Financial Literacy During a Crisis: Financial Lessons Learned from COVID-19

Abstract

Background – Coronavirus Disease 2019 (COVID-19) has spawned a global health and financial crisis. It is high time we acknowledged the importance of financial literacy in preparing financially vulnerable households to get through tough times. Objective – This paper aims to highlight financial lessons learned from the pandemic, focussing on the role of financial literacy in the judicious financial behaviour. Material and methods – The paper amalgamates the concept, levels and outcomes of financial literacy, followed by the discussion on financial education. A framework is presented presenting the crisis’s impact on well-being and the noteworthy lessons. Results and conclusions – The diverse aspects of financial behavior that fundamentally depend upon financial literacy will be critical during COVID-19 and its aftermath. Having emergency funds, investing wisely, conservative borrowing, insurance coverage, financial goals, fin-tech and financial inclusion are the life-saving skills that protect from financial fragility and build financial resilience. The study intends to provide readers with a thumbnail of various aspects of financial knowledge that are often neglected in routine , and suggests future research agenda. This study will aid researchers, policy-makers and financial educators in developing strategies that are critical to economic recovery and future financial preparedness.