A study has found that young people's behavior in holding investment products varies depending on their financial capability. According to the research, young people with higher financial knowledge tend to prefer formal financial products such as savings accounts or stocks. Those who worry more about the future and have difficulty managing their spending are more likely to hold virtual assets such as cryptocurrencies. The study also surveyed the financial capability of young people themselves. Although young people possess a certain level of financial knowledge, they find it difficult to put this knowledge into practice, highlighting the need for practice-oriented financial education.

According to the financial sector on May 12, the Financial and Happiness Network, a non-profit organization, and the youth policy platform 'Yeolgodakki' announced these findings in their joint report on 'Youth Financial Capability and Financial Well-being' conducted in March. Out of 300 respondents aged 39 or younger, data from 259 participants were used after excluding responses with errors.

Financial capability consists of financial knowledge, financial behavior, and financial attitude. Financial knowledge refers to understanding financial concepts or principles. Financial attitude means one's values or beliefs about finance, or how one perceives money. Financial behavior refers to how one actually manages money based on their knowledge and attitude. Financial well-being is a concept that includes an individual's psychological stability regarding finance, expectations for the future, and self-efficacy in financial decision-making. Among these, financial security refers to the subjective perception of one's current and future financial stability. Financial satisfaction indicates overall satisfaction with one's current financial life, while financial confidence means trust in one's own abilities when making financial decisions.

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There have been several surveys related to the financial behavior of young people in Korea. The Bank of Korea and the Financial Supervisory Service publish a national financial literacy survey every two years. The Korea Inclusive Finance Agency conducted a youth financial status survey in 2016 and again in 2023, marking the first youth-related financial survey in seven years. The agency also conducted the same survey last year. However, there are criticisms that the Bank of Korea and Financial Supervisory Service surveys target the entire population, while the Korea Inclusive Finance Agency's survey is limited to a simple status check.

The scales used to measure capability and well-being in this survey were developed by the Financial and Happiness Network. These were created to fit the financial realities of Korean youth, referencing financial literacy items from the Organisation for Economic Co-operation and Development (OECD), and were used in an actual survey for the first time. This study also empirically analyzed whether financial capability has a real impact on financial well-being (subjective satisfaction with one's financial status).

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First, the study analyzed the impact of financial capability and well-being on whether young people hold investment products. Financial knowledge had a positive effect on holding demand deposits, bonds, and stocks. In contrast, it had a negative effect on informal saving behaviors, such as entrusting investments to family members. In other words, the higher the financial knowledge, the more likely young people are to prefer formal financial products. Financial attitude did not have a statistically significant effect on holding most investment products. In the case of financial behavior, it had a positive effect not only on stocks but also on alternative investments such as gold or real estate. Young people who are more inclined to make actual financial decisions and take action, beyond just having knowledge, tend to engage in a wider range of investment activities. Lower financial security and higher financial satisfaction were both found to have a positive impact on holding cryptocurrencies. This means that when young people have poor spending control but feel satisfied with their current financial life, they are more likely to invest in cryptocurrencies. The report interprets this as "young people displaying a psychological tendency to avoid real-life anxieties or to pursue a windfall."

There was also an in-depth study of financial capability and financial well-being. According to the analysis, the average financial capability score for young people was 63.67 out of 100. Young people scored 71.17 in financial knowledge, but only 46.72 in financial behavior. This indicates that while young people possess financial knowledge, they struggle to translate it into actual behavior. In particular, their practical abilities in everyday financial tasks, such as setting long-term financial plans and keeping spending records, were found to be weak. The average financial well-being score was 46.97, with the lowest score in financial security (46.53).

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This study also revealed the relationship between financial capability and financial well-being. Financial knowledge showed only a weak correlation with well-being. In contrast, higher financial behavior was significantly associated with increases in overall well-being, including confidence, satisfaction, and security. The report explains that this demonstrates the need for practice-oriented education that encourages action, rather than simply teaching financial knowledge.

Differences in well-being according to income level were also confirmed. Young people with an income of 3 million won or more had higher overall financial well-being than those with lower incomes. This suggests that the financial instability of young people directly affects their subjective sense of financial security.

Jung Unyoung, chairman of the Financial and Happiness Network, suggested that financial education should enable young people to put their financial knowledge into practice. For example, programs that help form proper income and spending habits and attitudes. He also argued for the introduction of a 'basic finance' concept and the establishment of a policy system to support it. Jung said, "Today, finance is not just a tool but a foundation of life. We need 'basic finance' that can become part of everyone's daily life, not just complex finance," adding, "We must support young people's financial capability so that it leads to real asset formation and improved quality of life."