Childhood Roots of Financial Literacy

Discussion Papers 1504, 42 S.

Antonia Grohmann, Roy Kouwenberg, Lukas Menkhoff


get_appDownload (PDF  489 KB)

Published in: Journal of Economic Psychology 51 (2015), S. 114-133


Financial literacy predicts informed financial decisions, but what explains financial literacy? We use the concept of financial socialization and aim to represent three major agents of financial socialization: family, school and work. Thus we compile twelve relevant childhood characteristics in a new survey study and examine their relation to financial literacy, while controlling for established socio-demographic characteristics. We find in a mediation analysis that both family and school positively affect the financial literacy of adults. Moreover, financial literacy and school related variables also have a direct effect on financial behavior. This suggests that family factors and schooling work through complementary channels.

Antonia Grohmann

Research Associate in the International Economics Department

Lukas Menkhoff

Head of Department in the International Economics Department

JEL-Classification: D14;G11;I20
Keywords: Financial literacy, financial behavior, family background, education, numeracy
Frei zugängliche Version: (econstor)