Financial literacy of middle-aged and older Individuals: Comparison of Japan and the United States

Shimizutani, Satoshi; Yamada, Hiroyuki

doi:10.1016/j.jeoa.2019.100214

Cited by 19 publications

(10 citation statements)

References 10 publications

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“…(2021) concluded that more financially literate respondents aged 50–70 were significantly more likely to demonstrate desirable financial behaviors such as timely credit card repayment, holding stocks and holding age-appropriate (consistent with the “100 minus age” rule) investment portfolios. Shimizutani and Yamada (2020) show that financial literacy promotes bond and stock holding, which often translates into positive financial outcomes. Kim et al.…”

Section: Introductionmentioning

confidence: 99%

The role of financial literacy for financial resilience in middle-age and older adulthood

Białowolski

Cwynar

Węziak‐Białowolska

2022

IJBM

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Purpose Preserving sufficient financial assets is crucial for maintaining the standard of living. The lack of adequate financial cushion can translate into financial hardship at any age, but its effects can be especially severe in later adulthood. The authors evaluate whether financial literacy can prevent individuals from depleting the stock of liquid financial assets below a predefined minimum level.Design/methodology/approach Defining financial resilience as the ability to maintain the value of household savings above the level of 3-monthly incomes, the authors examined whether financial literacy is (1) prospectively associated with the probability of losing financial resilience and (2) the probability of gaining financial resilience among financially vulnerable middle-aged and older adults. To this end, the authors applied the multivariate Cox proportional hazards model with time-varying covariates. Data were retrieved from the Survey of Health, Aging and Retirement in Europe with the sample comprising 13,718 adults aged ≥ 50 years in (1) and 12,802 in (2).Findings The authors show that financial literacy plays a protective role for financial resilience. Its role is not symmetrical and protects more against the loss of financial resilience than it contributes to the gain of financial resilience. Among individuals aged 65–74, the association between financial literacy and financial resilience is weaker than among adults in the middle-age (50–64) and among the oldest (75+).Social implications Fostering financial literacy can be important to help middle-aged and older adults maintain a good quality of life and favorable living standards.Originality/value Given the scarce evidence on the links between financial literacy and financial resilience among middle-aged and older adults, the article contributes to the literature by examining whether financial literacy retains its protective role in later stages of the life course.

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Section: Introductionmentioning

confidence: 99%

The role of financial literacy for financial resilience in middle-age and older adulthood

Białowolski

Cwynar

Węziak‐Białowolska

2022

IJBM

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“…A deeper understanding of financial knowledge and behavior can be attained through multivariate analysis of the correlated sociodemographic factors. In a similar way like Shimizutani and Yamada (2020) or Lusardi et al. (2014), we use multivariate regression analysis to examine the factors affecting financial knowledge and behavior follow.…”

Section: Empirical Design and Surveymentioning

confidence: 99%

First results on financial literacy in Oman

Mirzaei

Buer

2022

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PurposeThis study aims to examine the financial literacy level among the Omani adults and investigate the determinants of financial literacy and its impact on savings and investment behavior.Design/methodology/approachThe data were collected using a survey instrument adopted from Organisation for Economic Co-operation and Development (OECD) survey for financial literacy and composed of 310 individuals' responses. The authors used a multiple regression analysis to determine the impact of the socio-demographics variables on the financial literacy level.FindingsThe findings are three-fold: first, financial literacy score of Omanis is 10.5 out of 21, which is lower than OECD average. Interestingly, the attitude and behavior scores are in line with the OECD average. However, the knowledge score is drastically lower. Second, financial literacy level is found to be affected by age, gender and the monthly income. Third, individuals with a higher level of financial knowledge are more likely to have monthly savings and investment in stock and bond.Research limitations/implicationsThe Gulf countries have started to modernize their economies. Governments that want to design effective economic reforms need to understand the financial skills of their citizens. The study may have implications for policymakers and financial educators in enhancing the financial knowledge programs for individuals.Originality/valueThe analysis reported in this study is unique because it provides the first systematic research on financial literacy in Oman. This paper contributes to the study of financial literacy from the perspective of emerging markets.

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“…The authors explain this result by stating that women are generally less familiar with carrying out mathematical calculations, which ultimately hinders their ability in making responsible financial decisions. Previous literature has shown that other socio‐demographic and socio‐economic variables can also affect financial literacy, such as marital status, the number of children, occupation, education level and income (Gerardi et al., 2010; Kempson, 2009; Lusardi & Tufano, 2009; Mandell, 2008; Monticone, 2010; Shim et al., 2010; Shimizutani & Yamada, 2020; Yoong, 2010). More specifically, previous research has demonstrated that married individuals with children and individuals with a job or those seeking one show a higher level of financial literacy than other groups (i.e., widowers, divorcees, married couples without children and the unemployed).…”

Section: Literature Reviewmentioning

confidence: 99%

Per aspera ad astra: The big challenge of consumers' insurance literacy

Cucinelli

Lippi

Soana

2021

Int J Consumer Studies

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This paper is a pioneering study on the determinants of customers' insurance knowledge in the Italian market. The analysis considers differences between life and non‐life insurance. Our findings show that socio‐economic variables (specifically family income and financial fragility) and financial literacy play a fundamental role in explaining consumers' insurance knowledge. This result is confirmed for both life and non‐life insurance. Among socio‐demographic factors, gender, the number of children under 18 and the level of education are determinants of global insurance knowledge. However, distinguishing between life and non‐life insurance knowledge, we find the level of education affects the former, while gender and age influence the latter.

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Financial literacy of middle-aged and older Individuals: Comparison of Japan and the United States

Cited by 19 publications

References 10 publications

The role of financial literacy for financial resilience in middle-age and older adulthood

The role of financial literacy for financial resilience in middle-age and older adulthood

First results on financial literacy in Oman

Per aspera ad astra: The big challenge of consumers' insurance literacy

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