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Financial Homo Ignorans: Development and validation of a scale to measure individual differences in financial information ignorance
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences. (JEDILab)ORCID iD: 0000-0003-3171-8640
Linköping University, Department of Behavioural Sciences and Learning, Psychology. Linköping University, Faculty of Arts and Sciences. Decision Research, Eugene, Oregon, USA.ORCID iD: 0000-0003-2873-4500
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences. Linköping University, Prioriteringscentrum. (JEDILab)ORCID iD: 0000-0002-8159-1249
2024 (English)In: Journal of Behavioral and Experimental Finance, ISSN 2214-6350, E-ISSN 2214-6369, Vol. 42, article id 100936Article in journal (Refereed) Published
Abstract [en]

Information ignorance refers to the act of deliberately avoiding, neglecting, or distorting information to uphold a positive self-image and protect our identity-based beliefs. We apply this framework to household finance and develop a concise 12-item questionnaire measuring individuals' receptiveness to financial information, or the lack thereof - the Financial Homo Ignorans (FHI) Scale. We conduct two studies with samples from the general population in Sweden (total N=2508) and show that the FHI scale has high reliability and distinct from other commonly used individual-difference measures in behavioral finance. We show that individual heterogeneity as assessed by the FHI scale explains a substantial variation in financial behaviors and financial well-being, also when controlling for demographics and financial literacy. These results unequivocally demonstrate the utility of the FHI scale as a valuable instrument for researchers and practitioners in comprehending and addressing the challenges posed by the omnipresence of financial information in today's world.

Place, publisher, year, edition, pages
ELSEVIER , 2024. Vol. 42, article id 100936
Keywords [en]
Ignorance; Information processing; Financial behavior; Financial well-being
National Category
Economics Psychology (excluding Applied Psychology) Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-203490DOI: 10.1016/j.jbef.2024.100936ISI: 001290486200001Scopus ID: 2-s2.0-85192175171OAI: oai:DiVA.org:liu-203490DiVA, id: diva2:1857989
Funder
Jan Wallander and Tom Hedelius Foundation and Tore Browaldh Foundation
Note

Funding Agencies|Jan Wallander and Tom Hedelius Foundation; Thule Foundation

Available from: 2024-05-15 Created: 2024-05-15 Last updated: 2025-04-05Bibliographically approved

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Barrafrem, KingaVästfjäll, DanielTinghög, Gustav

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CiteExportLink to record
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Citation style
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Output format
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