nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2020‒08‒24
two papers chosen by

  1. Financial inclusion: a strong critique By Ozili, Peterson K
  2. Promoting Financial Literacy among the Elderly: Consequences on Confidence By Alessandro Bucciol; Simone Quercia; Alessia Sconti

  1. By: Ozili, Peterson K
    Abstract: This article presents some criticisms of financial inclusion. It notes that (i) financial inclusion is an invitation to live by finance and leads to the financialisation of poverty; (ii) some of the benefits of financial inclusion disappears after a few years; (iii) financial inclusion ignores how poverty affects financial decision making, (iv) it promotes digital money which is difficult to understand, (v) financial inclusion promotes the use of transaction accounts; (vi) digital money is difficult to understand; and that (vii) some financial inclusion efforts bear a resemblance to a campaign against having cash-in-hand. This study will help policymakers in their assessment of the economic, social, political and cultural factors that hinder financial inclusion as well as the consequence of financial inclusion for society. For academics, this study will provide a critical perspective to on-going financial inclusion debates in the large positivist literature on financial inclusion
    Keywords: : financial inclusion, criticism, poverty, digital money, digital finance, financial literacy, financial education.
    JEL: O1 O17
    Date: 2020
  2. By: Alessandro Bucciol (Department of Economics (University of Verona)); Simone Quercia (Department of Economics (University of Verona)); Alessia Sconti (Department of Economics (University of Verona))
    Abstract: Financial literacy is a crucial skill for personal wealth management and economic well-being. Hence, it is important to evaluate the impact of interventions aimed at increasing financial literacy in the most vulnerable groups of the society. We conduct an impact evaluation of an intervention consisting in a two-hour lecture by university professors targeting the elderly population. We find that the intervention does not have a significant effect on literacy but has a significant effect on confidence. Our results highlight that short programs meant to increase financial literacy may have a severe drawback in favoring an increased confidence in one's own competence, not supported by an increased competence.
    Keywords: Financial literacy, Confidence, Overconfidence
    JEL: D91
    Date: 2020–07

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