Discussing financial issues with parents can promote adolescents’ financial confidence

Finland scored second in the 2018 PISA assessment of financial literacy, and Finnish adolescents were the most confident users of financial services among all participating countries. New research on the PISA data suggests that financial education at schools promotes Finnish adolescents’ financial confidence as well as literacy, whereas discussing financial issues with parents only promotes financial confidence. In general, confidence in using digital financial services promoted students’ financial literacy. Boys were more confident than girls in using financial services.
Suomalaisten nuorten talousosaaminen on huippuluokkaa. (Mostphotos)
Published
1.3.2023

A study by the Departments of Psychology, Social Sciences and Philosophy and the Finnish Institute for Educational Research at the Ģֱ analysed the latest data on financial literacy among Finnish adolescents by utilizing the results of the PISA 2018 assessment. The study was based on 4,328 Finnish 15-year-olds.

The research found that financial education at school promoted Finnish adolescents’ financial literacy skills and their confidence in using financial services. Controversially, discussing financial issues with parents promoted confidence in using financial services but not financial literacy skills.

Girls discussed financial literacy issues more with their parents than boys did (e.g., spending and saving decisions, family budget), but boys were more confident in using financial services (e.g., transferring money, paying with a debit card or mobile device, ensuring the safety of personal information) than girls were.

“The gender differences in financial confidence are interesting,” says Academy Research Fellow Gintautas Silinskas, “particularly because no gender differences were found in PISA score of financial literacy.”

Some socioeconomic differences appeared, too. Adolescents from wealthier families discussed financial issues with their parents more, and they were more confident in using financial services than their peers from poorer families were. In contrast, children from more highly educated families scored better than others in financial literacy, although there was no difference in their financial confidence. However, gender, wealth or parents’ education did not relate to the availability of financial literacy lessons at school.

“This is good news, suggesting that adolescents from different demographics are equally exposed to financial information at school,” says Arto Ahonen, the National Project Manager of PISA, noting that the secondary analysis of financial literacy PISA data is critical in understanding the factors behind the skills.

The present study highlights the importance of promoting that essential 21st-century skill –financial literacy – as early as middle school. This allows young people to understand financial risks and opportunities and make confident decisions about financial matters. It is also essential to have confidence in digital skills, as most financial actions occur in digital environments.

The research is part of the DigiConsumers project, and it is funded by the Strategic Research Council as well as the Academy of Finland Research Fellow programme.

Research publication:

Silinskas, G., Ahonen, A. K., & Wilska, T.-A. (2023). School and family environments promote adolescents’ financial confidence: Indirect paths to financial literacy skills in Finnish PISA 2018. Journal of Consumer Affairs, Early online.

Further information:

Gintautas Silinskas, Academy Research Fellow, Department of Psychology, gintautas.j.silinskas@jyu.fi

Arto K. Ahonen, Senior Researcher, Finnish Institute for Educational Research, arto.k.ahonen@jyu.fi, 040 8394 209

Terhi-Anna Wilska, Professor, Department of Social Sciences and Philosophy, terhi-anna.wilska@jyu.fi, 040 8054201