title: Understanding the Financial Knowledge Gap: A New Dimension of Inequality in Later Life.
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.
authors.affiliation: a School of Social Work, McGill University , Montreal , Québec , Canada.
authors.forename: Mohammad Nuruzzaman
authors.initials: MN
authors.lastname: Khan
authors.affiliation: b Human Development and Family Sciences, Oregon State University, College of Public Health , Corvallis , Oregon , USA.
authors.forename: David W
authors.initials: DW
authors.lastname: Rothwell
authors.affiliation: a School of Social Work, McGill University , Montreal , Québec , Canada.
authors.forename: Katrina
authors.initials: K
authors.lastname: Cherney
authors.affiliation: a School of Social Work, McGill University , Montreal , Québec , Canada.
authors.forename: Tamara
authors.initials: T
authors.lastname: Sussman
mesh_terms: D000293:Adolescent; D000328:Adult; D000368:Aged; D003430:Cross-Sectional Studies; D005260:Female; D005376:Financial Management / Q000379:methods / Q000592:standards*; D006801:Humans; D019359:Knowledge; D008297:Male; D008875:Middle Aged; D015999:Multivariate Analysis; D057566:Self Report; D012923:Social Class; D012959:Socioeconomic Factors
keywords: Financial knowledge; financial capability; financial knowledge gap; older adults