The Association Between Self-Rated Financial Knowledge and Positive Financial Behavior Among Different Socio-Economic Groups

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Faculty Sponsor: Maryam Gooyabadi

Live Poster Session: Zoom Link

Abdiasis Daauud

Abdiasis is a sophomore pursuing a major in Computer Science with a minor in Data Analysis. He contributes to academic and campus life through multiple roles, including serving as a Research Assistant in the Smith Lab, a Website Developer for the Psychology Department, and a photographer for the Athletic Department. Outside his professional and academic endeavors, Abdiasis enjoys staying active through running, hiking, and engaging in friendly competition playing FIFA.

Abstract:
This study investigates the association between self-rated financial knowledge and positive financial behavior using the Financial Well-Being Dataset. Unlike prior research that predominantly focuses on objective financial knowledge, this study highlights the critical role of subjective knowledge. The findings reveal a strong and significant positive relationship, with higher self-rated financial knowledge consistently leading to substantial improvements in financial behavior scores. This relationship remains robust across certain socio-demographic factors, including age, marital status, and employment status, emphasizing the importance of subjective financial knowledge alongside demographic characteristics in shaping financial behaviors.

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