The Role of National Culture in Financial Literacy: Cross-Country Evidence

Journal of Consumer Affairs 2020, 54(3), 912–930.

33 Pages Posted: 13 Nov 2020

See all articles by Kenneth De Beckker

Kenneth De Beckker

KU Leuven - Faculty of Business and Economics (FEB); Hasselt University - Faculty of Business Economics

K. De Witte

University of Leuven (KUL); Maastricht University

Geert Van Campenhout

KU Leuven - FEB@HUBrussel

Date Written: September 23, 2020

Abstract

This paper examines the effect of national culture on adult financial literacy levels in 12 countries. Contrary to earlier financial literacy studies, our results are directly comparable across countries given that we use the standardized OECD/INFE financial literacy survey data and Hofstede's, 2001, cultural dimensions to capture financial literacy and national culture. In line with the financial socialization theory, we find that uncertainty avoidance positively influences financial literacy, while individualism negatively influences financial literacy. We conclude that national culture affects financial literacy and that it is important to account for cultural dimensions in future international financial literacy research.

Keywords: cross-country analysis, financial literacy, national culture

JEL Classification: G53

Suggested Citation

De Beckker, Kenneth and De Witte, Kristof and Van Campenhout, Geert, The Role of National Culture in Financial Literacy: Cross-Country Evidence (September 23, 2020). Journal of Consumer Affairs 2020, 54(3), 912–930., Available at SSRN: https://ssrn.com/abstract=3698656 or http://dx.doi.org/10.2139/ssrn.3698656

Kenneth De Beckker (Contact Author)

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Warmoesberg 26
Brussels, B-1000
Belgium

Hasselt University - Faculty of Business Economics ( email )

Agoralaan - building D
Gebouw D
Diepenbeek, 3590
Belgium

Kristof De Witte

University of Leuven (KUL) ( email )

Naamsestraat 69
Leuven, Vlaams Brabant B-3000
Belgium

HOME PAGE: http://www.feb.kuleuven.be

Maastricht University ( email )

Boschstraat 24
Maastricht, Vlaams-Brabant 6211 AX
Netherlands
003216326656 (Phone)

HOME PAGE: http://www.feb.kuleuven.be

Geert Van Campenhout

KU Leuven - FEB@HUBrussel ( email )

Warmoesberg 26
Brussel, 1000
Belgium

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