Authors:

• Tabea Bucher-Koenen
• Annamaria Lusardi
• Rob J. M. Alessie
• Maarten C. J. van Rooij

Overview:

This study documents the gender differences in financial literacy, which are surprisingly similar between countries. It was found that women are less likely than men to correctly answer basic financial literacy questions, and more likely to state that they do not know the answer. Women also score lower than men in financial literacy self-assessment. On the other hand, among women for whom financial literacy would probably be important (for example, in the case of widows or single women), it was also found that they know very little about the relevant concepts for day-to-day financial decisions. Even women in favorable economic conditions have less financial knowledge than men. Gender differences are present at very basic levels of financial literacy, as well as more advanced levels. This is important because financial literacy has been linked to economic performance, including retirement planning and wealth accumulation. Women live longer than men, and will most likely spend more time as widows. As a result, the improvement of the financial literacy of women is crucial in helping to prepare them for retirement and promoting their financial security.

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