National surveys show that young adults have amongst the lowest levels of financial literacy. This is reflected by their general inability to choose the right financial products and often, a lack of interest in undertaking financial planning. Though financial literacy may vary from education backgrounds and income levels, research shows that highly educated consumers with high incomes can be just as ignorant about financial issues as less-educated consumers with a lower income.
Financial literacy combines financial, credit, and debt management knowledge that is necessary to make responsible financial decisions or choices that are integral to our everyday lives. Financial literacy includes paying off debt, creating a budget, and understanding the difference between various financial instruments. In sum, financial literacy has a material impact on families as they try to balance their budget, buy a home, fund their children’s education, or ensure an income for retirement. In this panel, we will discuss how we can raise awareness of financial literacy for youth.