We find that, among nonowners in the underrepresented groups, limited financial knowledge was reported as a major barrier to investing, significantly more often than nonowners from their demographic counterparts. Indeed, these group differences in subjective financial knowledge were reflected in an objective measure of financial literacy across the full sample, with individuals from underrepresented groups displaying lower levels of financial knowledge and/or confidence in basic investing concepts. The results suggest the importance of improving financial literacy to help people make informed choices about their personal finances and investing decisions.

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