Savings Decisions of American Households: The Roles of Financial Literacy and Financial Practice
Tae-Young Pak () and
Swarnankur Chatterjee ()
Economics Bulletin, 2016, vol. 36, issue 3, 1486-1496
This paper finds that financial literacy, along with financial practice, play a role in the financial decision making process of households. Building upon earlier works, this paper examines whether basic financial literacy, in the absence of sufficient household financial management practice, is associated with suboptimal savings behavior. Using a nationally representative dataset, we find new evidence that households, with below average financial practice skills but with higher than average financial literacy scores, were less likely to have sufficient precautionary savings.
Keywords: Financial Literacy; Financial Practice; Precautionary Savings (search for similar items in EconPapers)
JEL-codes: D1 D8 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-15-00579
Access Statistics for this article
More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().