Work

Financial Literacy among the Young: Evidence and Implications for Consumer Policy

Year: 2009

Type: report

Abstract: 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.

Source: National Bureau of Economic Research

DOI: 10.3386/w15352

Authors: Annamaria Lusardi, Olivia Mitchell, Vilsa Curto

Institutions: Dartmouth College, National Bureau of Economic Research, University of Pennsylvania

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funders: FINRA Investor Education Foundation, U.S. Social Security Administration, University of Pennsylvania, University of Michigan

OpenAlex ID: W1583743809

Cites: 48

Cited by: 186

Related to: 10