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Financial Literacy and Financial Planning in France

Author

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  • Arrondel, L.
  • Debbich, M.
  • Savignac, F.

Abstract

How are people financially literate in France? We address this question using the PATER survey and following the Lusardi and Mitchell (2011c) approach. We find that some subpopulations are less financially literate than others: women, young and old people as well as less-educated people are more likely to face difficulties when dealing with fundamental financial concepts such as risk diversification, inflation and interest compounding. We also find some differences in financial knowledge depending on the political opinion of the respondents. Finally we show that these differences in financial knowledge are correlated with differences in the propensity to plan: people who score higher on the financial literacy questions are more likely to be engaged in the preparation of a clearly defined financial plan.

Suggested Citation

  • Arrondel, L. & Debbich, M. & Savignac, F., 2013. "Financial Literacy and Financial Planning in France," Working papers 465, Banque de France.
  • Handle: RePEc:bfr:banfra:465
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    References listed on IDEAS

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    6. Melika Ben Salem & Didier Blanchet & Antoine Bozio & Muriel Roger, 2010. "Labor Force Participation by the Elderly and Employment of the Young: The Case of France," NBER Chapters,in: Social Security Programs and Retirement around the World: The Relationship to Youth Employment, pages 119-146 National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Bucher-Koenen, Tabea & Lamla, Bettina, 2014. "The long Shadow of Socialism: On East-West German Differences in Financial Literacy," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100585, Verein für Socialpolitik / German Economic Association.
    2. Fabrice Borel-Mathurin & Pierre-Emmanuel Darpeix & Quentin Guibert & Stéphane Loisel, 2018. "Main Determinants of Profit-Sharing Policy in the French Life Insurance Industry," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(3), pages 420-455, July.
    3. repec:mea:meawpa:14282 is not listed on IDEAS
    4. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    5. Laura Hospido & Ernesto Villanueva & Gema Zamarro, 2015. "Finance For All: The Impact Of Financial Literacy Training In Compulsory Secondary Education In Spain," Working Papers 1502, Banco de España;Working Papers Homepage.
    6. repec:pal:compes:v:60:y:2018:i:1:d:10.1057_s41294-018-0053-9 is not listed on IDEAS
    7. Arus Kongrungchok, 2016. "The Effectiveness of Personal Financial Planning of Rubber Farmers in Thailand: Case Study of Suratthani Province," Proceedings of International Academic Conferences 4106729, International Institute of Social and Economic Sciences.
    8. repec:bla:jconsa:v:51:y:2017:i:2:p:255-283 is not listed on IDEAS
    9. repec:bla:ecnote:v:47:y:2018:i:2-3:p:413-438 is not listed on IDEAS
    10. Tabea Bucher-Koenen & Annamaria Lusardi & Rob Alessie & Maarten van Rooij, 2017. "How Financially Literate Are Women? An Overview and New Insights," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(2), pages 255-283, July.
    11. Zuzana Brokesova & Andrej Cupak & Gueorgui Kolev, 2017. "Financial literacy and voluntary savings for retirement in Slovakia," Working and Discussion Papers WP 10/2017, Research Department, National Bank of Slovakia.
    12. repec:spr:jbecon:v:87:y:2017:i:5:d:10.1007_s11573-017-0853-9 is not listed on IDEAS
    13. Agarwal, Sumit & Amromin, Gene & Ben-David, Itzhak & Chomsisengphet, Souphala & Evanoff, Douglas D., 2015. "Financial literacy and financial planning: Evidence from India," Journal of Housing Economics, Elsevier, vol. 27(C), pages 4-21.
    14. M. Debbich, 2015. "Why Financial Advice Cannot Substitute for Financial Literacy?," Working papers 534, Banque de France.
    15. repec:spr:sjecst:v:155:y:2019:i:1:d:10.1186_s41937-019-0027-5 is not listed on IDEAS
    16. repec:bla:ecnote:v:47:y:2018:i:2-3:p:495-518 is not listed on IDEAS
    17. repec:oup:jeurec:v:15:y:2017:i:2:p:429-462. is not listed on IDEAS
    18. Emanuele Bajo & Massimiliano Barbi & Sandro Sandri, 2015. "Financial Literacy, Households' Investment Behavior, and Risk Propensity," Journal of Financial Management, Markets and Institutions, Società editrice il Mulino, issue 1, pages 157-174, June.
    19. Luc Arrondel, 2018. "Financial Literacy and Asset Behaviour: Poor Education and Zero for Conduct?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 60(1), pages 144-160, March.

    More about this item

    Keywords

    Financial Literacy; Retirement Planning; Household Finance.;

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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