How do young people perceive financial literacy, and what role do they believe it plays in their future success?

Abstract

Financial literacy has become increasingly critical for young adults, navigating complex financial landscapes characterized by increasing inflation, employment uncertainty and complex financial products. While there is a significant level of research done on youth financial knowledge and behavior, limited systematic evidence exists regarding how young people perceive financial literacy and its role in future success, particularly in developing countries’ contexts. This systematic literature review aims to explore young adults’ perceptions of financial literacy, the factors influencing their financial capability, and effective approaches to strengthen their financial outcomes. Following PRISMA 2020 guidelines, we searched seven academic databases (JSTOR, ERIC, Scopus, Google Scholar, OECD iLibrary, World Bank, ProQuest) for peer-reviewed studies published between 2015- 2025. Inclusion criteria focused on empirical studies examining financial literacy perceptions among participants aged 18-30 years. Quality assessment employed adapted Newcastle-Ottawa and CASP frameworks. Thematic synthesis was conducted to identify patterns across diverse methodological and geographic contexts. Analysis of 47 studies from 25 countries (n=250,000+ participants) revealed four major themes: (1) an awareness-confidence paradox where youth recognize knowledge gaps while overestimating competence; (2) family-centric financial socialization dominating formal education influences; (3) digital transformation creating both opportunities and risks for financial capability development; and (4) persistent structural inequalities along gender, socioeconomic, and geographic lines shaping perceptions and access. Findings indicate need for experiential financial education integrating family engagement and digital literacy components. Policy recommendations include mandatory practical financial education, youth-specific consumer protections, and targeted interventions addressing structural barriers. Future research should prioritize longitudinal studies tracking perception development and cross-cultural comparative analyses of successful intervention models.