Gauging the Financial Capability of Americans
Business Economics, Forthcoming
35 Pages Posted: 29 Jul 2015 Last revised: 31 Jul 2015
Date Written: May 1, 2015
There is an increasing interest in the economic and financial knowledge of the public. Former Federal Reserve Chairmen Greenspan and Bernanke often stressed the importance of improved economic and financial knowledge of the general public. Using recent survey results from the 2012 National Financial Capability Study, we examine the state of financial capability of Americans. We examine the actual knowledge of individuals, investigate how they self-assess their financial capability and knowledge, and analyze the way these relate to financial outcomes. We also examine the way these measures relate to demographic variables. The evidence suggests that there is room for improvement in financial knowledge, decisions, and capability, which varies among demographic groups.
Keywords: financial knowledge, personal finance
JEL Classification: D12, D14
Suggested Citation: Suggested Citation