35 Pages Posted: 23 Sep 2009
Date Written: August 1, 2009
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.
Suggested Citation: Suggested Citation
Lusardi, Annamaria and Mitchell, Olivia S. and Curto, Vilsa, Financial Literacy Among the Young (August 1, 2009). Michigan Retirement Research Center Research Paper No. 2008-191. Available at SSRN: https://ssrn.com/abstract=1476982 or http://dx.doi.org/10.2139/ssrn.1476982