EBI Publications

Financial products can appear quite complex to the average consumer, as they often require an understanding of terms of maturity, durations and payout options. In addition, the growth of international transactions, resulting from new technologies and the growing international mobility of individuals, makes the issue of improving financial education increasingly an international concern. As a consequence of these changes, financial knowledge has become not just a convenience but an essential survival tool. The negative impact of low Financial Education: Generally, the importance of financial education is given weight by citing what can happen in its absence. A lack of financial knowledge can contribute to the making of poor financial choices that can be harmful to both individuals and communities, and/or objective advice, develop the skills and concepts to become aware of financial risks and opportunities, to make informed choices, to know where to go for help, and to take other effective actions to improve their financial well-being and protection.” This definition implies that the outcome of financial education includes behaviors such as paying bills on time, having manageable levels of credit, setting financial goals and having a way of achieving those goals through saving and investing, spending wisely, and so on. The importance of Financial Education: In a world of increasing financial risks, financial education and awareness issues and policies have become critically important. The importance of financial education has increased in recent years as a result of financial market developments and demographic, economic and policy changes. Financial markets are becoming more sophisticated and new products are continuously offered.