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Financial Teaching and Financial Understanding amongst Young People

Author

Listed:
  • Georgios Panos
  • Robert E. Wright

Abstract

This paper examines the gender gap in financial understanding amongst 1118 year-olds in Scotland. A regression analysis is carried out based on individual-level data collected in the 2014 Young People in Scotland Survey (N=2,016). This survey was supplemented with questions measuring financial understanding, along with questions relating to the teaching of economics, finance and business studies as school subjects. The analysis suggests that there is a large gender gap favouring males of nearly 30%. In addition, the teaching of economics, finance and business studies has a large positive effect on financial understanding. This effect is about four times larger for males compared to females. An Oaxaca-Blinder decomposition suggests that most of the gender gap is explained by this difference. More generally, the analysis suggests that the beginnings of the adult gender gap in financial understanding is when individuals are in school.

Suggested Citation

  • Georgios Panos & Robert E. Wright, 2025. "Financial Teaching and Financial Understanding amongst Young People," Working Papers 2025_04, Business School - Economics, University of Glasgow.
    • Handle: RePEc:gla:glaewp:2025_04
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    References listed on IDEAS

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    1. Bottazzi, Laura & Lusardi, Annamaria, 2021. "Stereotypes in financial literacy: Evidence from PISA," Journal of Corporate Finance, Elsevier, vol. 71(C).
    2. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    3. Justus Blaschke, 2022. "Gender differences in financial literacy among teenagers - Can confidence bridge the gap?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2144328-214, December.
    4. Razen, Michael & Huber, Jürgen & Hueber, Laura & Kirchler, Michael & Stefan, Matthias, 2021. "Financial literacy, economic preferences, and adolescents’ field behavior," Finance Research Letters, Elsevier, vol. 40(C).
    5. Cupák, Andrej & Fessler, Pirmin & Schneebaum, Alyssa & Silgoner, Maria, 2018. "Decomposing gender gaps in financial literacy: New international evidence," Economics Letters, Elsevier, vol. 168(C), pages 102-106.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial understanding; young people; Scotland;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • I29 - Health, Education, and Welfare - - Education - - - Other
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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