Financial Literacy and Gender: A Behavioral Perceptive, Evidence from G20 Nations

Abstract

This research study is an attempt to explore the financial literacy index of G20 nations, focusing on the importance of financial literacy, the gender gap in financial literacy, and its impact on individuals and the economy. The research highlights the need for equal access to financial education and resources for both men and women, suggesting gender-specific programs, embedding financial education in curricula, and promoting inclusive financial services. It emphasizes the significance of the financial literacy index as a tool to measure financial knowledge and understanding within a population. By improving financial literacy, individuals can enhance their financial well-being, make better financial decisions, and avoid financial hardships. It also contributes to economic growth and stability at both individual and societal levels. The geometric mean tool is used by aggregating scores on three major financial index components. The findings of the financial literacy index for G20 nations indicate that most countries have above-average scores, indicating a relatively high level of financial literacy. However, some countries, such as Argentina and Italy, have lower scores, suggesting room for improvement in financial literacy education. Conversely, countries like Canada, China, France, Germany, Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, and the United Kingdom have higher scores, indicating a better understanding of financial concepts among their human dividends. The research study specifically highlights India as having a below-average financial literacy index score, emphasizing the need for improvement in financial literacy education. Given India's large population and growing economy, individuals need a good understanding of financial concepts to make informed decisions about their finances. In summary, the abstract presents a comprehensive overview of the financial literacy index of G20 nations, discussing its significance, providing key findings, and suggesting measures to bridge the gender gap and improve financial literacy worldwide.