Factors Associated with Financial Literacy among High School Students

Understanding the financial literacy of young people is an essential prerequisite for developing effective education programmes designed to improve young people’s understanding of personal finance. In this paper, we present results from a survey of high school students which included a financial literacy component, a financial risk tolerance assessment, and basic demographic details. Overall, we find that financial literacy is lowest among financially poorer students, those with less English ability, and those with less academic ability. However, relative poverty and lower English ability were not related to the ability to apply financial knowledge. Thus, while financial education targeted to immigrant groups and the poor may improve overall financial literacy, a broader approach remains necessary. A general form of financial literacy education, beginning at the high school level, may be the key to improving financial literacy in the population in the long term.