The Effect of Financial Literacy on Preventive Health Care Usage

Grade Level at Time of Presentation

Freshmen

Major

Gatton Academy of Mathematics and Science in Kentucky

Minor

N/A

Institution

Western Kentucky University

KY House District #

99

KY Senate District #

27

Department

Department of Finance

Abstract

With health care expenditures rising across the board, and financial literacy at a concerning rate for nations across the globe, it is only natural that we ask ourselves the question, “Could the two be related?” This study examines the impact of financial literacy on preventive health care participation using data taken from a survey of students at Western Kentucky University. This project argues that preventive health care is an investment in an individual’s physical human capital, and financial literacy has a positive, significant impact on preventive health care. An individual with high financial literacy will recognize the economic value of their health and, therefore, will participate more in preventive health care. The results of our study support our conjecture that individuals who are financially literate also utilize preventive health care. These findings will help to carry out significant policy implications in health care and financial literacy education.

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The Effect of Financial Literacy on Preventive Health Care Usage

With health care expenditures rising across the board, and financial literacy at a concerning rate for nations across the globe, it is only natural that we ask ourselves the question, “Could the two be related?” This study examines the impact of financial literacy on preventive health care participation using data taken from a survey of students at Western Kentucky University. This project argues that preventive health care is an investment in an individual’s physical human capital, and financial literacy has a positive, significant impact on preventive health care. An individual with high financial literacy will recognize the economic value of their health and, therefore, will participate more in preventive health care. The results of our study support our conjecture that individuals who are financially literate also utilize preventive health care. These findings will help to carry out significant policy implications in health care and financial literacy education.