In a rapidly evolving global economy, financial inclusion stands as a cornerstone of equitable growth and social stability. Yet, despite numerous initiatives aimed at broadening access to financial services, substantial segments of the global population remain excluded from participating fully in the financial ecosystem. A groundbreaking new study by Park and Yi shifts the lens toward education—more specifically, compulsory education—as a critical lever in fostering financial inclusion across diverse socioeconomic demographics worldwide.
Unlike earlier studies that have often centered on country-specific data and generalized financial literacy programs, this research zeroes in on the causal relationship between structured educational curricula at the secondary level and financial knowledge acquisition. Through a rigorous application of instrumental variable (IV) methods to global datasets, the study pioneers a quantitative framework that carefully isolates education’s direct influence on financial inclusion. This approach is particularly notable because previous work has frequently struggled to distinguish correlation from causation when investigating education’s role in financial behaviors.
The research distinguishes itself by separating educational attainment into two tiers: lower-secondary and upper-secondary education. This bifurcation allows for nuanced insights into how different stages within compulsory schooling impact financial access and inclusion, providing novel perspectives for policymakers attempting to refine education systems around the world. Such differentiation is crucial, as it challenges the notion of a "one-size-fits-all" approach and highlights the need to tailor educational interventions according to the developmental stage of students.
Moreover, the study delves deeply into the heterogeneous effects of education across various sociodemographic layers. By parsing data according to income levels, age groups, and gender, the authors unveil complex dynamics in how different segments of society respond to educational attainment when it comes to engaging with financial products and services. This granular analysis underscores the imperative for customized financial education policies, rather than universal prescriptions, marking an important step forward in addressing the persistent gaps in financial inclusion.
One of the study’s most compelling conclusions involves the explicit advocacy for making upper-secondary education compulsory on a global scale. The authors argue convincingly that such a policy would serve as a powerful equalizer, particularly benefiting marginalized groups who are often sidelined from financial markets due to insufficient educational access. Instituting this level of mandatory education has the potential to catalyze economic empowerment by equipping young people with the financial acumen necessary for navigating increasingly complex economic environments.
Despite the broad reach of compulsory education, the study reveals limitations in its efficacy, particularly with regard to older adults. The findings indicate that older populations do not derive the same benefits from compulsory schooling when it comes to financial inclusion. This phenomenon is attributed to several factors, including cognitive decline, the rapid diversification and digitalization of financial products, and the evolution of financial systems that older adults may find challenging to comprehend. Recognizing this, the study calls for the development of tailored financial literacy programs specifically designed for older demographics—initiatives that could draw upon the financial education curricula used in secondary schools, but adapted to adult learning contexts.
Gender disparities emerge as another crucial dimension addressed in the study. The authors pinpoint systemic obstacles preventing many women from completing upper-secondary education, often linked to childbearing responsibilities and societal norms. This insight has significant implications for social policy, emphasizing the need for proactive measures to remove these barriers and ensure that women receive equal opportunity to complete education that facilitates their financial inclusion. Educational strategies that embed gender equity can thus serve as a critical driver for narrowing the gender gap in financial participation.
Interestingly, the study notes that for individuals in the highest income brackets, lower-secondary education may suffice to achieve financial inclusion. This finding suggests a differential impact of education based on economic status, implying that exposure to economic activities and environments also plays a significant role in cultivating financial literacy. For economically advantaged groups, informal learning and life experiences may supplement formal education, enabling financial inclusion even without advancing to upper-secondary studies.
The research methodology relies on country-level data, which, while expansive, brings certain inherent limitations. The lack of individual-level longitudinal data means that the study cannot track how financial inclusion evolves as students transition into adulthood after completing compulsory education. Future research enriching this dimension could provide a clearer picture of how secondary education impacts lifelong financial behaviors and decision-making processes.
Historical context is also woven into the analysis, with examples from countries like Sweden and Norway, where upper-secondary education became compulsory several decades ago, versus nations such as Uganda and Malawi, where upper-secondary education remains non-mandatory. Such contrasts pave the way for comparative studies that could elucidate the socio-demographic effects of compulsory education on financial literacy, highlighting the efficacy of varying educational policies and reforms.
The authors also propose exploring second-chance education programs aimed at older adults who missed the opportunity for compulsory upper-secondary schooling in their youth. These programs could potentially remediate gaps in financial knowledge and enhance inclusivity among aging populations, especially in the face of rapid financial innovation and digital transformation.
An intriguing aspect left unexplored in this study—but suggested as fertile ground for future inquiry—is the role of informal financial education networks. The environments where individuals naturally acquire financial knowledge—such as families, peer groups, and community organizations—may substantially influence financial behaviors outside formal schooling. Particularly for marginalized or high-income groups with differing access to formal education, these informal channels might explain disparities in financial inclusion outcomes.
Remarkably, the study’s findings reveal why high-income individuals tend to enjoy a higher likelihood of financial inclusion despite lower formal education levels compared to other socioeconomic groups. This observation encourages further research into the mechanisms through which informal financial learning occurs and influences behavior, potentially challenging existing paradigms about education’s sole role in shaping financial literacy.
From a policy perspective, the research offers actionable insights. Advocating for the global adoption of mandatory upper-secondary education can be viewed as a strategic investment in human capital with broad-reaching economic returns. Additionally, the necessity of bespoke programs for older adults and focused interventions promoting gender equality within educational systems reflects an awareness of the multifaceted nature of financial exclusion.
In an era where digital finance and fintech innovations proliferate, understanding how education shapes financial inclusion is more critical than ever. The findings presented by Park and Yi contribute a methodologically robust, globally relevant analysis that can guide governments, educators, and financial institutions in sculpting policies and curricula aligned with the realities of diverse populations.
Ultimately, this research underscores the transformative power of education—both compulsory and lifelong—in leveling the financial playing field. It calls for a nuanced understanding of how different educational stages, socio-demographic factors, and informal learning environments jointly determine individuals’ ability to engage with and benefit from the financial systems that underpin modern economies.
Subject of Research: Causal relationship between compulsory secondary education curricula and financial inclusion across socioeconomic groups globally.
Article Title: Compulsory education enhances financial inclusion across socioeconomic groups: a global analysis.
Article References:
Park, E., Yi, S. Compulsory education enhances financial inclusion across socioeconomic groups: a global analysis. Humanit Soc Sci Commun 12, 695 (2025). https://doi.org/10.1057/s41599-025-04911-y
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