Bridging the Gap: How Neurodevelopment Shapes Financial Behavior Beyond Financial Literacy

Financial literacy is widely promoted as essential for improving financial outcomes, yet a persistent gap remains between knowledge and behavior—especially during adolescence. This study examines how neurodevelopmental processes shape financial decision-making beyond financial literacy, emphasizing cognitive engagement, perceived relevance, and emotional regulation. Using survey data from first-year college students, we analyze relationships among financial education, teaching methods, financial behavior, financial stress, and academic performance. Results show that financial education alone does not significantly predict behavior; instead, behavioral engagement and financial stress are key mechanisms. These findings challenge knowledge-based approaches and highlight the need for developmentally aligned, behaviorally informed financial education interventions.