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Culture and Financial Literacy

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  • Brown, Martin

    ()

  • Henchoz, Caroline

    ()

  • Spycher, Thomas

    ()

Abstract

We study the effect of culture on financial literacy by comparing secondary-school students along the German-French language border within Switzerland. We find that students in the French-speaking area have a lower level of financial literacy than students in the German-speaking area. The difference in financial literacy across the language groups is stronger among native students than among immigrant students. A mediation analysis suggests that the cultural divide in financial literacy is mainly related to systematic differences in financial socialisation across the language groups. Students in the German speaking region are more likely to receive pocket money at an early age and are more likely to have independent access to a bank account.

Suggested Citation

  • Brown, Martin & Henchoz, Caroline & Spycher, Thomas, 2017. "Culture and Financial Literacy," Working Papers on Finance 1703, University of St. Gallen, School of Finance.
  • Handle: RePEc:usg:sfwpfi:2017:03
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    References listed on IDEAS

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    Cited by:

    1. Kristian Blickle, 2017. "Local Banks, Credit Supply, and House Prices," Working Papers on Finance 1811, University of St. Gallen, School of Finance.
    2. Adriel Jost, 2018. "Cultural Differences in Monetary Policy Preferences," Working Papers 2018-02, Swiss National Bank.

    More about this item

    Keywords

    Culture; Financial Literacy; Financial Socialisation;

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • Z1 - Other Special Topics - - Cultural Economics

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