The relationships of financial literacy with both financial behavior and financial well-being: Meta-analyses based on the selective literature review |
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Authors: | Hyesun Hwang Hyung In Park |
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Affiliation: | 1. Department of Consumer Science, Sungkyunkwan University, Seoul, South Korea;2. Department of Psychology, Sungkyunkwan University, Seoul, South Korea |
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Abstract: | This study conducted meta-analyses of the relationships between financial literacy and both financial behavior and financial well-being. Peer-reviewed articles published on financial literacy in the field of consumer studies were collected by July 29, 2020. Fourteen articles were eligible for the meta-analyses. The results showed positive relationships of financial knowledge with desirable financial behavior and financial well-being. Our comparison of objective and subjective financial knowledge indicated that subjective knowledge had stronger relationships with both financial behavior and financial well-being than objective knowledge. These two types of knowledge also had different paths to financial well-being in that subjective knowledge had both direct and indirect effects on financial well-being through financial behavior, whereas objective knowledge only had an indirect effect. The relationship between financial knowledge and financial behavior appeared stronger in cross-sectional data than in longitudinal data. The implications of these results and possible directions for future consumer science research were discussed. |
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Keywords: | financial behavior financial literacy financial well-being meta-analysis objective financial knowledge subjective financial knowledge |
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