Financial literary bailout for the younger generation
Wednesday, June 2, 2010 - 11:55
in Psychology & Sociology
In the aftermath of the global financial crisis, financial literacy is still low among young adults. According to a new study published in the Journal of Consumer Affairs, only twenty-seven percent of people aged 23-28 can answer three basic questions about interest rates, inflation, and risk diversification, and other basic financial concepts. Furthermore, this result was amplified when studying the answers of young women, African-Americans, and Hispanics, and those with low educational attainment. The results were compiled from a national study, and were consistent with the findings from the Financial Capability Survey, the results of which were released last December by Secretary Geithner and Secretary Duncan.