Financial literacy cognitions and optimal financial behavior

Gilad Tohar and Sagi Akron

Finance Research Letters, 2025, vol. 83, issue C

Abstract: In this paper we propose and specify three distinct horizon dependent financial literacy cognitions generators, financial—knowledge, attitude, and awareness, determining either positive or negative financial behavior. Utilizing survey respondents, we find a distinct positive and significant effect of the three cognitions in the case of positive financial behavior, and mixed-partial effect facing negative financial behavior. Furthermore, the three cognitions' moderation with Generation Z control, amplifies the financial attitude effect and diminishes financial awareness impact, hence, highlighting the importance assigned by Gen Z to financial issues in the short-term, as opposed to lessened financial importance in the long-range.

Keywords: Financial literacy; Financial cognitions; Financial knowledge; Financial attitude; Financial awareness; Optimal financial behavior (search for similar items in EconPapers)
JEL-codes: D10 D14 G40 G50 G53 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:83:y:2025:i:c:s1544612325007147

DOI: 10.1016/j.frl.2025.107455

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