Financial literacy among the young: Evidence and implications for consumer policy

Annamaria Lusardi (), Olivia Mitchell and Vilsa Curto

No 2010/09, CFS Working Paper Series from Center for Financial Studies (CFS)

Abstract: We examined financial literacy among the young using the most recent wave of the 1997 National Longitudinal Survey of Youth. We showed that financial literacy is low; fewer than one-third of young adults possess basic knowledge of interest rates, inflation, and risk diversification. Financial literacy was strongly related to sociodemographic characteristics and family financial sophistication. Specifically, a college-educated male whose parents had stocks and retirement savings was about 45 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.

Keywords: Financial Knowledge; Peer Effects; Family Background (search for similar items in EconPapers)
JEL-codes: D91 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (39)

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Related works:
Working Paper: Financial Literacy among the Young: Evidence and Implications for Consumer Policy (2009)
Working Paper: Financial Literacy among the Young: Evidence and Implications for Consumer Policy (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:201009

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