Mind the Gap: A Discussion Paper on Financial Literacy and Financial Behaviour: Is There Any Gender Gap?
51 Pages Posted: 25 Oct 2019
Date Written: October 17, 2019
Since the 2008 global crisis, financial literacy has come into the spotlight, but the available definitions are of theoretical nature addressing major issues appeared in specific economies, as presented here through an in-depth analysis of the literature. While the common focus has been on the United States, the economic infrastructure of Europe is very diverse. Despite the global epidemic of the crisis, its pattern was not globally the same. Utilising the current definitions without considering their validity has caused a misconception for inspecting emerging problems. Therefore, a new definition of financial literacy is proposed, which can be universally applied to various types of economies. The approach is to find the appropriate perspective for tailoring the framework of financial literacy for specific environments. Applying this definition to typical cases revealed that some of the key problems discussed in the literature are not indeed the critical issues, while major problems are usually neglected. The best example is the case of the gender gap where we might need to find new solutions as most of the previous studies have been based on inappropriate (or at least less practical) premises.
Keywords: Financial literacy, Financial inclusion, Gender Gap, Financial behaviours, Measuring financial literacy
JEL Classification: D14, G40, J16
Suggested Citation: Suggested Citation