Determinants of Financial Education in European Countries

Abstract

A high degree of financial literacy is associated in the literature with the welfare of the population, which triggers good investment decisions, the discipline of personal budget planning, and long-term financial objectives that bring a high degree of satisfaction with personal finances. Countries from all over the world have established national strategies to increase their financial literacy score. For instance, OECD set up a recommendation guide on financial literacy and financial education. In this article, the correlation analysis and the Principal Component Analysis are used to test if there is a relationship between financial quantitative variables and other variables related to education in thirty European countries.