Coming to Terms with Financial Literacy

Abstract

The topic of financial literacy has risen to prominence in recent years. Despite the general recognition of the importance of financial education and literacy among researchers, practitioners and policymakers, little has been done to clearly define the concept. The present chapter highlights some of the general difficulties inherent in studying the area of financial literacy and education, noting the variety of definitions and measures that have been used in previous studies of the topic. Without a universally recognized measure of knowledge or literacy, it is difficult to develop relevant initiatives, assess current education policy, and advance the knowledge base of the field in regards to financial literacy and its significance. The chapter concludes by highlighting some current steps that are being taken to achieve a more unified concept of financial literacy in the United States.