TitleUnderstanding the Financial Knowledge Gap: A New Dimension of Inequality in Later Life.
Publication TypeJournal Article
Year of Publication2017
AuthorsKhan, MNuruzzaman, Rothwell, D, Cherney, K, Sussman, T
JournalJ Gerontol Soc Work
Volume60
Issue6-7
Pagination487-503
Date Published08/2017
ISSN1540-4048
KeywordsAdolescent, Adult, Aged, Cross-Sectional Studies, Female, Financial Management, Humans, Knowledge, Male, Middle Aged, Multivariate Analysis, Self Report, Social Class, Socioeconomic Factors
Abstract
 

To understand individuals' financial behaviors, it is important to understand the financial knowledge gap - the distance between one's objective and subjective financial knowledge. Overestimating one's financial knowledge can lead to risky financial behaviors. To date, limited empirical work has examined how financial knowledge gap varies across age groups. We analyze the size and nature of the financial knowledge gap and its variation across age groups. Using nationally representative data, we find robust evidence that older adults overestimate their financial knowledge. Social workers can assess the financial knowledge gap and educate their clients to protect from financial fraud, exploitation, and abuse.

DOI10.1080/01634372.2017.1317311
Alternate JournalJ Gerontol Soc Work
PubMed ID28398136