UNOBSERVABLE CONSEQUENCES OF INCREASED FINANCIAL LITERACY
Alexander Auzan, Dean of the Faculty of Economics of Lomonosov Moscow State University
Vladimir Nazarov, Director, Financial Research Institute of the Ministry of Finance of the Russian Federation
Financial literacy programs change the financial behavior of the population and promote the financial stability of households. However, they can have a deeper impact on the economy, social processes and even the environment.
Some of these impacts are high profile: poverty alleviation, reduction of inequalities, including gender inequalities, improved quality of life and housing conditions, and some are less obvious.
For example, increasing savings means shifting some consumption from the present to the future, from a pre-energy transition world to a low-carbon future. This will reduce integral carbon dioxide emissions. Rationalization of consumption, rejection of disposability, reduction of "poor" (most often environmentally dirty) type of consumption also leads to significant reduction of both methane emissions and solid waste generation.
• What are the implications of improving financial literacy for the economy and society?
• How can financial education and enlightenment contribute to reducing poverty and inequality, including gender inequality?
• How do smarter financial behaviors and responsible attitudes toward public finances help build a more trusting society?
• How significant can the contribution of smarter consumption and increased savings be in reducing the carbon footprint, addressing other environmental issues?