Relationship between Financial Satisfaction and Financial Literacy: Exploring Gender Differences

Abstract

The goals of this study were to explore gender differences in the components of financial literacy (financial knowledge, financial attitude and financial behavior) and financial satisfaction, and to explore gender differences in the relationship between financial satisfaction and the financial literacy components. Analyses conducted on a data collected on a large and heterogeneous sample of Croatian citizens (N = 900) showed that men scored higher on some financial literacy variables and were more financially satisfied. Moreover, in the male subsample there were significantly stronger correlations between financial satisfaction and some financial literacy variables (rational financial attitude, self-assessment of financial management and monitoring expenses) when compared to the female subsample. In addition to demographic variables, significant predictors of financial satisfaction in both gender groups were primarily financial behaviors. Financial attitude component explained additional financial satisfaction variance for men but not for women. Financial knowledge as the third component was not a significant predictor of financial satisfaction for either gender.

Women’s financial well‐being: A systematic literature review and directions for future research

“…Income is an indicator applied to objectively access financial well-being in many studies that we reviewed (Avellar & Smock, 2005;Ozawa & Yoon, 2003;Pollock & Stroup, 1997;Salganicoff et al, 2009), whose results point to men having higher income than women. However, income is also approached as a sociodemographic element itself, playing a different role in perceived financial well-being per gender, being less important for women (Kirbiš et al, 2017;Warren, 2010). In a study that assessed the genetic and environmental influence of antecedent factors of financial well-being using a sample of twins, Zyphur et al (2015) identified that the effect of income on subjective financial well-being happens only for men and comes from social and nongenetic factors.…”

“…The assignment of distinct social roles for men and women, according to which the woman has primary responsibility for the care of children, the home and the family and the man is the main provider responsible for working and meeting the family's economic needs, affects women's work trajectory and their financial well-being. In addition, there is evidence that women are less financially literate than men (Al-Bahrani et al, 2020;Gerrans et al, 2014;Karakurum-Ozdemir et al, 2019;Kirbiš et al, 2017), more risk-averse in financial decision making (Borghans et al, 2009;Grable, 2000) and financially socialize later than men, who are involved at an earlier age in family financial discussions (Falahati & Paim, 2011).…”

“…Our findings point to important elements that shape women's financial wellbeing. From an individual-level perspective, these elements include sociodemographics such as education (Ozawa & Yoon, 2003;Zhan & Pandey, 2002) and income (Kirbiš et al, 2017;Warren, 2010;Zyphur et al, 2015) as well as psychological elements such as attitudes, skills, motivations and personality traits (Al-Bahrani et al, 2020;Borghans et al, 2009;Lind et al, 2020;Lusardi & Mitchell, 2014).…”

The Road to Financial Satisfaction: Testing the Paths of Knowledge, Attitudes, Sense of Control, and Positive Financial Behaviors

“…Individuals can also benefit from having an attitude that prevents them from worrying about (future) shortage of money (Kirbiš, et al, 2017). Positive future orientation, described as individuals' attitudes toward planning and providing for the future (Metcalf & Zimbardo, 2016), 1 is such an attitude.…”

Što određuje financijsku pismenost? U potrazi za relevantnim odrednicama

“…U Hrvatskoj postoji vrlo malo istraživanja razvijenosti i odrednica financijske pismenosti građana (npr. Vehovec, Rajh i Škrebin Kirbiš, 2015.;Škreblin Kirbiš, Vehovec i Galić, 2017.). Istraživanjem opisanim u ovom radu htjeli smo ostvariti dva glavna cilja.…”