Facts about Financial Literacy
Financial knowledge is especially important in times where increasingly …show more content…
Financial literacy rates differ in important ways when it comes to characteristics such as age, gender, education level, and income. Young and old people are shown to have lower financial literacy. Women have weaker financial skills and less financial knowledge compared to their male counterparts. Education level also plays an important role in financial savvy. People with lower education attainment have poorer numerical ability. In correlation to the education level, low income people usually are not equipped with sufficient financial knowledge. Besides, access to financial products and financial experiences affect people’s understandings of financial facts. Thus, people from rural areas or with foreign backgrounds sometimes fall behind in acquiring financial …show more content…
In the United States and elsewhere, those programs have been implemented over the years in several different settings: in schools, workplaces, and sometimes population subgroups have been targeted. Heterogeneity in financial literacy suggests that different mechanisms may be appropriate for tracking the causes and possible consequences of the shortfalls. For school financial education, studies show that carefully designed coursework and experiment do improve students’ financial skills, but the problem lies in that it is usually hard to control the quality of courses offered in those programs. Situations in workplace are even more complicated. One of the common financial education program in workplace is the retirement seminar. While those who attend the seminar tend to performance well in managing their pension accounts, it is hard to disentangle the self-selected effect arising from voluntary attendance of the