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

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 kn
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. JEL Classification: D91 Keywords: Financial Knowledge, Peer Effects, Family Background
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Metadaten
Author:Annamaria Lusardi, Olivia S. Mitchell, Vilsa Curto
URN:urn:nbn:de:hebis:30-78626
Series (Serial Number):CFS working paper series (2010, 09)
Document Type:Working Paper
Language:English
Date of Publication (online):2010/08/19
Year of first Publication:2010
Publishing Institution:Univ.-Bibliothek Frankfurt am Main
Release Date:2010/08/19
Tag:Family Background; Financial Knowledge ; Peer Effects
HeBIS PPN:226433714
Institutes:Center for Financial Studies (CFS)
Dewey Decimal Classification:330 Wirtschaft
Sammlungen:Universitätspublikationen
Licence (German):License Logo Veröffentlichungsvertrag für Publikationen

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