We examine financial literacy in Germany and its relevance for financial well-being. Using data from the Panel on Household Finances collected in 2021, we show that about 62% of German households answer the Big Three financial literacy questions correctly. Those with lower education, who are out...

We examine financial literacy in Germany and its relevance for financial wellbeing. Using data from the Panel on Household Finances collected in 2021, we show that about 62% of German households answer the Big Three financial literacy questions correctly. Those with lower education, who are out...

Women are less likely to correctly answer the “Big-3” financial literacy questions, and a substantial share of the gap reflects women’s lower confidence. In our experiment, women are more likely to choose “do not know” or refuse to answer financial literacy questions. If these options...