The need for financial education

Today, people are more responsible for their personal finances than ever before. With the increase in life expectancy, the pension and social security systems are in a tense state. In many countries, employer-sponsored defined benefit pension plans are rapidly giving way to private defined contribution plans. Individuals have also experienced changes in labor markets. Skills are becoming more and more important, and this leads to a discrepancy in wages between those with a higher education or higher and those with a lower level of education. At the same time, financial markets are changing rapidly, with the development of technology and new and more complex financial products. Ranging from student loans to mortgages, credit cards, mutual funds and annuities, the range of financial products that people should choose is very different from what it was in the past and the decisions regarding these financial products. Moreover, the exponential growth of financial technology is fundamentally changing the way people make payments, make decisions about their financial investments, and seek financial advice. In this context, it is important to understand how financially aware people are and to what extent their knowledge of finance affects their financial decision-making.