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Understanding the financial knowledge gap: A new dimension of inequality in later life

TitleUnderstanding the financial knowledge gap: A new dimension of inequality in later life
Year of Publication2017
AuthorsKhan, M. Nuruzzaman, Rothwell D. W., Cherney K., and Sussman T.
JournalJournal of Gerontological Social Work
Volume60
Pages1 - 17
Keywordsfinancial capability, financial knowledge, financial knowledge gap, older adults
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.

URLhttp://www.tandfonline.com/doi/full/10.1080/01634372.2017.1317311
DOI10.1080/01634372.2017.1317311
Document URLhttp://www.tandfonline.com/doi/pdf/10.1080/01634372.2017.1317311
Publication Type
RDC
Surveys
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Publication language(s)
English