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Financial Literacy, Numeracy, and Schooling: Evidence from Developed Countries

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  • Sara Lamboglia

    (Bank of Italy)

  • Massimiliano Stacchini

    (Bank of Italy)

Abstract

Financial literacy is low among young people and their uninformed choices may have costly and long lasting consequences. This paper uses data from the 2018 and 2012 OECD Programme for International Student Assessment (PISA) to provide evidence on two drivers of young peoples’ financial skills: math abilities and financial education in school. Our results are twofold. First, financial skills tend to be higher among individuals with stronger mathematical abilities, especially when math teachers employ strategies that stimulate ‘cognitive activation’. Second, students’ exposure to financial education in school varies across countries, and financial outcomes are better among students who have this opportunity, particularly when financial activities are integrated into math classes.

Suggested Citation

  • Sara Lamboglia & Massimiliano Stacchini, 2025. "Financial Literacy, Numeracy, and Schooling: Evidence from Developed Countries," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(2), pages 547-569, July.
    • Handle: RePEc:spr:italej:v:11:y:2025:i:2:d:10.1007_s40797-025-00314-9
    DOI: 10.1007/s40797-025-00314-9
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    Cited by:

    1. Giorgio Calcagnini & Riccardo Bonis & Germana Giombini, 2025. "Financial Literacy and Education in an Era of Unprecedented Disruptions," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 11(2), pages 459-462, July.
    2. Sara Lamboglia & Fabio Travaglino, 2022. "Statistical sources for assessing financial literacy," Questioni di Economia e Finanza (Occasional Papers) 725, Bank of Italy, Economic Research and International Relations Area.
    3. Magda Bianco & Daniela Marconi & Angela Romagnoli & Massimiliano Stacchini, 2022. "Challenges for financial inclusion: the role for financial education and new directions," Questioni di Economia e Finanza (Occasional Papers) 723, Bank of Italy, Economic Research and International Relations Area.

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    JEL classification:

    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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