Financial Knowledge, Social Influence, and Adolescent Financial Behavior: Examining the Knowledge-to-Behavior Gap Through International Evidence and a Proposed Conceptual Framework

Financial literacy is widely recognized as an important determinant of individual financial well-being. However, the relationship between financial knowledge and actual financial behavior remains complex. Individuals may understand financial principles without consistently applying them when making spending, saving, and purchasing decisions. This distinction is particularly relevant among adolescents, who increasingly participate in digital consumer markets and encounter financial decisions before reaching adulthood. This study examines the relationship between financial literacy and adolescent financial behavior through a structured review of existing academic literature and a descriptive analysis of published international assessment findings. The research draws on the OECD's Programme for International Student Assessment (PISA) 2022 financial literacy assessment. The paper concludes that financial education should extend beyond conceptual instruction and incorporate practical decision-making, behavioral awareness, and opportunities for financial application. The proposed framework offers a foundation for future empirical research into the mechanisms connecting financial knowledge and financial behavior.