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The Interaction of Financial Attitudes and Financial Knowledge: Evidence for Low-Income Hispanic Families

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  • Andrew Gill

    (California State University at Fullerton)

  • Radha Bhattacharya

    (California State University at Fullerton)

Abstract

We add to the literature on the association of financial knowledge and financial attitudes with financial outcomes by focusing on predominantly low-income Hispanic families. We examine (i) saving for emergencies, for college, and in 401(k) plans, and (ii) ownership of a home, land or rental property, and an investment account. We find that financial knowledge is strongly related to our savings measures and to owning an investment account. Financial attitudes play less of a role, but assume some importance when interacted with financial knowledge. Self-reported financial knowledge in addition to factual financial knowledge is associated with favorable financial outcomes. Our results are important for the upward economic mobility of a demographic group that has received less attention in the literature.

Suggested Citation

  • Andrew Gill & Radha Bhattacharya, 2017. "The Interaction of Financial Attitudes and Financial Knowledge: Evidence for Low-Income Hispanic Families," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(4), pages 497-510, December.
    • Handle: RePEc:kap:atlecj:v:45:y:2017:i:4:d:10.1007_s11293-017-9556-4
    DOI: 10.1007/s11293-017-9556-4
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    References listed on IDEAS

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