Understanding retirement awareness in US adolescents through financial education and financial concerns

Purpose The primary goal of this study is to assess the role of financial education on American adolescents’ recognition of financial concerns and their retirement awareness levels. This study seeks to investigate whether early educational interventions can engage young populations by recognizing potential financial concerns and how this acknowledgment might cultivate a future-oriented mindset toward retirement. Design/methodology/approach This study employed weighted logistic and ordered logistic regression analyses, along with bootstrapped generalized structural equation modeling techniques, to test the hypotheses. The analysis was conducted using a sample of 1,000 adolescents, ranging in age from 13 to 18, from across the United States. Findings Adolescents in the United States who engaged in financial education programs were more likely to recognize the existence of financial concerns. This recognition notably increased their awareness of retirement planning. Additionally, recognizing a financial concern fully mediated the relationship between financial education and heightened retirement awareness. The role of different categories of financial concerns on retirement awareness was also examined. Originality/value This study is among the initial efforts to explore the potential impact of financial education on financial concerns and retirement awareness among American adolescents. It provides new evidence suggesting that while financial education may not directly increase retirement awareness, it stimulates adolescents’ ability to identify financial concerns they currently face. This recognition, in turn, prompts them to think more proactively about long-term financial planning topics, including retirement.