Unit 11 : Basics of Financial Literacy and Preventing Debt Traps

Financial well-being and resilience are central to the OECD's advocacy for financial education. Financial literacy is considered a fundamental element of a holistic approach to supporting an individual's financial resilience and well-being, working in conjunction with improved financial access and adequate consumer protection.

✔️ Recognise common financial challenges and debt traps that negatively affect personal and societal wellbeing.
✔️ Apply basic financial literacy skills (budgeting, saving, responsible borrowing) to strengthen personal financial health.
✔️ Identify practical strategies—at individual, workplace, and community levels—for preventing debt and promoting financial wellbeing.
✔️ Reflect on real-world examples and explore how small financial actions contribute to stronger, healthier societies.

Unit 11: Basics of Financial Literacy and Preventing Debt Traps

  • 📝
    Learning Objectives
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  • 📝
    Introduction
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  • 📝
    Description of the Challenge
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    Lifestyle Factors and their Economic Impact
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    Social Pressures and Financial Decision-Making
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    Cognitive Biases and Misaligned Financial Preferences
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  • 📝
    The Crucial Role of Financial Literacy
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    Impact on Life Satisfaction and Societal Outcomes
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  • 📝
    Key Findings and Recommendations
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  • 📝
    Activities
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  • 📝
    Summary – Key Takeaways
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  • 📝
    Further resources
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  • 📝
    References
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