Does Financial Literacy Reduce Money Stress?
27 Pages Posted: 16 Nov 2020
Date Written: August 11, 2020
As advocates of financial literacy education, it is a hard pill to swallow when data show little impact on financial behaviours. Unfortunately, our expectations that university students with higher levels of financial literacy have reduced money management stress and good behaviours, leading to higher levels of financial wellbeing, were expunged. We did find, however, that being older and having higher levels of income contributed most significantly and consistently to explaining financial wellbeing. Proponents of financial literacy education should not lose hope but recognise limits to transferring knowledge and set goals based on evidence of what works.
Keywords: education, financial wellbeing, financial literacy, university students
JEL Classification: D1, G53, I22, I240
Suggested Citation: Suggested Citation