Financial Literacy, Financial behaviour and Economic System

Abstract

Financial literacy measures how much one comprehends key money related financial concepts, through appropriate short-term decision making, so financial literacy is the essential information and that individuals need so as to make due in modern society. Financial literacy can be affected by environmental issues, such as regional differences and economic systems. The relationship between financial literacy and financial behaviour has been considered in a number of other studies, financial literacy is an important determinant of financial behaviour in developing countries, financial literacy is also associated with increased equity ownership, the use of low-cost mortgages, and retirement planning behaviour.

Keywords

• Financial literacy
• Financial Behavior
• Economic System