A Structural Analysis of Financial Literacy

초록

This study investigates the effects of socioeconomic status, economic attitudes, and financial attitudes on financial literacy and behaviors by using structural equation models incorporating endogeneity among latent variables. The results show students’ intentions to select economics as the most important factor influencing economic and financial attitudes. Economic attitudes had a greater effect on financial literacy than financial attitudes. According to descriptive statistics, financial attitudes had a positive effect on financial literacy. However, with the endogeneity of financial attitudes explicitly incorporated into latent variables, they had a significantly negative effect, implying overconfidence about financial literacy. Financial literacy had a positive effect on financial behaviors, demonstrating the important role of economic and financial education in influencing students’ behaviors.