Exploring financial decision-making among adolescents

The purpose of this study was to investigate the relationships among financial knowledge, attitudes, and behaviours among adolescents, using the Theory of Planned Behavior (TPB) as a theoretical framework. It aimed to assess how different components of financial knowledge and attitudes influence adolescents’ financial behaviours through the mediating role of planning. It utilised questionnaires distributed among a representative sample of 21 secondary schools with 1011 students in Hong Kong. Data analysis involved structural equation modelling to explore the direct and indirect relationships between these variables, with a specific focus on the mediating role of financial planning. The results revealed that financial planning significantly mediates the relationship between specific financial knowledge domains (risk, return, and protection) and financial behaviours (spending and protection). Notably, it found that while financial knowledge and attitudes, such as conscientiousness, significantly influence financial planning and subsequent behaviours, other areas, including savings knowledge and subjective norms, did not have a significant impact. The findings highlight the efficacy of Hong Kong’s financial literacy curriculum in fostering essential financial planning skills among adolescents, which positively impacts their financial behaviours. It highlights the importance of incorporating comprehensive financial education, tailored to real-life scenarios, into school curricula to enhance students’ ability to make informed financial decisions.