Association between Financial Education, Affective and Cognitive Financial Knowledge, and Financial Behavior

Using data from the 2018 National Financial Capability Study, this articled examined the relationship between financial education participation and affective and cognitive financial knowledge. Involvement in financial education yielded statistically significant associations between affective and cognitive domains. The results showed that participation in financial education was associated with both cognitive and affective financial knowledge as well as long-term financial behavior. The results supported the case for lifelong learning of financial education for young adults, minorities, and women. An important implication was the need to include both the affective and cognitive domains when teaching or researching financial education.