General vs. Domain-Specific Financial Literacy: analysis of the impact on young people’s attitudes toward cryptocurrencies and BNPL

Abstract

In this article, we compare financial knowledge levels and identify the determinants of financial attitudes among 16-20-year-old students in Italy and the Autonomous Community of Galicia (Spain). We combine cross-country comparative evidence with data-driven variable selection based on machine learning techniques and theory-driven modelling of financial attitudes. Our study offers an original contribution to the literature on youth financial literacy and behaviour in emerging digital financial domains, namely instalment-based credit solutions and cryptocurrency investments. Our findings reveal that Galician students display higher average financial knowledge than Italian ones and have a higher propensity to use instalment payments and to invest in cryptocurrencies. Financial knowledge plays a central role in shaping both credit and investment attitudes, alongside experience, income, and behavioural traits, with significant cross-country differences. More specific knowledge in each domain is associated with more cautious attitudes, suggesting that deeper understanding relates with more prudent behaviour. Among Italian educational pathways, technical institutes appear to be the only track able to substantially reduce the literacy gap. These insights highlight the need for a reform of financial education pathways, with greater emphasis on experiential learning and student-involving teaching strategies.