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

Manuel Carlos Nogueira (), Luís Almeida and Fernando Oliveira Tavares
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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
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
Fernando Oliveira Tavares: Research on Economics, Management and Information Technologies, Department of Economics and Management, Universidade Portucalense, 4200-027 Porto, Portugal

JRFM, 2025, vol. 18, issue 3, 1-15

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.

Keywords: financial literacy; financial knowledge; financial behavior; OECD (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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