2021/02/26 by Kayla Czar, Aaron Gilbert, Ayesha Scott · 1 citation
Business, Management and Accounting · Economics, Econometrics and Finance · #Business #Finance #Financial Literacy, Pension, Retirement Analysis #Housing Market and Economics #Housing, Finance, and Neoliberalism
paper · doi:10.1111/joca.12357
openalex publication_date 2021/02/26 · crossref created 2021/02/26 · crossref issued 2021/03/09 · crossref published 2021/03/09 · crossref published-online 2021/03/09 · crossref published-print 2021/06/01 · crossref deposited 2024/08/24 · openalex created_date 2025/10/10 · crossref indexed 2026/08/03 · openalex updated_date 2026/08/04
Abstract Young adults today have access to an increasing range of financial products. However, evidence shows young adults generally have low financial capability, leading to poor financial choices with potentially severe and long‐lasting consequences. Financial experience represents one proven channel by which people develop the knowledge and ability to make better financial decisions. A potentially pivotal life experience for young adults is moving out of home, which involves a wide range of financial experiences. We examine how leaving home impacts the financial capability of New Zealanders aged 18–25. Our results suggest leaving home is associated with a significant improvement in financial capability but not an increase in financial knowledge. Providing targeted guidance to home leavers may offer an effective opportunity to improve the financial capability of young adults and minimize costly mistakes.