Financial Literacy and Financial Planning in France

Numeracy: Vol. 6: Iss. 2, Article 8.

Banque de France Working Paper No. 465

23 Pages Posted: 3 Jan 2014

See all articles by Luc Arrondel

Luc Arrondel

Paris School of Economics (PSE)

Majdi Debbich

Paris School of Economics (PSE)

Frederique Savignac

University Paris-Est Créteil (UPEC)

Date Written: January 2014

Abstract

How are people financially literate in France? We address this question using the PATER survey and following the Lusardi and Mitchell (2011c) approach. We find that some subpopulations are less financially literate than others: women, young and old people as well as less-educated people are more likely to face difficulties when dealing with fundamental financial concepts such as risk diversification, inflation and interest compounding. We also find some differences in financial knowledge depending on the political opinion of the respondents. Finally we show that these differences in financial knowledge are correlated with differences in the propensity to plan: people who score higher on the financial literacy questions are more likely to be engaged in the preparation of a clearly defined financial plan.

Keywords: Financial Literacy, Retirement Planning, Household Finance

JEL Classification: G11, D83, J26

Suggested Citation

Arrondel, Luc and Debbich, Majdi and Savignac, Frederique, Financial Literacy and Financial Planning in France (January 2014). Numeracy: Vol. 6: Iss. 2, Article 8.; Banque de France Working Paper No. 465. Available at SSRN: https://ssrn.com/abstract=2374363

Luc Arrondel (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Majdi Debbich

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

HOME PAGE: http://www.parisschoolofeconomics.eu/fr/debbich-majdi/

Frederique Savignac

University Paris-Est Créteil (UPEC) ( email )

61 avenue du General de Gaulle
Creteil cedex, 94010
France

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