Financial Literacy and Economic Outcomes: Evidence and Policy Implications.

TitleFinancial Literacy and Economic Outcomes: Evidence and Policy Implications.
Publication TypeJournal Article
Year of Publication2015
AuthorsMitchell, OS, Lusardi, A
JournalJ Retire
Date Published2015 Summer
ISSN Number2326-6899

This paper reviews what we have learned over the past decade about financial literacy and its relationship to financial decision-making around the world. Using three questions, we have surveyed people in several countries to determine whether they have the fundamental knowledge of economics and finance needed to function as effective decision-makers. We find that levels of financial literacy are low not only in the United States. but also in many other countries including those with well-developed financial markets. Moreover, financial illiteracy is particularly acute for some demographic groups, especially women and the less-educated. These findings are important since financial literacy is linked to borrowing, saving, and spending patterns. We also offer new evidence on financial literacy among high school students drawing on the 2012 Programme for International Student Assessment implemented in 18 countries. Last, we discuss the implications of this research for policy.

User Guide Notes

Short TitleRetirement
Citation Key8560
PubMed ID28553655
PubMed Central IDPMC5445906
Grant ListU01 AG009740 / AG / NIA NIH HHS / United States