Financial Knowledge and Financial Behavior : The Moderating Role of Home Ownership

The relationship between financial knowledge and financial behaviour has been widely studied in previous literature. Numerous works conducted in different contexts have found a positive relationship between them. The objective of this paper is to test the effect of homeownership on this relationship. To this aim, we perform extended ordered probit regressions. We use data from the Survey of Financial Competences conducted by the supervisor of the Spanish securities markets and the Spanish central bank. Result supports the hypothesis that home ownership has a moderating effect on the relationship between financial knowledge and financial behaviour