Highly educated people with relatively high expected lifetime earnings are often assumed to have greater financial acumen than the general population. But is this a safe assumption?
Summary
Given the amount of time and money graduate students invest in their education, it's not unreasonable for them to envision one day being able to buy a home, save for retirement and manage a household budget. So, it's equally reasonable to assume these students would have a pretty good handle on their current financial capability and would be receptive to improving it. This study tests these assumptions by comparing self-assessed vs. actual financial acumen among Indiana University system graduate students and also looks at whether this group is indeed interested in taking steps to improve financial literacy.
Key Insights
- Self-reported and actual financial acumen vary significantly among study participants.
- Students overall show limited interest in improving their financial literacy.
- Students who scored high on a financial literacy exam are more likely than students who scored low to express interest in attending financial capability seminars.
- Financial acumen varies significantly based on gender, country of origin and academic discipline.
