Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/57373 
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dc.contributor.authorvan Rooij, Maartenen
dc.contributor.authorLusardi, Annamariaen
dc.contributor.authorAlessie, Rob J. M.en
dc.date.accessioned2011-09-15-
dc.date.accessioned2012-04-20T17:09:42Z-
dc.date.available2012-04-20T17:09:42Z-
dc.date.issued2011-
dc.identifier.piurn:nbn:de:hebis:30-115373en
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
dc.language.isoengen
dc.publisher|aGoethe University Frankfurt, Center for Financial Studies (CFS) |cFrankfurt a. M.en
dc.relation.ispartofseries|aCFS Working Paper |x2011/21en
dc.subject.jelD91en
dc.subject.jelD12en
dc.subject.jelJ26en
dc.subject.ddc330en
dc.subject.keywordFinancial Educationen
dc.subject.keywordSavings and Wealth Accumulationen
dc.subject.keywordRetirement Preparationen
dc.subject.keywordKnowledge of Finance and Economicsen
dc.subject.keywordOverconfidenceen
dc.subject.keywordStock Market Participationen
dc.subject.stwAlterssicherungen
dc.subject.stwSparenen
dc.subject.stwFinanzwissenen
dc.subject.stwAltersgrenzeen
dc.subject.stwVertrauenen
dc.subject.stwWertpapierspekulationen
dc.subject.stwNiederlandeen
dc.titleFinancial literacy, retirement planning, and household wealth-
dc.typeWorking Paperen
dc.identifier.ppn668379065en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:cfswop:201121en

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