Financial education: From better personal finance to improved citizenship

Abstract

Financial education is a crucial determinant of informed decisions, in both the private and social spheres. From a life cycle perspective, it improves personal finance. From youth to retirement, basic economic and financial competences, including specific pension literacy, help to plan for the future and to make better choices, thus reducing the probability of financial fragility, particularly in old age, and increasing economic independence, particularly for women. In the social sphere, a growing literature is demonstrating that basic financial education also affects public choices, influencing voting behavior, economic reforms, policy outcomes, and, more generally, the workings of our democracies.

Financial literacy and knowledge of the retirement income system in Canada

“…We decompose this effect and show that it is driven by knowledge of the compulsory public contributory plans and of employer plans. To our knowledge, this latter linkage is a distinctive contribution to the literatureone that is put forward by Fornero and Lo Prete (2023), among others, but not shown. It should be of interest to researchers, policymakers, and organizations aiming to promote retirement preparation in the context of a multi-pillar system like Canada's.…”

Factors Affecting the Uptake of Life Insurance in Botswana

“…These challenges, encompassing limited education about insurance products, low disposable income, and the influence of religious beliefs and cultural norms, hinder the widespread adoption of life insurance (Fornero & Lo Prete, 2023). Addressing these obstacles requires targeted educational campaigns to raise awareness, implementing strategies to make insurance more affordable, and respecting the cultural and religious sensitivities of individuals (Sojung Carol Park & Jean Lemaire, 2021).…”

The Role of Financial Technology on the Nexus Between Demographic, Socio-economic, and Psychological Factors, and the Financial Literacy Gap

“…Thus, women who lack financial literacy may be more likely than men to experience low retirement confidence. (Fornero & Lo Prete, 2023). When considering demographic characteristics, qukasz (2021) found that women were surprisingly more affected by the scale of overindebtedness and their personal finances and were less prepared for the COVID-19 pandemic.…”

“…Women lacked savings buffers and were less financially secure than men even before the COVID-19 crisis (Hasler & Lusardi, 2019). They were also less likely to have pensions and to invest in high-yielding, risky assets (Fornero & Lo Prete, 2023;Lusardi & Mitchell, 2008).…”