Analyzing the Gender Gap in Financial Literacy

Abstract

Studies have repeatedly shown that women answer less financial knowledge questions correctly than men. Hence, they are often identified to be a financially 'vulnerable' group who needs more attention in financial education. This paper explores if this holds true for the Austrian population. A survey among 2,000 respondents reveals that Austrian men outperform women in terms of financial knowledge, even if we control for different socio-demographic characteristics and response behavior. However, women seem to be less prone to spending money, are more risk averse and watch their financial status more closely. In a multiple regression analysis, knowledge, attitudes and behavior are relevant for explaining financial well-being, but gender is not. Thus, it seems that women are not necessarily a financially vulnerable group but might benefit from acquiring more financial knowledge and gain more self-confidence in making financial decisions.