How ability and previous knowledge effect working memory in a financial setting

Abstract: Swedish people invest more and more in funds. Much research has been done about how to best present probabilistic information in a way that the consumer understands. But all this research has taken for granted that the consumer has access to all the information when making a decision. We wanted to investigate how ability to understand fund information and previous knowledge of the subject affected the consumer's ability to recall fund information. We created a survey that tested fifty-one students' working memory, financial literacy and their ability to recall fund information. A connection was found between both financial literacy, previous knowledge and the ability to recall fund information. Thus, all investors do not have the same prerequisite.