Loading…
Welcome to the 2018 AFS Annual Meeting, being held this year, in conjunction with FPA in Chicago!
Wednesday, October 3 • 2:00pm - 3:00pm
H4a - The Effect of Financial Literacy on Homeowners and Renters Having a Heavy Financial Obligations Burden

Sign up or log in to save this to your schedule and see who's attending!

Feedback form is now closed.
Previous research using the Survey of Consumer Finances (SCF) has found a positive effect of education on the likelihood of having financial obligations ratio over 40%, but until 2016, SCF datasets did not have direct measures of financial literacy.  The 2016 SCF dataset has three financial literacy questions, allowing for the use of a financial literacy score as an independent variable. The purpose of this study was to analyze how financial literacy affected the likelihood of U.S. renter and homeowner households having a financial obligations ratio over 40%. Based on the logistic regression results, no evidence of relationship is supported between financial literacy scores and households’ having a heavy financial obligations burden. The lack of an effect of financial literacy on having a heavy financial obligations burden suggests that having a financial obligations burden over 40% of income is not necessarily a mistake, for both homeowners or for renters.

Author(s): Congrong Ouyang, Sherman D. Hanna

Presenters
avatar for Congrong Ouyang

Congrong Ouyang

PhD student, Ohio State University


Wednesday October 3, 2018 2:00pm - 3:00pm
Michigan 2

Attendees (2)