1. Young Adults’ Financial
Literacy and Family
Characteristics

2. How did you learn about
money and finances?

3. Why is financial literacy
important for young adults?
• Acquire high levels of debt
• Causes adverse decisions
• Culture of individual responsibility

4. 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

5. Characteristics of family
 Parents’ education & experience
 Teaching methods & timing
 Gender differences
 Anxiety & family situation

6. 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

7. 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

8. Teaching methods
Children’s financial knowledge will INCREASE
• Given opportunity to spend money
• Have money to use
• Have money to save
• Parents are responsible with money

9. Teaching methods
Misconceptions that alone will
NOT INCREASE children’s financial knowledge
• Given an allowance
• Given opportunities to make more money

10. 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

11. 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

12. 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

13. Financial literacy is important for
young adults and family has the
greatest influence on young
adults’ financial knowledge.