Millennials hampered by low levels of financial literacy

first_img Related news Members of the millennial generation generally have low levels of financial literacy, engage in problematic financial behaviours, and worry about their debts, notes a new study from the FINRA Investor Education Foundation in the United States The group released a new study Monday that looks at the financial capability of “millennials”, those aged 18-34, which finds that they are hampered by low levels of financial literacy. Only 24% could answer four or five questions correctly on a five-question financial literacy quiz; and this drops to 18% among young millennials, those 18 to 26. The FINRA Foundation says that its study “paints a troubling portrait of this generation’s behavior and attitudes in an era of high underemployment and unemployment, a sluggish economy and tight credit markets.” It reports that 43% of millennials have used costly non-bank forms of borrowing in the last five years, such as pawn shops and payday lenders. This compares with 21% of baby boomers (aged 50 to 66), and just 8% of the “silent generation” (67 and older). Additionally, almost half (46%) of millennials are concerned they have too much debt, which is similar to those in generation X (35-49), but much higher than baby boomers (38%) and the silent generation (23%). Nevertheless, despite the higher financial strain that millennials face, the study also found that they express levels of financial satisfaction that are in line with gen X and baby boomers. “Many millennials began their adult lives in the midst of the worst economic downturn in generations, and our survey reveals just how deeply and broadly the Great Recession has marked the financial lives of this generation of Americans. Unfortunately, far too many millennials trying to cope with these economic conditions have low levels of financial literacy and are wrestling with concerns about their debt,” said FINRA Foundation president, Gerri Walsh. The study is based on an examination of data from the FINRA Foundation’s National Financial Capability Study, which was developed in consultation with the U.S. Department of the Treasury, other federal agencies, and the President’s Advisory Council on Financial Capability. The data was collected through an online survey of 25,509 American adults over a four-month period, July to October 2012. Intuit and Highline Beta launch fintech accelerator How to connect with your clients’ kids Facebook LinkedIn Twittercenter_img James Langton Which campaign promises will make it into the federal budget? Keywords Financial literacy,  MillennialsCompanies Financial Industry Regulatory Authority Share this article and your comments with peers on social medialast_img read more