What is it about?
This paper examines how people develop their financial attitudes and behaviors based on cultural and social factors. It focuses on the ultra-Orthodox Jewish (Haredi) community in Israel, where distinct gender roles and religious norms create unique pathways for economic socialization. By studying how men and women in this community are exposed to—or insulated from—financial decision-making, the research highlights how cultural values and economic experiences shape attitudes toward risk, competition, financial literacy, and loss-aversion. The findings challenge the idea that differences in economic behaviors between genders are purely innate. Instead, they show how social structures and cultural expectations profoundly influence financial attitudes. For example, men dedicated to religious study often avoid economic engagement, resulting in lower financial literacy and greater loss-aversion compared to men or women actively participating in the workforce. By broadening the understanding of how financial behaviors are shaped by society and culture, this study offers valuable insights into economic life beyond the typical Western capitalist perspective.
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Why is it important?
his paper is unique because it shifts the focus of economic research from individual traits to the broader cultural and social contexts that shape financial behaviors. By exploring a community where religious values often overshadow economic ones, it reveals how different pathways to financial literacy and decision-making emerge in non-traditional environments. This approach challenges the Western bias in much of the existing research, offering fresh insights into the interplay of culture, gender, and economic life. It’s timely because of the growing recognition that financial education programs and policies often fail when they don’t account for the social and cultural realities people face. As societies grapple with issues like gender inequality and financial inclusion, understanding how cultural contexts influence financial behaviors can help design more effective interventions. This paper’s focus on the Haredi community—an insular yet rapidly growing population—provides a compelling case study for thinking about these issues in both localized and global contexts.
Perspectives
From my perspective, this paper is a reminder of how deeply our financial lives are shaped by the world we grow up in. What struck me most was the way cultural values can insulate individuals from certain economic norms while amplifying others. For instance, the Haredi men in full-time religious study are shielded from the financial pressures most people face, yet this also limits their ability to make confident financial decisions. It’s a fascinating contrast: in a world where financial success often defines social status, this community flips that script entirely, prioritizing spiritual study and modesty over material gain. What’s particularly compelling is the way the paper connects economic behavior to identity. It’s not just about whether someone is “good” or “bad” with money—it’s about how their entire worldview, shaped by culture and community, informs their financial choices. This perspective makes the findings feel both relatable and profound. After all, whether we realize it or not, we’re all shaped by the economic socialization of our environments, even if those influences look very different across cultures. For me, the study’s real value lies in its implications. By showing how economic behaviors are learned and not innate, it offers hope that these behaviors can also be reshaped. It’s a reminder that when we talk about financial literacy or gender gaps, we’re really talking about cultural and social systems that can—and should—be changed.
Dr. Adam Hayes
University of Lucerne
Read the Original
This page is a summary of: Rethinking economic socialization: the intersection of culture, gender and economic life in a religious enclave, Socio-Economic Review, October 2024, Oxford University Press (OUP),
DOI: 10.1093/ser/mwae063.
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