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Financial Literacy and Numeracy

Author

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  • Elisa Darriet

    (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM], LEMMA - Laboratoire d'économie mathématique et de microéconomie appliquée - UP2 - Université Panthéon-Assas)

  • Marianne Guille

    (LEMMA - Laboratoire d'économie mathématique et de microéconomie appliquée - UP2 - Université Panthéon-Assas)

  • Jean-Christophe Vergnaud

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 - Université Paris 1 Panthéon-Sorbonne)

Abstract

The aim of this chapter is to investigate the relationship between financial literacy and numeracy. It turns out that numeracy and financial literacy are strongly correlated. In order to clarify this relationship, we review, in a first section, the general definition of numeracy and its most commonly used measures. We then try to enlighten the distinction that can be made between numeracy and financial literacy. In a second section, we focus on the relationship between numeracy and financial literacy using the main empirical studies performed. Since the analyses of their results show that numeracy is a key determinant of financial literacy, we highlight, in a third and final section, the key role that numeracy could have in education programs and consumer protection policies to improve financial decisions.

Suggested Citation

  • Elisa Darriet & Marianne Guille & Jean-Christophe Vergnaud, 2021. "Financial Literacy and Numeracy," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03461252, HAL.
    • Handle: RePEc:hal:cesptp:halshs-03461252
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03461252
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    References listed on IDEAS

    as
    1. Rob Alessie & Maarten van Rooij & Annamaria Lusardi, 2011. "Financial Literacy, Retirement Preparation and Pension Expectations in the Netherlands," CeRP Working Papers 110, Center for Research on Pensions and Welfare Policies, Turin (Italy).
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    More about this item

    Keywords

    Financial literacy; Numeracy;

    JEL classification:

    • G4 - Financial Economics - - Behavioral Finance
    • G5 - Financial Economics - - Household Finance
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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