Financial literacy: a psychologist's perspective on an emerging societal problem in Australia
Paper
Paper/Presentation Title | Financial literacy: a psychologist's perspective on an emerging societal problem in Australia |
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Presentation Type | Paper |
Authors | Fogarty, Gerard J. (Author) and MacCarthy, Karina (Author) |
Editors | Katsikitis, Mary |
Journal or Proceedings Title | Proceedings of the 2006 Joint Conference of the Australian Psychological Society and the New Zealand Psychological Society |
Number of Pages | 5 |
Year | 2006 |
Place of Publication | Melbourne, Australia |
ISBN | 0909881308 |
Web Address (URL) of Paper | http://www.psychology.org.au/publications/conference_proceedings/ |
Conference/Event | Psychology Bridging the Tasman: Science, Culture and Practice 2006 |
Event Details | Psychology Bridging the Tasman: Science, Culture and Practice 2006 Event Date 26 to end of 30 Sep 2006 Event Location Auckland, New Zealand |
Abstract | In the past decade, researchers in New Zealand, the United States, and the United Kingdom have devoted considerable effort to monitoring financial literacy among adolescents and adults and concluded that almost half the population of those countries exhibit serious deficiencies in their understanding of everyday financial matters. Two recent surveys by Australian financial institutions indicate that the situation is no different in Australia, prompting the federal government to call for a concerted effort from all sections of the professional community to address this growing societal problem. To explore the psychological predictors of financial literacy, the present study administered tests of numeracy, general fluid (Gf), and general crystallised (Gc) intelligence to a sample of 126 adults. Despite the fact that the test was not intended to be difficult, 39% of the participants failed to achieve a pass mark. The demographic variables, level of education and annual income, explained 26% of the variance in scores with the cognitive ability measures contributing a further 15%. We conclude by outlining directions for future research and some possible ways in which the discipline of psychology can contribute to this emerging societal challenge. |
Keywords | financial literacy; intelligence; abilities |
ANZSRC Field of Research 2020 | 440603. Economic geography |
529999. Other psychology not elsewhere classified | |
380199. Applied economics not elsewhere classified | |
Public Notes | File reproduced in accordance with the copyright policy of the publisher/author. |
Byline Affiliations | Department of Psychology |
https://research.usq.edu.au/item/9xw86/financial-literacy-a-psychologist-s-perspective-on-an-emerging-societal-problem-in-australia
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