What determines financial literacy in Japan?

Abstract

AbstractThis study investigates the factors affecting financial literacy in Japan using data from Osaka University's Preference Parameter Study. We examine several demographic, socio-economic, and psychological variables drawn from the social learning, consumer socialization, and psychological theories of learning. The results indicate that the demographic factors of gender, age, and education; the socio-economic factors of income and occupation; and the psychological factor of perceptions of the future significantly affect the level of financial literacy. The results are robust to different measures of financial literacy and emphasize that social contact and people's future orientation can improve financial literacy levels in Japan.