The objective of this research is to analyze the financial literacy knowledge of the Millennial generation. The research method is qualitative-quantitative of correlational type since it consists of identifying the relationship between the independent variable and the dependent variable. The general hypothesis is that limited financial education in curricula affects the financial education of the Millennials. Through the information gathered and the surveys applied, it is evident that Millennials have no financial knowledge and university curricula have limited information on financial education.
TopBackground Of The Problem
Millennials are young people born between 1981 and 2000. Millennials are recognized for having problems in financial education, since their education systems have not taught them this subject. Between 1981 and 1995, technology was not as advanced as it is today, cell phones were just being created, and new advances in technology were being visualized. From 1996 until 2000, technology advanced too much. According to Bögenhold & Klingmair (2015) nowadays people face the challenge of the complex interaction of technological development and socio-demographic change which has accelerated a structural change in the economy. In syntony with this, more advanced cell phones came out, technology made a breakthrough where it started to help the economy and thanks to that, the Millennials generation became an expert in technology.
But one of the characteristics of Millennials is that they have little financial knowledge, which makes them acquire unnecessary debts and according to a study by Price Waterhouse Coopers (PWC) (Deutsch, 2016) only 24% of the generation has basic financial education and 8% high financial education. At this age, every boy or girl wants to be financially stable and do not want to be burden their parents to fulfil their wants like credit cards, iPhone, car etc. (Tunio, Chaudhry, Shaikh, Jariko & Brahmi, 2021). The lack of financial education can put at risk the financial success of the generation, as well as the lack of research to find out what it is, is another problem handled by Millennials generation.
As Lucena & Repullo (2013) recall the need for a better financial education which is related first to the growing complexity of financial markets and products and to the convenience of offering all citizens instruments to make appropriate decisions in the market. In the same path, Ratten & Usmanij (2021) remarks that education contribute to development of business through a variety of different ways, frequently associated to the ability of assess and exploit value creating opportunities.