• Home
  • Publications
  • Publication Search
  • Financial Education is Not Enough: Millenials May New Financial Capability for Healthy Financial Behaviors

Financial Education is Not Enough: Millenials May Need Financial Capability for Healthy Financial Behaviors

Friedline, Terri
West, Stacia
Financial Inclusion
Publication type: 
Working Paper

Financial education sans opportunities for hands-on experience and knowledge operationalization may be insufficient for promoting healthy financial behaviors. Financial capability combines financial education with financial inclusion via a savings account, thereby giving an opportunity translate knowledge into practice. This study used data from the 2012 National Financial Capability Study to examine relationships between financial capability and financial behaviors of United States Millennials (N = 6,865). Compared to their financially excluded peers, Millennials who were financially capable were 176% more likely to afford unexpected expenses, 224% more likely to save for emergencies, 21% less likely to use alternative financial services, and 30% less likely to carry burdensome debt. Interventions that focus solely on financial education or inclusion may be insufficient for facilitating Millennials’ healthy financial behaviors; interventions should instead develop financial capability.

Read the Paper

New Book Released

Today’s student loan system is in place because of a political compromise, and growing discontent with student debt may signal that this arrangement has run its course. While there are resources and organizations in place to help those struggling with debt, the time has come to consider a new direction for financial aid, William Elliott III and Melinda Lewis argue in “Student Debt: A Reference Handbook.”

Why KU
  • One of 34 U.S. public institutions in the prestigious Association of American Universities
  • Nearly $290 million in financial aid annually
  • 44 nationally ranked graduate programs.
    —U.S. News & World Report
  • Top 50 nationwide for size of library collection.
  • 23rd nationwide for service to veterans —"Best for Vets," Military Times