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Financial Literacy, Financial Knowledge, and Financial Behaviors in OECD Countries

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  • Manuel Carlos Nogueira

    (GOVCOPP—Research Unit on Governance, Competitiveness and Public Policies, Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT), University of Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal
    ISPGAYA—Higher Polytechnic Institute of Gaya, Avenida dos Descobrimentos, 303, Santa Marinha, 4400-103 Vila Nova de Gaia, Portugal)

  • Luís Almeida

    (GOVCOPP—Research Unit on Governance, Competitiveness and Public Policies, Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT), University of Aveiro, Campus Universitário de Santiago, 3810-193 Aveiro, Portugal
    Higher Institute of Accounting and Administration of Aveiro, Aveiro University, 3810-193 Aveiro, Portugal)

  • Fernando Oliveira Tavares

    (Research on Economics, Management and Information Technologies, Department of Economics and Management, Universidade Portucalense, 4200-027 Porto, Portugal
    Instituto Superior Miguel Torga, Largo da Cruz de Celas nº 1, 3000-132 Coimbra, Portugal)

Abstract

As an integral part of financial inclusion, adequate and correct financial knowledge provides individuals with tools to achieve better financial performance throughout their lives. Financial knowledge also contributes to agents exhibiting financial behaviors. As there is consensus in the literature regarding the benefits of financial literacy, we decided to investigate the importance of several indicators that generally appear to explain this literacy in a set of twenty OECD countries, considering financial literacy, financial knowledge, and financial behavior. Using estimation through corrected heteroscedasticity, the results show that the completion of higher education contributes positively and significantly to financial literacy and financial knowledge and behaviors. Inequality in access to health and education, as well as the level of household debt, negatively impacts financial literacy and knowledge. Still, on the other hand, progression in human development contributes to progression in literacy and financial behavior. In terms of average income, it can be seen that it contributes to literacy and financial behavior, but surprisingly, public spending on education does not impact financial literacy.

Suggested Citation

  • Manuel Carlos Nogueira & Luís Almeida & Fernando Oliveira Tavares, 2025. "Financial Literacy, Financial Knowledge, and Financial Behaviors in OECD Countries," JRFM, MDPI, vol. 18(3), pages 1-15, March.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:3:p:167-:d:1616141
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    References listed on IDEAS

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