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Unpacking Financial Literacy in Switzerland: Demographic Heterogeneity, Self-Perception Gaps, and Financial Fragility

Author

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  • Maddalena Davoli
  • Uschi Backes-Gellner

Abstract

We analyse financial literacy in Switzerland and its relationship with various economic outcomes using novel survey data collected in 2023. While the overall financial literacy levels are high in an international comparison, with over 50% of the respondents correctly answering the Big Three financial literacy questions about interest, inflation and risk diversification, there is significant heterogeneity within the population. Women, the young, the less educated and French and Italian-speaking respondents exhibit particularly low financial literacy. Women have lower financial literacy than men. The young have lower financial literacy than respondents in their working age, and Italian-speaking respondents exhibit particularly low financial literacy as compared to French- or German-speaking respondents. Financial literacy is also correlated with higher educational levels. We also find that financial literacy is positively linked to respondents' ability to cope with adverse economic outcomes: more financially literate individuals are better able to manage their expenses, save, and face economic shocks.

Suggested Citation

  • Maddalena Davoli & Uschi Backes-Gellner, 2024. "Unpacking Financial Literacy in Switzerland: Demographic Heterogeneity, Self-Perception Gaps, and Financial Fragility," Economics of Education Working Paper Series 0220, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0220
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    More about this item

    Keywords

    financial literacy; personal finance; financial fragility; Switzerland;
    All these keywords.

    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • D1 - Microeconomics - - Household Behavior
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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