Work

Financial Literacy and Its Consequences in the Emerging Middle Class

Year: 2014

Type: preprint

Abstract: This paper analyzes the state and impact of financial literacy in a so far largely neglected group: the middle class in emerging economies. This group is of increasing importance for implementing structural change, including the proper use of sophisticated financial products. We survey middle class people living in Bangkok and find that higher financial literacy leads to an increased probability of individuals demanding the sophisticated financial products that are available, and more informed use of credit cards. Overall, improving the financial literacy of the emerging middle class provides a double dividend: it increases the welfare of this group and also contributes to financial development, which is a driver of growth

Source: RePEc: Research Papers in Economics

Authors: Antonia Grohmann, Roy Kouwenberg, Lukas Menkhoff

Institutions: Leibniz University Hannover, Mahidol University, Kiel Institute for the World Economy

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

Funder: Deutsche Forschungsgemeinschaft

Award: G1602571780