Financial Literacy among the Young
financial-literacy, age, gender, financial-knowledge, family, consumer-finances
We examined financial literacy among the young using data from the 1997 National Longitudinal Survey of Youth. We showed that financial literacy is low among the young; fewer than one-third of young adults possess basic knowledge of interest rates, inflation, and risk diversification. Financial literacy is strongly related to sociodemographic characteristics and family financial sophistication. Specifically, a college-educated male whose parents had stocks and retirement savings is about 50 percentage points more likely to know about risk diversification than a female with less than a high school education whose parents were not wealthy. These findings have implications for consumer policy.
Lusardi, Annamaria; Mitchell, Olivia S.; and Curto, Vilsa, "Financial Literacy among the Young" (2009). Financial Education Delivery. 13.