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on Financial Literacy and Education |
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Issue of 2025–08–11
four papers chosen by Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca |
| By: | Ozili, Peterson K |
| Abstract: | Little attention has been paid to the role of inflation and financial inclusion in influencing financial stability. These factors have become all the more important in light of the recent banking crisis in the United States. The lessons learnt from the recent banking crisis have heightened the need for financial regulators and bank supervisors to undertake continuous search for the non-traditional determinants of financial stability to identify risks early and mitigate risks to financial system stability. In this article, we examine some non-traditional determinants of financial stability using data from sixty-one countries from 2009 to 2021. The first-difference panel GMM regression method was used to estimate the model, and we find that greater financial stability in the previous period is followed by greater financial stability in the subsequent period in all regions, signalling the persistence of financial stability. The loan-to-deposit ratio improves financial stability in European and Americas countries while countries that have a high level of financial inclusion, and whose banking sector have a high loan-to-deposit ratio, are more financially stable. Financial inclusion improves financial stability in high inflation environments particularly in African and Americas countries. High levels of financial inclusion impair financial stability during a recession particularly in Asian countries. African banks with a high loan-to-deposit ratio are more financially stable during a recession. Also, Americas and African countries that have a combined high financial inclusion and inflation rates and whose banking sector have a high loan-to-deposit ratio are less financially stable, indicating that high inflation hinders financial inclusion and loan-to-deposit ratio from improving financial stability. |
| Keywords: | financial stability, determinants, financial inclusion, inflation, bank efficiency, loan-to-deposit ratio, economic growth, unemployment rate. |
| JEL: | G01 G20 G21 G23 G28 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125565 |
| By: | International Monetary Fund |
| Abstract: | Kiribati faces significant development challenges due to its remoteness, limited landmass, and high exposure to climate-related shocks. The government has expanded social benefits and is pursuing an ambitious long-term development agenda focusing on health, education, financial inclusion, infrastructure and diversification. However, recent growth has been largely driven by public sector expansion. Fiscal and current account balances have deteriorated substantially in recent years, amid lower fishing revenues and increased current expenditures, contributing to the higher import bill and potentially weighing on long-term development. |
| Date: | 2025–07–10 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfscr:2025/172 |
| By: | Guglielmo Briscese; John List; Sabrina Liu |
| Abstract: | With higher education costs consistently outpacing inflation and public funding declining, college affordability has become a critical barrier to economic mobility for middle- and low-income families. While College Savings Accounts (CSAs), or 529 plans, offer tax advantaged vehicles for college savings, their adoption patterns and educational impacts remain poorly understood. Using comprehensive administrative data from over 900, 000 Illinois 529 accounts (2000-2023) linked to educational outcomes, plus complementary surveys of account owners and parents, we provide the first large-scale analysis of CSA participation and effectiveness. We find that while CSA adoption has expanded to every ZIP code in Illinois, participation remains concentrated among higher-income, more educated families. Financial literacy emerges as a key barrier: 61% of parents who could save enough to cover half of future college costs still perceive their potential savings as meaningless. Among participants, higher savings are strongly correlated with better educational outcomes, including four-year college enrollment, attendance at selective institutions, and the pursuit of post-graduate degrees. These findings suggest that targeted interventions addressing financial literacy gaps and misperceptions about modest savings could significantly expand CSA effectiveness as a tool for educational equity. Beyond state-level 529 program optimization, our findings suggest several promising avenues for federal policy coordination and institutional innovation. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:feb:artefa:00824 |
| By: | Brixiova Schwidrowski, Zuzana (United Nations Economic Commission for Africa (UNECA)); Elbeshbishi, Amal Nagah (United Nations Economic Commission for Africa (UNECA)); Zhao, Jiaxin (United Nations Economic Commission for Africa (UNECA)) |
| Abstract: | Skills gaps, a lack of funding, and social norms continue to keep women and youth in North Africa from engaging in productive entrepreneurship. Using cross-national data and regional indicators from the World Bank and the Global Entrepreneurship Monitor, this analysis shows how such barriers reinforce each other, leading to the structural exclusion of women and youth. For example, only 1.2% of Egyptian women are business owners, and young people in Tunisia have a significantly lower chance than adults of obtaining business loans. The report estimates that if gender gaps in networks and skills are addressed, up to 7 million more female entrepreneurs could be established in North Africa. Progress requires targeted education, the use of inclusive finance tools, and shifts in public opinion. When supported by policies, the entrepreneurship of women and young people can boost resilience and create job-rich growth. |
| Keywords: | entrepreneurship, North Africa, gender and youth economic empowerment, financial inclusion, skills development, social norms |
| JEL: | L26 J16 J18 O17 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izapps:pp217 |