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
Date Written: September 30, 2018
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: Suggested Citation