Young people's perceptions of the responsibilities of organizations promoting financial capability

Abstract

Today's changing market environment demands financial capability even from young consumers. This article concentrates on the perceptions of young people on the roles and responsibilities of school, public, private and non‐profit sector actors in promoting financial capability among the young. The qualitative data were collected via focus group discussions among young people aged 15–26 in schools and education institutions across Finland. Educational institutions play an important role in the everyday lives of the young but tend to focus on macro‐finance issues in financial education. Banks are seen as professional actors promoting financial capability to the young, but their activities are recognized as profit driven. Public sector and non‐profit organizations are less familiar to young people as providers of financial information but are considered impartial and reliable. It is apparently difficult for young people to differentiate between the activities of the various parties offering financial advice. They would welcome finance‐related information from several actors and from different perspectives. Financial education and financial matters are only interesting to the young when topical. In order to promote a financial capability among young people, the actors involved should become more proactive and cooperate with each other.

Financial capability: a systematic conceptual review, extension and synthesis

“…, 2017). Also, research shows perceptions of young people on organizations in promoting financial capability in Finland (Luukkanen and Uusitalo, 2014), and assessments of social workers who have completed a continuing education course on financial capability (Frey et al. , 2015).…”

Toward Financial Capability—Empowering the Young

“…On average, Finnish young people move out of their parents' house at the age of 19 (Kupari 2011). For the young, the activities of the financial actors seem somewhat disconnected, and they feel they would benefit from more extensive information that covers different perspectives across sectors (Luukkanen and Uusitalo ).…”

“…Financial capability has been recognized as a key life skill, and promoting financial capability has been investigated in terms of the skills needed to become a financially capable consumer (Atkinson et al ; Lusardi, Mitchell, and Curto ; Luukkanen and Uusitalo ). Where financial literacy is defined as knowledge about financial concepts (Lusardi, Mitchell, and Curto ), skills, and the ability to use them (Huston ), financial capability combines knowledge and skills with access to financial policies and instruments and the opportunity to act according to one's best financial interest (Johnson and Sherraden ; Kempson, Collard, and Moore ).…”

Young People Are the Front Lines of Financial Inclusion: A Review of 45 Years of Research

“…Bucciol and Veronesi () made predictions based on age and produced results that were specific to young adults, even though the age range of their sample extended across the life course. Studies that solely examined financial knowledge or responsibility were excluded, such as whether or not young people had ever taken a financial education class, were capable of understanding concepts such as interest rates, or perceived themselves as financially self‐sufficient (e.g., Despard and Chowa ; Furnham ; Harrah and Friedman ; Jahoda and France ; Luukkanen and Uusitalo ; Xiao, Chatterjee, and Kim ). Sixty separate studies were identified that stretched between 1969 and 2014, the majority of which have been produced since 2005 (39 of 60, or 65%).…”