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Financial literacy, economic preferences, and adolescents’ field behavior

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  • Razen, Michael
  • Huber, Jürgen
  • Hueber, Laura
  • Kirchler, Michael
  • Stefan, Matthias

Abstract

Financial literacy and economic preferences are considered to be important drivers of health, income, and general well-being. We bridge the gap between studies on financial literacy and research on economic preferences by investigating how they interplay with each other and with the field behavior of adolescents. First, we report that financial literacy scores are positively associated with patience, male gender, and educational level of the father. Second, we observe that risky field behavior like smoking and gambling is positively associated with various measures of risk-tolerance, and negatively associated with patience. Finally, we discuss implications for financial education programs.

Suggested Citation

  • Razen, Michael & Huber, Jürgen & Hueber, Laura & Kirchler, Michael & Stefan, Matthias, 2021. "Financial literacy, economic preferences, and adolescents’ field behavior," Finance Research Letters, Elsevier, vol. 40(C).
    • Handle: RePEc:eee:finlet:v:40:y:2021:i:c:s154461232030547x
    DOI: 10.1016/j.frl.2020.101728
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    Cited by:

    1. Nave, Juan M. & Oliva, Laura & Toscano, David, 2023. "Financial knowledge and financial behaviour: The moderating role of home ownership," Finance Research Letters, Elsevier, vol. 57(C).
    2. Fangbin Qian & Yuanjie Pu & Yunfeng Shang, 2023. "Financing preferences and practices for developing sustainable exhibitions in Chinese companies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.

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    More about this item

    Keywords

    Experimental finance; Financial literacy; Time preferences; Risk preferences; Adolescents;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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