Young Adults and Their Finances: An International Comparative Study on Applied Financial Literacy

Posted: 18 Dec 2017

See all articles by Andreas Oehler

Andreas Oehler

Bamberg University

Matthias Horn

Independent

Stefan Wendt

School of Business, Reykjavik University

Lucia A. Reisch

Copenhagen Business School - Department of Management, Society and Communication; Zeppelin University CCMP - Center for Consumer Markets Politics

Thomas John Walker

Concordia University, Quebec - Department of Finance

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Date Written: December 18, 2017

Abstract

Recent years have brought a gradual shift of responsibility for pension provisions, financial planning, health care and various insurances from governmental institutions and firms to individuals. To tackle this challenge, individuals need applied financial literacy and not merely theoretical knowledge about financial products and mechanisms that does not reflect real-life situations. We survey 448 business students in Canada, Denmark, Germany and Iceland to examine how financial literacy is expressed in their financial portfolios. We contrast these findings with the respondents’ own expectations and needs. The results show that most respondents exhibit good financial literacy as well as a realistic assessment of risk and return and their impact on (financial) well-being.

Keywords: Financial Literacy, Financial Education, Personal Finance, Young Adults

JEL Classification: D14, D83, G11

Suggested Citation

Oehler, Andreas and Horn, Matthias and Wendt, Stefan and Reisch, Lucia A. and Walker, Thomas John, Young Adults and Their Finances: An International Comparative Study on Applied Financial Literacy (December 18, 2017). Available at SSRN: https://ssrn.com/abstract=3089735

Andreas Oehler (Contact Author)

Bamberg University ( email )

Kaerntenstrasse 7
Bamberg 96045
Germany
+49 951-863-2536 (Phone)
+49 951-863-2538 (Fax)

HOME PAGE: http://www.uni-bamberg.de/bwl-finanz/

Matthias Horn

Independent ( email )

Stefan Wendt

School of Business, Reykjavik University ( email )

Menntavegur 1
Reykjavik, 101
Iceland

Lucia A. Reisch

Copenhagen Business School - Department of Management, Society and Communication ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Zeppelin University CCMP - Center for Consumer Markets Politics ( email )

Am Seemooser Horn 20
Friedrichshafen, Lake Constance 88045
Germany

Thomas John Walker

Concordia University, Quebec - Department of Finance ( email )

Montreal, Quebec H3G 1M8
Canada

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