CFCM 12/01: Financial Literacy and Consumer Credit Use

Abstract

We survey a representative sample of UK consumers on their understanding of core ‘financial literacy’ concepts in consumer credit. We find levels of financial literacy are generally low in the population. We also find levels of financial literacy are on average actually lower among those who participate in consumer credit markets compared with those who do not. This evidence contrasts with that from previous studies on retirement planning and stock market investment which find a positive relationship between financial literacy and market participation.

Download the paper in PDF format

Authors

Richard Disney and John Gathergood

View all CFCM discussion papers | View all School of Economics featured discussion papers