Financial Literacy in the Twenty-First Century: An Introduction to the International Handbook of Financial Literacy
In the twenty-first century, the ability to deal effectively with money and financial matters is becoming increasingly important—not just for professionals in the sector of investment and banking, but for every person responsible for managing his/her financial affairs in everyday life. This ability is usually subsumed under the term ‘financial literacy’. The increasing importance of financial literacy is attributable to several demographic, societal and economic trends such as the baby boom and increases in life expectancy, changes in pension arrangements and income, growing involvement in financial markets as well as the complexity and increase in the number of financial products (e.g., OECD 2005). As a result, a wide-ranging transfer of risk has occurred from governments and employers to employees and consumers (e.g., reduced state-supported pensions and healthcare benefits). This imposes a responsibility on individuals to care for their own financial security in case of, for...
KeywordsFinancial Risk Financial Literacy Citizenship Education Financial Education International Student Assessment
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