Gambling is a common recreational activity around the world. Although most people are at lower risk for gambling-related harms, some experience problem gambling (PG) and serious harms. One potential protective factor against PG is financial literacy. In the current study, the researchers examined the relationship between financial literacy and PG using data collected between 2016 and 2022 for a large population-based survey in Australia. They also explored the role of locus of control.
It was found that people with higher financial literacy had a lower risk of PG. But financial literacy did not affect the number of gambling activities engaged in or gambling spending. In addition, financial literacy was found to reduce PG risk partly by enhancing locus of control. These findings suggest that improving financial literacy can have positive effects in preventing the development of PG.
