The Behavioural Aspects of Financial Literacy

In this paper, we investigate the contribution of behavioural characteristics to financial literacy UAE residents after controlling for demographic factors. Specifically, test relationship between and biases such as representativeness, self-serving, overconfidence, loss aversion, hindsight bias. Using data collected through survey questionnaires, apply methodology developed by Organization Economic Co-operation Development (OECD) compute scores. Our overall results show that all except overconfidence bias are positively related literacy. Furthermore, some exhibit a stronger quantitative with than others. For example, displays strongest link literacy, followed self-serving The weakest but still statistically significant effect is aversion Although biases, in general, have negative connotations, appear be higher levels