Financial literacy and investment in wine: a two-country study on Generations Y and Z

Purpose Financial literacy is crucial in explaining a broader set of investment behaviors. This paper investigates what financial literacy, wine knowledge, risk propensity and wine purchase behavior have in common. Design/methodology/approach The analysis is on a questionnaire distributed online to an equal number of young adults from a traditional wine-producing and consuming country (France) and a country less linked to wine by tradition (the UK). Findings The analysis shows how financial literacy, financial education and financial risk attitudes impact the attitudes toward wine purchase decisions. Results indicate that participants prefer to drink wine for pleasure rather than for potential financial gain. Significant relationships exist between financial literacy, wine consumption frequency and willingness to store and pay for wine. Originality/value These results allow for a better understanding of wine purchasing behavior in light of willingness to pay, invest and store. Highlights (1) Financial literacy has a positive role in influencing wine storage and investments. (2) Culture shapes the impact of financial literacy, habits and risk on wine investments. (3) Gender and age have a role in influencing wine investments.