IDENTIFYING THE RELATIONSHIP BETWEEN MATHEMATICAL PISA SCORE AND FINANCIAL KNOWLEDGE
IDENTIFYING THE RELATIONSHIP BETWEEN MATHEMATICAL PISA SCORE AND FINANCIAL KNOWLEDGE

Summary/Abstract: Financial education is an essential component in making consumers more accountable, as it helps with the understanding of managing finances, with the purpose of avoiding risks and a possible financial exclusion. This is a key element in rebuilding consumers' confidence in the financial system. In the context of the effects of the financial crisis, European regulators are focusing on higher protection of the consumer regarding financial products and services. Considering that financial education and providing access to basic financial services represent national priorities, it creates a necessity to commence national programs, involving the state, with the purpose of reaching an appropriate understanding of the financial phenomenon. Financial education facilitates maintaining a financial balance, reinforces proper behavior regarding managing income and saving money/investing. The paper at hand shows that the mathematical PISA score impacts the level of financial knowledge.

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