Improving knowledge is a valuable strategy for improving financial outcomes for adults in the United States. Prior work has identified two key areas: personal finance and mathematics. Higher levels of financial knowledge are associated with better financial behaviors. Similarly, mathematics knowledge has been connected to improved financial behavior. However, what is not yet well understood is the relationship between the two types of knowledge. In this paper, we identify key financial behaviors and look at their connection to financial and mathematical knowledge, both independently and jointly. We find that in all cases, greater financial and math knowledge is associated with better financial behaviors. Notably, respondents with a high level of both math and finance knowledge are more likely to engage in positive financial behavior and less likely to engage in negative financial behaviors than those with high knowledge of only one area. The findings suggest that higher levels of both financial and math knowledge may be optimal for sound financial decision making. This has implications for the development of a more well-rounded and systematic strategy for improving financial outcomes in the U.S.

Accepted Oral Presentation