Table Of Contenti
THE ROUTLEDGE HANDBOOK OF
FINANCIAL LITERACY
Financial literacy and financial education are not new topics, even though interest in these
topics among policymakers, financial authorities, and academics continues to grow. The
Routledge Handbook of Financial Literacy provides a comprehensive reference work that addresses
both research perspectives and practical applications to financial education. This is the first
volume to summarize the milestones of research in financial literacy from multiple perspectives
to offer an overview.
The book is organized into six parts. The first three parts provide a conceptual framework,
which discusses what financial literacy is, how it should be measured, and explains why it
represents a relevant topic and effective tool in enhancing decision- making among consumers
as well as consumer protection strategies. Part IV addresses the connection between financial
education and financial literacy, with chapters about financial education in school settings as
well as for adults. This part includes an analysis of the role of Fintech and the use of gamification
in financial education. Part V is a collection of contributions that analyze financial literacy and
financial education around the world, with a focus on geographical areas including the U.S.,
South America, Western Europe, Eastern Europe, Asia, and Africa. This part also considers
how financial literacy should be addressed in the case of Islamic finance. The concluding part
of the book examines how financial literacy is related to other possible approaches to consumer
finance and consumer protection, addressing the relationships between financial literacy and
behavioral economics, financial well- being, and financial inclusion.
This volume is an indispensable reference for scholars who are new to the topic, including
undergraduate and graduate students, and for experienced researchers who wish to enrich their
knowledge, policymakers seeking a broader understanding and an international perspective,
and practitioners who seek knowledge of best practices as well as innovative approaches.
Gianni Nicolini is Associate Professor in Banking and Finance at the University of Rome
Tor Vergata, Italy, in the Faculty of Economics, Department of Management and Law (DML).
Brenda J. Cude is Professor Emeritus, Consumer Economics, in the Department of Financial
Planning, Housing and Consumer Economics at the University of Georgia, U.S.A.
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THE ROUTLEDGE
HANDBOOK OF FINANCIAL
LITERACY
Edited by
Gianni Nicolini and Brenda J. Cude
iv
Cover image: © Getty Images
First published 2022
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
605 Third Avenue, New York, NY 10158
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2022 selection and editorial matter, Gianni Nicolini and Brenda J. Cude;
individual chapters, the contributors
The right of Gianni Nicolini and Brenda J. Cude to be identified as the authors
of the editorial material, and of the authors for their individual chapters, has
been asserted in accordance with sections 77 and 78 of the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised
in any form or by any electronic, mechanical, or other means, now known or
hereafter invented, including photocopying and recording, or in any information
storage or retrieval system, without permission in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or registered trademarks,
and are used only for identification and explanation without intent to infringe.
British Library Cataloguing- in- Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging- in- Publication Data
Names: Nicolini, Gianni, 1976– editor. | Cude, Brenda J., editor.
Title: The Routledge handbook of financial literacy/edited by Gianni
Nicolini and Brenda J. Cude.
Description: 1 Edition. | New York, NY : Routledge, 2022. |
Series: Routledge international handbooks |
Includes bibliographical references and index.
Identifiers: LCCN 2021029994 (print) | LCCN 2021029995 (ebook) |
ISBN 9780367457778 (hardback) | ISBN 9781032154381 (paperback) |
ISBN 9781003025221 (ebook)
Subjects: LCSH: Finance, Personal–Study and teaching. |
Financial literacy.
