Study Shows Link Between Financial Literacy and Hospitalization Risk in Older Adults

A study published in Medical Care found older adults with more financial literacy are less likely to be hospitalized, reports News-Medical . The researchers focused on 388 older adults without dementia, who completed a questionnaire assessing their financial literacy. During an average follow-up of 1.8 years, 30 percent of the participants were hospitalized at least once. Lower financial literacy was linked to a higher risk of hospitalization. Average financial literacy scores were 11 points for seniors who were hospitalized versus 13 points for those who were not. The connection remained significant after adjustment for various factors, including income and indicators of physical and mental health. The final model associated a 4-point increase in financial literacy score with a 35 percent lower risk of hospitalization. The only other independent risk factors were older age and difficulties with daily activities for independent living. The association between financial literacy and hospitalization risk was mainly related to knowledge of financial concepts, and not the ability to perform calculations. This link seemed stronger for elective hospitalizations, instead of for urgent or emergency ones. "These findings build on a growing body of research indicating that financial literacy is associated with better health and well-being in old age," say the researchers.