Financial knowledge acquisition among the young

The role of financial education, financial experience, and parents’ financial experience

Abstract

This article explores how financial education, financial experience, and parents’ financial experi- ence influence young adults’ financial knowledge. We rely on a general model of learning to hypothesize the determinants of financial knowledge acquisition. Using data on 3,597 young adults from a national longitudinal survey, we find that financial education, financial experience, and parents’ financial experience all exert a positive impact on young adults’ financial knowledge. Moreover, these determinants work interactively. Both individual and parents’ financial experience help narrow the gap in financial knowledge caused by lack of financial education.