What influences the financial literacy of young adults? A combined analysis of socio-demographic characteristics and delay of gratification

  • The current economic landscape is complex and globalized, and it imposes on individuals the responsibility for their own financial security. This situation has been intensified by the COVID-19 crisis, since short-time work and layoffs significantly limit the availability of financial resources for individuals. Due to the long duration of the lockdown, these challenges will have a long-term impact and affect the financial well-being of many citizens. Moreover, it can be assumed that the consequences of this crisis will once again particularly affect groups of people who have already frequently been identified as having low financial literacy. Financial literacy is therefore an important target for educational measures and interventions. However, it cannot be considered in isolation but must take into account the many potential factors that influence financial literacy alone or in combination. These include personality traits and socio-demographic factors as well as the (in)ability to defer gratification. Against this background, individualized support offers can be made. With this in mind, in the first step of this study, we analyze the complex interaction of personality traits, socio-demographic factors, the (in-)ability to delay gratification, and financial literacy. In the second step, we differentiate the identified effects regarding different groups to identify moderating effects, which, in turn, allow conclusions to be drawn about the need for individualized interventions. The results show that gender and educational background moderate the effects occurring between self-reported financial literacy, financial learning opportunities, delay of gratification, and financial literacy.

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Author:Christin SiegfriedGND, Eveline WuttkeORCiDGND
Parent Title (English):Frontiers in psychology
Publisher:Frontiers Research Foundation
Place of publication:Lausanne
Document Type:Article
Date of Publication (online):2021/12/02
Date of first Publication:2021/12/02
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2023/05/22
Tag:delay of gratification; financial literacy; financial well-being; influencing factors; moderator; structural equation modeling
Issue:art. 663254
Article Number:663254
Page Number:14
First Page:1
Last Page:14
The raw data supporting the conclusions of this article will be made available by the authors, without undue reservation.
Dewey Decimal Classification:1 Philosophie und Psychologie / 15 Psychologie / 150 Psychologie
3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoCreative Commons - CC BY - Namensnennung 4.0 International