nep-fle New Economics Papers
on Financial Literacy and Education
Issue of 2026–03–02
three papers chosen by
Viviana Di Giovinazzo, Università degli Studi di Milano-Bicocca


  1. Financial Literacy and Saving Behavior: Global Cross-Sectional Evidence By António Afonso; Eduardo Rodrigues
  2. Stereotypes, Financial Literacy, and Confidence: An Information Provision Experiment By Julia Peter; Jana Schuetz
  3. Exploring the potential of Islamic banking in Ghana: A systematic literature review By Sackey, Lawrence; Nortah-Ocansey, Derick A.; Mensah, Daniel

  1. By: António Afonso; Eduardo Rodrigues
    Abstract: Savings play a critical role in both individual financial well-being and economic development. This article examines the impact of financial literacy, income, educational level, and age on saving decisions across 136 countries, using data from the Global Financial Inclusion Database (2021) and employing Generalized Structural Equation Modelling (GSEM). Financial literacy is conceptualized as a latent variable, based on five indicators related to financial knowledge, financial behavior, and financial attitudes, aligned with the Organization for Economic Co-operation and Development (OECD) pillars. The analysis demonstrates that financial literacy is a fundamental driver for saving in the short and long term. Education level and income are consistent predictors of savings, while age exhibits distinct effects depending on the savings objective. Regional differences emerge, with Latin American countries showing the strongest link between financial literacy and savings, whereas in high-income economies, its influence is less pronounced. These findings underscore the multifaceted role of financial literacy in shaping saving decisions and highlight its implications for tailored public policies.
    Keywords: financial literacy, savings, Generalized Structural Equation Modelling, behavioral economics, global survey
    JEL: D14 G53 I22 C38 O16
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_12400
  2. By: Julia Peter; Jana Schuetz
    Abstract: Financial literacy is an important prerequisite for making informed financial decisions, but it remains low, especially among women and older people. Internalized stereotypes can undermine confidence and subsequently affect behavior in financial matters, leading to suboptimal decisions. This paper investigates how stereotype salience affects confidence in financial literacy. In an information provision experiment, we inform respondents about age or gender differences in numeracy to examine the impact on financial literacy, confidence, hypothetical investment and saving decisions, and demand for information and education. We find that being informed about age differences has no significant effect. In contrast, being informed about gender differences increases the confidence of male respondents through a stereotype boost, while leaving female respondents largely unaffected.
    Keywords: survey experiment, numeracy, gender stereotypes, age stereotypes
    JEL: C90 D91 G53 I24 J16
    Date: 2026
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_12384
  3. By: Sackey, Lawrence; Nortah-Ocansey, Derick A.; Mensah, Daniel
    Abstract: Over the past decades, Islamic banking has emerged as a viable alternative to conventional banking, gaining recognition in both Muslim-majority and non-Muslim countries. continues to face persistent challenges including liquidity pressures, rising non-performing loans, fiscal instability and regulatory concerns that constrain credit expansion, weaken investor confidence and impede sectoral growth. These systemic weaknesses have prompted policymakers and financial institutions to consider Islamic finance as a complementary model to strengthen the country's financial architecture. This study therefore explores the potential adoption of Islamic banking in Ghana and identifies its opportunities, challenges and relevant policy considerations. A systematic literature review was undertaken using a content analysis approach. Out of seventy-five (75) initial publications, thirty (30) were selected based on methodological rigor and thematic relevance. Findings indicate that Islamic banking could enhance financial inclusion, provide alternative financing mechanisms, support economic growth, attract foreign direct investment, promote infrastructure development and contribute to a more diversified financial market. However, barriers such as limited public awareness, regulatory gaps, misconceptions about Islamic financial principles, competition from conventional banks and inadequate professional expertise may hinder its successful adoption. The study also recommends that, if implemented, Islamic banking should be strategically aligned with Ghana's macroeconomic and fiscal objectives. Specifically, it should be leveraged to finance large-scale infrastructure projects including roads, industrial facilities, agricultural ventures, housing and other capital-intensive initiatives, thereby complementing fiscal policy and supporting long term national development.
    Keywords: Islamic banking, Financial inclusion, Economic growth, Regulatory challenges, Sukuk, Alternative financing
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:gabwps:336971

This nep-fle issue is ©2026 by Viviana Di Giovinazzo. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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