A Meta-Analytic and Psychometric Investigation of the Effect of Financial Literacy on Downstream Financial Behaviors

Daniel Fernandes, Erasmus University Rotterdam, The Netherlands
John G. Lynch, Jr., University of Colorado, USA
Richard Netemeyer, University of Virginia, USA
Billions of dollars are spent worldwide on financial education. Our meta-analysis shows these interventions explain 0.1% of the variance in downstream financial behaviors. Measured financial literacy explains more. Why? Two surveys replicate prior findings that measured financial literacy predicts financial behaviors, but this relationship disappears when controlling for confounded traits.
[ to cite ]:
Daniel Fernandes, John G. Lynch, Jr., and Richard Netemeyer (2012) ,"A Meta-Analytic and Psychometric Investigation of the Effect of Financial Literacy on Downstream Financial Behaviors", in NA - Advances in Consumer Research Volume 40, eds. Zeynep G├╝rhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 1052-1052.