Increasing Financial Literacy: A Public Policy Challenge
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Increasing Financial Literacy: A Public Policy Challenge
Kotz, Hans-Helmut | Weber, Martin
Credit and Capital Markets – Kredit und Kapital, Vol. 40 (2007), Iss. 2 : pp. 175–187
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Hans-Helmut Kotz, Frankfurt/M.
Martin Weber, Mannheim
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Abstract
Individuals are supposed, by numerous reforms launched in particular over the last decade, to ever more provide on their own for their protection against potential mishaps or vulnerabilities. This holds true at least in a supplementary way, in particular for the provision of old age insurance. At the same time, the required level of financial literacy, enabling consumers to face those tasks, however, appears to be lacking. And this is, rightly in our eyes, perceived as an important issue of policy. Our aim is to briefly show how finance, in its applied as well as in its behavioural dimension, can usefully contribute to this task.