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The role of national culture in financial literacy: Cross‐country evidence

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  • Kenneth De Beckker
  • Kristof De Witte
  • Geert Van Campenhout

Abstract

This paper examines the effect of national culture on adult financial literacy levels in 12 countries. Contrary to earlier financial literacy studies, our results are directly comparable across countries given that we use the standardized OECD/INFE financial literacy survey data and Hofstede's, 2001, cultural dimensions to capture financial literacy and national culture. In line with the financial socialization theory, we find that uncertainty avoidance positively influences financial literacy, while individualism negatively influences financial literacy. We conclude that national culture affects financial literacy and that it is important to account for cultural dimensions in future international financial literacy research.

Suggested Citation

  • Kenneth De Beckker & Kristof De Witte & Geert Van Campenhout, 2020. "The role of national culture in financial literacy: Cross‐country evidence," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(3), pages 912-930, September.
    • Handle: RePEc:bla:jconsa:v:54:y:2020:i:3:p:912-930
    DOI: 10.1111/joca.12306
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    2. Florina Guadalupe Arredondo-Trapero & Eva María Guerra-Leal & José Carlos Vázquez-Parra, 2023. "Differences in the Destination of Savings According to Gender, and Its Economic Rights Implications," JRFM, MDPI, vol. 16(7), pages 1-18, July.
    3. Susanna Levantesi & Giulia Zacchia, 2021. "Machine Learning and Financial Literacy: An Exploration of Factors Influencing Financial Knowledge in Italy," JRFM, MDPI, vol. 14(3), pages 1-21, March.
    4. Shishir Shakya & Nabamita Dutta, 2024. "How Individualism Influences Female Financial Inclusion through Education: Evidence from Historical Prevalence of Infectious Diseases," Working Papers 24-03, Department of Economics, Appalachian State University.
    5. Ooi, Elizabeth, 2023. "Culture and confidence in financial knowledge testing," Pacific-Basin Finance Journal, Elsevier, vol. 77(C).
    6. Szilárd Heged?s & Csaba Lentner, 2024. "Examining financial literacy and the financial aspects of Hofstede's four-factor culture model in Hungary," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 19(1), pages 1-20, Enero - M.

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