Unpacking Financial Literacy in Switzerland: Demographic Heterogeneity, Self-Perception Gaps, and Financial Fragility

Maddalena Davoli () and Uschi Backes-Gellner

No 220, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

Abstract: We analyse financial literacy in Switzerland and its relationship with various economic outcomes using novel survey data collected in 2023. We show that the overall financial literacy levels are high in Switzerland in an international comparison, with over 50% of the respondents correctly answering the Big Three financial literacy questions about interest, inflation and risk diversification. However, we also find important heterogeneity within the population, e.g., women, the less educated, and Italian-speaking respondents exhibit, on average, lower financial literacy. In addition, we also present clear evidence that differences in financial literacy matter for the financial behaviour and wellbeing. Respondents with higher financial literacy scores are better able to manage their expenses, to save money, and to deal with economic shocks.

Keywords: financial literacy; financial behavior; personal finance; financial fragility; Switzerland (search for similar items in EconPapers)
JEL-codes: D1 G53 I3 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2024-05
New Economics Papers: this item is included in nep-ban, nep-fle and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:iso:educat:0220

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