Abstract

GARCIA-MATA, Osvaldo; BRISENO-GARCIA, Arturo  and  GARCIA-FERNANDEZ, Francisco. Financial Knowledge Obsolescence. Investig. adm. [online]. 2021, vol.50, n.128, 12805.  Epub Aug 23, 2021. ISSN 2448-7678.  https://doi.org/10.35426/iav50n128.05.

This paper aims to describe the relationship between age and financial knowledge in Mexico, estimate the rate of obsolescence among older adults, and explore how education associates with it. The research method is based on applying of Ordinary Least Squares to construct multiple linear and quadratic regression models. The results confirm that older generations experience a significant financial knowledge decline, not necessarily attributed to schooling. The originality of this research lies in estimating a rate of financial knowledge obsolescence for older people; a topic hardly studied in Mexico. Our findings can contribute to implementing financial inclusion policies that promote a better quality of life during retirement. The lack of data to explain the deterioration’s causes and perform a longitudinal analysis is among the main limitations of this study.

Keywords : financial culture; financial literacy; financial knowledge; age groups; retirement planning; financial knowledge decline; D14; G53; J14.