Tuesday 14 February 2012

Financial Literacy: How would you rate your knowledge of the financial services that you use?

What do hand-washing and financial illiteracy have in common? More than you think!

Click on this link [1] to learn the answer while listening to a recent podcast by Freakonomics radio that discusses the common reality of financial illiteracy and its contribution to economic stability.

In recent years, financial literacy has become a trend in microfinance since lender abuse and struggles of microfinance borrowers are becoming increasingly covered by the media and studied in academic research. The most common solution implemented is to attempt to increase the financial education for borrowers who are often low income and uneducated (rather than increase regulation).  

Even though microfinance has a minimal existence in the United States, the topic of financial illiteracy of Americans is receiving more attention since the events of the Great Recession.

In this Freakonomics podcast, listeners learn from researchers and policy makers about the reality of financial illiteracy among Americans, the importance of financial literacy in the United States, and the different ideas to educate and protect the American public.

If you are an American reading this blog post, how would you rate your knowledge of the financial services that you use?



[1] http://www.freakonomics.com/2012/01/19/what-do-hand-washing-and-financial-illiteracy-have-in-common-a-new-freakonomics-radio-podcast/

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