Age, Gender, and Financial Literacy in Japan

Revealing determinants of financial literacy is important for a better design of policies for financial management of individuals. By analysing a sample from the Financial Literacy Survey 2016, we investigated the association of age with financial literacy as well as that of age with self-rated financial knowledge. Also, we assessed factors accounting for gender differences in financial literacy by the Blinder-Oaxaca decomposition method. Financial literacy declines after increasing to about the early 60s, while confidence in financial literacy reflects the inverse trend, especially among men. Men are more financially literate than women; however, these differences could be mitigated through education