Financial Literacy and Gambling Behavior: A Literature Review
Financial Literacy and Gambling Behavior: A Literature Review

Summary/Abstract: This literature review critically examines the effects of financial literacy on gambling behavior. The main finding of the study is that objective literacy based on financial knowledge can play a protective role. This type of literacy allows individuals to understand that gambling is a loss-based activity in the long run and to assess risks more realistically. Conversely, when a person is overconfident in monetary matters, they may believe they can control everything, which can lead them to make riskier decisions. However, studies also show that the protective effect of financial literacy is limited. The psychological dynamics of addiction, emotional stress, and especially the constant and low-cost access offered by online platforms can prevent financial knowledge from translating into rational behavior. This situation becomes more pronounced for young user groups, where access to gambling and speculative financial risks in digital environments is increased. Furthermore, the financial consequences of gambling, such as loss of savings, debt, and inability to meet basic needs, have effects not only at the individual level but also at the family and societal levels. In light of these findings, it appears that financial literacy alone is insufficient to provide a comprehensive solution. The most effective approach is to adopt a multi-layered public health strategy that incorporates interventions strengthening individual financial skills, along with psychosocial support and structural adjustments.

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