Households’ Financial Fragility During the COVID-19 Pandemic in Germany

Financial Literacy and Financial Fragility in Mexico

“…Table 1 presents the variables, their relationship (positive or negative) with financial fragility, and their references. Women are more likely to be financially frail than men (Cziriak, 2022;Hasler et al, 2018). Financial fragility is more accentuated in young people and in older age groups (Cziriak, 2022;.…”

“…Women are more likely to be financially frail than men (Cziriak, 2022;Hasler et al, 2018). Financial fragility is more accentuated in young people and in older age groups (Cziriak, 2022;. People with a higher level of education are less likely to be financially fragile (Roa and Villegas, 2022;Hasler et al, 2018;Cziriak, 2022;Friedline and West, 2016;.…”

“…The data analyzed in this research is from 2021, a year marked by the uncertainty caused by the Covid-19 pandemic. The Covid-19 pandemic has severely affected economies, and as a consequence, many households around the world faced severe financial challenges (Szustak et al, 2021;Cziriak, 2022). In the face of an immediate drop in household income, the financial fragility of families and the difficulties they have in facing an economic emergency are revealed (Demertzis et al, 2020;Cantor & Landry, 2020;Clark et al, 2021;Despard, et al, 2020).…”

“…According to Babiarz and Robb (2014), the low household savings rate has effects not only in the short term, due to households' inability to face an emergency, but also due to its potential effect of financial insecurity in the long term. Thus, in a situation of income loss, households are more likely to report that they cannot face an unexpected expense and are more likely to resort to both formal and informal sources of credit (Cziriak, 2022; CNBV, 2022; Bratberg & Monstad, 2015). Therefore, when facing an emergency situation, adequate planning is of great importance, primarily in low-income households, who have less access to traditional credit and whose tighter budget makes it more difficult to save (Nguyen, et al, 2017;Collins and Gjertson, 2013).…”

“…Not having a savings fund for emergencies is the result of poor planning or a forecast error in households (Babiarz and Robb, 2014). Financial education, which is associated with less financial fragility, can mitigate the negative consequences of income loss by increasing people's capacities to face emergency expenses (Cziriak, 2022;Clark et al, 2021;Hasler and Lusardi, 2019;Sherraden, 2010).…”