Financial Literacy Around the World: An Overview of the Evidence with Practical Suggestions for the Way Forward

ArXiv ID: ssrn-2094887 “View on arXiv”

Authors: Unknown

Abstract

Financial literacy programs are fast becoming a key ingredient in financial policy reform worldwide. Yet, what is financial literacy exactly and what do we know

Keywords: Financial Literacy, Financial Education, Consumer Behavior, Policy Reform, Behavioral Economics, Personal Finance

Complexity vs Empirical Score

• Math Complexity: 1.5/10
• Empirical Rigor: 3.0/10
• Quadrant: Philosophers
• Why: The paper is a literature review and policy discussion on financial literacy, focusing on definitions, survey results, and program effectiveness without advanced mathematical derivations or detailed backtesting/implementation frameworks.

  flowchart TD
    A["Research Goal: Assess global<br>financial literacy evidence &<br>identify policy best practices"] --> B["Methodology: Meta-analysis &<br>literature review of 25+ countries"]
    
    B --> C{"Data Inputs:"}
    C --> D["OECD/INFE Surveys"]
    C --> E["National Financial<br>Capability Studies"]
    C --> F["Behavioral Economics<br>Experiments"]
    
    D & E & F --> G["Computational Analysis:<br>Cross-country comparative<br>analysis & outcome modeling"]
    
    G --> H["Key Findings: 1) Financial literacy<br>correlates with better behavior<br>2) Demographic gaps persist<br>3) Education alone insufficient<br>4) Policy needs targeted, practical<br>approaches"]