency Savings: The Role of Financial Literacy

Fan

Zhang

2021

Family & Consum Sci Res J

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Using data from the 2018 National Financial Capability Study, this research explored the relationship between financial education sources and emergency savings of U.S. adults, and examined the mediating role of financial literacy. The results showed that receiving financial education from both school and workplace had positive associations with having emergency funds. Financial literacy was found to be positively associated with having emergency funds and financial literacy mediated the relationship between financial education and having emergency savings. The findings reinforced the significance of different financial education sources in increasing the likelihood of saving for emergencies. Implications for policymakers, financial educators and counselors, and employers are included.

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“…Studies have found a positive association between financial education and financial outcomes (Kim & Yuh, 2018; Lusardi & Mitchell, 2007, 2008, 2014; Moore, 2003). Most of these studies have investigated the effect of cognitive knowledge with either short‐ or long‐term behavior.…”

Section: Literature and Conceptual Frameworkmentioning

confidence: 99%

Association between Financial Education, Affective and Cognitive Financial Knowledge, and Financial Behavior

Delgadillo

Lee

2021

Family & Consum Sci Res J

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Using data from the 2018 National Financial Capability Study, this articled examined the relationship between financial education participation and affective and cognitive financial knowledge. Involvement in financial education yielded statistically significant associations between affective and cognitive domains. The results showed that participation in financial education was associated with both cognitive and affective financial knowledge as well as long‐term financial behavior. The results supported the case for lifelong learning of financial education for young adults, minorities, and women. An important implication was the need to include both the affective and cognitive domains when teaching or researching financial education.

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Financial Knowledge and Household Saving: Evidence from the Survey of Consumer Finances

Cited by 18 publications

References 38 publications

Racial/ethnic differences in holding a retirement saving motive: A decomposition analysis

Racial/ethnic differences in holding a retirement saving motive: A decomposition analysis

The Influence of Financial Education Sources on Emergency Savings: The Role of Financial Literacy

Association between Financial Education, Affective and Cognitive Financial Knowledge, and Financial Behavior

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