It has been a decade since the worst financial crisis that led the global economy to its deepest brink of recession. This pervasive phenomenon has enormously affected the global financial markets, economies of emerging and developing countries, and human lives. Apparently, financial knowledge gaps prevail across countries based on the financial statistic report 2005 conducted by Global OECD, which means most people make poor financial decisions.
In these turbulent economic times, the world we live in requires people to be rational and make informed decisions about an array of complex financial scenario. To do so, it is important to improve one’s knowledge about basic economic and financial concepts to increase one’s level of financial literacy. Financial literacy, as defined by Dodaro (2011), is an individual’s ability to make sound judgments and to further come up with effective and practical actions regarding proper money management. In addition, the Organization for Economic Co-operation and Development (OECD, 2012) recognizes financial literacy as an essential step in improving an individual’s comprehension on financial products and contributing to their knowledge about risks,savings, investments and inflation, therefore allowing them to make safe financial decisions. It is also a useful financial tool to people of all income levels in eradicating knowledge gaps between spending and income. To date, one of the most serious issues income earners are facing is spending more than what they earn- a widespread problem that all income earners must put an end.