The Interactive Relationship Between The Global Financial Literacy Index And financial Inclusion

Abstract

AbstractFinancial literacy is a very important issue for developed countries, especially in the last two decades, because it is directly related to development programs and sound financial management. In contrast, many countries seek to deliver financial services to all individuals to create a conscious generation that possesses financial knowledge and financial access that makes it immune to financial exploitation. This study attempted to find out the effect of the global financial literacy index on the techniques of financial inclusion for several Arab countries based on the results of the global indicators for both variables. The study showed a clear weakness in adopting appropriate programs and techniques that were clearly reflected in the indicators results for those countries, and of course the results showed a strong and moral link and impact between them and most of the index countries. The study recommended paying attention to expanding the activities of the banking sector to include all groups of society in a way that enables individuals to leave the habit of keeping their money at home and go to the bank for its development.