Fostering Early Financial and Tax Understanding: Integrating Concepts into Education

Abstract

This paper explores the integration of financial and tax literacy into the educa-tional process, emphasizing early exposure to these concepts. Modern states rely heavily on tax revenue for their sustainability, making it crucial for citi-zens to understand both financial management and tax compliance. However, tax literacy is often overlooked as a core component of financial education. This study examines the development of financial literacy in Greece, high-lighting significant gaps across regions, age groups, and genders, with particu-lar focus on adolescents and women. The findings suggest that socio-economic factors and education play key roles in shaping financial behaviors. Incorpo-rating tax literacy into financial education from an early age is vital to fostering a culture of responsible financial behavior and voluntary tax compliance. Through a meta-analysis of global research and a review of Greek financial competence, the paper identifies age 12 as an optimal starting point for formal financial education. It also advocates for a comprehensive approach that in-cludes teacher training and adapting successful international practices. By embedding financial and tax education into school curricula, young people can be better equipped to manage their finances responsibly and contribute posi-tively to national economic systems.