10 Facts about Financial Literacy

Facts about Financial Literacy discuss on how the money works. It involves the understanding on how a person will use the money. Investment and management of finance are also included in financial literacy. In some cases, people may also use their money to help others by having donation. If you are financially literate, it means that you know on how to use the financial resources effectively. Let us find out other interesting facts about financial literacy:

Facts about Financial Literacy 1: the interest of personal finance

The countries which use the skill of personal finance in the programs run by the states are UK, US, Japan, Canada and Australia.

Facts about Financial Literacy 2: financial education

Financial education is a big concern in a number of countries in the world. OECD or Organization for Economic Co-operation and Development began an intergovernmental project to increase the financial literacy standard and education.

Facts about Financial Literacy 3: the term

The term financial capability is more preferable to use in United Kingdom.

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Facts about Financial Literacy 4: the initiative for financial literacy

In 2003, financial capability became a focus in United Kingdom after it was applied as a national strategy by FSA or Financial Services Authority.

Facts about Financial Literacy 5: the US government

In 2003, the initiative to promote financial literacy was also established in United States by Financial Literacy and Education Commission.

Facts about Financial Literacy 6: financial literacy surveys

In OECD countries, a financial literacy survey was conducted in the end of 2005. The concept of compound interest was understood by 67 % of respondents. Only 20 percent of them have good understanding when being asked to solve a problem of compound interest.

Facts about Financial Literacy 7: the financial information

According to a survey in Great Britain, the people did not have any attempt to find out information about finance.

Facts about Financial Literacy 8: getting information by chance

The people got the information when they were talking with a bank employee or even from a pamphlet.

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Facts about Financial Literacy 9: investment

The respondents stated that it was less stressful to go to the dentist than to choose the best investment according to a survey in Canada.

Facts about Financial Literacy 10: the Mongolians

The TV drama, which sent the message about the financial literacy of the poor and rich people, inspired Mongolians to compare interest rate when they wanted to have savings or loans.

Are you inspired after reading facts about financial literacy?