Financial Literacy of High School Graduates: Long- and Short-Term Financial Behavior by Age Group

The purpose of this study was to examine the relationship between financial literacy and long- and short-term financial behaviors by age group for those without a college degree. Financial literacy was measured and discussed in the context of three components: objective financial knowledge, confidence in financial knowledge, and financial ability. Financial ability was significant in each age group and had the highest odds ratios of the three components of the financial literacy construct for the short-term index. Both confidence in financial knowledge and financial ability were significant in each age group for budgeting while objective financial knowledge was not. The results suggest that confidence in both knowledge and ability are important influences on positive financial behaviors for those without a college degree.