Financial literacy may reduce gambling frequency: Evidence from Japan

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Author(s): Watanapongvanich, Somptip ; Binnagan, Punjapol ; Putthinun, Pongpat ; Khan, Mostafa Saidur Rahim ; Kadoya, Yoshihiko

Journal: Journal of Gambilng Studies

Year Published: 2020

Date Added: July 29, 2020

Financial literacy is a person’s ability to understand economic information. People who are financially literate make informed decisions about their finances and know how to accumulate wealth. Frequent gambling can reduce someone’s savings and financial stability. Thus, people who are more financially literate may be less likely to take financial risks by gambling frequently. This study tested for a link between financial literacy, financial education in early school life, and gambling frequency in Japan. Participants who were more financially literate were less likely to gamble frequently. Whether one received financial education in elementary school or not had no impact on gambling frequency. Frequent gambling is linked to gambling-related harms. Thus, promoting financial literacy may reduce the risk of problem gambling.

Citation: Watanapongvanich, S., Binnagan, P., Putthinun, P., Khan, M. S. R., & Kadoya, Y. (2020). Financial literacy and gambling behavior: Evidence from Japan. Journal of Gambling Studies. Advance online publication. https://doi.org/10.1007/s10899-020-09936-3

Article DOI: https://doi.org/10.1007/s10899-020-09936-3

Keywords: education ; financial literacy ; gambling

Topics: Information for Operators

Conceptual Framework Factors: Environment - Social and Economic Impacts ; Resources - Harm Reduction, Prevention, and Protection ; Gambling Environment ; Gambling Resources

Response Rate: Response rate for the 2010 PPS survey is unknown. 5386 participants took the survey, but only 3687 completed it (68% completion rate). The researchers only used data from the completed surveys (N=3687)

Study Design: Descriptive: Survey

Geographic Coverage: Japan

Study Population: Japanese adults aged 20 to 76 years old (N = 3687)

Sampling Procedure: The researchers used data from the 2010 Preferences Parameters Study (PPS) of the Institute of Social and Economic Research at Osaka University. The PPS is an annual survey completed by participants who are representative of the Japanese population.

Study Funding:

This work is supported by a grant in aid from Zengin Foundation for Studies on Economics and Finance; JSPS KAKENHI Grant Numbers JP15KK0083, 19K13739; and RISTEX, JST.