The heuristics used by investors in their process of decision-making tend to find short cuts and simplified roads to complicated answers, often unintentionally forgetting to be rational in contrast with market efficiency assumptions. We conducted a survey on about 250 young people (18–27 years old) concerning their financial literacy and economic choices, given an education level which is predominantly very high (73% enrolled in a bachelor degree, 80% took part to at least some basic finance or economics courses). More precisely, the survey was designed to study the influence of financial-economic literacy on the flaws occurring in financial decisions of young people (the so called generation Y): biases, overconfidence, framing. The results of the survey give an insight into the behaviour of a new and educated generation in typical economic decision frameworks, which could be a useful tool for stakeholders. In fact, being aware of the psychological component of the financial decision is a key factor to better understand and manage risk.

Financial Literacy and Generation Y: Relationships Between Instruction Level and Financial Choices

Bitca Iuliana;Ellero Andrea
;
Ferretti Paola
2021

Abstract

The heuristics used by investors in their process of decision-making tend to find short cuts and simplified roads to complicated answers, often unintentionally forgetting to be rational in contrast with market efficiency assumptions. We conducted a survey on about 250 young people (18–27 years old) concerning their financial literacy and economic choices, given an education level which is predominantly very high (73% enrolled in a bachelor degree, 80% took part to at least some basic finance or economics courses). More precisely, the survey was designed to study the influence of financial-economic literacy on the flaws occurring in financial decisions of young people (the so called generation Y): biases, overconfidence, framing. The results of the survey give an insight into the behaviour of a new and educated generation in typical economic decision frameworks, which could be a useful tool for stakeholders. In fact, being aware of the psychological component of the financial decision is a key factor to better understand and manage risk.
Progresses in Artificial Intelligence and Neural Systems. Smart Innovation, Systems and Technologies
File in questo prodotto:
File Dimensione Formato  
preprint Bitca Ellero Ferretti Financial Literacy and Generation Y Relationships Between Instruction Level and Financial Choices.pdf

non disponibili

Tipologia: Documento in Pre-print
Licenza: Accesso chiuso-personale
Dimensione 223.92 kB
Formato Adobe PDF
223.92 kB Adobe PDF   Visualizza/Apri

I documenti in ARCA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/3728330
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 0
  • ???jsp.display-item.citation.isi??? ND
social impact