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Financial Literacy And Financial Behavior Among Young Adults: Evidence And Implications, Carlo De Bassa Scheresberg
Financial Literacy And Financial Behavior Among Young Adults: Evidence And Implications, Carlo De Bassa Scheresberg
Numeracy
This paper uses data from the 2009 National Financial Capability Study to examine financial literacy and financial behavior in a sample of approximately 4,500 young adults age 25 to 34. The paper finds that most young adults lack basic financial knowledge. Financial literacy is especially low among certain demographic groups, such as women, minorities, and lower-income or less-educated people. A high level of education, however, is not a guarantee of financial literacy. Only 49% of young respondents with a college education and 60% of young respondents with postgraduate education could correctly answer three simple questions designed to assess financial literacy. …
Financial Literacy And Credit Card Behaviors: A Cross-Sectional Analysis By Age, Sam Allgood, William Walstad
Financial Literacy And Credit Card Behaviors: A Cross-Sectional Analysis By Age, Sam Allgood, William Walstad
Numeracy
In this study, we use a measure of financial literacy that includes both a test score of actual financial literacy and a self-rating of perceived financial literacy to investigate how financial literacy affects five credit card behaviors: (1) always paying a credit card balance in full; (2) carrying over a credit card balance and being charged interest; (3) making only a minimum payment on a credit card balance; (4) being charged a fee for a late payment; and (5) being charged a fee for exceeding a credit limit. Probit analysis was used to assess each behavior with a large nationally …