A lack of financial literacy
Investopedia
A lack of financial literacy affects people in developed or advanced economies, as well as those who live in emerging or developing countries. Consumers in advanced economies also fail to demonstrate a strong grasp of financial principles that can help them understand and negotiate the financial landscape, manage financial risks effectively, and avoid financial pitfalls. Nations globally, from Korea to Australia to Germany, are faced with populations that do not understand financial basics.
The level of financial literacy may vary with education and income levels, but evidence shows that highly educated consumers with high incomes can be just as ignorant about financial issues as less-educated, lower-income consumers.
Nations depend ...
Financial Educators Council
... the health and strength of entire nations depend on the financial literacy of every individual. When people know how to make sound decisions about their personal finances, their strong financial behavior leads to financially secure lives. The fewer people who make bad decisions about their personal finances, the stronger the society will become.
Core life skill
OECD
Financial literacy is a core life skill for participating in modern society.
Children are growing up in an increasingly complex world where they will eventually need to take charge of their own financial future. As young adults learning to live independently they will need to know how to
budget and make wise financial choices for everyday living, for example, choosing mobile phone and utility contracts.
They will need to manage risks: save for a ‘rainy day’, avoid taking on unmanageable debt, and provide for their old age and health care. Financial products and services vary widely and, in the case of credit, can be almost too easily accessible for many of today’s young people.
Future wellbeing
Alan Greenspan (USA Federal Reserve)
Like all learning, financial education is a process that should begin at an early age and continue throughout life. This cumulative process builds the skills necessary for making critical financial decisions that affect one’s ability to attain the assets, such as education, property, and savings, that improve economic well-being.