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

Year: 2009

Type: article

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: Scholarly Commons (University of Pennsylvania)

Authors: Annamaria Lusardi, Olivia S. Mitchell, Vilsa Curto

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

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

OpenAlex ID: W3145557460

FWCI:

Cites:

Cited by: 2

Related to: 10