[F]ewer than one-third of young adults possess basic knowledge of interest rates, inflation, and risk diversification. Financial literacy is strongly related to sociodemographic characteristics and family financial sophistication. Specifically, a college-educated male whose parents had stocks and retirement savings is about 50 percentage points more likely to know about risk diversification than a female with less than a high school education whose parents were not wealthy.
So, 2 out of 3 young adults don't possess a BASIC KNOWLEDGE of interest rates, inflation, and risk diversification. When I think back to my high school (private school) and college (Vanderbilt) education, I can't say this really surprises me.
I can't recall taking a single course in finance or economics in high school, and I got through Vanderbilt taking only one economics course. Shame on me for not taking more courses in finance and economics in college and shame on our educators for not making me.
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