Highlights From the FINRA Foundation National Financial Capability Study
Financial Capability in the United States
Intergenerational Wealth Transfer and Financial Capability
Over the past five waves of the study, the NFCS has consistently shown that income is positively correlated
with financial capability. It can be hypothesized that beneficiaries of wealth from previous generations might
experience similar advantages in terms of financial capability. However, looking at both inheritances and
inter vivos transfers (those occurring between living individuals), findings from the 2021 NFCS show that the
relationship between intergenerational wealth transfer and financial capability is not quite as straightforward.
► Respondents who indicated that they expect to receive or have already received an inheritance of at least
$10,000 were more likely than those not expecting an inheritance to report having emergency funds (72
percent vs. 45 percent) and less likely to report financial fragility (14 percent vs. 37 percent).
The same is true for respondents receiving inter vivos wealth transfers of $10,000 or more, such as gifts
from parents or grandparents (during the giver's lifetime), or having parents or grandparents pay for
expenses such as college, a wedding, and so on.
Have set aside three months' worth
of emergency funds
Financially fragile
By inheritance
expectations
72%
45%
37%
14%
Expect/received
inheritance
No inheritance
Expect/received
inheritance
No inheritance
By inter vivos
transfers
66%
50%
33%
20%
Received inter
vivos transfer
No inter vivos
transfer
Received inter
vivos transfer
No inter vivos
transfer
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