“Our simulations show that endogenous financial knowledge accumulation has the potential to account for a large proportion of wealth inequality.”

Said another way, lack of financial literacy can explain a large portion of wealth inequality. Said another way, if you don’t know how to manage your money chances are you won’t have a lot of it.

Weakonomics was started almost five years ago. At the time one of my primary focuses was on educating people. I believed that financial literacy was a major problem. I still do. And while the topics on this blog have changed the need for people to learn about personal finance is just as important as ever.

It’s great that research is backing up what many already were thinking. What is needed is a plan to inject more financial literacy into the lives of people. If you have some thoughts, share them in the comments below.

Read: How Much Financial Inequality Is Due to Financial Illiteracy?

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categories: education, personal finance