Financial Literacy in the Developing World

Abstract

Financial literacy programs are fast becoming a key ingredient in financial policy reform worldwide. Yet, what is financial literacy exactly, how best do we measure it, and what do we know of its effectiveness in developing countries? This paper collects insights from the literature thus far and summarizes evidence on financial literacy measurement and evaluations in the developing world. We conclude with a synthesis of policy advice and practical suggestions for the way forward in this fast growing area of research.