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dc.contributor.authorvan Rooij, Maartenen_US
dc.contributor.authorLusardi, Annamariaen_US
dc.contributor.authorAlessie, Rob J. M.en_US
dc.date.accessioned2011-09-15en_US
dc.date.accessioned2012-04-20T17:09:42Z-
dc.date.available2012-04-20T17:09:42Z-
dc.date.issued2011en_US
dc.identifier.piurn:nbn:de:hebis:30-115373en_US
dc.identifier.urihttp://hdl.handle.net/10419/57373-
dc.description.abstractThere is ample empirical evidence documenting widespread financial illiteracy and limited pension knowledge. At the same time, the distribution of wealth is widely dispersed and many workers arrive on the verge of retirement with few or no personal assets. In this paper, we investigate the relationship between financial literacy and household net worth, relying on comprehensive measures of financial knowledge designed for a special module of the DNB (De Nederlandsche Bank) Household Survey. Our findings provide evidence of a strong positive association between financial literacy and net worth, even after controlling for many determinants of wealth. Moreover, we discuss two channels through which financial literacy might facilitate wealth accumulation. First, financial knowledge increases the likelihood of investing in the stock market, allowing individuals to benefit from the equity premium. Second, financial literacy is positively related to retirement planning, and the development of a savings plan has been shown to boost wealth. Overall, financial literacy, both directly and indirectly, is found to have a strong link to household wealth.en_US
dc.language.isoengen_US
dc.publisherCenter for Financial Studies Frankfurt, Mainen_US
dc.relation.ispartofseriesCFS Working Paper 2011/21en_US
dc.subject.jelD91en_US
dc.subject.jelD12en_US
dc.subject.jelJ26en_US
dc.subject.ddc330en_US
dc.subject.keywordFinancial Educationen_US
dc.subject.keywordSavings and Wealth Accumulationen_US
dc.subject.keywordRetirement Preparationen_US
dc.subject.keywordKnowledge of Finance and Economicsen_US
dc.subject.keywordOverconfidenceen_US
dc.subject.keywordStock Market Participationen_US
dc.subject.stwAlterssicherungen_US
dc.subject.stwSparenen_US
dc.subject.stwFinanzwissenen_US
dc.subject.stwAltersgrenzeen_US
dc.subject.stwVertrauenen_US
dc.subject.stwWertpapierspekulationen_US
dc.subject.stwNiederlandeen_US
dc.titleFinancial literacy, retirement planning, and household wealthen_US
dc.typeWorking Paperen_US
dc.identifier.ppn668379065en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:cfswop:201121-
Appears in Collections:CFS Working Paper Series, Universität Frankfurt a. M.

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