Financial literacy programmes targeting the poor: The possibilities of using fnancial literacy as a tool for fnancial inclusion

Abstract

The main aim of this study is to examine the nature of the term fnancial literacy and link it to opportunities for fnancial inclusion. The author uses experience of some Hungarian programmes. Financial literacy is the focus of some of them, while in other cases it is just a part of a more complex initiative. After the literature review, the study ofers answers for the following research questions: • What are the main characteristics of existing fnancial literacy programmes in Hungary? • How fnancial exclusion and the lack of fnancial literacy are connected in practice? • What are the strengths (achievements) and weaknesses (pitfalls and disadvantages) of existing fnancial literacy programmes related to the fnancial inclusion of poor and marginalized social groups? Data from semi-structured in-depth expert interviews, documents and former research papers were collected for identifying Hungarian fnancial literacy programmes and their existing, missing and potential connections to fnancial inclusion. Originality of the Research In the literature, there are few articles that connect fnancial literacy and fnancial inclusion. Similarly, in practice, fnancial literacy programmes rarely target the poor. In turn, fnancial awareness is a very strong prerequisite of fnancial inclusion, e.g. successful debt settlement for fnancially vulnerable groups. The fndings from the study will enlighten policy-makers, managers of fnancial institutions and fnancial inclusion advocates on the importance of special context and complexity of fnancial literacy programmes provided for the poor.