We examine financial literacy in Germany and its relevance for financial well-being. Using data from the Panel on Household Finances collected in 2021, we show that about 62% of German households answer the Big Three financial literacy questions correctly. Those with lower education, who are out...

There is a substantial degree of heterogeneity in people’s propensity to engage in financial behaviors that could be considered unsound. Hence, we aim to study the association of individual differences in objective financial knowledge (OFK) (i.e., competence), subjective financial knowledge...