Financial education, with its focus on practical training and functional knowledge, can have a significant impact on promoting economic involvement and driving development. Especially for those without formal schooling, these education programs provide a means to develop essential skills for business and employment, independence, or family support. More than just imparting basic money management skills, financial education empowers people to make informed decisions and participate in local economies which further contributes to society (Garcia et al., 2013). In regions marked by economic disparities and gender inequalities, this knowledge afforded by this form of education emerges as a key element in building a more equitable society.

Developing Equality through Education:

Disparate economic standings significantly contribute to inequality, and knowledge is essential to change individual circumstances. It is astounding how basic literacy in financial matters can improve financial inclusion among the most vulnerable populations and contribute to the fight against socioeconomic and gender inequalities (Garcia et al., 2013). In this way it is easy to understand why financial literacy education, particularly in developing economies, directly contributes to multiple United Nations defined sustainable development goals, two of which are SDG 5 and SDG 10.

1. SDG 5 – Gender Equality: Financial education is pivotal in empowering women. By equipping women with the training to achieve financial literacy, they gain skills not only to open businesses but also to manage household finances and find financial independence (BBVA, 2020). This empowerment enhances women’s economic standing improving their ability to open and run businesses and manage finances effectively.  This is further translated into greater participation in the economy at large as well as within households, which is a key step towards achieving gender equality (BBVA, 2020).
2. SDG 10 – Reduced Inequalities: Financial education for adults, particularly those from underserved populations, addresses economic inequalities. Equipping these individuals with essential entrepreneurial skills and financial capabilities, the programs foster economic independence and create opportunities for upward social mobility, much as they do for women (Valerio et al., 2014). This kind of education directly contributes to a more equitable distribution of economic resources and opportunities.

Financial Education: Focus on Latin America

Recent data highlights the need for financial education in Latin America, particularly for women and underrepresented groups. For example, surveys in Brazil, Colombia, Ecuador, and Peru show that only 33% of women are independently making financial decisions, in contrast to 48% of men, with Ecuador at the highest level of disparity, 18% between men and women in this regard (CAF, 2022). These figures not only reveal existing inequalities but also illustrate the potential of such education programs to advance SDG 5 by empowering women in financial matters.

In addition to advancing gender equality, financial education programs can also foster economic stability and growth. A program in Peru and the Dominican Republic demonstrated how entrepreneurial training with financial education can lead to increased business revenue and personal savings among participants, a finding that supports the objectives of SDG 10 in reducing economic inequalities (Valerio et al., 2014). By addressing both poverty and lack of opportunity, these programs are not just educational; they are empowering tools for development.

The growing recognition of the positive impacts of financial education has led to the formation of the International Network on Financial Education (INFE). Comprising over 260 institutions, INFE is dedicated to developing research and policy tools to further enhance financial and entrepreneurial education (OCDE & CAF, 2020). Currently this network includes 51 public authorities in the Latin America and Caribbean (LAC) region (OECD, n.d.).

Latin American Countries Participating in the OECD/INFE

(Garcia et al., 2013)

Despite the promising impact there are notable gaps and challenges in these programs that include limited access in remote or rural areas, potential gender biases in program delivery, and the sustainability of funding sources. Additionally, the effectiveness of these programs can vary significantly based on regional economic conditions, cultural factors, and a lack of sufficiently measured outcomes (OCDE & CAF, 2020). Addressing these issues can ensure that programs meet the diverse needs of those who need such education the most and successfully provide access to financial knowledge and skill development. This educational approach takes a needed step towards diminishing inequalities and enhancing gender equality.

• Valerio, A., Parton, B., & Robb, A. (2014). Entrepreneurship education and training programs around the world: Dimensions for success. The World Bank.
• CAF. (2022, March). There is no Gender Equality without Financial Inclusion. CAF News. https://www.caf.com/en/currently/news/2022/03/there-is-no-gender-equality-without-financial-inclusion/​​.
• BBVA. (2020, February 17). To what extent does financial education influence gender equality? NEWS BBVA. https://www.bbva.com/en/sustainability/to-what-extent-does-financial-education-influence-gender-equality/
• OCDE/CAF. (2020). Estrategias nacionales de inclusión y educación financiera en América Latina y el Caribe: Retos de implementación. OCDE.
• Garcia, N., Grifoni, A., Lopez, J.C. and Mejía, D., (2013), “Financial Education in Latin America and the Caribbean: Rationale, Overview and Way Forward”, OECD Working Papers on Finance, Insurance and Private Pensions, No.33, OECD Publishing.
• OECD. (n.d.). Latin America and the Caribbean. OECD Financial Education. https://www.oecd.org/financial/education/oecd-cvm-financial-education.htm