Income more important than financial literacy for improving wellbeing

Authors

  • Tracey West Department of Accounting, Finance and Economics, Griffith University
  • Michelle Cull School of Business, Western Sydney University
  • Dianne Johnson Department of Accounting, Finance and Economics, Griffith University

DOI:

https://doi.org/10.61190/fsr.v29i3.3456

Keywords:

University students, Income, Financial literacy, Financial wellbeing, Education

Abstract

As advocates of financial literacy education, it is a hard pill to swallow when data show little impact on financial behaviors. Unfortunately, expectations that university students with higher levels of financial literacy have reduced money management stress and positive financial behavior, leading to higher levels of financial wellbeing, were expunged in this study. We did find, however, that being older and having higher levels of income contributed most significantly and consistently to explain- ing better financial wellbeing. Proponents of financial literacy education should not despair but instead recognize the limits to transferring financial knowledge and set financial literacy and well- being goals based on evidence of what works.

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Published

2021-09-30

How to Cite

West, T., Cull, M., & Johnson, D. (2021). Income more important than financial literacy for improving wellbeing. Financial Services Review, 29(3), 187–207. https://doi.org/10.61190/fsr.v29i3.3456

Issue

Vol. 29 No. 3 (2021): Fall 2021

Section

New Original Submission

License

Copyright (c) 2021 Academy of Financial Services

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