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From Financial Literacy To Financial Capability Among Youth, Elizabeth Johnson, Margaret S. Sherraden

Center for Social Development Research

Youth in the United States are facing an increasingly complex and perilous financial world. Economically disadvantaged youth, in particular, lack financial knowledge and access to mainstream financial institutions. Despite growing interest in youth financial literacy, we have not seen comparable efforts to improve institutional access to financial institutions and services. Instead of aiming for financial literacy, we suggest aiming for financial capability, a concept that builds on the writing of Amartya Sen and Martha Nussbaum. The paper proposes that financial capability results when individuals develop financial knowledge and skills, but also gain access to financial instruments and institutions. The paper …