Financial literacy after all would not make the headlines, neither will it give me the next big story. But while I still believe financial literacy stories won’t land my by-line on the front page, I now have a much better appreciation of it, but more so in relation to behavioral economics, thanks to Rose Fres Fausto’s Why Financial Education Alone Does Not Work, a Crash Course on Behavioral Economics, a book I really enjoyed. It is, after all, no easy feat to put together a serious book on financial literacy and behavioral economics in a language that is easily understood, with matching illustrations and concrete examples. She also elucidates the very difficult subject of Behavioral Economics and adeptly connects this to why financial literacy is just a small part of the solution to one’s financial woes.”Rose, an investment banker turned full-time homemaker, takes off from the works of business school professors Daniel Fernandes, John Lynch Jr. and Richard Netemeyer on the effect of financial literacy and financial education on downstream financial behavior. Financial literacy, in industry parlance, is the ability to understand and effectively use financial skills, including personal budgeting, money management and investing.

Source: Philippine Star March 14, 2021 15:56 UTC