In two new studies funded by the FINRA Investor Education Foundation, researchers found correlations between financial confidence and financial literacy and cognitive health in older persons.
In the first study, researchers found that financial confidence in older adults has a positive effect on their cognitive health "that is complementary to a person's actual financial literacy level." The report concluded that "education and outreach programs aimed to increase financial and health literacy are important to preserve cognitive health among older persons," and that "initiatives targeting soft psychological skills such as confidence could benefit cognitive wellbeing."
In the second study, researchers reviewed ten years of cross-sectional data from annual literacy assessments and determined that "faster decline in financial and health literacy was associated with poorer decision making, higher susceptibility to scams and lower psychological well-being" in older adults. The report concluded that "efforts to mitigate declining financial and health literacy may promote independence and wellbeing in old age" and the importance of preventing, capturing, and potentially reversing the decline of financial literacy in older adults.
In both studies, the researchers advocated for education and outreach programs that aim to bolster financial and health literacy in older adults.
Primary Sources
- FINRA Press Release: New Research - Two FINRA Foundation Studies Explore Links among Financial Knowledge, Cognitive Health, and Financial Decision Making in Older Americans
- FINRA Study: Confidence in Financial Literacy and Cognitive Health in Older Persons
- FINRA Study: Adverse Impacts of Declining Financial and Health Literacy in Old Age
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