The mismatch between financial objective and subjective knowledge that occurs in youth and adolescents has been understudied in the literature. Based on objective and subjective financial literacy scores, this study categorizes financial literacy into four types: financial literacy overconfidence, underconfidence, competence, and naïvete in a sample of adolescents. Data were collected from 330 students aged around 15 years old in six middle schools in Hong Kong. The results indicate that adolescents who are overconfident about their financial literacy are more likely to engage in risky financial behavior and report higher levels of financial autonomy. A randomized experimental trial was conducted to assess whether financial education could change the mismatch between financial objective and subjective knowledge. The results show a significant increase in underconfidence after the financial education intervention, but no significant change in the other three categories. The findings highlight the same type of financial literacy overconfidence in both adolescents and adults and has implications for financial counselors and educators who would improve the financial engagement of adolescents. Copyright © 2021 Association for Financial Counseling and Planning Education, U.S.A.

In the 21st century, financial literacy is an important survival skill. Empowering school children to make sensible financial decision-making has become essential. A financial competency framework (FCF) describes a set of essential financial competence (FC) elements that inform people with the financial knowledge, skills, attitudes, behaviors, and motivations to implement and assess their personal financial literacy, which is a solid means for coordinating financial education (FE) in schools. However, in Hong Kong, FE in schools is scattered across some subjects and insufficiently embeds the relevant FC elements listed in its FCF. Hence, this study first conducted a literature review on the importance of FE in schools and the use of FCF in school FE, and took Hong Kong as an illustrative example for reviewing the use of its FCF in the school curricula through curriculum mapping and suggested ways for advancing FE in schools. It was found that most FC elements are relevantly well mapped with various learning themes or subjects especially for the Self and Society learning theme in kindergarten, General Studies in primary subject, and four secondary subjects, including Life and Society, Technology Education, Life Planning Education and Career Guidance, and Business, Accounting and Financial Studies. These FC elements can be further coordinated with a school implementation guide, teacher training plan, and assessment tools to advance the FE in Hong Kong. Copyright © 2022 The Chinese University of Hong Kong.

Financial literacy is a multicomponent construct comprising financial knowledge, attitude, behaviors, and well-being. Financial literacy in young people helps them to achieve financial independence and escape from intergenerational poverty. Recent assessments, however, reveal that youth financial literacy is unsatisfactory. Financial education should be provided for students during secondary school as a natural context in which to establish young people's financial literacy. Empirical evidence from randomized experiments studying the impact of financial education on secondary school students, however, is limited. To address this research gap, we performed a randomized experiment with 270 Form-3 (U.S. equivalent Grade 9) secondary school students in Hong Kong. Structural equation modeling (SEM) results demonstrated that objective financial knowledge, financial attitudinal variables, and financial well-being variables could converge into the latent construct of financial literacy, while all financial behavioral variables converged into another latent construct of financial behavior; of note, the two latent constructs were not significantly correlated. SEM results also revealed that our financial education program significantly improved financial literacy, but did not have a significant effect on financial behavior in the short term. These findings contribute to existing financial literacy research by facilitating more accurate measurement and detailing the near-term effects of financial interventions at the adolescent stage in young people. Copyright © 2019 The Author(s).