New project studies how financial literacy will affect financial behaviors

– We study whether financially literate persons are less likely to fall into overindebtedness, and whether they are more likely to use insurance that can prevent them becoming overindebted, Kalmi explains.

– We also study whether financial literacy can be promoted through financial education and whether financial education interventions influence financial behavior.

Multidisciplinary study will be quantitative and will utilize survey and experimental methods. Researchers will collect a representative nation-wide survey data on financial literacy in Finland, which will for the first time provide internationally comparative evidence on financial literacy in Finland.

– We will use these data on direct comparisons with data on financial literacy from Estonia and Russia. This allows us to analyze the importance of cultural influences in financial literacy and behavior, tells Kalmi. The research begins this autumn.

Also targeted experimental inventions are carried out among young people as particularly vulnerable group to study whether financial education can reduce overindebtedness.

– Our results will have applicability in both developing public policies in promoting financial literacy and help both public authorities and financial service providers to design effective methods of financial education, Kalmi promises.

Research project is a collaboration with the University of Tampere. Total budget of the project is 521 000 euros, funded by the Academy of Finland.

Further information: Professor Panu Kalmi, tel. + 358 29 449 8528