Carlo de Bassa Scheresberg
Financial Literacy and Financial Behavior among Young Adults: Evidence and Implications
George Washington University
paper uses data 2009 national financial capability study examine financial literacy financial behavior sample approximately 4500 young adults age 25 34 paper finds young adults lack basic financial knowledge financial literacy especially low among certain demographic groups women minorities lowerincome lesseducated people high level education however guarantee financial literacy 49 young respondents college education 60 young respondents postgraduate education could correctly answer three simple questions designed assess financial literacy results show respondents display higher financial literacy higher confidence math personal finance knowledge better financial outcomes less likely use highcost borrowing methods likely plan retirement set aside savings emergencies