Financial Literacy: The Relationship to Saving Behavior in Low- to Moderate-income Households

This study was designed to explore financial literacy in low‐ to moderate‐income households with regard to saving behavior. The study examined the low‐ to moderate‐income household's decision to save regularly and their responses to three questions related to financial literacy and a self‐reported perception of financial knowledge. Perceived financial knowledge and planning (usually or most of the time) were good indicators of the decision to save regularly.