Publication Date
7-1-2006
Summary
Youth in the United States are facing an increasingly complex and perilous financial world. Economically disadvantaged youth, in particular, lack financial knowledge and access to mainstream financial institutions. Despite growing interest in youth financial literacy, we have not seen comparable efforts to improve institutional access to financial institutions and services. Instead of aiming for financial literacy, we suggest aiming for financial capability, a concept that builds on the writing of Amartya Sen and Martha Nussbaum. The paper proposes that financial capability results when individuals develop financial knowledge and skills, but also gain access to financial instruments and institutions. The paper addresses theoretical and pedagogical approaches to increasing financial capability, followed by examples of programs. Questions for further study are suggested. In the conclusion, we discuss implications for policy and practice.
Document Type
Working Paper
Category
Financial Inclusion
Subarea
Financial Capability
Original Citation
Johnson, E., & Sherraden, M. S. (2006). From financial literacy to financial capability among youth (CSD Working Paper No. 06-11). St. Louis, MO: Washington University, Center for Social Development.
Project
I Can Save
Keywords
financial education, children, saving, financial capability, CDA
Recommended Citation
Johnson, E., & Sherraden, M. S. (2006). From financial literacy to financial capability among youth (CSD Working Paper No. 06-11). St. Louis, MO: Washington University, Center for Social Development.
DOI: https://doi.org/10.7936/K77M07GS
Notes
Subsequent publication: Johnson, E., & Sherraden, M.S. (2007). From financial literacy to financial capability among youth. Journal of Sociology & Social Welfare, 34(3), 119–145.