Generational Differences in Financial Well-Being: Understanding Financial Knowledge, Skill, and Behavior

Abstract

This study investigated generational differences in financial knowledge, skill, behavior, and consumers' financial well-being (FWB) among Millennials, Gen-Xers, and Boomers. It examined generational differences as a moderating factor in the associations between financial knowledge, skill, and behavior and FWB. Using a national dataset and a series of hierarchical multiple regressions, the findings demonstrated that financial knowledge, skill, and responsible behavior were positively connected to consumer FWB across all generations. Generational variations were found in FWB, financial knowledge, and responsible financial behavior. Furthermore, generational differences moderated the links between objective financial knowledge, financial goal commitment, and consumer FWB in distinct ways across generational cohorts. Implications for educators, researchers, policymakers, and practitioners are discussed.