financial literacy
TRANSCRIPT
Young Adults’ Financial Literacy and Family
Characteristics
How did you learn about money and finances?
Why is financial literacyimportant for young adults?
• Acquire high levels of debt
• Culture of individual responsibility
• Causes adverse decisions
Why focus on family?• Primary unit for learning about finances
• 94% students, parents are most sought source
• 50% who monitor finances learned from
parents
• Parents influence begins at child’s birth
Characteristics of familyParents’ education & experience
Teaching methods & timing
Gender differences
Anxiety & family situation
Parents’ education & experience
High correlation with family income
Strong predictor of child’s financial literacy
• Higher education correlates to higher
dependence
• Adults posses more financial knowledge
than teens
Teaching methods
• Learning begins before children develop
• Non-formal education sets foundation
• Financial literacy increases using teachable
events
• High school teaching fails to fully develop
Teaching methodsChildren’s financial knowledge will
INCREASE
• Given opportunity to spend money
• Have money to use
• Have money to save
• Parents are responsible with money
Teaching methodsMisconceptions that alone will
NOT INCREASE children’s financial knowledge
• Given an allowance
• Given opportunities to make more
money
Gender differences
• Family shapes experiences on how gender relates to
money
• Fathers teach more; Mothers better prepare children
• Women less financially knowledgeable than males
• Females focus on overall finance
• Males focus on earning, increasing value in money
• Females experience more financial difficulties
• Financial information acquired within family is
aligned with gender roles
Anxiety and situation
• Financial strains influence family relationships
• Economic strains increase parent-adolescent
conflict
• Family income influences parent-adolescent
relationship
• Needs call for reduced resources
Summary• Financial literacy is important for young adults
• Family is the primary unit for learning about
finances Parents education strong predictor of child’s financial
literacy
Teaching must begin early; learning begins early
Education should incorporate teachable events
Family shapes experiences on how gender relates to
money
Financial strains can influence family relationships
REMEMBER THIS!
Financial literacy is important for young adults and family has the greatest influence on young adults’
financial knowledge.
ANY QUESTIONS?