<p>This paper examines the effect of financial literacy on household investment decisions using data from the 2022 wave of the Survey of Consumer Finances. Using parental education as an instrument, the study estimates instrumental variables probit models for a broad set of financial assets and contributes new evidence on the effect of financial literacy on ownership of a range of asset classes. The results show that financial literacy significantly increases participation in complex, growth-oriented investments, such as individual retirement accounts, mutual funds, and stocks, while having no significant effect on simpler financial products. Despite large demographic differences in literacy and market participation, the study could not find evidence for heterogeneous effects of financial literacy based on sex, income level, and race. Once acquired, the benefits of financial literacy appear to be broadly similar across sex, income, and racial groups.</p>