The Key Role of Personal Experience in Financial Education

Posted: 6 Jan 2013

See all articles by Massimo Caratelli

Massimo Caratelli

University of Roma Tre - Department of Business Studies

Ornella Ricci

University of Roma Tre, Department of Business Studies

Alessia Naccarato

University of Rome III - Department of Economics

Date Written: July 1, 2012

Abstract

The aim of the paper is to test the existence of a strong relationship between the acquisition of financial literacy and financial experience, gained with the daily use of different products and services. Data are drawn by the 2008 Bank of Italy Survey on Household Income and Wealth. The research, through its results, aims to provide policymakers with indications to improve consumer protection in the financial services industry. Our findings show that financial literacy depends not only on the education level, or on the participation in training initiatives, but a relevant role is also played by financial experience. This result suggests the adoption of incentives on the use of financial and payment instruments, in addition to educational programs, in order to foster responsible consumer behavior.

Keywords: Financial education, Financial literacy, Household income and wealth

JEL Classification: G21, I22

Suggested Citation

Caratelli, Massimo and Ricci, Ornella and Naccarato, Alessia, The Key Role of Personal Experience in Financial Education (July 1, 2012). Bancaria No. 06/2012, Available at SSRN: https://ssrn.com/abstract=2196355

Massimo Caratelli (Contact Author)

University of Roma Tre - Department of Business Studies ( email )

Via Silvio D'Amico, 77
Rome, RM 00145
Italy

HOME PAGE: http://www.disa.uniroma3.it/

Ornella Ricci

University of Roma Tre, Department of Business Studies ( email )

Via Ostiense, 159
Rome, RM 00145
Italy

Alessia Naccarato

University of Rome III - Department of Economics ( email )

Via Ostiense, 169
Rome, 00154
Italy

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