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Unpacking Financial Literacy in Switzerland: Demographic Heterogeneity, Self-Perception Gaps, and Financial Fragility

Author

Listed:
  • Maddalena Davoli
  • Uschi Backes-Gellner

Abstract

We analyse financial literacy in Switzerland and its relationship with various economic outcomes using novel survey data collected in 2023. We show that the overall financial literacy levels are high in Switzerland in an international comparison, with over 50% of the respondents correctly answering the Big Three financial literacy questions about interest, inflation and risk diversification. However, we also find important heterogeneity within the population, e.g., women, the less educated, and Italian-speaking respondents exhibit, on average, lower financial literacy. In addition, we also present clear evidence that differences in financial literacy matter for the financial behaviour and wellbeing. Respondents with higher financial literacy scores are better able to manage their expenses, to save money, and to deal with economic shocks.

Suggested Citation

  • Maddalena Davoli & Uschi Backes-Gellner, 2024. "Unpacking Financial Literacy in Switzerland: Demographic Heterogeneity, Self-Perception Gaps, and Financial Fragility," Economics of Education Working Paper Series 0220, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0220
    as

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    References listed on IDEAS

    as
    1. Cupák, Andrej & Fessler, Pirmin & Schneebaum, Alyssa & Silgoner, Maria, 2018. "Decomposing gender gaps in financial literacy: New international evidence," Economics Letters, Elsevier, vol. 168(C), pages 102-106.
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    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.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • D1 - Microeconomics - - Household Behavior
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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