Financial literacy can help prevent anxiety about old age

Apr 17 2017 - 6:03am

Researchers in Japan say they have determined an understanding of money decreases concerns about old age.

When it comes to your health and well being the old saying that money is the root of all evil is not true at all. In fact financial security is essential to your overall well being in body and mind in the world mankind has chosen to create. Anyone who tries to tell you otherwise about your own financial needs represents a very serious danger for your health.

Concerns about old age are decreased with an understanding of money reports that researchers in Japan have determined that concerns about old age are decreased with an understanding of money. People who have a good solid understanding of finance are not as likely to have anxieties about their elderly years.

Although there has been a growing understanding of how important good nutrition and self-esteem are to aging well, there has not been as much direct consideration of financial matters in the scientific literature. In this sense money can be seen as the root of all good instead of the root of all evil.

Financial literacy results in more confidence about the coming years

Generally is appears that people are able to accumulate more assets and income during their lifetime when they are financially literate. Financial literacy deals with the capacity to understand how it is that money works. This results in more confidence about the coming years.

Associate Professor Yoshihiko Kadoya of Hiroshima University and Mostafa Saidur Rahim Khan of Nagoya University asked people in Japan to respond to questions dealing with an assessment of their calculation skills, an understanding of the behavior of pricing, and an understanding of financial securities. The participants in this study were also questioned about the wealth which they had accumulated, their assets, and their lifestyle. Finally they were asked to give a rating for the level of anxiety which they felt about their lives when they are 65 years old and older.

It was determined in this study that there is not a very high rate of financial literacy throughout the Japanese society. Furthermore, men and those who had a higher level of education were generally more financially literate than women, and those who had less education.

People who are financially literate accumulate more wealth and are less worried about growing older

Overall it was determined there are greater lifetime earnings and accumulation of more wealth during a lifetime in those who are financially literate. These people also are less worried about growing older. Financial literacy was also found to shape the perception of people in dealing with risk and uncertainty. This helps these people become more capable and develop more confidence in confronting whatever problems they are met with in life.

Although financial literacy when taken alone was not observed to to lessen anxiety, the affect was further increased by other variables. An awareness of financial products and a capacity to compare various financial options is enhanced with financial literacy. The resulting changes in financial behavior helps people enjoy their elderly years more.

Governments should develop strategies to help deal with an anxiety pandemic in regard to financial concerns