Abstract
The financial crisis starting in the autumn of 2008 clearly highlighted the importance of improving consumers' financial literacy. In response, a number of countries have developed or significantly renewed national strategies for financial education. At the same time, considerable efforts have been exerted to increase the effectiveness of financial education programs, in terms of increasing reach to consumers in need for help and promoting positive behavioral change, both of which are expected to improve their financial well-being. To this end, rapidly growing field of behavioral economics offers a new perspective on understanding of consumers' financial decision-making, contributing significantly to identify mechanisms and incentives to encourage appropriate financial decision-making. Against this background, this paper offers a brief overview of the increasing need for integrating insights from behavioral economics to financial education, pursuing a new approach to improve the effectiveness of financial education.