Classification: LCC HG179 .R6926 2022 (print) |
LCC HG179 (ebook) | DDC 332.0240076–dc23
LC record available at https://lccn.loc.gov/2021029994
LC ebook record available at https://lccn.loc.gov/2021029995
ISBN: 978- 0- 367- 45777- 8 (hbk)
ISBN: 978- 1- 032- 15438- 1 (pbk)
ISBN: 978- 1- 003- 02522- 1 (ebk)
DOI: 10.4324/ 9781003025221
Typeset in Bembo
by Newgen Publishing UK
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CONTENTS
List of figures ix
List of tables xi
List of contributors xiii
Introduction 1
PART I
What is financial literacy? 3
1 Defining financial literacy 5
Brenda J. Cude
2 Financial literacy among children: Supporting the achievement of
financial well- being in adulthood 18
Anita I. Drever and Nicole M. Else- Quest
3 Financial literacy among young adults 31
Joyce Serido
4 Financial literacy among older adults 48
Shinae L. Choi and Brenda J. Cude
5 A multidimensional approach to defining and measuring financial
literacy in the digital age 61
Angela C. Lyons and Josephine Kass- Hanna
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Contents
PART II
Measuring financial literacy 77
6 Measuring financial literacy: The role of knowledge, skills, and attitudes 79
Marlene Haupt
7 Financial literacy and numeracy 96
Elisa Darriet, Marianne Guille, and Jean- Christophe Vergnaud
8 Assessment methodologies in financial literacy: Best practices and
guidelines 110
Gianni Nicolini
9 Customizing financial literacy 124
Gianni Nicolini
PART III
Relevance and effectiveness of financial literacy 135
10 Now more than ever: Why financial literacy is a key element of
post- COVID- 19 recovery 137
Elsa Fornero, Anna Lo Prete, and Noemi Oggero
11 The likely influence of financial literacy on financial behaviors 153
William B. Walstad and Sam Allgood
PART IV
Improving financial literacy: The role of financial education 171
12 Overview of financial education 173
Suzanne Bartholomae and Jonathan J. Fox
13 Financial education in schools 187
Robin Henager and M.J. Kabaci
14 Financial education for adults: Effective practices and some
recommendations 204
Suzanne Bartholomae, D. Elizabeth Kiss, and Maria Pippidis
15 Financial education in human trafficking interventions: Implications
for research, programming, and policy 223
David Okech, Claire Bolton, and Elyssa Schroeder
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Contents
16 Fintech, financial literacy, and financial education 239
Peter J. Morgan
17 Education or entertainment? On the potential of games in financial
education 259
Panu Kalmi and Tanja Sihvonen
18 Alternatives to financial education 274
Lauren E. Willis
PART V
Financial literacy and financial education around the world 293
19 Financial literacy and financial education in the United States 295
Brenda J. Cude
20 Financial literacy and financial education in Canada 310
Jodi Letkiewicz
21 Financial literacy and financial education in Central America and
the Caribbean 324
Donna E. Danns and George K. Danns
22 Financial literacy and financial education in South America 344
Cristina Carrillo Rivero
23 Financial literacy and financial education in Western Europe 363
Luc Arrondel, Marlene Haupt, María Jesús Mancebón, Gianni Nicolini,
Manuel Wälti, and Jasmira Wiersma
24 Financial literacy and financial education in Northern Europe 382
Anu Raijas
25 Financial literacy and financial education in Eastern Europe 400
Andrzej Cwynar
26 Financial literacy and financial education in Africa 420
Sophia T. Anong, Judith Aboagye, and Jaeyong Yoo
27 Financial literacy and financial education in Asia 438
Jing Jian Xiao
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Contents
28 Financial literacy and financial education in Australia and New Zealand 454
Andrew C. Worthington and Tracey West
29 Financial literacy, financial education, and Islamic finance 470
Andrew C. Worthington and Ainulashikin Marzuki
PART VI
Beyond financial literacy 487
30 Financial literacy and behavioral economics: Knowledge, nudging,
and the psychology of decision- making 489
Vera Rita de Mello Ferreira
31 Financial literacy and financial well- being 505
Dee Warmath
32 The relationship between financial literacy and financial inclusion 517
Antonia Grohmann and Lukas Menkhoff
Index 531
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ix
FIGURES
2.1 Model of antecedents of financial well- being 19
3.1 Conceptual model of young adults’ financial capability 33
3.2 Framework for young adult financial literacy development 40
6.1 The concept of financial literacy as defined by Huston (2010) 83
6.2 The concept of financial literacy by Hung et al. (2009) 84
6.3 The concept of measuring financial literacy by Atkinson and Messy
(2012) 85
7.1 Berlin Numeracy Test structure 99
8.1 Distribution of the number of studies that used “x” number of items to
assess financial literacy 118
14.1 Kolb experiential learning cycle 210
14.2 Transtheoretical model of change 211
16.1 Telephone penetration rate in Viet Nam (%) 246
16.2 Fintech usage and financial literacy scores 246
16.3 Gaps in usage and awareness of Fintech products in the People’s
Republic of China (PRC) and Viet Nam (% of total respondents) 248
16.4 Gaps in using online payments by financial literacy in the PRC and
Viet Nam (% of total respondents) 249
16.5 Digital financial literacy indicators (% of eligible respondents) 250
16.6 The impact of COVID- 19 on the adoption of Fintech mobile apps 251
20.1 Financial literacy programming delivery and development in Canada 314
21.1 CAC countries: GNI per capita 2019 (current USD) 326
21.2 Tourism in the Caribbean: percentage of GDP 326
21.3 Institutional model for financial literacy in developing countries 331
22.1 Financial literacy scores in South America 348
22.2 Savings for old age in the previous year 357
25.1 Financial development index in EE countries as of 2017 402
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