Exploring financial behaviors of military households: Do financial knowledge and financial education matter?
Research Report:
Research SummaryAPA Citation:
Wilmarth, M. J., Kim, K. T., & Henager, R. (2023). Exploring financial behaviors of military households: Do financial knowledge and financial education matter? Financial Services Review, 31(1), Article 1. https://doi.org/10.61190/fsr.v31i1.3193
Abstract Created by REACH:
This study examined short-term (e.g., having emergency funds, spending within limits) and long-term (e.g., financial planning, saving for retirement) factors related to the financial behaviors of military households (i.e., active-duty Service members and Veterans). Civilian (n = 17,751) and military (n = 3,045) households' data were taken from the 2018 National Financial Capability Study. Participants reported their objective and perceived financial knowledge, whether they had received financial education, and their shortand long-term financial behaviors. After accounting for sociodemographic characteristics (e.g., age, income), financial education was related to more perceived financial knowledge and more engagement in healthy long-term financial behaviors for military households.
Focus:
Other
Branch of Service:
Multiple branches
Military Affiliation:
Active Duty
Subject Affiliation:
Military families
Civilian
Population:
Adulthood (18 yrs & older)
Young adulthood (18 - 29 yrs)
Thirties (30 - 39 yrs)
Middle age (40 - 64 yrs)
Authors:
Wilmarth, Melissa J., Kim, Kyoung Tae, Henager, Robin
Abstract:
This study explores short-term and long-term financial behaviors of military and civilian house- holds in the United States. We investigate the role of financial knowledge and financial education on financial behaviors. Using the 2018 National Financial Capability Study (NFCS), results indicated military households had higher financial knowledge scores, greater receipt of financial education, and higher financial behaviors. Multivariate analyses show that objective and subjective financial knowledge were associated positively with short-term and long-term financial behaviors of military and civilian households. Experiencing financial education was positively associated with the long- term behaviors of military households. This study provides insights for policymakers and financial practitioners.
Publication Type:
Article
REACH Publication
Keywords:
Financial behaviors, Financial education, Financial knowledge, Military households, National Financial Capability Study
REACH Publication Type:
Research Summary
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