|Title||Understanding the Financial Knowledge Gap: A New Dimension of Inequality in Later Life.|
|Publication Type||Journal Article|
|Year of Publication||2017|
|Authors||Khan, MNuruzzaman, Rothwell, D, Cherney, K, Sussman, T|
|Journal||J Gerontol Soc Work|
|Keywords||Adolescent, Adult, Aged, Cross-Sectional Studies, Female, Financial Management, Humans, Knowledge, Male, Middle Aged, Multivariate Analysis, Self Report, Social Class, Socioeconomic Factors|
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.
|Alternate Journal||J Gerontol Soc Work|