Financial Literacy in Europe Assessment Methodologies and Evidence from European Countries Routledge International Studies in Money and Banking Series

Are people ready to take pivotal financial decisions like choosing a mortgage, saving for retirement, or investing their savings? How does the degree of knowledge about financial products and services affect the quality of their choices? Can financial fraud be prevented by increasing consumer financial knowledge?

Financial Literacy in Europe addresses these important questions and more. In the first part, the author investigates the concept of financial literacy by analyzing its components and comparing different definitions from previous studies. This then forms a comprehensive measure of financial literacy to be applied in empirical studies that analyze the role of financial literacy in explaining consumers? financial behaviors. In the second part of the study, the author uses brand new data collected by the Consumer Finance Research Center (CFRC) from several European countries (the UK, Germany, France, Italy, Sweden, and Spain) to assess financial literacy in Europe and highlight similarities and differences across countries.

Filling an important gap in previous research, the author develops a rigorous approach in the measurement of financial literacy in order to examine European financial literacy issues in great detail. This book, therefore, is a useful resource for assessing the effectiveness of single financial education programs or planning national strategies on financial education. It can also support policy makers in developing financial regulation and consumer protection strategies, considering the consumer perspective and their ability to deal with financial markets and institutions.

Foreword
AcknowledgementsIntroduction

Part I – Financial literacy: a theoretical framework and evidence from previous studies
1 Financial literacy: definition and measurement1.1 Financial literacy: a definition 1.2 Financial literacy as a relative concept 1.3 How to measure financial literacy 1.4 Financial literacy measures from previous studies References2 Financial literacy and financial behavior2.1 The role of financial literacy in the financial decision making process 2.2 The new challenges of financial literacy between personal financial behaviors and social outcomes 2.3 Financial literacy and financial behaviors: some evidence from previous studies 2.4 Conclusions References

Part II – Financial literacy in Europe
3 Financial literacy in Europe: an overview3.1 Introduction 3.2 Financial literacy of young students: the PISA project 3.3 Financial literacy of adults: the OECD-INFE study 3.4 Conclusions References4 Financial literacy in the UK4.1 Introduction 4.2 Data 4.3 The characteristics of financial literacy in the UK 4.4 The determinants of financial literacy in the UK 4.5 Conclusions References5 Financial literacy in Germany5.1 Introduction 5.2 The characteristics of financial literacy in Germany 5.3 The determinants of financial literacy in Germany 5.4 Conclusions References6 Financial literacy in France6.1 Introduction 6.2 The characteristics of financial literacy in France 6.3 The determinants of financial literacy in France 6.4 Conclusions References7 Financial literacy in Italy7.1 Introduction 7.2 The characteristics of financial literacy in Italy 7.3 The determinants of financial literacy in Italy 7.4 Conclusions References8 Financial literacy in Spain8.1 Introduction 8.2 The characteristics of financial literacy in Spain 8.3 The determinants of financial literacy in Spain 8.4 Conclusions References9 Financial literacy in Sweden9.1 Introduction 9.2 The characteristics of financial literacy in Sweden 9.3 The determinants of financial literacy in Sweden 9.4 Conclusions ReferencesConclusions

Appendix: Financial literacy items
Index

Gianni Nicolini is Associate Professor of Finance at the University of Rome "Tor Vergata" (Department of Management and Law). His main research interest is Consumer Finance, with a special interest on Financial Literacy and Financial Education. In 2016 he established, with other researchers, the Consumer Finance Research Center (CFRC) with the aim to develop high quality research on consumer issues.