Teaching financial literacy—key to preventing underinsurance
James Cook University researchers are calling for greater attention to financial literacy in schools after a new study found that people with a strong understanding of personal insurance were more likely to engage with insurance products.
James Cook University researchers are calling for greater attention to financial literacy in schools after a new study found that people with a strong understanding of personal insurance were more likely to engage with insurance products.
The short version
- This article has been reviewed according to Science X's editorial process and policies .
- The findings highlight the risk of underinsurance, with many Australians potentially vulnerable to unforeseen financial shocks.
- The research is published in the Pacific-Basin Finance Journal .
What happened
Tania Driver, a lecturer in financial planning at JCU, and associate professor Monica Jurin are the authors of the study. Driver said personal insurance was crucial for protecting households against financial risks, particularly households with dependents, debt and other financial obligations.
Why it matters
"Despite the advantages of these policies, particularly for those with substantial debt, underinsurance in Australia remains a significant concern, with minimal progress seen in uptake over the years," Driver said.
Summary by Nerd News Network. Read the full article at Phys.org via the links above and below.