Influence Of Financial Education

Financial Education Programs and basic influence Factors

This clearly focuses on how financial education programs are working and the ways in which these programs flourish well. The financial education could be given to people with ease and effectiveness if they have basic solid general education. In this regard certain researches show that the people with more solid general education are much into financial education than the less educated. It also states that people with secondary education have more percentage of bank accounts as compared to people with only primary education. Other basic factors may also influence the financial education such as of income, gender, geographic location. In simple, general education attainment has high influence upon financial market participation. This clearly defines that financial education has a directly proportional relationship with the level of education. As the level of education increases financial education would also increase.

Is lower level education helpful for financial education?

In the next step, educating the lower level of formal education and with no financial education may be fruitful in one way or the other. For instance, in Indonesia people with no financial education may not have a bank account rather they may save money in a non financial institution. When asking these uneducated people about their behavior, researches come to a conclusion that these people were willing to deposit money in banks if no fees were charged to them. After this decision the trend changed gradually. More people came toward financial institutions after given some financial basic education. This also showed that person with less solid education may have some effect after giving them some financial ...

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...eration in market conduct. More importantly consumer protection is particularly beneficial if there are gaps among financial literacy and financial capabilities.

Consumer protection would be therefore balanced with the other goals of financial security policies. Consumer protection also involve the selling pattern adopted by the marketers i9n which the consumer is mislead and not given proper information about the product benefits and drawbacks and also sometimes given much expensive thing in place of a much cheaper item as an expensive item may give them much profit as compared to the cheaper product. This pattern is discussed with the example of Mexico in this chapter. More importantly consumer protection rules should have to cover the other communication channels used by the financial intuitions to present information to consumer provided at that point of time.