This research examines the relationship between financial literacy and financial capability using cross-sectional data of the United States population from five different triennial surveys. Financial literacy is measured in terms of financial education attendance, and financial capability is measured in terms of how well people make ends meet in a typical month. Regression analysis was performed using probit models to determine the likelihood of financial difficulty in relation to financial education and other demographic characteristics. Results confirmed that individuals who had financial education were 5% less likely to suffer financially The results also demonstrated that when financial practices commonly taught in financial education are in place, such as having an emergency fund or a retirement plan, it far outpaces financial literacy effects alone. This illustrates past research problems related to measuring financial literacy impact exclusively, since financial literacy functions as an instigator for behaviors that bring greater financial capability development.
Keywords: financial literacy, financial capability, financial education, financial difficulty
","abstract_html":"<p>This research examines the relationship between financial literacy and financial capability using cross-sectional data of the United States population from five different triennial surveys. Financial literacy is measured in terms of financial education attendance, and financial capability is measured in terms of how well people make ends meet in a typical month. Regression analysis was performed using probit models to determine the likelihood of financial difficulty in relation to financial education and other demographic characteristics. Results confirmed that individuals who had financial education were 5% less likely to suffer financially The results also demonstrated that when financial practices commonly taught in financial education are in place, such as having an emergency fund or a retirement plan, it far outpaces financial literacy effects alone. This illustrates past research problems related to measuring financial literacy impact exclusively, since financial literacy functions as an instigator for behaviors that bring greater financial capability development.</p> <p>Keywords: financial literacy, financial capability, financial education, financial difficulty</p>","abstract_has_math":false,"creators":["Müller, Ramon"],"institution":null,"degree_name":"Master of Science (MS)","degree_level":"Open Access Thesis","degree_discipline":"Economics","degree_department":null,"school":null,"contributors":["James Saunoris, Ph.D.","Christopher Elias, Ph.D., MS"],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2023,"date_issued":"2023-01-01T08:00:00Z","date_published":"2023-01-01T08:00:00Z","updated_at":"2026-07-24T02:17:47Z","subjects":["financial capability","financial difficulty","financial education","financial literacy","Finance"],"languages":[],"rights":[],"rights_urls":[],"identifier_entries":[]},"links":{"outbound_url":"https://commons.emich.edu/theses/1185","outbound_label":"Repository record","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["James Saunoris, Ph.D.","Christopher Elias, Ph.D., MS"]},{"key":"dc:creator","label":"Author","values":["Müller, Ramon"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date.available","label":"Dc Date Available","values":["2023-06-28T07:00:00Z"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Economics"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Open Access Thesis"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Master of Science (MS)"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["financial capability","financial difficulty","financial education","financial literacy","Finance"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["https://commons.emich.edu/theses/1185"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description.abstract","label":"Abstract","values":["This research examines the relationship between financial literacy and financial capability using cross-sectional data of the United States population from five different triennial surveys. Financial literacy is measured in terms of financial education attendance, and financial capability is measured in terms of how well people make ends meet in a typical month. Regression analysis was performed using probit models to determine the likelihood of financial difficulty in relation to financial education and other demographic characteristics. Results confirmed that individuals who had financial education were 5% less likely to suffer financially The results also demonstrated that when financial practices commonly taught in financial education are in place, such as having an emergency fund or a retirement plan, it far outpaces financial literacy effects alone. This illustrates past research problems related to measuring financial literacy impact exclusively, since financial literacy functions as an instigator for behaviors that bring greater financial capability development.
Keywords: financial literacy, financial capability, financial education, financial difficulty
"]},{"key":"dc:title","label":"Title","values":["The impact of financial literacy on financial capability: Evidence based on the National Financial Capability Study"]}]}],"canonical_facts":{"dc:contributor":["James Saunoris, Ph.D.","Christopher Elias, Ph.D., MS"],"dc:creator":["Müller, Ramon"],"dc:date.available":["2023-06-28T07:00:00Z"],"dc:description.abstract":["This research examines the relationship between financial literacy and financial capability using cross-sectional data of the United States population from five different triennial surveys. Financial literacy is measured in terms of financial education attendance, and financial capability is measured in terms of how well people make ends meet in a typical month. Regression analysis was performed using probit models to determine the likelihood of financial difficulty in relation to financial education and other demographic characteristics. Results confirmed that individuals who had financial education were 5% less likely to suffer financially The results also demonstrated that when financial practices commonly taught in financial education are in place, such as having an emergency fund or a retirement plan, it far outpaces financial literacy effects alone. This illustrates past research problems related to measuring financial literacy impact exclusively, since financial literacy functions as an instigator for behaviors that bring greater financial capability development.
Keywords: financial literacy, financial capability, financial education, financial difficulty
"],"dc:identifier":["https://commons.emich.edu/theses/1185"],"dc:subject":["financial capability","financial difficulty","financial education","financial literacy","Finance"],"dc:title":["The impact of financial literacy on financial capability: Evidence based on the National Financial Capability Study"],"thesis:degree_discipline":["Economics"],"thesis:degree_level":["Open Access Thesis"],"thesis:degree_name":["Master of Science (MS)"]},"updated_at":"2026-07-24T02:17:47Z"}