Publication:
Financial Literacy and the Financial Crisis

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dc.contributor.authorLusardi, Annamaria
dc.contributor.authorKlapper, Leora
dc.contributor.authorPanos, Georgios A.
dc.date.accessioned2012-03-19T17:29:23Z
dc.date.available2012-03-19T17:29:23Z
dc.date.issued2012-02-01
dc.description.abstractThe ability of consumers to make informed financial decisions improves their chances of having sound personal finance. This paper uses a panel dataset from Russia, where consumer loans grew at an astounding rate -- from about US$10 billion in 2003 to over US$170 billion in 2008 -- to examine the importance of financial literacy and its relationship with behavior. The survey asked questions on financial literacy, consumer borrowing (formal and informal), and spending behavior. The paper studies the consequences of greater financial literacy on the use of financial products and financial planning. Even though consumer borrowing rose rapidly in Russia, only 41 percent of the survey respondents understood how interest compounding worked and only 46 percent could answer a simple question about inflation. Financial literacy is positively related to participation in financial markets and negatively related to the use of informal sources of borrowing. Individuals with higher rates of financial literacy are significantly more likely to report having more unspent income at the end of the month and higher spending capacity. The relationship between financial literacy and the availability of unspent income is more evident during the financial crisis, suggesting that better financial literacy may better equip individuals to deal with macroeconomic shocks.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120229095430
dc.identifier.doi10.1596/1813-9450-5980
dc.identifier.urihttps://hdl.handle.net/10986/3266
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5980
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectABILITY OF CONSUMERS
dc.subjectACCOUNT CREDITOR
dc.subjectACCOUNT OWNERSHIP
dc.subjectACCOUNTING
dc.subjectADMINISTRATIVE DATA
dc.subjectANNUAL INTEREST RATE
dc.subjectASSET MARKETS
dc.subjectAVAILABILITY OF CREDIT
dc.subjectBALANCE SHEET
dc.subjectBANK ACCOUNT
dc.subjectBANK ACCOUNTS
dc.subjectBANK CREDIT
dc.subjectBANK LOANS
dc.subjectBANKING PRODUCTS
dc.subjectBANKING RELATIONSHIPS
dc.subjectBANKING SECTOR
dc.subjectBANKING SERVICES
dc.subjectBANKING SUPERVISIONS
dc.subjectBANKING SYSTEM
dc.subjectBASIC FINANCIAL LITERACY
dc.subjectBORROWER
dc.subjectBORROWER BEHAVIOR
dc.subjectBORROWING
dc.subjectBUSINESS SCHOOL
dc.subjectCALCULATION
dc.subjectCALCULATIONS
dc.subjectCAPITAL FORMATION
dc.subjectCENTRAL BANK
dc.subjectCHECKING ACCOUNT
dc.subjectCHECKS
dc.subjectCOGNITIVE FUNCTIONS
dc.subjectCONSUMER
dc.subjectCONSUMER CREDIT
dc.subjectCONSUMER DEBT
dc.subjectCONSUMER FINANCE
dc.subjectCONSUMER LOANS
dc.subjectCONTRIBUTION
dc.subjectCREDIT CARD
dc.subjectCREDIT CARD DEBT
dc.subjectCREDIT INFORMATION
dc.subjectCREDITOR
dc.subjectCURRICULUM
dc.subjectDEBIT CARD
dc.subjectDEBIT CARDS
dc.subjectDEBT CONTRACTS
dc.subjectDEBT LOADS
dc.subjectDEBT MANAGEMENT
dc.subjectDEFINED CONTRIBUTION PENSIONS
dc.subjectDELINQUENCY
dc.subjectDEMOGRAPHIC CHARACTERISTICS
dc.subjectDEMOGRAPHIC GROUPS
dc.subjectDEPOSITS
dc.subjectDEVELOPING FINANCIAL MARKETS
dc.subjectDOMESTIC CREDIT
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectDURABLE
dc.subjectDURABLE GOODS
dc.subjectEARNINGS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC DECISIONS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectEDUCATION LEVEL
dc.subjectEDUCATION LEVELS
dc.subjectEDUCATIONAL ATTAINMENT
dc.subjectEMERGING MARKETS
dc.subjectEMPLOYEE
dc.subjectEMPLOYER
dc.subjectENTREPRENEUR
dc.subjectENTREPRENEURS
dc.subjectETHNIC MINORITIES
dc.subjectFAMILY INCOME
dc.subjectFAMILY MEMBERS
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFINANCES
dc.subjectFINANCIAL ASSISTANCE
dc.subjectFINANCIAL BEHAVIOR
dc.subjectFINANCIAL CONSEQUENCES
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DECISION
dc.subjectFINANCIAL DISTRESS
dc.subjectFINANCIAL EDUCATION
dc.subjectFINANCIAL EDUCATION PROGRAMS
dc.subjectFINANCIAL EXPERIENCES
dc.subjectFINANCIAL FRAGILITY
dc.subjectFINANCIAL ILLITERACY
dc.subjectFINANCIAL INFORMATION
