Financial Literacy, Household Investment and Household Debt: Evidence from Switzerland

Item Type Monograph (Working Paper)
Abstract

We use a novel, representative survey to document the level of financial literacy among Swiss households and to examine how financial literacy is related to household investment and borrowing. We find that only half of the respondents were able to answer three questions on basic financial concepts (compound interest, inflation and risk diversification) correctly. Financial literacy is lower among low-income less-educated and immigrant households as well as among women. Young households seem to be less familiar with the concept of inflation, while retirees are less familiar with the concepts of compound interest and risk diversification. We find that financial literacy is strongly correlated with financial market participation, voluntary retirement saving and mortgage borrowing.

Authors Brown, Martin & Graf, Roman
Language English
Keywords Financial literacy, Retirement planning, Financial market participation, Mortgage borrowing, Consumer loans.
Subjects business studies
HSG Classification contribution to scientific community
Refereed No
Date 2012
Depositing User Prof. Dr. Martin Brown
Date Deposited 07 Jan 2013 11:50
Last Modified 23 Aug 2016 11:15
URI: https://www.alexandria.unisg.ch/publications/219130

Download

[img]
Preview
Text
13_1_Brown_Financial Literacy.pdf

Download (286kB) | Preview

Citation

Brown, Martin & Graf, Roman: Financial Literacy, Household Investment and Household Debt: Evidence from Switzerland. , 2012,

Statistics

https://www.alexandria.unisg.ch/id/eprint/219130
Edit item Edit item
Feedback?