The impact of life events on financial capability: evidence from the BHPS

Publication type

Research Paper

Series Number

79

Series

FSA Consumer Research

Author

Publication date

September 1, 2009

Abstract:

This report summarises analysis of the impact of life events on financial capability. The project focuses on the characteristics of individuals and the households in which they live that determine their ability to manage and take control of their finances (their ‘financial capability’). In this work we use data from the British Household Panel Survey (BHPS) to construct indices of financial capability based on the hypothesis that there is some underlying factor (financial capability) which is better captured by reviewing a range of indicators of a person’s current financial situation than by any of the specific items of information. We describe how financial capability varies according to individual and household characteristics, and then examine in detail which factors determine financial capability using multivariate statistical models.

Subjects

Link

- http://www.fsa.gov.uk/financial_capability/about_us/publications/index.shtml

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