Microsoft Word Ed Horwitz Post Dissertation Fina docx

 Essay Three: “Financial Literacy and Retirement Preparedness Best Practice 
Behaviors” 
 
The third essay, “Financial Literacy and Retirement Preparedness Best Practice 
Behaviors,” utilized data from the 2012 FINRA National Financial Capability Study and 
explored the relationship between financial literacy and the three best practice behaviors of: (a) 
calculating retirement savings needs, (b) owning individual retirement savings products, and (c) 
stock or securities ownership. The following research questions were explored: 
1.  What is the association between financial knowledge and calculating retirement 
savings needs? 
2.  What is the association between financial knowledge and individual retirement 
product ownership behavior? 
3.  What is the association between financial knowledge and stock or securities 
ownership? 
The results of this essay showed that objective financial knowledge was found to have a 
positive association with all three of the best practice behaviors, holding all else equal. 
Additionally, subjective financial knowledge also indicated a positive association with all three 
best practices. The measures for financial skills included daily financial skills and math skills. 
Each of the two skills measures had associations with two of the three best practice behaviors. 
These results support the links in the financial literacy model between financial knowledge, 
financial skills, and financial behavior, albeit the associations between financial knowledge and 
behaviors were more consistently shown.  

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