Financial Literacy: If it’s so Important, Why Isn’t it Improving?

ArXiv ID: ssrn-923557 “View on arXiv”

Authors: Unknown

Abstract

Financial literacy has assumed greater importance in our society as the result of the increasing complexity of financial products and the simultaneous cutting o

Keywords: Financial Literacy, Consumer Protection, Financial Products, Behavioral Economics, Education, Multi-Asset / Personal Finance

Complexity vs Empirical Score

• Math Complexity: 1.0/10
• Empirical Rigor: 2.0/10
• Quadrant: Philosophers
• Why: The paper’s focus is on survey data and socioeconomic analysis rather than advanced mathematical modeling or backtest-ready quantitative strategies. It lacks heavy formulas, code, or statistical implementations typical of high-rigor empirical studies.

  flowchart TD
    A["Research Question: Why isn't Financial Literacy improving despite its importance?"] --> B["Methodology: Literature Review & Empirical Analysis"]
    B --> C["Data Sources: National & International Surveys, Behavioral Economics Studies"]
    C --> D["Computational Process: Comparative Analysis of Literacy vs. Product Complexity"]
    D --> E{"Key Findings"}
    E --> F["Literacy scores remain stagnant"]
    E --> G["Product complexity outpaces education"]
    E --> H["Behavioral biases limit effectiveness"]