Annamaria Lusardi, director of GWSB’s Global Center for Financial Literacy and the Denit Trust Distinguished Scholar in Economics and Accountancy, published a research brief, “Financial Literacy Around the World,” that shows financial illiteracy is a problem across countries.
The paper is published on the website of the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation, which supports innovative research and educational projects that give underserved Americans financial knowledge and skills.
FINRA is the largest independent regulator for securities firms doing business in the United States.
The paper combines data from the FINRA Investor Education Foundation’s National Financial Capability Study with similar data obtained from eight other countries, including Germany, the Netherlands and Japan. It compares financial literacy levels across their populations.
Among Lusardi’s findings: financial literacy levels are fairly low across countries, even in places with well-developed markets. In addition, particular groups —notably the young, old, women, unemployed and those with low education levels — have low levels of financial literacy.
The brief highlights these and other findings, discusses implications and suggests the importance of teaching financial literacy in schools.
Read Lusardi’s brief here.
Learn more about the National Financial Capability Study.