Financial Literacy, Financial Advice, and Financial Behavior

J Bus Econ (2017). DOI/s11573-017-0853-9

63 Pages Posted: 16 Mar 2017

See all articles by Oscar Anselm Stolper

Oscar Anselm Stolper

University of Marburg | Institute of Accounting and Finance

Andreas Walter

University of Giessen - Department of Financial Services

Date Written: March 04, 2017

Abstract

In this survey, we review the voluminous body of literature on the measurement and the determinants of financial literacy. Wherever possible, we supplement existing findings with recent descriptive evidence of German households’ financial literacy levels based on the novel Panel on Household Finances dataset, a large-scale survey administered by the Deutsche Bundesbank and representative of the financial situation of households in Germany. Prior research not only documents generally low levels of financial literacy but also finds large heterogeneity in financial literacy across the population, suggesting that economically vulnerable groups are placed at further disadvantage by their lack of financial knowledge. In addition, we assess the literature evaluating financial education as a means to improve financial literacy and financial behavior. Our survey suggests that the evidence with respect to the effectiveness of the programs is rather disappointing. We also review the role of individuals’ financial literacy for the use of professional financial advice and assess whether expert intervention can serve as a substitute to financial literacy. We conclude by discussing several directions for future research.

Keywords: Financial Literacy, Financial Education, Household Finance, Financial Advice, Financial Behavior

JEL Classification: A20, D14, G11, I20, J26

Suggested Citation

Stolper, Oscar Anselm and Walter, Andreas, Financial Literacy, Financial Advice, and Financial Behavior (March 04, 2017). J Bus Econ (2017). DOI/s11573-017-0853-9. Available at SSRN: https://ssrn.com/abstract=2932740

Oscar Anselm Stolper

University of Marburg | Institute of Accounting and Finance ( email )

Am Plan 1
Marburg, 35032
Germany

HOME PAGE: http://www.uni-marburg.de/fb02/accountingandfinance/team

Andreas Walter (Contact Author)

University of Giessen - Department of Financial Services ( email )

Betriebswirtschaftslehre V
Giessen, 35394
Germany

HOME PAGE: http://wiwi.uni-giessen.de/ma/dat/walter/Andreas_Walter/

Register to save articles to
your library

Register

Paper statistics

Downloads
134
rank
208,227
Abstract Views
516
PlumX Metrics