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A1a An Evaluation of the Association Between Marital Status and Financial Risk Tolerance
Key Words
risk tolerance, marital status, gender
Short Description
Some researchers believe that marital status is a relevant data point in the financial decision-making process. Others argue that marital status is not particularly relevant. Very few studies have been undertaken to provide evidence in support of either position. Instead, much of the literature uses marital status as a control variable (i.e., a covariate) in analyses developed to test other research questions. The purpose of this paper is to fill this gap in the literature by specifically evaluating the association between financial risk tolerance and categories of marital status. If marital status is a relevant financial management characteristic one should expect to see categories of marital status significantly associated with risk tolerance even after controlling for other individual and household characteristics.