The Role of Financial Education in Improving Consumer Financial Decisions

Abstract

The role of financial education in improving consumers' financial decision-making has been more and more acknowledged. Individuals in today's financial climate confront intricate decision-making processes when it comes to retirement planning, credit, investments, and savings. Serious repercussions, such as mounting debt, insufficient savings, and financial instability, can result from irresponsible financial choices. It is worth mentioning that financial education plays a crucial role in helping consumers make better financial decisions. For both personal financial independence and the economy as a whole, it is an essential ingredient. Effective financial education is becoming more important for lawmakers, educators, and financial organizations due to the ever-increasing requirement in response to changing financial markets. An individual's ability to weather future financial storms and enjoy life's fruits is directly correlated to the level of financial literacy they possess. In order to better understand how financial education might improve consumer behaviors and outcomes, this paper compiles findings from recent studies.