Culture and Financial Literacy

Item Type Monograph (Working Paper)
Abstract We study the effect of culture on financial literacy by comparing secondary-school students along the German-French language border within Switzerland. We find that students in the Frenchspeaking area have a lower level of financial literacy than students in the German-speaking area. The difference in financial literacy across the language groups is mainly observed for native students and less among bilingual or immigrant students. This supports the hypothesis that cultural differences rather than differences in school curricula or school quality are driving the observed effect. A mediation Analysis suggests that the cultural divide in financial literacy is mainly related to systematic differences in financial socialisation across the language groups. Students in the German speaking region are more likely to receive pocket money at an early age, more likely to have a bank account and are more likely to have independent access to a bank account.
Authors Brown, Martin; Henchoz, Caroline & Spycher, Thomas
Language English
Subjects finance
HSG Classification contribution to scientific community
Date 3 February 2017
Publisher SoF - HSG
Place of Publication St. Gallen
Series Name School of Finance Working Paper Series
Number 2017/03
Number of Pages 56
Depositing User Geraldine Frei-Böbel
Date Deposited 14 Feb 2017 11:36
Last Modified 20 Jul 2022 17:30


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Brown, Martin; Henchoz, Caroline & Spycher, Thomas: Culture and Financial Literacy. School of Finance Working Paper Series, 2017, 2017/03.

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