Financial Knowledge and Household Saving: Evidence From the Survey of Consumer Finances

Family & Consumer Sciences Research Journal, Forthcoming

34 Pages Posted: 4 Aug 2018

See all articles by Kyoung Tae Kim

Kyoung Tae Kim

University of Alabama

Yoonkyung Yuh

Ewha Womans University

Date Written: July 16, 2018

Abstract

This study analyzed the relation between financial knowledge and household saving behavior using the 2016 Survey of Consumer Finances (SCF) dataset. The results from a hierarchical model showed that both objective and perceived financial knowledge were related positively to the likelihood of being a saver, and the explanatory power of the regression models increased significantly when financial knowledge variables were added. Further, the results were robust across different measurements of household savings and additional analyses of the 2015 National Financial Capability Study (NFCS) dataset. Policymakers and financial institutions may benefit from this study as they develop policies and products to promote or motivate savings.

Keywords: Financial Knowledge, Household Savings, Hierarchical Model, Survey of Consumer Finances

JEL Classification: D12, D14

Suggested Citation

Kim, Kyoung Tae and Yuh, Yoonkyung, Financial Knowledge and Household Saving: Evidence From the Survey of Consumer Finances (July 16, 2018). Family & Consumer Sciences Research Journal, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3214692

Kyoung Tae Kim (Contact Author)

University of Alabama ( email )

316-C Adams Hall
Tuscaloosa, AL 35487-0001
United States

Yoonkyung Yuh

Ewha Womans University ( email )

Shinsegae Building Rm 425
11-1 Daehyun-dong, Seodaemun-gu
Seoul 120-750
Korea
82-2-3277-4076 (Phone)
82-2-3277-2835 (Fax)

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