What’s Math Got to Do with It?: Establishing Nuanced Relations between Math Anxiety, Financial Anxiety, and Financial Literacy

Abstract

We investigate the relations between math anxiety, financial anxiety, and financial literacy while extending previous research in three ways. First, we examine the distinct subconstructs that comprise financial literacy (i.e., financial knowledge, confidence, attitudes, and behaviour). Second, we distinguish between financial knowledge items that are confounded with numeracy versus items that are not. Third, we control for trait anxiety. Using survey data from Canadian adults (N = 241), we demonstrate that math anxiety is negatively related to mathematical financial knowledge but is not related to conceptual financial knowledge, financial confidence, or financial behaviour. Financial anxiety, conversely, is negatively related to both mathematical and conceptual financial knowledge, financial confidence, and ideal financial behaviour. Our data suggest that, when considering financial literacy holistically, financial anxiety is more important than previously thought. These findings highlight the importance of distinguishing between the subconstructs that comprise financial literacy when attempting to understand individual differences that relate to financial literacy. Educators and policymakers looking to improve financial literacy would seemingly benefit from employing a targeted approach to decrease anxiety toward both math and finances.