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Factors that influence the level of financial literacy among young people: The role of parental engagement and students' experiences with money matters

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  • Moreno-Herrero, Dolores
  • Salas-Velasco, Manuel
  • Sánchez-Campillo, José

Abstract

This paper focused on the family as context for financial socialization and students' experiences with money matters to explain the acquisition of financial knowledge of young people in fifteen OECD countries and economies. We used data from the second OECD PISA financial literacy assessment in 2015. Multilevel regressions of students' performance in financial literacy were presented. When explaining financial literacy differences across countries a significant predictor of financial literacy was a well-functioning educational system proxied in our study by the quality of its mathematical and scientific education. After accounting for performance in mathematics and reading and other variables, estimates of multilevel regressions by country showed that students' financial literacy was associated mainly with understanding the value of saving and discussing money matters with parents. In some countries, exposure to (and the use of) financial products – in particular, holding a bank account – improved students' financial knowledge as well.

Suggested Citation

  • Moreno-Herrero, Dolores & Salas-Velasco, Manuel & Sánchez-Campillo, José, 2018. "Factors that influence the level of financial literacy among young people: The role of parental engagement and students' experiences with money matters," Children and Youth Services Review, Elsevier, vol. 95(C), pages 334-351.
    • Handle: RePEc:eee:cysrev:v:95:y:2018:i:c:p:334-351
    DOI: 10.1016/j.childyouth.2018.10.042
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    Cited by:

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    2. Pallavi Dogra & Arun Kaushal & Rishi Raj Sharma, 2023. "Antecedents of the Youngster’s Awareness About Financial Literacy: A Structure Equation Modelling Approach," Vision, , vol. 27(1), pages 48-62, February.
    3. Christoffer L. Loderup & Joshua E. Timmons & Elisabeth R. Kimball & E. Jeffrey Hill & Loren D. Marks & Ashley B. LeBaron, 2021. "How Do Parents Teach Their Children About Work? A Qualitative Exploration of Household Chores, Employment, and Entrepreneurial Experiences," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 73-89, March.
    4. David B. Allsop & McKay N. Boyack & E. Jeffrey Hill & Christoffer L. Loderup & Joshua E. Timmons, 2021. "When Parenting Pays Off: Influences of Parental Financial Socialization on Children’s Outcomes in Emerging Adulthood," Journal of Family and Economic Issues, Springer, vol. 42(3), pages 545-560, September.
    5. Azra Zaimovic & Anes Torlakovic & Almira Arnaut-Berilo & Tarik Zaimovic & Lejla Dedovic & Minela Nuhic Meskovic, 2023. "Mapping Financial Literacy: A Systematic Literature Review of Determinants and Recent Trends," Sustainability, MDPI, vol. 15(12), pages 1-30, June.
    6. Maldonado, Joana Elisa & De Witte, Kristof, 2021. "The impact of information provision to parents: Experimental evidence on student outcomes," Journal of Behavioral and Experimental Finance, Elsevier, vol. 31(C).
    7. Xiawei Tan & Zhineng Hu & Yongge Niu & Jiuping Xu, 2024. "Chinese College Student Financial Literacy: Knowledge, Attitude, and Behavior," SAGE Open, , vol. 14(3), pages 21582440241, August.
    8. Oyku Yucel & Gizem Celik & Zafer Yilmaz, 2023. "Sustainable Investment Attitudes Based on Sustainable Finance Literacy and Perceived Environmental Impact," Sustainability, MDPI, vol. 15(22), pages 1-20, November.
    9. Dainora Gedvilaitė & Tadas Gudaitis & Giedrė Lapinskienė & Justinas Brazaitis & Jurgis Žižys & Askoldas Podviezko, 2022. "Sustainability Literacy and Financial Literacy of Young People in the Baltic States," Sustainability, MDPI, vol. 14(21), pages 1-15, October.

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    More about this item

    Keywords

    Financial literacy; Money matters; Financial socialization; PISA 2015; Multilevel regression;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • G40 - Financial Economics - - Behavioral Finance - - - General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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