Financial Knowledge and Short-Term and Long-Term Financial Behaviors of Millennials in the United States

Journal of Family and Economics Issues, Forthcoming

34 Pages Posted: 18 Sep 2017 Last revised: 7 Oct 2018

See all articles by Kyoung Tae Kim

Kyoung Tae Kim

University of Alabama

Somer Anderson

Maryville University

Martin Seay

Kansas State University

Date Written: September 30, 2018

Abstract

This study investigates the role of financial knowledge in various short-term and long-term financial behaviors among Millennials in the United States. Results from the 2015 National Financial Capability Study (NFCS) indicate that Millennials have lower levels of objective financial knowledge and similar levels of perceived financial knowledge as compared to all households. Consistent multivariate results find financial knowledge to be positively associated with performing positive short-term and long-term financial behaviors. Results are found to be robust across different measurements of financial knowledge and behavior, and the issue of the potential for reverse causality is specifically addressed. This study provides a comprehensive financial profile of Millennials with important insight for policymakers as well as financial practitioners.

Keywords: Financial literacy; financial knowledge; financial education; financial behaviors; Millennials

JEL Classification: D12, D14

Suggested Citation

Kim, Kyoung Tae and Anderson, Somer and Seay, Martin, Financial Knowledge and Short-Term and Long-Term Financial Behaviors of Millennials in the United States (September 30, 2018). Journal of Family and Economics Issues, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3037672 or http://dx.doi.org/10.2139/ssrn.3037672

Kyoung Tae Kim

University of Alabama ( email )

312 Adams Hall
Tuscaloosa, AL 35487-0001
United States

Somer Anderson (Contact Author)

Maryville University ( email )

United States

Martin Seay

Kansas State University ( email )

Manhattan, KS 66506-4001
United States

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