Financial literacy of middle-aged and older Individuals: Comparison of Japan and the United States

Satoshi Shimizutani, Hiroyuki Yamada

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

Financial literacy holds growing interest for managing assets/savings during the longer retirement period currently experienced in rapidly aging countries. We examine and compare levels and determinants of financial literacy as well as its association with asset allocation among middle-aged and older individuals of Japan and the United States. We present some interesting findings. First, financial literacy is generally influenced by educational attainment, cognitive skills, coursework in economics or finance, and income level. Second, financial literacy is associated with household asset allocation; individuals with higher literacy also have investment in stocks or securities. These patterns are commonly observed both in Japan and the United States.

Original languageEnglish
Article number100214
JournalJournal of the Economics of Ageing
Volume16
DOIs
Publication statusPublished - 2020 Jun

Keywords

  • Financial literacy
  • HRS
  • Household asset allocation
  • JSTAR
  • Japan
  • U.S.

ASJC Scopus subject areas

  • Economics and Econometrics
  • Life-span and Life-course Studies

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