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL ISSUES
dc.subjectFINANCIAL KNOWLEDGE
dc.subjectFINANCIAL LITERACY
dc.subjectFINANCIAL LITERACY TRAINING
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL MARKETPLACE
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL MATTERS
dc.subjectFINANCIAL OUTCOMES
dc.subjectFINANCIAL PENETRATION
dc.subjectFINANCIAL PRODUCTS
dc.subjectFINANCIAL RESOURCES
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL SOPHISTICATION
dc.subjectFINANCIAL STABILITY
dc.subjectFORMAL BANK
dc.subjectFORMAL BANKING
dc.subjectFORMAL BANKING SYSTEM
dc.subjectFORMAL CREDIT
dc.subjectFORMAL FINANCIAL INSTITUTION
dc.subjectFORMAL FINANCIAL MARKETS
dc.subjectFRAUD
dc.subjectGENDER
dc.subjectGENERAL POPULATION
dc.subjectHIGH SCHOOL
dc.subjectHIGH SCHOOL FINANCIAL LITERACY
dc.subjectHIGHER EDUCATION
dc.subjectHOUSEHOLD APPLIANCES
dc.subjectHOUSEHOLD DEBT
dc.subjectHOUSEHOLD FINANCE
dc.subjectHOUSEHOLD FINANCIAL MANAGEMENT
dc.subjectHOUSEHOLDS
dc.subjectID
dc.subjectINCOME
dc.subjectINCOME SHOCKS
dc.subjectINDEBTEDNESS
dc.subjectINFLATION
dc.subjectINFORMAL BORROWING
dc.subjectINFORMAL CREDIT
dc.subjectINFORMATION SHARING
dc.subjectINFORMED CONSUMERS
dc.subjectINFORMED FINANCIAL DECISIONS
dc.subjectINSTALLMENT
dc.subjectINSTRUMENT
dc.subjectINTEREST PAYMENT
dc.subjectINTEREST PAYMENTS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL STANDARDS
dc.subjectINVESTMENT CLIMATE
dc.subjectLESS FINANCIALLY LITERATE
dc.subjectLEVELS OF LITERACY
dc.subjectLIABILITY
dc.subjectLIABILITY SIDE
dc.subjectLITERACY COURSES
dc.subjectLITERACY DATA
dc.subjectLITERATE INDIVIDUALS
dc.subjectLIVING STANDARD
dc.subjectLIVING STANDARDS
dc.subjectLOAN
dc.subjectLOW EDUCATIONAL ATTAINMENT
dc.subjectLOW FINANCIAL LITERACY
dc.subjectLOW INCOME
dc.subjectLOW LEVELS OF EDUCATION
dc.subjectLOWER INCOME
dc.subjectLOWER INCOMES
dc.subjectMACROECONOMIC STABILITY
dc.subjectMONTHLY INCOME
dc.subjectMONTHLY PAYMENTS
dc.subjectMORTGAGE
dc.subjectMORTGAGES
dc.subjectMUTUAL FUNDS
dc.subjectNEGATIVE INCOME SHOCK
dc.subjectNEW BANK ACCOUNTS
dc.subjectNUMERACY
dc.subjectOCCUPATIONS
dc.subjectOLDER INDIVIDUALS
dc.subjectPENSION
dc.subjectPENSIONER
dc.subjectPERSONAL BANKING
dc.subjectPERSONAL FINANCE
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO CHOICE
dc.subjectPROBABILITY
dc.subjectPUBLIC ECONOMICS
dc.subjectPUBLIC POLICY
dc.subjectPURCHASING POWER
dc.subjectRAPID GROWTH
dc.subjectREPAYMENT
dc.subjectREPAYMENT PERIODS
dc.subjectRESEARCH ASSISTANCE
dc.subjectRESERVE BANK
dc.subjectRETAIL PRICE
dc.subjectRETIREMENT
dc.subjectRETIREMENT PLAN
dc.subjectRETIREMENT PLANNING
dc.subjectRETIREMENT PLANS
dc.subjectRETIREMENT READINESS
dc.subjectRETIREMENT SAVING
dc.subjectRETIREMENT SECURITY
dc.subjectSALARIES
dc.subjectSALARY
dc.subjectSALE
dc.subjectSALES
dc.subjectSAVING BEHAVIOR
dc.subjectSCHOOLING
dc.subjectSECONDARY EDUCATION
dc.subjectSECONDARY SCHOOL
dc.subjectSINGLE PERSON
dc.subjectSOCIAL PROTECTION
dc.subjectSOCIOECONOMIC STATUS
dc.subjectSTATE BANKS
dc.subjectSTATE UNIVERSITY
dc.subjectSTOCK MARKET
dc.subjectSTOCKS
dc.subjectTECHNICAL EDUCATION
dc.subjectTRANSPARENCY
dc.subjectUNDERSTANDING PENSIONS
dc.subjectUNEMPLOYED
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATE
dc.subjectUNIVERSITIES
dc.subjectVALUABLE
dc.subjectVULNERABLE CONSUMERS
dc.titleFinancial Literacy and the Financial Crisisen
dspace.entity.typePublication
okr.crossref.titleFinancial Literacy and the Financial Crisis
okr.date.disclosure2012-02-01
okr.date.doiregistration2025-04-10T11:02:57.049771Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120229095430
okr.globalpracticeEducation
okr.guid750211468156257746
okr.identifier.doi10.1596/1813-9450-5980
okr.identifier.externaldocumentum000158349_20120229095430
okr.identifier.internaldocumentum15878022
okr.identifier.reportWPS5980
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/02/29/000158349_20120229095430/Rendered/PDF/WPS5980.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.topicEducation::Education For All
okr.topicEducation::Access & Equity in Basic Education
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicatione0a9502f-8574-53b5-bf27-732f5a6026e2
relation.isAuthorOfPublication.latestForDiscoverye0a9502f-8574-53b5-bf27-732f5a6026e2
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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