What Shapes Basic Financial Literacy? The Role of Gender, Education, and Financial Exposure

Abstract

Looking into what shapes basic money know-how, this work explores how traits like age, learning chances, and real-life money habits connect to understanding key financial ideas. Parental grasp of finances matters here, just as much as whether someone is male or female, has studied economics formally, thinks about prices or budgets regularly, or takes part in investing through markets. Data comes from a one-time snapshot using existing responses collected from 952 people. A standard score called the Basic_FLI tracks core financial awareness, making it possible to see links across different social backgrounds and schooling levels. Numbers guide the method, letting patterns emerge without forcing them. It turns out gender links closely to how well people understand money matters - the data shows it clearly. Instead of just adding up, those who took school courses in economics tend to know more, with gains between 0.209 and 0.295 across measures. Yet when parents are good with finances, their kids’ basic skills do not necessarily rise because of that alone. What stands out is how much classroom learning shapes early money knowledge. Even when accounting for background or schooling differences, gaps between genders still show up consistently. This work uses a uniform way to test core abilities, avoiding complex actions like investing, which helps spotlight what really influences beginner-level understanding. Because of this angle, groups involved in setting school plans or public rules might see where support should shift.