Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/43224
Authors: 
Lusardi, Annamaria
Mitchell, Olivia S.
Curto, Vilsa
Year of Publication: 
2010
Series/Report no.: 
CFS Working Paper 2010/09
Abstract: 
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.
Subjects: 
Financial Knowledge
Peer Effects
Family Background
JEL: 
D91
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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