You are here

Building financial knowledge is not enough: Financial self-effacy as a mediator in the financial capability of low-income families

TitleBuilding financial knowledge is not enough: Financial self-effacy as a mediator in the financial capability of low-income families
Year of Publication2016
AuthorsRothwell, D. W., Khan M. Nuruzzaman, and Cherney K.
JournalJournal of Community Practice
Volume24
Pages368 - 388
Keywordsassets, canada, financial capability, financial self-efficacy, welfare policies
Abstract

Policymakers in many countries have taken an interest in population-level financial capability. Limited empirical work has examined how constructs that makeup financial capability relate and how they function for individuals with low incomes. Using a national sample of low-income Canadians, we investigate relationships between financial knowledge, financial self-efficacy, and savings outcomes. Overall, we find that financial self-efficacy fully mediated the relationship between objective financial knowledge and postsecondary-education saving. The association between objective financial knowledge and retirement saving and emergency saving passed through financial self-efficacy. Efforts to promote financial capability need to focus on more than objective financial knowledge.

URLhttp://www.tandfonline.com/doi/full/10.1080/10705422.2016.1233162
DOI10.1080/10705422.2016.1233162
Document URLhttp://www.tandfonline.com/doi/pdf/10.1080/10705422.2016.1233162
Publication Type
RDC
Surveys
Themes
Contract ID
Publication language(s)
English