How Much Does Wealth Matter in the Acquisition of Financial Literacy?

Authors

  • CHIARA MONTICONE

    1. Chiara Monticone (chiara.monticone@unito.it) is an economics doctoral candidate at the University of Torino, and a researcher of CeRP/Collegio Carlo Alberto and Netspar, Italy. The paper benefited from comments and suggestions from Elsa Fornero, Alessandro Sembenelli, Maela Giofré and Margherita Borella. Any remaining errors are my own.
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Abstract

The acknowledged widespread lack of financial literacy casts serious doubts on the ability of individuals to make financial decisions. Some studies suggest that financial experience can affect financial knowledge and that household financial wealth can be a factor leading to the acquisition of financial literacy. This article investigated the determinants of financial literacy using the 2006 wave of the Italian survey on household income and wealth. Empirical results indicated that wealth has a positive but small effect on the degree of financial knowledge.

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