People with good financial literacy are less likely to worry about their retirement age. If one is equipped with the right knowledge on finance, he or she going to accumulate more stream of income in their lifetime. This will prepare them to sustain their lives for old age.
Hiroshima University's Associate Professor Yoshihiko Kadova and Nagoya University's Mostafa Saidur Rahim Khan came up with the study that led to these findings by conducting a survey across Japan on their calculation skills, intuition on pricing behavior, and knowledge on financial securities, Eureka Alert reported. The respondents were asked how much wealth they have accumulated and how they felt about their lives when they reach beyond the age of 65. This is the first study on financial literacy concerning people's feelings on old age, which makes it very useful for policy makes in developed countries with more ageing population.
The study found that Japanese society doesn't necessarily have high financial literacy. It also found that men are more financially literate than women. The main thrust of the study is that financially literate people will earn more money in their lifetime making them more confident in facing older age and whatever problems they will have in life.
The Untied States is celebrating April as Financial Literacy Month to increase financial knowledge among its citizens, Investopedia reported. Experts give three ways that can make financial literacy more effective and significant. This first advice is that everything changes including the economy, the financial industry, and an individual's financial situation.
Another advice is to start teaching real financial literacy beginning in college. Students should be taught how to handle debt, since it is in college that they are most likely to encounter for the first time student debt, credit card, and other liabilities. Finally, people should never stop learning about financial literacy, to keep up with the ever changing arena.
