Financial literacy and over-indebtedness in low-income households

摘要: Abstract Financial literacy can explain a significant proportion of wealth inequality. Among the key components financial are numeracy and money management skills. Our study examines relative importance these in determination consumer debt household net worth among credit union members socially disadvantaged areas. The main finding from our analysis is that skills important determinants outcomes but has almost no role to play. This result adds recent US-based behavioural finance literature on attention planning finance. Findings found be robust when sample reduced only those who have clear decision-making also controlling for potential endogeneity. findings policy implications UK elsewhere as unions across world players national strategies.