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.
