Young Adults and Their Finances: AnrnInternational Comparative Study on Applied Financial Literacy

摘要

Recent years have brought a gradual shift of responsibility for pensionrnprovisions, financial planning, health care and various insurances fromrngovernmental institutions and firms to individuals. To tackle thisrnchallenge, individuals need applied financial literacy and not merelyrntheoretical knowledge about financial products and mechanisms that doesrnnot reflect real-life situations.We survey 448 business students in Canada,rnDenmark, Germany and Iceland to examine how financial literacy isrnexpressed in their financial portfolios. We contrast these findings with thernrespondents’ own expectations and needs. The results show that mostrnrespondents exhibit good financial literacy as well as a realisticrnassessment of risk and return and their impact on (financial) well-being.