Financial Education for Long-term Savings and Investments

Long-term savings and investments (LTSI) by individuals enhances their financial security while alsosupporting growth and financial development. Evidence shows that financial knowledge and skills are positivelyrelated to LTSI behaviour, and indicates a strong correlation between levels of financial literacy and retirementwealth accumulation. However, both the quantity and quality of LTSI are often worryingly low, pointing to animportant role for financial education to increase levels of financial literacy and thus improve LTSI amongindividuals.Evaluations of various types of financial education aimed at increasing LTSI have identified some promisingresults. Initial findings suggest the need for additional, targeted evaluation of education programmes to comparethe effects of different delivery channels and the intensity of provision in order to identify optimal approaches.More detailed research is also important to fully understand why some evaluations indicate mixed outcomes fromcertain programmes.

OECD Working Papers on Finance, Insurance and Private Pensions

Financial Education for Long-term Savings and Investments

Review of Research and Literature