The Influence of Financial Education Sources on Emergency Savings: The Role of Financial Literacy

Abstract

Using data from the 2018 National Financial Capability Study, this research explored the relationship between financial education sources and emergency savings of U.S. adults, and examined the mediating role of financial literacy. The results showed that receiving financial education from both school and workplace had positive associations with having emergency funds. Financial literacy was found to be positively associated with having emergency funds and financial literacy mediated the relationship between financial education and having emergency savings. The findings reinforced the significance of different financial education sources in increasing the likelihood of saving for emergencies. Implications for policymakers, financial educators and counselors, and employers are included.