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Financial Knowledge and Short-Term and Long-Term Financial Behaviors of Millennials in the United States

  • Kyoung Tae Kim
  • Somer G. Anderson
  • Martin C. Seay
Original Paper

Abstract

This study investigates the role of financial knowledge in various short-term and long-term financial behaviors among Millennials in the United States. Results from the 2015 National Financial Capability Study (NFCS) indicate that Millennials have lower levels of objective financial knowledge and similar levels of perceived financial knowledge as compared to all households. Consistent multivariate results find financial knowledge to be positively associated with performing positive short-term and long-term financial behaviors. Results are found to be robust across different measurements of financial knowledge and behavior, and the issue of the potential for reverse causality is specifically addressed. This study provides a comprehensive financial profile of Millennials with important insight for policymakers as well as financial practitioners.

Keywords

Financial literacy Financial knowledge Financial education Financial behaviors Millennials 

JEL Classification

D12 D14 

Notes

Compliance with Ethical Standards

Conflict of interest

The authors declare that they have no conflict of interest.

Research Involving Human and Animal Participants

This article does not contain any studies with human participants or animals performed by any of the authors.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of Consumer SciencesUniversity of AlabamaTuscaloosaUSA
  2. 2.School of BusinessMaryville UniversitySt. LouisUSA
  3. 3.School of Family Studies and Human ServicesKansas State UniversityManhattanUSA

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