(UM10-12) - Financial Knowledge And Financial Literacy At The Household Level
Alan L. Gustman, Thomas L. Steinmeier and Nahid Tabatabai
Financial preparation for retirement is a household decision. Measures of imperfect knowledge about pensions and Social Security can be constructed with data from the Health and Retirement Study, including frequencies of don’t know responses, resort to brackets instead of continuous responses, indicators of uncertainty about responses, and discrepancies between respondent reports and administrative data. Direct indicators of financial illiteracy are also available. We will use these indicators to explore the distribution of knowledge at the household level, how the financial knowledge and literacy of one spouse affects the other, and to derive behavioral and policy implications.