For countries which successfully roll out financial education programmes, the benefits are significant: For the individual… 5. At an individual level, financial literacy/education is important because it helps in building financial capability. It makes people better informed, educated and more confident, able to take greater control of their financial affairs and to fully harness the benefits of accessing the formal financial system.
People who understand their financial circumstances are more likely to make sensible choices and ensure adequate provision for their future. They are more likely to have an appropriate level of insurance and reach retirement age with comfortable pension plans. They won’t pay more interest than they need to when borrowing, or settle for less than they should when saving.