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Researchers : Financial Literacy among the Young: Evidence and Implications for Consumer Policy
Complete Description:We examined financial literacy among the young using the most recent wave of the 1997 National Longitudinal Survey of Youth. We showed that financial literacy is low; fewer than one-third of young adults possess basic knowledge of interest rates, inflation, and risk diversification. Financial literacy was strongly related to sociodemographic characteristics and family financial sophistication. Specifically, a college-educated male whose parents had stocks and retirement savings was about 45 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.
Date Published:Friday, January 1, 2010
Author:Annamaria Lusardi, Olivia S. Mitchell, and Vilsa Curto
Funding Agency: Social Security Administration
Type: Working paper;
Source: Survey data;
Language: English
Audience: Researcher