Gender differences in financial knowledge, attitudes, and behaviors: Accounting for socioeconomic disparities and psychological traits

Abstract

A large body of international research finds a persistent gender gap in the financial literacy of women compared to men, but explanations for this gap remain a topic of active debate. In this observational study, we explore the explanatory value of psychological characteristics, in addition to demographic variables and roles in household financial decision making. We begin by documenting the expected gender differences in financial knowledge, attitudes, and behaviors, using a national survey of adult Canadians (n = 21,789) that provides population-level estimates. Next, we contrast these results against a second Canadian survey data set (n = 3,502) where we are able to control for individual differences in psychological traits. Results of OLS regressions suggest that gender is not a significant predictor on three scales of financial capability. Decomposition analysis finds underlying differences in individual characteristics (endowments) explain the majority of the observed gender gap in financial literacy when psychological traits are included in the model.

Financial literacy, financial distress and socioeconomic characteristics of individuals in Ghana

“…Though this finding is statistically insignificant, the reason most probably could be that males are financially better than females, and most females are primarily engaged in small scale businesses (Karakara and Osabuohien, 2020;Osabuohien and Karakara, 2018), which usually go with a meagre income. This is similar to Robson and Peetz (2020) and Lusardi andMitchell (2008, 2011), who both indicated that there are international gender differences in financial literacy and in most cases, women are less likely to be financially knowledgeable than men, and that may cause financial distress later in life. Younger individuals are less likely to experience financial distress compared to older persons.…”

When Bigger is Better: Size of Strategy Repertoire Predicts Goal Attainment

“…Another potential explanation is the measures themselves. For example, credit score is greatly impacted by additional factors such as age, where older people are more likely to have better financial literacy, make better financial decisions, and have a better credit score (Robson & Peetz, 2020). Thus, while credit score has potential to capture issues with self-control in more extreme cases, this information may get drowned out for the everyday person by other factors that influence credit score beyond impulsive spending habits.…”

Improving Financial Literacy Using the Medical Mini-MBA at a Canadian Medical School

“…In this study, demographic factors, such as gender, geography of residence, and childhood financial stress, did not affect the financial literacy of students and residents. In Canada, there is evidence of a gender gap, albeit a complex one, in financial literacy [ 17 - 19 ]. With the changing of traditional gender roles, it is debated whether there are any significant differences among genders and financial literacy [ 18 - 19 ].…”

“…In Canada, there is evidence of a gender gap, albeit a complex one, in financial literacy [ 17 - 19 ]. With the changing of traditional gender roles, it is debated whether there are any significant differences among genders and financial literacy [ 18 - 19 ]. Conventional gender roles in domains such as employment, grocery shopping, purchasing decisions, marriage, real estate decisions, and other psychosocial factors have reduced the financial literacy gap in recent years [ 17 - 19 ].…”

“…With the changing of traditional gender roles, it is debated whether there are any significant differences among genders and financial literacy [ 18 - 19 ]. Conventional gender roles in domains such as employment, grocery shopping, purchasing decisions, marriage, real estate decisions, and other psychosocial factors have reduced the financial literacy gap in recent years [ 17 - 19 ]. Geography, particularly whether participants are situated rurally or in cities may not have an effect on financial literacy [ 20 - 21 ].…”