A lack of financial literacy is not a problem only in emerging or developing economies. Consumers in developed economies also fail to demonstrate a strong grasp of financial principles in order to understand and negotiate the financial landscape, manage financial risks effectively and avoid financial pitfalls.
In general, lower income individuals tend to be less financially literate. And it seems consumers are hesitant to learn. The OECD cited a survey conducted in Canada which found choosing the right investment for a retirement savings plan was more stressful than a visit to the dentist.
And while this may seem like an individual problem, it is broader in nature and more influential on the entire population than previously believed. All one needs to do is look at the financial crisis of 2008 to see the financial impact on the entire economy from a lack of understanding of mortgage products and the resulting defaults. Financial literacy is an issue with broad implications for economic health and an improvement can lead the way to a global economy that is competitive and strong.
With all the financial literacy requirements that are needed, we need your help to make it happen!
