The Relationship among Financial Education, Financial Literacy, and Financial Behavior

Yang, Hae Kyung

doi:10.36544/irfc.2021.6-2.1

Abstract

Financial education around the world has been promoted actively. However, the financial literacy level is still low, and financial illiteracy is prevalent. Evidence of the effectiveness of financial education on financial literacy and financial behaviors from previous studies are mixed. Several literature reviews and meta-analyses that discuss causal relationships of financial education, financial literacy, and financial behavior also reported mixed conclusions. Using more recent articles, we reviewed the literature to determine why a consensus has not been reached. We provide suggestions for future studies and evaluations of financial education. We further discuss the implications for policy to improve financial outcomes of individuals.

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The Relationship among Financial Education, Financial Literacy, and Financial Behavior

Abstract

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