Financial Education and Savings and Investment Decisions; An Analysis of the Survey of Financial Competences (ECF)

54 Pages Posted: 20 Apr 2021

See all articles by Anna Ispierto

Anna Ispierto

Comisión Nacional del Mercado de Valores (CNMV)

Irma Martínez-García

Universidad de Oviedo - Business Administration

Gloria Ruiz Ruiz Suárez

Comisión Nacional del Mercado de Valores (CNMV)

Date Written: March 16, 2021

Abstract

This paper is based on the results deriving from the Survey of Financial Competences (ECF) in an attempt to contribute to the improvement of financial education policy designs, and it pursues several objectives: (i) to quantify the financial knowledge of individuals, (ii) to relate this knowledge to available socio-economic characteristics, and (iii) to analyse the effect of financial education on savings and investment decision-making for a broad set of financial assets. The results reveal that financial education plays a particularly important role in the decision to acquire financial assets such as fixed income and equity securities and investment funds. Financial education determines investment decisions in which the valuation of return, risk and investment term predominate and not the decisions of saving or acquisition of assets strongly perceived as hedging products.

Keywords: Financial education, investment, saving

JEL Classification: A20, G21, G23, I21, I22

Suggested Citation

Ispierto, Anna and Martínez-García, Irma and Ruiz Suárez, Gloria Ruiz, Financial Education and Savings and Investment Decisions; An Analysis of the Survey of Financial Competences (ECF) (March 16, 2021). CNMV Working Paper No. 75, Available at SSRN: https://ssrn.com/abstract=3826150 or http://dx.doi.org/10.2139/ssrn.3826150

Anna Ispierto (Contact Author)

Comisión Nacional del Mercado de Valores (CNMV) ( email )

C/ Miguel Ángel, 11
Madrid, Madrid 28010
Spain

Irma Martínez-García

Universidad de Oviedo - Business Administration ( email )

Avenida del Cristo s/n
33071-Oviedo
Asturias
Spain

Gloria Ruiz Ruiz Suárez

Comisión Nacional del Mercado de Valores (CNMV)

C/ Miguel Ángel, 11
Madrid, Madrid 28010
Spain

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