The need for financial education

Financial education is defined as the process by which consumers
Financial / investors improve their understanding of financial products,
concepts and risks, and through information, instruction and / or objective advice,
develop the skills and confidence to become more aware of the risks
financial and opportunity to make informed decisions, to learn
where to go for help, and to take other effective actions to improve
your financial well being. (OECD)
Financial education should be considered as a tool to promote
economic growth, confidence and stability. The promotion of education
Financial should not be a substitute for financial regulation, which is essential for protect consumers.

Importance
Surveys conducted in developed countries show that many people have
a very low level of financial knowledge and low awareness of the need to
financial education. In the United States (2000) survey reveals that less than
60% of high school students surveyed answered correctly tests
to measure the student's ability to choose and manage a card
credit, knowledge about saving and investing for retirement, awareness
risk and the importance of ensuring against it.
In Japan (2000) survey reveals that 71% of adults are not aware
on stocks and bonds, 57% have no knowledge of financial products in general
and 29% have no knowledge of insurance, pensions and taxes.
It is estimated that failure to improve public awareness on financial education
will present serious social and economic problems in the near future. The
combination of sophisticated financial products and the increasing responsibility
individual in making financial decisions that people need to carry a
cómolidiar better understanding of financial markets.
The Organization for Economic Cooperation and Development has reported
recently launched a campaign to improve financial education. The
OECD has recently published a set of principles and best practices for
financial education and awareness on this issue. These principles are
designed to promote the financial services firms and organizations

n consumers do more to educate citizens in this area