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The role of financial literacy for financial resilience in middle-age and older adulthood

cris.lastimport.scopus2024-09-19T01:30:41Z
dc.abstract.enPurpose Preserving sufficient financial assets is crucial for maintaining the standard of living. The lack of adequate financial cushion can translate into financial hardship at any age, but its effects can be especially severe in later adulthood. The authors evaluate whether financial literacy can prevent individuals from depleting the stock of liquid financial assets below a predefined minimum level. Design/methodology/approach Defining financial resilience as the ability to maintain the value of household savings above the level of 3-monthly incomes, the authors examined whether financial literacy is (1) prospectively associated with the probability of losing financial resilience and (2) the probability of gaining financial resilience among financially vulnerable middle-aged and older adults. To this end, the authors applied the multivariate Cox proportional hazards model with time-varying covariates. Data were retrieved from the Survey of Health, Aging and Retirement in Europe with the sample comprising 13,718 adults aged ≥ 50 years in (1) and 12,802 in (2). Findings The authors show that financial literacy plays a protective role for financial resilience. Its role is not symmetrical and protects more against the loss of financial resilience than it contributes to the gain of financial resilience. Among individuals aged 65–74, the association between financial literacy and financial resilience is weaker than among adults in the middle-age (50–64) and among the oldest (75+). Social implications Fostering financial literacy can be important to help middle-aged and older adults maintain a good quality of life and favorable living standards. Originality/value Given the scarce evidence on the links between financial literacy and financial resilience among middle-aged and older adults, the article contributes to the literature by examining whether financial literacy retains its protective role in later stages of the life course.
dc.affiliationAdministracji i Nauk Społecznych
dc.contributor.authorPiotr Bialowolski
dc.contributor.authorAndrzej Cwynar
dc.contributor.authorDorota Weziak-Bialowolska
dc.date.accessioned2024-07-23T11:42:19Z
dc.date.available2024-07-23T11:42:19Z
dc.date.issued2022
dc.identifier.doi10.1108/IJBM-10-2021-0453
dc.identifier.issn0265-2323
dc.identifier.urihttps://repo.akademiawsei.eu/handle/item/541
dc.languageen
dc.pbn.affiliationeconomics and finance
dc.relation.ispartofInternational Journal of Bank Marketing
dc.rightsClosedAccess
dc.subject.enFinancial literacy
dc.subject.enFinancial resilience
dc.subject.enSavings
dc.subject.enShare
dc.subject.enMiddle-aged and older adults
dc.titleThe role of financial literacy for financial resilience in middle-age and older adulthood
dc.typeReviewArticle
dspace.entity.typePublication
oaire.citation.issue7
oaire.citation.volume40